Future Real Estate Business in Modern Society

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Every home owner had experience and know the difficult process of buying or selling a home , whether selling it by themselves or with the involvement of a broker , buying a property without seeking  a guidance to any real estate advisers or home buying and selling with the help of real estate brokers.  Tons of documentation, property check, financial reports, Home inspections; are things you should consider first before deciding to buy or sell a home or property.

Financial obligation and capability of buying a property are one of the major factor or ingredients in   Real Estate transaction. Now days we have various ways on how to get or acquire a property depending on the qualification and eligibility of the soon -to -be- homeowner.

AThese are VA Loan, FHA Loan, Conventional Loan and Cash. The most common is conventional loan or getting a loan from the bank which you have to undergo a credit check and evaluation before you can get the approval letter from the bank. Then after that another process for hiring agents that will help you to find the perfect home that suit your need.  Finding a property may take a while depending on the availability of the home on the location you want to live at.  When you are able to find the perfect home for you, offer letter must be submitted to the seller and from that, a long process will start again. After Contract Ratification, the home buying transaction will enter Escrow phase. Home warranty (if necessary) and Home inspection will begin. Seller will have the chance to re visit and checked the property for any damage or repair.  From this point, a final walk-through must be done, for the final revision and checking of the property  and if everything seems fine and go smoothly, then Escrow will do the final touches until the transfer of title is done.

B

 

 

This process will be same for selling a property except for the first two parts, in which seller has to find a perfect agent that will help him market the property and list on MLS (Multiple Listing Service) .

As you can observe , if you are going to buy or sell a property, this process more likely be a nightmare for the first timers specially if they have no idea on the process itself.  They tend to overlooked things that are supposed to give high attention when buying or selling a property like hidden damages of the property; includes faulty wirings for the old houses, Mold issues, water damage and other major repairs).

C

Based on the facts provided, we can make things easily to handle and lessen the burden of the first time home buyers or home sellers. For example, we can have a free support / advice from various brokers to first time home buyers, home sellers or even buying or selling their property by themselves.

D

Since modern technology is rapidly changing, we can have a free site that will offer free services to those in need because most first timer wants to cut their cost as much as possible.

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Types of Loan and Its Importance

mortgage

 

 

There are different types of loan in the United State of America namely Federal Housing Administration (FHA), Conventional Loan and Department of Veterans Affairs (VA Loan). These types of loan have different requirements, eligibility and process.  In getting a mortgage, you must study carefully its various guideline and terms that you can maximize your advantage in getting a mortgage.

 

Federal Housing Administration (FHA Loan)

A loan from the Federal Housing Administration (FHA) that allow a person to get a mortgage / loan who are not capable of high down payment for the property. The qualified borrower should pay upfront of 3.5 percent that serves as down payment. This type of loan is available for primary residence occupancy only.

Conventional Loan

A loan not guaranteed nor insured by the federal or state government. Borrower can use this type of loan to purchase one to four unit properties, condominium that can be primary residential, secondary residential or investment property.

Department of Veterans Affairs (VA Loan)

 A long term loan with low or no down payment provided by the Department of Veterans Affairs. This type of loan mainly caters only military service personnel or other entitlements.

Choosing the right type of loan can merely affect your financial readiness so you must be very careful and I would highly suggest to ask for a financial adviser that will explain thoroughly all the details, terms and condition and regulations stated on the loan / mortgage contract.

Let’s Compare: Home Buying Vs. Home Renting

for-rent VS sold

We have two options in living on place that you want to reside at.  Its either buying a home or renting a place. In the latter part of this blog, you can evaluate what is the best for you, to rent the place or to acquire it.

Let’s begin to analyze the advantages of renting a place. Renting a place has a lot to do with finding the right place and a kind and generous landlord / landlady is a plus. First, you can vacate the place whenever you want unless you are bind with a leasing contract. It is important to review and double check your leasing contract before signing it. Make sure you are treated fair and they are not gaining so much of the advantage part. The best example is the time frame or validity of the contract. Second, when you are experiencing tight budget, then renting is the best option for you. You can have a place to live at by giving smaller amount of deposit or upfront payment. Third, you don’t have to worry about major repair of the property because it is shouldered by the landlord / landlady unless otherwise stated on the contract. Renting is the best option if you are not staying long term in the place.

On the other hand, buying a Home gives you opportunity to save money in the long term run. You can have the option to turn your residential place into commercial establishment or income property depending on the location of your home. Being a the owner of your property, greatly affects your credit score by means of continuously paying your mortgage on time and no overdue or balances. This will give you a high credit score standing and it means that you are most likely be approved by financial  institutions for loan or other mortgage.  You can also do some changes on the property specifically to the exterior and interior part of the house. You can renovate it based on your preference, style and taste of atmosphere. Having a property will give you option to make some money out of it. Generate money or income by making your home a renting place based on the location and your occupant. Your home value will increase by the period of time or after being renovated. So, the percentage of gaining income is way better than renting a home.

Never the less, renting a home or buying the place depends on your financial status.  If you are not ready and under budget, the best option for you is to rent a place in the meantime and save money for your future dream home. On the other hand, if you are looking for a long term gain, the best option for you is to look for a property that suits your preference and renovate it to income property.

NOT HAVING A BUYER’S AGENT IN HOME BUYING IS A BIG NO!

Home Buying

 

Buying a home, especially when you are a first time home buyer is really challenging and difficult process which includes various parties to deal with, deadlines, processes, legalities and many more. So as you go on with this blog, you will have the understanding on how important and crucial to hire a buyer’s agent, again, especially for first time home buyers.

  1. Buyer’s Agent helps you to search for the property efficiently and so much easier.

They have their resources and tools to find you a home or for sale property according to your taste, preferences, ideas, wants and within your budget.

  1. Buyer’s Agent  will protect the best of your interests.

They are familiar with legal procedure and rights of their client ( the buyer ) and their loyalty remains to the buyer whatever it takes.

  1. Buyer’s Agent will stay by your side until closing of the transaction.

They will assist you from the moment you hire them until you have the property that you want. They will assist you throughout the process of buying your home and provide necessary information and guidelines that you need in order for you to acquire the property smoothly and hassle – free.

  1. Buyer’s Agent used their skills and experience throughout the home buying process.

Hiring a buyer’s Agent ensures you that they will use their skills, knowledge and expertise to be able to help you from the beginning of the transaction until the key is on your hands and the title is under your name.

They will be great of help in terms of considering your options to choose from, they will provide you various properties that are near to your preferences. They will help you in preparing offer Letters to the seller and its party. They will meet all of your deadlines to avoid penalty, they will aid documentations in acquiring the property and most of all they will communicate to other experts such as inspectors, Escrow Company and other parties involved throughout the home buying process.

SHORT SALE: Its process in US Real Estate

buy-and-sell

 

Short Sale is selling a property less than the amount owed to a lender. If things went wrong and the home owner cannot afford to pay his or her mortgage in a specific timeline, then the property will become a Real Estate Owned.

Short Sale is somehow a win – win situation for all the party involved even if they are not capable in paying the mortgage monthly.

There are four types of Home Owner that can be eligible for a Short Sale.

  1. Home Owner who is experiencing a hardship or bankruptcy on her or his financial status.
  2. Home Owner that owes the Lender more than the amount of his home or property.
  3. Home Owner that has past due on his or her account.
  4. Home Owner that can no longer pay for the property.
  5. Lastly, the property will be for sale at a very low price.

There are 10 steps in Short Sale

  1. Pre – Qualification

The home owner must be qualified or experiencing any of the five types of Home owner listed above, experiencing hardship , can no longer pay for the mortgage, has past due on his or her account.

  1. Gathering Information / Data

Realtors will collate information and gather data that includes property details and financial details to make a Short Sale deal.

  1. Set up File

Set up agent will double check on the Short Sale application and may take up to 30 to 60 days.

  1. Assigning a Loss Mitigation

He or She focuses on the Short Sale process. He or She can  focused on the hardship and other documentation.

  1. Order Appraisal

Lender will be responsible for the appraisal of the buyer’s home. The result would be highly suggestion.

  1. List in the Market

After appraisal, It will be listed as well in contact 500. It is perfect and ready to be choose from.

  1. Receives Offers

Lender will received multiple offers about the property and those who will be chosen will submit to the lender.

  1. Submit Package to Lender

Submission of documents, maybe compile as she is way.

  1. Approve / Decline the Offer

Lender will scan through all over the pages of the offer. Lender will decide whether it is fake or good

  1. Close File

If property got sold then you have to update your file as close file  to avoid confusion in the future.

FORECLOSURE: Its process in US Real Estate

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Foreclosure is selling a mortgaged property due to overdue and unpaid mortgage loan. When a home owner failed to pay the mortgage loan intended for the property and it lapses the given deadline of late payment for consecutive months, the property is already foreclosure and the lender will sell it to cope up the amount borrowed even if it is break-even or less. Lender avoids property tax and maintenance of foreclosure property that is why they are selling less than the amount of the balance of the mortgage loan.

When the home owner failed to pay for the mortgage loan for a specific period of time, the bank will re possess the property. Bank will assign the foreclosure property to their agent and conduct a process of securement on the property whether the property is vacant or not. In case that the borrower is still living on the foreclosed property, agent (assigned by lender) will offer cash for keys for them to leave the place and be able to find a new place. Once the property was repossessed by the Lender, the former home owner will be evicted from the house. When the former home owner vacates the house, which is the time the property will be for sale in auction meaning for sale at a lower price.

If the house or the property is not sold at the auction, it will become a REO stands for Real Estate Owned.  The property will be for sale at a very low price in possible soonest time to avoid further costs.

FIVE TIPS FOR A FIRST TIME HOME – BUYER

 

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It is very rewarding for a first time home buyer to acquire a property that perfect for the whole family or even for himself. Living in your own place is a great achievement for everyone. You can design your own home based on your preference and ideas. You can design the entire home that suits to your taste and favorite. Living in your place is really exciting. Every day you are inspired to work hard because of it. There are lot of advantages you can enjoy when you have your own home.  Somehow , that great achievement, having your own home includes accountability and responsibilities like maintenance  of the house, property tax, mortgage, etc. This could be difficult when you are not financially stable. Here are the lists of tips that a first time home buyer should be aware of.

  1. Financially Stable

 

Planning to buy or purchase a home is a good idea. There are advantages of having your own place compare in renting a flat. Being financially stable is one of the most important qualifications in getting your own property. One must have a stable job, a good credit score and credit history. For the sake of less unwanted financial problems that may occur in the future especially when you have kids that are still studying.

 

 

  1. Identify the property that suits your preference

Make a list of your preference on a specific house that you want to buy including the area and location of the property, the neighborhood, design of the house, number of rooms, number of baths, the physical structure of the property, the history of the house, year it was built, and so on. Everyone wants their house to relax on and live peacefully.

 

  1. Hire the right buyer’s agent

It is recommended that every home buyer should hire a buyer’s agent to assist the buyer which particular house is perfect for his clients need and want. You have to hire an agent not only to help you on the documentations and process and also to protect your rights as a buyer.

 

 

  1. Getting the best mortgage or loan

Getting the best mortgage means finding the lowest rate with the best condition. Having the best housing loan really helps you to fulfill your dream being a home owner. This also includes right financial adviser in case there is financial problem arouse.

 

  1. Be emotionally and Physically  ready

Buying your first home is very memorable and sometimes others get emotionally attached to the first home that they have. It is perfectly normal to first time buyers. They tend to invest a lot in their first home, whether furniture, fixtures, maintenance and additional features to make the home more comfortable.

Provided all these tips, a first time home buyer should plan ahead and be ready for a big change to his or her life.