Seller Financed Home Loan

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How does the seller determine the rate?

The interest rate on a Seller Financed Transaction is negotiable. A seller can check with lenders and mortgage brokers to determine current rates on mortgage loans. 
Normally sellers do not charge loan fees or points therefore seller financed costs are generally less than a conventional home loan. 
Interest rates are reflected by current Treasury bill and certificate of deposit rates. 
Most sellers will not want to provide a loan for a lower interest than the market is offering. Interest rates the seller charges may be higher than those on conventional loans. Five to 15 year loans are usually acceptable.

How Do You Sell Your Home, Fast?

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How Do You Sell Your Home, Fast?

When the time comes to sell your home you will want to sell it as quickly as possible. You first move should be to find a qualified local agent that is familiar with the local market. You should also find a full time agent. You will need an agent that will take the time to do a CMA (Comparative Market Analysis) to get a solid listing price for your home. The more realistic your listing price is, the faster it should sell. Today, buyers do a lot of research on websites that show asking prices for homes based on what the property offers. Be prepared, most buyers are educated these days and know what a property should be worth. Also do not sell your home to a company offering a quick way out for way less than your home is worth! It is very important to list your home with a agent that will take great interest in getting your home sold. Listing a SALE BY OWNER usually ends up being a big mistake because of the knowledge that is needed to get a transaction to the settlement table. It can end up being a big waste of time and prolong the sale of your home!!

KEEP THE FOLLOWING USEFUL TIPS IN MIND:

To get to the settlement table quickly, I strongly suggest the following courses of action…..

  1. Curb appeal is so important. Keep the lawn cut, trim the bushes and keep the property edged and the weeds trimmed.
  2. Make sure that the front door is in good repair because that is the second thing that potential buyers are going to look at.
  3. Make sure that your home is clean and smells fresh. If you are having an open house, bake some cookies in the kitchen to have that wonderful aroma throughout the home if you have the time.
  4. Remove all clutter from the walkways and rooms, allowing the buyers to picture their belongings in your home. If there is clutter they have a hard time seeing past that.
  5. Remember that you shouldn’t overdue the upgrades. It is always best to speak with your listing agent to see what will get the best return on your money spent. Keep the color choices neutral if painting any rooms. Kitchens and bathrooms will draw the most interest, so make sure that they are presentable.
  6. Most of all listen to your agent! You hired them to provide you with a professional service and they are usually the most educated as far as pricing your property to get the best return!
  7. Make sure that your agent has the time to run open houses to get as many potential buyers through the property as possible. It is not always in your best interest to hire an agent that has many listings going on at one time!

Good luck in selling your home!

What You Need to Apply for a Mortgage

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With the housing crisis that we experienced 10 years ago, lending is most likely a bit different than it may have been the last time you applied for a mortgage. This is said not to scare you, as lenders are still lending, homes are still selling and there is still a wide range of programs for customers to choose from ( yes, there are even still programs with little to no money down for a mortgage). Contact George with any questions you may have.

 Needed Items for a Mortgage

Income Items

• W2 forms for the last two years
• Most recent pay stubs covering a 30-day period
Federal tax returns (1040’s) for the last two years, if:
~you are self employed
~ earn regular income from capital gains
~ earn sizable interest income, etc.
~ earn more than 25% of your income from commissions or bonuses
~ own rental property
~ or are in a career where you are likely to take non-reimbursed business expenses.
• Corporate or Partnership tax returns (if you own more than 25% of the business)
•Pension Award Letter (for retired individuals)
• Social Security Award Letters (for those on social security)

Asset Items

• Bank statements for previous two months (sometimes three) on all accounts. All pages, even if you don’t think they are important
• Statements for two months on all stocks, mutual funds, bonds, etc.
• Copy of latest 401k statement (or other retirement assets because they can count as reserves)
• Explanations for any large deposits and source of those funds
• Gift letter (if some of the funds come as a gift from a family member ~ the lender will supply a blank form).
• Additional documentation will also be needed to show transfer of gift funds

Credit Items

• Landlord’s name, address and phone number (if you rent for verification of rental)
• Explanation for any of the following items which may appear on your credit report: Late payments, credit inquiries, collections accounts
• Copy of bankruptcy papers if you have filed bankruptcy within the last seven years

Other

• Copy of purchase agreement (if you have already made an offer)
• Copy of divorce decree and separation agreement

FHA Loans

• Copy of Social Security Card (or other documentation of social security number)
• Copy of driver’s license

VA Loans

• Copy of DD214

 

 

What to Expect with a Home Inspection

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Buying a home is a major investment and you don’t want any surprises! A home inspection is your opportunity to have your new home checked out by an experienced professional before you by. You can find out about potential problems, request repairs or even get out of your contract if you discover significant problems.

Home Inspection Contingency Clause

A home inspection contingency clause gives you a safe way to get out of the deal if your home inspector finds major structural or mechanical problems. Your real estate agent can advise you on the proper wording, but make sure to request this contingency clause be included.

Who Pays for a Home Inspection

As the buyer, you are responsible for choosing a home inspector and paying for the inspection. The cost varies by location and the size of the home, but you can expect to pay approximately $300 to $500.

Should a New Construction Home have a Home Inspection

Even newly constructed homes should get a home inspection. Builders can make mistakes and a home inspection will help you catch them. You may have the option to bring in a home inspector for a pre-drywall check in addition to a post-completion inspection. This extra check is often worth the fee, since a home inspector may spot problems that would be hidden once the drywall goes up.

Choosing a Home Inspector

Keep the following in mind when selecting a home inspector…..

Certification

Look for an inspector certified through the American Society of Home Inspectors. Some states also require certification for home inspectors.

Experience

Look for a home inspector who is experienced in general contracting instead of a specialist in one field, such as an electrician or plumber.

The Report

Some home inspectors provide detailed reports, while others offer little beyond a basic checklist. Ash what will be included and how long the report will take.

Errors and Omissions Insurance

Ask your home inspector if they have errors and omissions insurance, which may protect you if the inspector misses a significant problem.

Plan to be at the Home Inspection

You will receive a report after the home inspection, but that is not the same thing as being there to see the process yourself. Plan to shadow the inspector, ask questions and take your own notes.

 

 

Important Real Estate Agent Traits

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Important Real Estate Agent Traits as stated by Brightwood College back in 2015.

The business of Residential Real Estate has many different players, including appraisers, home inspectors, property managers, contractors, bankers, mortgage loan officers, and government agencies, as well as prospective buyers and sellers. But, the workhorses of the typical real estate transaction are the people that coordinate the process—the real estate agents and brokers.

A good real estate agent is similar in nature to a conductor of a symphony, coordinating the different players to make a successful transaction a reality. At different points in the process, the real estate agent is a salesperson, a buyer’s advocate, an analyst, a business manager, a consultant, a negotiator, and a marketer, just to name a few. We have found there are a number of qualities and traits that successful real estate professionals share.

George Bittner possesses the Important Real Estate Agent Traits to get your transaction successfully completed.

• Great attention to detail

• Knowledge of the Real Estate Market and the desire to keep up with changes in the market

• Ability to solve problems that may arise

• Lives by a high standard of honesty and integrity

• Has a network of contacts in the Real Estate Industry

• Hard work ethic

 

Buying a Home Important Steps

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Buying a home or property is a big investment.

Before you make a move forward in purchasing, make sure you are prepared.

Important Steps to Buying a Home:

Buying A Home / Strengthen your credit score…..

Keep balances low on credit cards and other “revolving credit“. High outstanding debt can affect a credit score. Pay off debt rather than moving it around. The most effective way to improve your credit scores in this area is by paying down your revolving (credit cards) debt.

Buying A Home / Figure out what you can afford as a mortgage payment…..

Your gross monthly income is very important! You need to analyze your monthly income, expenses, and future property taxes and insurance to estimate the mortgage amount that would best fit your budget.

If you make $80,000 a year, you should be looking at homes priced between $240,000 to $320,000. You can further limit this range by figuring out a comfortable monthly mortgage payment. To do this, take your monthly after-tax income, subtract all current debt payments and then multiply that number by 25%.

The golden rule in determining how much home you can afford is that your monthly mortgage payment should not exceed 28 percent of your gross monthly income (your income before taxes are taken out).

Buying A Home / You will need down payment, closing costs…..

The down payment is the cash portion of the purchase price that you use to buy a home. … Closing costs are the fees that you pay to purchase the property including loan fees, recording fees, taxes, documentation charges and title insurance. Down payments vary on the loan type.

You can generally expect the total Closing Costs to be between 1 and 5% of the price you are paying to buy your home. Payment for closing costs can sometimes be financed with your loan, in which case it will be subject to interest charges. Alternatively, you can pay your closing costs in cash, similar to your down payment.

Buying A Home / Build a healthy savings account…..

Pay yourself first! Set aside money for savings at the beginning of each month, rather than waiting to see what’s left at the end. Decide on a percentage of your monthly income (for example, 5-10%) to direct deposit or transfer into your savings account.

Buying A Home / Get pre-approved for a mortgage…..

When you are pre-approved for a mortgage, it means a lender has looked closely at your credit reports, your employment history, and your income — and has then determined which loan programs you qualify for, the maximum amount you can borrow and the interest rates you will be offered.

A mortgage pre-qualification can be useful as an estimate of how much you can afford to spend on your home, but a pre–approval is much more valuable because this means the lender has actually checked your credit and verified your documentation to approve a specific loan amount for a specific length of time.

Buying A Home / Buy the house you like and fits your everyday needs…..

Before you start looking for a home you must first define and choose the type of life you want to live.

You’re the one who will be living in this home every single day, living in this neighborhood, living this lifestyle day in day out. Is it the right fit for you and your family? We want you to be happy with all of it, and that starts with what YOU want.

This self-analysis at the very start should hopefully lead you to the right home purchase for you and your lifestyle (and yes, budget!).  It’s important to ask yourself questions that dig deeper than the traditional “How many bedrooms you would like in a home?” questions. Your honest answers to more revealing questions that delve into more detailed aspects of your needs and desires are what should drive your home search.