Grab RSS FeedA lot goes into buying and selling a home, and there are often more questions than answers about one of the biggest investments people ever make.
1) Is there an advantage to buying vs. renting?
There are many:
- Wealth building –– especially now that prices have corrected. Instead of paying rent you can be putting those dollars toward paying down the principal on a mortgage.
- Tax benefits –– If you're itemizing income taxes you can deduct your property taxes and the mortgage interest.
- Personal choice –– when it's yours you can paint the walls any color you want.
- Savings benefit –– Right now rents are higher because of foreclosures, short sales and increased demand from those who can't qualify for a mortgage. If you can qualify for a mortgage, it's a good time to buy. And, interest rates are at historic lows.
- Low prices –– The price of homes dropped significantly from 2005-2010, but rental rates dropped very little during that same time, and in some cases went up.
2) Can I buy a home if I've been through a bankruptcy?
Yes, at any time if you have cash, but it will take some time if you want to get a mortgage. Generally speaking, a real estate attorney will tell you that you may have to wait about two years. It really depends on the type of loan, when the bankruptcy discharge occurred, credit score, debt to income ratio, whether this was a chapter 7 or 13 bankruptcy, etc.
3) If I want to sell my house are there special rules?
If you are the owner, you can sell it. However, if your mortgage balance is higher than what your home will sell for, you will either need to bring the difference to closing or work with an attorney who can speak with your bank on a short sale. A short sale is an extreme situation.
4) When I want to buy a house can you help me with financing?
Realtors and real estate attorneys work with many qualified mortgage loan originators. We have professionals we recommend every day.
5) What is P.M.I.?
PMI is short for private mortgage insurance. If a borrower on a conventional mortgage is putting down less than 20% percent, the lender will typically charge PMI (included in the monthly mortgage payment). The PMI is an insurance policy protecting the lender against loss if a borrower defaults on a low down-payment loan.
6) Why do I need title insurance?
A home buyer needs title insurance with a sale to protect against certain title defects on the property that may arise after the sale. It is customary in our area for the seller to purchase an “owners” title policy for the buyer at closing. Your real estate attorney should do a title search for you, to ensure that there are no issues with the title of the home you are considering.
7) Why can't I just sell my house by myself?
You can. But Black and Buono will always recommend that you use a realtor. Most sellers choose to work with real estate professionals who are laser focused on selling homes. Most sellers are concerned with just one thing: Walking away with the most money possible at closing. Through marketing/exposure, negotiating, and experience, a good Realtor can save a seller thousands of dollars and more than make up for the fee and agent charges.
8) The neighborhood homes are selling for a lot less than we thought they were worth. What can I expect?
Every house and situation is different. There are many factors that affect the selling price of your home: location, condition, supply vs. demand, etc. An experienced Realtor will be able to give you the facts so you can make an educated decision about whether the time is right for you to sell.
9) Are home values increasing?
Right now we're seeing flat values or slight increases since the market shift. There are fewer homes on the market and sales are improving, so chances are that if you put your home on the market it will sell.
Original article – Livingston Daily
