I know this has been discussed under other peoples topics but i was wondering if anyone could explain to me as if i were a five year old the different way to purchase a house. Such as the way you go about putting a percentage down or otherwise. I would also like to know if theres any advice about what to look out for in a closing because my mother recently purchased a house and never noticed there was a 2 year probation period on refinancing the house…
One way to avoid surprises at closing is to review all closing documents before you actually sit down at the closing table. Ask that your title company deliver a copy of the closing package at least 24 hours in advance. This will give you time to read every document and catch any mistakes or surprises.
Well there are tons of way to buy a home. I am thinking you were shocked about the 2yr refi thing. Well mortgages basically come 3 ways.
You have no penalty loans where you can refi or sell it the next day and pay no penalty, then you have hard and soft loans. These loans put time frames on them for a refi and a sell. This is because the bank wants to make money off the loan they gave you. Some brokers will stay clear of these programs all to gether while others push them.
Always make it clear in the beginning you want no penalty on your loans if you plan to refi or sell…
Well when I start investing, I’ll be buying properties at 70% of the market value. Meaning, if it is valued at $100K you’d try to buy the property at $70K. When you try to get a loan, the bank will use ITS OWN APPRAISER to look at the property, when they see that the value of the house is $100K, they will loan up to $100K.
Also, when you buy this cheap you will have $30K equity already, just by buying this house! If you end up feeling like being a land lord is not for you, you can sell and get your money back/make a profit.
If I were you, I would start by taking a complete REI course. I started with the Carleton Sheets course and believe that it is an excellent beginner’s course for the price. It is hard to get this down without doing some homework.
Most if not all financial institutions will lend the lesser of purchase price or appraised value, not the greater number. So if you buy a $100k house for $70k and get 100% financing you get $70k.
Nothing beats a good education, Keep learning so you know everything to look for