I M Almost Ready To Buy A Home What Should I Do Real Estate Financing Ten Ways Invest In Real Estate But Where Rrsp Home Buyers Plan Helps Canadians Buy Homes Finding Buyers For Investment Properties
Well, the first thing you should do before you shop for your new home is to get a copy of your credit report and credit score! You can obtain a copy of your credit report and score from one or all of the three credit bureaus: TransUnion, P.O. Box 2000, Chester, PA.19022,800-888-4213,www.transunion.com; Equifax, P.O. Box 740256, Atlanta, GA. 30374, 877-784-2528 ,www.equifax.com; Experian, P.O. Box 2104, Allen, TX. 75013, 888-397-3742 ,www.experian.com. You may even consider ordering a three in one credit report to see what each credit bureau is reporting about you.
You’ll want to review your credit report for any potential problems that will need to be cleared up before you start shopping for your home. You don’t want any surprises when you complete your home loan application. So, it’s important to be proactive about getting your credit report first!
After you have secured your credit report, the next step for you to consider when preparing to purchase a home is to get pre-approved for your home loan. That’s right, get pre-approved for your home loan not pre-qualified, there’s a big difference! Getting pre-approved for your home loan means that you have obtained approval from your chosen lender to pay a certain amount for the home you are about to purchase.
Basically, pre-approval means you already have your money for your home purchase and have the ability to negotiate a better deal with the seller because you have the funds to purchase quickly. A pre-qualification doesn’t have much clout, because you have not secured approval of your home loan from a lender. A pre-qualification is that you may qualify for a home loan. So, do your research and secure pre-approval of your home loan from a lender of your choice before you start shopping for your home!
As you look for your home, you may want to choose a buyer’s agent to represent you for your home purchase. Remember, the sellers agent represents the seller and not you the buyer! That means that whatever offers you make or whatever you tell the sellers agent for the most part must be relayed to the seller. For example, if you tell the sellers agent that you could pay up to $200,000 for a particular property but relay a bid of $180,000 directly to the agent for the seller, the agent usually has a duty to tell the seller that you would pay up to $200,000 for their property. This would leave you with no room for further negotiations of the purchase price to the seller. So, consider getting your own buyer’s agent that will represent your interests for the home you are trying to purchase. Consider getting a buyer’s agent that will split or get a portion of the real estate commission for the home sell with the sellers agent so you’re not stuck paying a commission fee directly.
If you’re interested in purchasing a brand new home, it is recommended that you have your own buyer’s agent representing your own interests and not the agent who represents the builder! In most cases, you will find that the terms of the contract for the purchase of the new home presented by the builder’s agent, is one sided and may not protect your interest! So, get an agent that will represent you for your new home purchase. You will find that you may have a better peace of mind during the purchase of your home.
Buying a home is probably the most expensive purchase you’ll make in your lifetime. It’s also one of your bigger investments for your future. So, it’s important that you do your research before you buy and take precautions that will make your home purchase easy going, less stressful and carefree! So go ahead, get started on your home purchase today!
Do you remember when real estate financing meant you saved up enough to put 20% down on a house, and then you got a mortgage loan for the other 80%? Well, you can still do that, but there are many more options now. Here are ten of them.
1. Gifting programs. In some parts of the country, builders fund foundations that give you a portion of the downpayment, so you can get into a home with as little as 3% downpayment from your own pocket. FHA and other lenders have so far approved of or allowed this.
2. No-doc loans. These and “low-doc” loans, meaning no or low documentation requirements, are back, and you can find them through online banks. These are for those of you with bad credit but 20% to 30% to put down on a home. You don’t even have to have a job.
3. FHA loans. The Farm Home Administration doesn’t actually loan the money, but guarantees your loan for the bank, so they can loan up to 97% of the purchase price, depending on the particular FHA program.
4. VA loans. If you have been in the armed services, have a decent job, and can save two or three paychecks, you can probably get a home with a VA loan.
5. Land contract. Also called “contract for sale” and other names depending on the part of the country you are in, this just means that you make payments to the seller instead of a bank. It’s up to you and them to negotiate downpayment amount, interest rate, and the term of the loan.
6. Seller-carried second mortgages. Some banks will allow you to have as little as 5% into a home purchase, but will then only loan you 80%. The seller can take payments on a second mortgage from you for the other 15%.
7. State housing programs. Almost all states have some sort of financing help in the form of a loan-guarantee program or outright loans for low-income buyers.
8. Family loans. It may not be out of charity that a brother or a friend lends you the money to buy a home. A 7% return might look awfully good if their money is sitting in the bank at 2%.
9. Manufacturer loans. Some manufactured-home companies are arranging financing with 5% or less down for their buyers. They must feel their money is secure, since a good modular on a piece of property is nothing like a mobile home on a rental lot.
10. Credit cards. This is a risky one, but if you have a low-interest credit card, you can use it to come up with the downpayment, especially if you can pay it off soon with a coming tax refund, for example. Banks generally won’t allow this, but you can combine this with seller financing.
Are there more ways to approach real estate financing? You bet. This was just to get you thinking.
Where should you invest in real estate? If you know an area well, and have enough experience investing in real estate, you can make money almost anywhere. However, there are always places that are better or worse for real estate investments – places that have a better demand/supply ratio. Use the questions below to find them.
1. Is the population growing fast? Check the US Census figures online, or ask the local government if they have the statistics. Stay away from areas that have little growth.
2. Is job growth decent? Again, ask local authorities or use the census information. You want to see job growth equal to or exceeding population growth. The people have to have money to pay for housing.
3. Decent quality of life? This is subjective, but important. Are there theaters and bookstores? Count coffee shops and cafes. Trendy areas usually have increasing demand for housing. It’s also a good indication of a high quality-of-life if people are willing to take lower-paying jobs just to live there.
4. Wealth in the area? It is always a good sign when there is some degree of wealth in a town. Count rich homes. Wealth means everything doesn’t die when the economy slows.
1. How much new construction? The census figures can tell you what’s happened over the last ten years. Then check with the local authorities to see if the the number of housing units they’ve issued permits for is more or less than the expected population growth.
2. How many homes for sale? A lower supply of homes for sale means upward pressure on prices. This indirectly drives up rents as well, which makes for better investing.
3. Rent and vacancy levels? Are rents high enough to justify investing? Are vacancies low? When we first came to Tucson, every building had vacancies, and we saw a man holding a sign that read, “Apartment – $250 Per Month.” Great place for renters, but not a great place to invest in real estate.
4. Available land that is buildable? Less is better for future appreciation. When the land runs out, the prices start accelerating upwards.
Use these questions to compare various towns and cities, and you’ll see the differences more clearly. You’ll see how housing demand compares to supply in each. Finally, you’ll see where it is better to invest in real estate.
Toronto, ON December 20, 2007 – The Canadian real estate market has been growing over the past seven years and is currently at an all time high. With the cost of houses and condominiums rising exponentially each month, it has become more difficult for potential homebuyers to enter the market. There are many resources available for new homebuyers of which they might not even be aware.
RRSP Home Buyers Plan.com is a comprehensive site providing knowledge and resources to Canadians looking to enter the real estate market. The Home Buyers Plan (HBP) allows first-time homebuyers or persons who have not been homeowners for five years to withdraw funds from their RRSP to purchase a home, with no income tax payable on the amount withdrawn.
In addition to information about the HBP program, the site lists Financial planners who can assist homebuyers by providing navigation through the program as well as provide other investment and financial advice the homeowner may require. Further, there are resources for information on insurance, estate and will planning and tax strategies.
As home prices continue to rise, the dream of homeownership can quickly move from a reality to a dream. You should definitely explore the use of an RRSP Home Buyers Plan in consultation with your accredited financial planner.
To find buyers for your properties, get to know other investors who would be interested in buying from you. Do this by developing an identity, looking through title records to find other investors, developing a marketing strategy and contacting investors who advertise via street signs.
Finding buyers for investment properties does not have to be a complex marketing battle. In fact, successful real estate investors often find buyers and tenants for their properties before the even purchase a piece of real estate. They do this by focusing on other real estate investors. Other real estate investors are always looking for properties to buy, so if you can supply them with properties, you will have a steady stream of potential clients at your beck and call.
Developing a list of investor clients willing to buy your properties is as simple as:
1) Developing a brand. In order to have investors remember you, you need to develop a brand or identity that stands out. This can be as simple as wearing a distinctive style of clothing, having a polished image, being approachable and personable, or having a specific niche or focus that is intriguing. Even a memorable business name or business card can go a long way towards ensuring that people remember you.
2) Looking for title records. Visit a title company or get to know a local real estate broker to find local title records. Good investors who are interested in buying and selling lots of properties show up on these records very regularly, so when a few names show up in the records again and again, you know that those are contacts you want to make.
3) Marketing. When you eventually have your list of investors, you will have to do less marketing work in order to sell your investment properties. However, at the beginning, especially, you will need to market in order to generate a list of potential investors interested in your homes. To do this, hand out brochures, business cards, and other marketing materials to everyone you know. Try targeting your ads to places where you know investors visit. For example, sign up for the local investors club or advertise in a local publication that investors tend to read.
4) Look for street signs. Any signs that say “We Buy Houses” are generally from investors, and you generally want to get to know the people who are pasting around the signs in your area. You want to contact these people when you have investment properties you want to sell, and you want these people to call you when they come across business opportunities that they don’t want but which you might find intriguing..
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