Archive for the 'Financing' Category
Those looking for some excellent information regarding home equity lines of credit need look no further than HELOC Basics. I’d imagine such information will be useful to those looking for a home equity loan. Feel free to give Find HELOC a look as well.
You Need an Accountant
If you’re looking to spend much more than $100,000, and chances are you’ll be spending a lot more than that, or if you stand to make quite a bit off of a property sale, it is definitely wise to consult with an accountant or a financial planner of some sort in order to avoid unnecessary taxes, fees, and maximize your investments.
I’ve said it before, and will say it again. Mortgage brokers are not accountants. They will not generally be able to advise you on tax issues, breaks or advantages in one loan over another. The same goes for real estate agents. Many financial planners will meet with you free, and present some ideas for saving large amounts of money over the long run. Always consult with another for a second opinion before making any decision.
In retrospect, I wish I had consulted with an accountant prior to purchasing my first home. Had I done so, I would have been made aware that I could use my IRA to pay my closing costs essentially tax free. One of the best things to realize when buying or selling a home is that you do not know it all. The right professional can save you a fortune.
It would certainly appear that doomsday is at hand for the ridiculous sub prime lending market. Today, Countrywide was mentioned as being in hot water as a result of their many holdings in the sub prime market.
I must confess that I find it hilarious that many sub-prime lenders are begging for a government bailout, like the ones quoted in the Countrywide article above. How fair would it be for the government to bail out them and not the thousands who these same banks foreclose on each month?
Many are finding themselves struggling under a Second Mortgage here in Utah, as well as across the nation. Few realize that they can very easily pay down that mortgage with a loan at a much lower interest rate, as little as 6%.
Even Utah Community Credit Union is offering a 6.75% rate on a ten year loan with many closing costs waved.
Having poor credit and trying to purchase a home is increasingly becoming nearly impossible as more and more lenders choose to avoid offering mortgages to high risk clients. Sadly mortgage brokers still encourage clients to attempt to get these loans, even when there are few to no loans that can actually be given. This provides many with a false hope that they may be able to some day qualify for a home loan, or they simply believe that within a years time they will be able to resolve their credit issues and have perfect credit. Something much easier said than actually done.
Generally, people who find themselves opting for a lease to own purchase are not very wealthy, educated, or are in desperate circumstances. People in these categories are in a terrible bargaining position, never use attorneys to look over contracts, and will likely not afford to, or choose to actually fight when the landlord decides to not sell the property to them.
Lease options are like no-credit here car lots. The goal isn’t really to sell you the home or car. The goal is to get you to hand over a lot of money, either as a down payment, or as lease payments with the idea that you’re an “owner”, and then get the house or car back on a technicality, so it can be “sold” again.
Even if the landlord isn’t acting on evil intentions, the situation of poor credit will probably not change in a years time, thus ensuring that the home is never purchased. Don’t think that Sub-Prime mortgages are going to be any easier to get in a year’s time.