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7 Simple Steps To Real Estate Investing
Whether you are BRAND NEW to real estate investing or an expert in the game, it’s critical that you understand these 7 Simple Steps to real estate investing.
First things first…
• Real Estate is NOT a get rich quick scheme. However, if you...
Are Fractional Shares For You?
Fractional shares (“fractionals”) are sometimes confused with other vacation property options, such as time shares and condo hotels. While there are similarities, there are a number of things that make fractional shares unique, and thus suited for...
Electrical Safety in the home
Electricity is a wonderful part of our lives, clearly enabling us to do so many of the things we take for granted. Food preparation, entertainment, communication, and so much more are all dependent upon the delivery of electricity. And yet,...
Heating an old House!
Heating an old House!
Heating an old house is a challenging and rewarding endeavor! There are more factors to be considered in heating an old house than one might think at the start. On the plus side, old houses are generally built sturdier...
Is An Old Home for You? – The Cons - Repairs
So you think you might like to buy an old home? Perhaps even something old enough to be historic? It’s a good idea to carefully evaluate the pros and cons before you decide. There are plenty of both. Will the pros be valuable enough for you to be...
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Home Sellers Warning: Do Your Math Homework
If you're thinking about selling your home and moving up to a larger home, do your math homework before offering your home for sale. Read the following story to see what can happen to home sellers who don't do their math.
A young family sold their home in California, before they determined how to buy their next house. All they thought about was moving into a larger home for their growing family.
Two years before, after this young couple purchased their first home, they bought a minivan with payments. They increased their credit card debt with home furnishings purchases. Then, the wife quit working to stay home with their new baby. The family still had sufficient money to make all payments on time.
They fell in love with a larger new model home in a nearby tract home development. The sales agent convinced them the new home would only cost them another $200 per month.
The family had no trouble selling their home. To qualify for the new home mortgage payment, they had to pay off the minivan, student loans, and the credit card debt. Out of their home sale proceeds, these payoffs left less than a 10% down payment for their new home.
Because of their changed income and low down payment, they didn't qualify for the new home of their choice. With only 5% down, the couple had to pay higher interest rates on a second to avoid mortgage insurance. Without the wife's second income, the total payment meant that they only qualified for a new mortgage for a home which cost less than the one they sold!
Before you put your home on the market, make sure you can buy the home you want.
Consider the following financial concerns:
Talk to a loan officer and check your credit. Don't get caught after selling your home, when it's too late, to repair any credit issues. Of course, you may have a great down payment from the sale of your home, but other bills like credit card debt, auto loans, and student loans
may need to be paid off so you qualify for the new mortgage payments.
Ask your loan officer how much of a monthly payment and the down payment amount you'll need to buy the home of your choice.
Do your math. How much can you expect to net from selling your home?
1. Do you have a mortgage pre-payment penalty that could eat up a significant amount of your equity?
2. Determine selling commission expenses. Can you sell your home effectively on your own or do you need to pay 4-6% of your selling price for a real estate agent's expertise?
3. Estimate your closing costs. Ask a local closing or escrow company for an estimated closing cost amount for a home in your price range.
4. How much work does your home need to ready the property for a top-dollar sale? Which upgrades or redecorating expenses make sense financially?
Consider all the expenses of selling, determine your actual profit, and compare that amount to your required down payment. How much of a home you can buy with your qualified monthly payment amount?
After you do your math homework, you'll be ready to think about selling your home. Don't get caught like this young family and be forced into a smaller home.
Copyright © 2005 Jeanette J. Fisher - All Rights Reserved Worldwide.
About the Author: Jeanette Fisher helps stage homes for top-dollar sales. She teaches Design Psychology and real estate investing. Jeanette is the author of many books including "Sell Your Home for Top Dollar--Fast!" and "Credit Help! Get the Credit You Need to Buy Real Estate." http://recredithelp.com Free "Credit Tips for Mortgage Financing" http://sellfast.info
Source: www.isnare.com
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