I would always recommend a home inspection for any home, regardless of when it was built. New homes frequently have defects that can be identified by a good home inspectore. Have a home inspection for your own protection and peace of mind.
Bernard Gibbons, J. Rockcliff Realtors
DRE License # 01331583
Phone (925) 997-1585 - email@example.com
Guess the first thing you should know is whether or not you can afford it. If you can't pay cash, and will need to get a loan, you should speak to a loan officer to determine how much you can afford. what you will need in terms of down payment and closing costs, and what kind of loan you can get. If you are getting an FHA loan, know that not all properties are approved for an FHA loan, and as such, that may minimize the type of home you can buy.
Once you know your budget range, type of loan and cash outlay, and once you determine how much you're willing to spend (after all, you don't want to be real estate rich but cash poor with no money to do anything else), then set your sights on areas where you want to live, where you can afford to buy.
If you haven't already done so, engage a realtor to help you. Your realtor can also refer you to loan officer/mortgage broker who can preapprove you for a loan.
How may I help?... more
No. You can't buy a home with credit scores of around 560. (Oh, I'm sure someone--probably a mortgage broker here--will say they can help. But, no, you really need scores above 600 to buy conventionally.)
Look, if you want to throw your money away, just put it in an envelope and send it to me. You won't get anything in return. But this whole "renting is just throwing your money away" is a line used by some real estate agents to inject a false sense of urgency into buying.
You're not throwing your money away by renting. You're getting something very valuable in return: A place to live.
OK. The argument is that all you have at the end of the year are rent receipts. You have no equity. That's true. So you want to buy. Let's say you find a place for $200,000. You qualify for an FHA mortgage at 3.5% down. You get the seller to pay all closing costs. Sweet, right? So you're now out of pocket for your $7,000 down payment. Considering that the costs to sell are roughly 10% of the value of the property, if you tried to sell right away, you're at least 6% underwater. You'd have to bring at least $12,000 to closing.
But let's fast-forward a year. What's happened to real estate prices? If they're down, you're even in a deeper hole. A drop of 5% means you've lost $10,000. If prices stay flat, you're still $12,000 upside down. If they've gone up 5%, you're STILL upside down.
Meanwhile, compare the costs of ownership versus renting. In some parts of the country, it's cheaper to own than to rent. But in most areas, it's cheaper to rent than to own. Work the numbers where you are.
Then there's the issue of mobility. If you rent, you can move without penalty when your lease is up. So every year, you can decide whether or not to move or to stay. It's not so easy if you own.
If you have the "dream of home ownership," then it's OK to pursue it. But don't confuse dreams with reality. The reality is that you're not throwing money away on rent.
Hope that helps.... more
You should talk to a mortgage specialist about it. Every situation is different unfortunately,
For investment properties, there are a lot of factors to consider:
-The property itself
-the amount of money you can put down
-your personal financial statement
Talking to a mortgage broker is usually free and with no obligations. Give it a try!
Good luck.... more
Typically with these types of carry deals one needs to suck up to the seller basically. I don't know if you had done any numbers to figure out if or how the whole deal will pan out from a cost stand point for the buyer as well as a returns stand point (if any) for the seller. Run some cost scenrios and have the buyer decide as to which is would be more feasiable and then make the offer based on those numbers and scenerios. The seller will respond if he/she has something in front of them. They will look for "whats in there for them". Once you get their side of the deal, you re-run your numbers then check with your buyer to see if it still worth persuing, if so, go ahead and present it again. The key to these types of deals is accomodating the seller first and foremost then meshing the buyers needs in with theirs and you have a win, win situation.......hope this helps... more