If youâ€™re considering the purchase of a new home, you may be concerned with the issue of finance. Attaining the right mortgage is a key step in the home buying process, but it doesnâ€™t have to be a stress-inducing one. Most lenders offer prequalification, pre-approval or both to help you know where you stand. Let me explain the difference between prequalification and pre-approval:
â€¢Prequalification: Prequalification is a preliminary estimate of how much you can afford to pay for a home based on information you provide. Because credit and employment information arenâ€™t validated for prequalification, it can only be considered a rough idea of a monthly mortgage payment and loan size. This can be a useful guide as you begin the home buying process, however.
â€¢Pre-approval: Pre-approval is a written commitment from a lender to finance your home purchase up to a set amount. This indicates that the lender has taken a close look into your financial history and has agreed to lend you a specific amount of money, reliant on certain details like a finalized sales contract and professional inspection. Pre-approval indicates to sellers that you are a serious homebuyer.Regardless of which option you utilize, or even if you take both steps, youâ€™ll be able to shop with much more confidence. Why wait until you find the perfect home to discover problems with obtaining a mortgage?
Tammy Hayes, Realtor
Re/Max Palm Realty
Rob, It is relatively easy for your parents to purchase and then put the property in your name. If, however, the intent is to have you purchase the property in your name you could run into occupancy issues. It you already own a property in the area the new purchase would likely have to be purchased as an investment property (more down payment and higher interest rate).
Talk with a local mortgage professional and let them know your goals so they can inform you of the financing options. A accountant or tax attorney will be able to address your questions about implications.... more
You indicated that you tried to refinance last summer and "no one was able to find truly suitable comps". As far as refinancing is concerned, the bank or mortgage company will ultimately use an appraisal to justify the refinance amount and Appraisers (as well as RealtorsÂ®) know how to adjust the values against the comps that are avaiable to come up with the right value for your property.
As previously stated, the fact that you have 8 acres does not necessarily add a lot of monetary value to the property, unless it is useable (subdividable) land. Yes, there may be 1 buyer out there that values that privacy and space as much as you do, but that is not the case for the general market of today's buyers. Similarly, there may be 1 buyer that would value the improvemenrts you have made as much as you do. Unique properties take longer to sell, because you are waiting for that 1 unique buyer. You may also have to consider that some of the improvements you put into the home may not be appreciated by others (potential buyers) at the same level as you value those items.
Unfortunately, the real estate market at the moment is not conducive to making a profit on a property in a short time period. Homes that were purchased in the last 2-3 years are not selling for what they were purchased for, much less for any significant improvements that have been made.
My best suggestion would be the same as has been mentioned in another "answer" - if you don't need to sell right now, don't. Enjoy your home and wait for the market to rebound a little. In time, the market will come back and you will be able to sell for what you paid, plus the extra you have put into the home, and with some profit. Be prepared to wait several years for the market to rebound enough for you to recoup and profit from the home you built in 2008.
If you need to sell now, find a RealtorÂ® you can trust to take the very best care of you, and that you can work with "personally" during a very difficult transaction. Trust the RealtorÂ® who will be honest with you and who is more interested in taking care of you than in "getting the listing". Anyone can list your property for a high price, or a low commission, just to see if they can get some business off your listing. That is not taking care of you and your needs.
Hopefuly, you can make things work so you can wait a few years.
I'm not even a realtor and I can answer this question. Go to nneren.com and click on the state of New Hampshire. On the left side is a link for "Sold Listings". Click on that and choose "Dover, NH" from the drop-down list... enter in whatever details you want and click "Submit". Voila... you will see homes that sold and the price they sold for. Good luck.... more