Tips For Your Real Estate Finance and Investment Strategy

September 2, 2010 by admin  
Filed under Real Estate Financing

You may have decided you would like to start investing in property but you are not exactly sure how to go about it. One thing you should do before you begin is to research the financing options that may be available to you.


Most people, when they first begin their endeavor with property investing, find that financing is their only means of purchasing property. The following is some information regarding real estate financing and investment strategy that may be beneficial to you.


When you hear the term “leverage” applied to real estate financing and investment, you will find that this term simply means to use borrowed money for financing your property investment. Your initial investment will be the money that you use for a down payment.


In order for this leverage to be beneficial in your real estate finance and investment strategy, you will want to secure the borrowed money at a low-interest rate and make sure the term of the loan is over the longest period of time that is possible. This is to avoid yourself from being tied up in the property and having least money for your own or other investment usage.


You do have to remember, however, that the risk of your investment is tied in directly with leverage. If you place a small down payment on the property, the leverage is high and the ratio of the amount owed to the value of the property is high, making the property a high risk. The more money you put as a down payment on the property, the lower the leverage and the lower the risk.


Many, in their real estate financing and investment strategy, use pyramiding to acquire more properties. What this simply means is that you are using the equity on one property to help you purchase another.


For example, you purchase a property for $100,000 by making a down payment of $20,000 and borrowing $80,000. The properties value at the time of the purchase is $110,000. Six months later, you have a positive cash flow of $1,000 a month on the property and its value has increased by $40,000 due to your renovations. You now have equity of approximately $70,000 or more in the property.


You take out a home equity loan of $30,000 and this is used for the down payment of another investment property. This is also known as pyramiding and is a real estate finance and investment strategy used by many.


Pyramiding through sale is also another real estate finance and investment strategy used by many, as well. In this method, when your property’s value has increased, you sell instead of taking out a home equity loan.


In the example above, if the same property was sold for its value of $150,000, you would use the money to pay off the initial loan of $80,000, deduct your initial investment of $20,000, what you have paid in interest and principal, as well as the cost of renovations, to discover you’ve made a profit of approximately $25,000 to $30,000 in a matter of a six-month period. This money can then be used as a down payment on another property.


Before you begin investing in property, it is crucial to understand what real estate finance and investment strategy you plan to use. However, it is also important to understand that property investment comes with risk. Research the facts and figures before you make any decision with your real estate finance and investment strategy.

Get Your Real Estate Investment Guide for Your Success Now. Learn More About Fundamentals, Financial Model and Investment Tips of Property Investment. Find Out Which Real Estate Investment Strategy Gives You Good Return.

Income, Credit & Home Loans: Buying a House : Private Mortgage House Insurance (PMI) Tips

September 2, 2010 by admin  
Filed under Buying A House

Private mortgage insurance (PMI) tips & how it can determine how much house you can afford. Find out how in this video on buying a home.Expert: Brett Staggs Bio: Brett Staggs has been working in the mortgage industry for the past 6 years. He has worked for a title company, a credit reporting company, and two major banks. Filmmaker: Dana Glover

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Gilbert Homes For Sale – Five Helpful Tips Before Buying a House

September 2, 2010 by admin  
Filed under Buying A House

For most, buying a house is a dream come true. Finally, they get the chance to have their very own place.

However, buying a house is unlike buying any commodity in the store. It does not only involve picking a brand, paying for it and taking it with you. Although the concept is the same, purchasing a house can be very difficult. You have to pay attention to details and make your research about the house.

To help you acquire one of those Gilbert Homes for sale with ease check out these tips:

1. It is important that you determine your budget first. How much are you going to pay for the house? How much mortgage are you going to get? Determining your financial capacity will prevent you from checking houses you cannot afford. You can rest assured that the houses you will see are within the price range suitable for the kind of income you are generating. This will also allow you to manage the expenses better to avoid foreclosure in the future.

2. Once you have your price range, you can consult a sales agent. Having a sales agent to assist you will make your search for a house easier. They are aware of various houses on sale and they can present you with the properties that are within your budget. If you are unsure with the first house, they can immediately present a new option for you.

3. When you finally see a house that you like and within your budget, do not get too excited and close the deal. Make sure that you check the neighborhood first. Will the neighborhood provide security? How long will it take you to reach your office? How far is it from the kids’ school? Is water a problem, how about power? It is important that you know these things because these factors will help you have a more comfortable life.

4. If the location appeals to you, ask a professional to inspect the house. Many skip home inspection because they say that it is just an added expense. However, inspecting the house can save you from a lot of trouble. The inspector will check all areas of the house. He will be able to uncover any problems. You can settle this with the seller by either adjusting the price or asking him to repair it. Home inspection is applicable even to new houses. Therefore, even if it were from Gilbert Homes for sale, it would be better to have a home inspector check it.

5. Finally, finish all the paper works needed for the transfer of ownership. You do not want to have problems concerning these documents in the future.

In order to avoid having problems when you purchase a house, make sure that you know what you are buying. Check the house that you can afford. You can ask a sales agent to help you find the right house however, do not forget to check its environment and the house itself before you close the deal.

Chris Turley is an expert and professional real estate agent that will help you to find the perfect home that better fits your needs. For more information on Gilbert homes for sale, please go to http://www.ourbestrealestate.com.

Real Estate Financing – Tips For New Or Not-So-New Home Buyers

September 2, 2010 by admin  
Filed under Real Estate Financing

This year alone, Americans are expected to borrow about $1.33 trillion in acquiring 7.4 million houses, condominiums and co-ops. Real estate financing has its secrets and you’ll gradually learn them by continuing to research everything you can find online and offline about home mortgages, mortgage loans, commercial mortgages or investment mortgages, current interest rates and get quotes when you can too. Before you apply for any real estate financing, if you have a lot of bad credit because of consumer debt for credit cards or personal loans, you’ll want to try to eliminate or reduce this debt. It may affect your ability to qualify for a home mortgage and make the estimated monthly payment.


An adjustable rate mortgage may be a good choice if the market is good or appears to be good for a few years, because on the average, most people move or refinance within seven years. But interest rates can go up if a rosy picture is painted that the economy is flourishing – like more jobs being available. This can lead to inflation, which will send the interest rates up. Finding the best loan program for your needs depends on a number of factors, including: how long you think you’ll stay in the home, how much money you have to put down, how you’ll finance the closing costs.


When financing real estate it’s important to know that a low FICO credit score does not always mean you won’t qualify for a home loan or home mortgage. 30-year fixed-rate mortgages offer consistent monthly payments for all of the 30 years you have the mortgage and if the market is good, you can benefit from locking in a lower rate for the full term of the loan. If you’re having a problem getting a home mortgage and the seller still owes money on the home, you can check with your lender and see if you can get a wraparound mortgage. Although it’s not legal in all states, it will allow you to pay the monthly payment on the existing mortgage and an additional payment to pay the difference, but make sure that a wraparound mortgage will not trigger a due-on-sale clause.


An adjustable-rate mortgage (called ARM) means that the interest rate changes over the life of the loan, according to terms that are specified ahead of time. If you’re having a problem getting a loan or home mortgage why not consider a lease-option on a property. A lease-option on the real property will allow you to set a good purchase price now, and then apply a portion of the rent each month toward your down payment, building up equity in the process.


Borrowers can submit information to the lender about income, assets and equity to determine how much a down payment should be, which is usually processed through an automated underwriting system.


And keep in mind that adjustable rate mortgages are best for homeowners who aren’t planning on staying with a property for a long time. A fixed-rate mortgage means the interest rate and principal payments remain the same for the life of the loan but the taxes will probably change. People usually are not aware that they may be able to customize their loans. Just ask the mortgage broker or lender if this is possible. Although lenders advertise 15-year loans and 30-year fixed rate mortgages, applicants can ask for 20 years, 25 years or any other number of years that may be more suitable. This may allow borrowers to build up equity faster but keep their monthly payments affordable.


The 30-year loan could be your best choice if you’re looking for a long-term stable loan, for instance, if you’re planning to stay in your house for a long time. Some lenders may impose limits on how much of your down payment can come from money borrowed from other sources. The disadvantages of a fixed-rate mortgage compared to an adjustable rate mortgage include a possibly higher cost. These loans are almost always priced higher than an adjustable-rate mortgage.


A range of mortgage options are available. Some home loans require little money down. And if you’re on a fixed income, an adjustable rate mortgage, especially a short-term ARM, may not be your best choice.


Also keep in mind that low credit scores do not mean you cannot buy a home or other real property. Continue to explore the options and you’ll come up with the best real estate financing. And thinking positive about real estate financing is important but so is being realistic. Make sure you can make the mortgage payments for a reasonable length of time to build up plenty of equity, so if you do get sick or lose your job you can easily sell your house or any other real property before you get into a foreclosure situation; try to plan ahead.

For more information on bad credit real estate financing and finding the best home or commercial loan or mortgage go to http://www.Real-Estate-Financing-Tips.com a real estate broker’s website specializing in real estate financing tips, help, quotes and resources including refinancing and creative financing

Real Estate Financing – Home Mortgages – Time Tested Tips

September 2, 2010 by admin  
Filed under Real Estate Financing

You don’t want to jump into anything blindly or sign a real estate contract or home mortgage loan contract or any type of contract without giving it some serious thought. Watch out for anything that appears to be vague. You want to keep in mind when financing real estate that lenders will be able to tell you only what you might be able to afford based on your current not future salary and level of debt including your credit card debt. First of all you’ll need to find a lender for your real estate financing and potential residential, home or other type of investment.


The real estate financing situation for each buyer is going to be different of course. A 20-year fixed rate mortgage term will mean higher payments, when compared to a 30-year fixed-rate mortgage. The advantages of a fixed-rate mortgage include consistent principal and interest payments, which will make this loan stable – your rate won’t change; a good choice if you’re likely to stay in the house for a long time.


And if you have less-than-perfect credit or a ‘bad credit’ credit report don’t be too concerned about it. The disadvantages of an adjustable rate mortgage include the possibility of increasing monthly payments if interest rates go up and over the years this has happened many times and people have lost their homes. If you’ve applied to several lenders, when you finally do select a good lender you may have to explain why there are other inquiries from lending institutions on your credit report.


The disadvantages of a fixed-rate mortgage include the possibly higher cost. These loans are usually priced higher than an adjustable-rate mortgage. With adjustable rate mortgages the initial interest rate is usually lower than with a fixed-rate mortgage so the monthly payment would also be lower. An adjustable rate mortgage could be a good choice because on the average, most people move or refinance within seven years, but be aware of the fluctuating interest rate.


If the rates in the current market are high, you’ll probably get a better price with an adjustable-rate loan. Any money you receive from a lending institution will show up on your credit report and your payments will factor into your debt-to-income ratio. And a good or bad FICO credit score is not a requirement for most conventional or government loans like FHA loans or VA loans.


Reminder – an adjustable-rate mortgage (called ARM) means that the interest rate changes over the life of the loan, according to the terms specified ahead of time. Your income and debts will typically play the biggest roles in determining what price range you can afford when buying a house. Insiders know that the advertised mortgage rates you find are not always what you’ll get from the lender – it could be fluctuations in the market, good or bad economic news, any other of a dozen reasons, but interest rates can change even throughout the day.


A range of mortgage options are always available and some loans require little money down. And if you’re on a fixed income, an adjustable rate mortgage, especially a short-term ARM, may not be your best choice.


Keep in mind that low credit scores do not mean you cannot buy a home or other real property; continue to explore the options and you’ll come up with the best real estate financing. Ask other homeowners what real estate and mortgage problems they’ve encountered – everyone has stories to tell. Rates can change fast, one way or another, day by day; this is true for residential, commercial and investment real estate financing. Always get the most current interest rate quotes. The rate won’t last long.

For more information on bad credit real estate financing and finding the best home or commercial loan or mortgage go to http://www.Real-Estate-Financing-Tips.com a real estate broker’s website specializing in real estate financing tips, help, quotes and resources including refinancing and creative financing

Tips For Understanding Real Estate Financing

September 2, 2010 by admin  
Filed under Real Estate Financing

You can begin your real estate financing education by asking friends, family, co-workers, real estate agents, real estate brokers, mortgage brokers and real estate professionals for help and search the Internet for local lenders and get current interest rate quotes. First of all you’ll need to find a lender for your real estate financing and potential residential, home or other investment. Keep in mind when financing real estate that the lenders will be able to tell you only what you MIGHT be able to afford based on your salary and level of debt including credit card debt.


Most adjustable rate mortgage programs do offer “rate cap” protection, which limits the amount the rate can be increased, both each year and over the life of the loan; all adjustable rate mortgages are amortized over 30 years. An adjustable rate mortgage may be a good choice because on the average, most people move or refinance within seven years. The FICO credit score is just one of many myriad factors that are considered in loan or mortgage applications; although it’s taken into account there are no minimum scores expected.


The 30-year loan is your best choice if you’re looking for a long-term stable loan; for instance, if you’re planning to stay in your house for a long time. A fixed-rate mortgage means the interest rate and principal payments remain the same for the life of the loan but the taxes may change. Interest rates can go up if a rosy picture is painted that the economy is flourishing – like more jobs being available; this can lead to inflation which will send the rates up.


Loan programs for down payments of 20% or less require you to purchase Private Mortgage Insurance (PMI). If you have a less-than-perfect or a ‘bad credit’ credit report don’t worry too much about it. A 20-year fixed rate mortgage term means higher payments, when compared to the 30-year fixed-rate mortgage.


If you’re buying a second home or second property, you’ll need to identify the sources for your down payment, since you will not be selling your current house and using the proceeds, and you’ll need to expect a larger monthly payments for housing or other expenses too. Your income and your debts will typically play the biggest roles in determining your house price range. Borrowers can submit information about income, assets and equity to determine how much a down payment should be, which is usually processed through an automated underwriting system.


Usually an adjustable rate mortgage is the best choice for homeowners who are purchasing their first home and plan to be in the property for just three to five years or for those people who plan to relocate in that period of time. Insiders know that the advertised mortgage rates you find are not always what you’ll get from the lender; it could be market fluctuations, economic news, any other of a dozen reasons, but interest rates can change throughout the day. If you’re having a problem getting a loan or home mortgage consider a lease-option on a property; a lease-option on the real property will allow you to set a good purchase price now, and then apply a portion of the rent each month toward your down payment, building equity in the process.


A range of mortgage options are available; some loans require little money down. You’ll also need to consider closing costs and the escrow account for taxes and insurance.


Before you finish any real estate financing read every real estate contract and loan or home mortgage contract thoroughly before you sign on the dotted line: every line is important – look for anything vague; don’t be afraid to question what you don’t understand. As I may have mentioned, rates can change fast, one way or another; this is true for residential, commercial and investment real estate financing – get current interest rate quotes–today’s rate. Make sure you can make the mortgage payments for a reasonable length of time to build up equity, so if you do get sick or lose your job you can easily sell your house or other real property before you get into a foreclosure situation; try to think ahead.

For more information on bad credit real estate financing and finding the best home or commercial loan or mortgage go to http://www.Real-Estate-Financing-Tips.com a real estate broker’s website specializing in real estate financing tips, help, quotes and resources including refinancing and creative financing

Real Estate Financing Tips You Can Use Today

September 2, 2010 by admin  
Filed under Real Estate Financing

One of the first steps to take before you start looking for your dream home is to ask yourself what you can afford to spend on a monthly house payment. Ask real estate agents, real estate brokers, lenders and any other real estate professional you know any questions you have about real estate financing, home mortgages, home loans, commercial mortgages, refinancing and current mortgage rates and get quotes, even if you have bad credit; you can learn a lot in a short period of time. Bit of trivia- this year alone, Americans are expected to borrow $1.33 trillion in acquiring 7.4 million houses, condominiums and co-ops.


Some lenders may impose limits on how much of your down payment can come from borrowing from other sources. Make sure to get an estimate of your real estate financing closing costs from the lender you’ve chosen; by law, the lender is required to provide his statement to you within three days of receiving your loan application. Most of all you’ll need to determine what price range you can afford to buy in.


Loan programs for down payments of twenty percent or less require you to purchase Private Mortgage Insurance (PMI). When financing real estate it’s important to know that a low FICO credit score does not mean you won’t qualify for a home loan or home mortgage. 30-year fixed-rate mortgages offer consistent monthly payments for all of the 30 years you have the mortgage; if the market is good, you can benefit from locking in a lower rate for the full term of the loan.


If you’re on a fixed income, an adjustable rate mortgage, especially a short-term ARM, may not be always your best choice. People usually are not aware that they may be able to customize their loans; just ask the mortgage broker or lender; although lenders advertise 15-year loans and 30-year fixed rate mortgages, applicants can ask for 20 years, 25 years or any other number of years; this may allow borrowers to build up equity faster but keep monthly payments affordable. Your income and your debts will typically play the biggest roles in determining the house price range you can afford.


Insiders know that the advertised mortgage rates you find are not always what you’ll get from the lender; it could be market fluctuations, economic news, any other of a dozen reasons, but interest rates can change throughout the day. 20-year fixed-rate mortgages allow you to make a consistent higher monthly payment throughout all of the 20 years you have the mortgage; the shorter term means you pay the loan off quicker and therefore pay less interest and build equity faster than with a 30-year loan. If you’re buying a second home or second property, you’ll need to identify the sources of your down payment, since you’ll not be selling your current house and using the proceeds, and you’ll need to expect a larger monthly payments for housing or other expenses too.


If you’re a first-time home-buyer it’s possible that you may qualify for a lower down payment or lower interest rate; check with mortgage brokers, online mortgage companies, your county housing department or your employer to see if they know of any programs available. There are plenty of good options that are ideal for those who have a few bad credit marks on their credit report. A range of mortgage options are available; some loans require little money down.


The FICO credit score is just one of many factors that are considered in loan or mortgage applications; although it’s taken into account there are no minimum scores expected. Finding the best loan program for your needs depends on a number of factors, including: how long you’ll stay in the home, how much money you’ll put down and how you’ll finance the closing costs.


Make sure to take your time, study all the resources available online and offline and get lots of advice from several mortgage and real estate brokers and professionals before you do any real estate financing or investing. Ask other homeowners how they’re doing and what real estate and mortgage pitfalls to avoid. And whatever you do don’t get yourself into a situation where you can’t make the mortgage payments; think far, far ahead.

For more information on bad credit real estate financing and finding the best home or commercial loan or mortgage go to http://www.Real-Estate-Financing-Tips.com a real estate broker’s website specializing in real estate financing tips, help, quotes and resources including refinancing and creative financing

Quick Tips on Selling a House in Houston

September 2, 2010 by admin  
Filed under Selling A House

www.quickhousebuyer.com Quick Tips on Selling a House in Houston. As a homeowner aiming to sell your house fast, you may ask why some houses have a number of viewings after its first week on the market, and similar ones seems to be left behind with no attention? Knowing the basics of selling a house in Houston helps to ensure you will take that contract as soon as possible. Get more tips and get a quick sale with no hassles, so you can put your worries behind you.

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Best Real Estate Financing Tips To Save You Money

September 2, 2010 by admin  
Filed under Real Estate Financing

Whether you’re seeking a home mortgage for the first time or you’re a seasoned buyer, you want to save every penny you can. Often people don’t realize they can save money on their real estate loans by doing some comparison shopping, which I’ll get to further on in this article.


You want to keep in mind when financing any real estate that lenders will be able to tell you only what you MIGHT be able to afford based on your salary and level of debt including your credit card debt. And what seems like real estate financing mumbo-jumbo when you first start out will gradually make sense to you. Besides being the average person’s biggest lifetime financial transaction, buying or selling a home is one of those areas where mistrust and misconceptions can easily be present.


An adjustable rate mortgage only sometimes may be a good choice because on the average, most people move or refinance within seven years. Now if you have a less-than-perfect or a ‘bad credit’ credit report, don’t worry too much about it because with some lenders it isn’t going to influence them. Finding the best loan program for you depends on a few things including: how long you think you’ll stay in the home, how much money you plan to put down and how you plan to finance the closing costs.


Your income and your debts will typically play the biggest roles in determining the price range of the house you can get approved for. Now some of the advantages of adjustable rate mortgages include: lower costs – because they’re usually priced lower than fixed-rate mortgages so you can increase your buying power and lower your initial monthly payments. If the interest rates go down, you’ll have lower payments, but if the interest rates go up you could be headed for a problem if you’re just getting by. You don’t want to get in a foreclosure situation.


You might want to consider buying a house in a lower price range where you don’t have to struggle whether or not you have an adjustable rate mortgage or a fixed rate mortgage. You may not want to take a step down to do this but you will be less stressed about making monthly payments and you’ll be accruing appreciation on your property. Then after a couple of years or so you can re-evaluate and then step up to a higher priced property if you can do it. It also may give you some time to time to pay off some debts that have accumulated.


Now if you get turned down for any reason you can submit a mortgage application several times; it’s not uncommon for this to happen either. There are many competing lenders now for your business and they will look for ways to get you the real estate financing you need many times.


If you’re having a problem getting a home mortgage and the seller still owes money on the home you can check with your lender and see if you can get a wraparound mortgage; although it isn’t legal in all states, it will allow you to pay the monthly payment on the existing mortgage and an additional payment to pay the difference; make sure that a wraparound mortgage will not trigger a due-on-sale clause and make sure you can afford to do it.


A FICO credit score, good or bad, is not a requirement for most conventional or government loans such as FHA loans or VA loans. And if you do borrow money for a down payment it must be disclosed to the lender or if any of your money for your down payment was a gift, you have to provide proof for it. Know that any money you receive from any lending institutions will show up on your credit report and your monthly payments will factor into your debt-to-income ratio


Most adjustable rate mortgage programs offer what is called “rate cap” protection, which limits the amount the rate can be increased, both each year and over the life of the loan, double check with your lender on this. All adjustable rate mortgages are amortized over a 30-year period.


Check with your CPA before you buy to make sure your property taxes are deductible. Also find out from your CPA or other financial advisor what other real estate financing expenses can be deducted when you file your income tax return in a few months. Knowing what deductions you can take may free up more for your income tax refund which you can apply to future loan payments or pay off debts.


Now if you get a 20-year fixed rate mortgage term it will mean higher payments, when compared to the more common 30-year fixed rate mortgage and you may not be able to swing it if this is your first home or job security isn’t there. So don’t get in over your head on this. Going the safer route is always the better way to go.


20-year fixed-rate mortgages allow you to make consistent higher monthly payments throughout all of the 20 years you have the mortgage; the shorter term means you pay the loan off quicker and therefore pay less interest and build equity faster than with a 30-year loan, BUT you need to know you have complete job security or a sure way to make the payments. It’s better to be careful and opt for the 30-year loan even though you can save a lot of money with a 20-year loan.


A fixed-rate mortgage means the interest rate and principal payments remain the same for the life of the loan but the taxes will probably change. Your taxes may be written into the monthly payment or paid separately and sometimes you have no choice over this. The lending institution may be the final word on how the taxes are going to be paid. Home loan borrowers can submit information about income, assets and equity to determine how much a down payment should be, which is usually processed through an automated underwriting system.


One good way to save money on points, that is not commonly known, is that if you check around you can find real estate companies that have their own mortgage companies, sometimes in the same building. They often will shave off a point or more on your home loan if you buy from their real estate company and save you some money there.


Make sure you call around to several lenders or mortgage brokers before you apply for a home loan to get an idea what points and other fees they would be charging you. This can vary quite a bit. Some charge more points than others. Make sure you go with a quality lender however.


Work with your mortgage broker or lender to develop an individual loan or mortgage program based on your credit worthiness. And whatever you do don’t get yourself into a situation where you can’t make the mortgage payments; think far ahead. Thinking positive about your future and how it relates to your real estate financing is important but you must be realistic. Also don’t be afraid to ask a few real estate agents if they know of any tips to save you money when you go for a home mortgage and what to avoid. Ask homeowners how they’re doing, how they’ve saved money on their loans and what real estate and mortgage pitfalls to avoid too.

For more information on bad credit real estate financing and finding the best home or commercial loan or home mortgage go to http://www.Real-Estate-Financing-Tips.com a real estate broker’s website with real estate financing tips, trade secrets, help, quotes and resources including refinancing and creative financing

Home buying tips: How to buy a house

September 2, 2010 by admin  
Filed under Buying A House

www.howdini.com Home buying tips: How to buy a house First time home buyers have a million questions, and luckily, CNN financial editor and author Gerri Willis has a million answers. Here’s what you need to know before you buy a home. Keywords: buy a house home buying tips how…

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