Should I talk with a bank before looking at homes?
Yes, you should. There’s nothing worse than finding your dream home, then realizing that it’s just outside your financial reach. Not only does this help you better understand which loans are available to you, but it also makes you more attractive to sellers and real estate agents.
Should I buy or continue to rent?
Deciding whether it’s best to buy or rent a home isn’t an easy decision. There are financial pros and cons to each. Plus, whether or not you want to become a homeowner may depend on your lifestyle, so it’s very much a personal choice. Take a close look below at the pluses and minuses before making your move.
I own a home, should I buy another before selling my current home?
Some real estate markets are very competitive. If you’re looking to buy a new home and need the proceeds from the sale of your existing property to make a down payment, you may be frustrated with the choices you’re faced with. Selling before buying is the way most people buy a home as the proceeds from the sale of a current home is usually required to buy a new one. Even with the the cash on hand for the down payment, it is much harder to qualify for a new mortgage while carrying debt on the existing home. For lenders, your intention to sell doesn’t change the current facts.
Do I really need a Realtor when buying a home?
It is totally your choice, but We’ll dive through online databases and other sites to fill binders or neat-looking folders with printouts of prospective homes, current market info, neighbourhood comps and maybe even colouring sheets for the kids. We’ll do all the dirty work and then walk you through the info.
What is a short sale?
A short sale is the sale of an asset or stock the seller does not own. It is generally a transaction in which an investor sells borrowed securities in anticipation of a price decline; the seller is then required to return an equal number of shares at some point in the future.
What is a foreclosure?
Foreclosure is the legal process by which a lender takes control of a property, evicts the homeowner and sells the home after a homeowner is unable to make full principal and interest payments on his or her mortgage, as stipulated in the mortgage contract.
What Is the Difference Between a Short Sale and Foreclosure?
Foreclosures and short sales are both options for homeowners who fall behind on mortgage payments, but it’s important to understand the difference between these two processes.
Short sale and foreclosure are similar in that they’re both financial options for individuals who own homes but find themselves in financial distress. Both also have a negative impact on your tax return, credit score and credit report, and future prospects getting a loan.
But short sales and foreclosures differ greatly in process. A short sale transaction occurs when mortgage lenders allow the borrower to sell the house for less than the amount owed on the mortgage. The foreclosure process occurs when lenders repossess the house, often against an owner’s will.
Timing also differs: Short sales can take up to one year to close, while foreclosures generally move along much faster because lenders are intent on recovering the money they’re owed.
Furthermore, a short sale is far less damaging to your credit score than a foreclosure. In fact, people who go through the short sale process can usually buy another house without having to wait, although securing a second mortgage might be more challenging. Foreclosure, on the other hand, will stay on your credit report for seven years. You’ll also have to wait five years to buy another house.
If paying your mortgage has become a real challenge, the smartest step to take is to talk to your lender to discuss your options. Chances are, your lender will be able to offer the best plan of action based on your unique situation and the laws in your state.
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