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4 Simple Tests To Find Good Real Estate Investment Properties
You're driving along the road when you spot it. There in the middle of a shaggy lawn sits a disheveled property. It may need a good coat of paint, or a shutter straightened out, but it's easy to see that with a little work it could be a little gem...
Granite Countertops: An Overview
Home remodelers and builders have experienced a boom in the demand for granite countertops in kitchens and bathrooms. The beauty and warmth of granite makes it an ideal material for aesthetic appeal in home design, and the durability and easy care...
High Profit Real Estate Investing--make A Good Deal Every Time!
Knowing what a Good Deal is – Is the Key to Success in Real Estate.
Knowing and being able to negotiate good real estate deals every time is the key to real estate investing success. What to look for, and how to calculate your profit, cashflow...
How Stained Glass Can Add Elegance To Your Home
If there is one way to throw a new light on your home, it's through the stained glass you put in your windows. Whether you want to enhance old windows by replacing some of the panes, or are complementing the new Pella windows you've installed,...
Radiant Floor Heat: It Warms Your Soles But It Doesn't Empty Your Pockets
There is no doubt that radiant floor heating is a superior method of heating your home. Its popularity is steadily increasing as people discover that not only is it the most comfortable form of heating, but also the most cost efficient.
Though...
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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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