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Financing in Lapeer : Real Estate Advice

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  • Home Buying13
  • Home Selling1
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Activity 5
Mon May 20, 2013
Trevor Curran answered:
Good afternoon Heather,

Rent To Own is a better deal for the Seller than it would ever be for a potential Buyer.

The basic concept is finding a way to "force" savings towards a down payment by including a portion of the monthly rental that goes towards that savings. You pay your rent every month and your Landlord deducts a pre-determined amount to hold in a special bank account, called an "escrow" account. Your Landlord holds that money until you have saved up enough---through this "forced-savings" method---to meet a down payment to purchase the home.

The terms of the purchase price, including the down payment amount, and the amount to be set aside from the rental for down payment, are all set down at the time of lease signing.

It's all about helping the renter/tenant save up enough money for a down payment to buy a home (in this case, the one you're renting). But this is a better deal for the Seller because he gets to lock in a purchase price and a buyer today for a future sale.

Saving money for a down payment? Well, heck, you can do that on your own.

If you are dedicated to the idea of buying your own home, you can create your own savings plan to save up enough money for a down payment. And when you have saved up enough for a down payment, if that takes a year or two or more, YOU get to decide on the price you're willing to pay for the house at that time based on current market conditions. You won't be locked in to a price that may be a lot higher than what the house is worth in the future.

With Rent To Own you'll be locked in both to the house and to the price, even if it takes you 3 years to save enough through the forced savings of the rent payments. What happens if three years from now your life situation has changed? Maybe you need a bigger/smaller home. Maybe your employment has relocated. Maybe your credit or income is insufficient to qualify for a mortgage loan.

Find a way to save up on your own; not with Rent To Own.

Sit down with a local Mortgage Banker and get yourself prequalified, too. You may find you're better qualified than you think you are, and, if you're not, at least you'll know how much loan your income and credit qualify you for, and how much you have to save towards down payment and closing costs.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
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Thu May 16, 2013
Caroline D'Andrea answered:
Hello Heather,

What do you consider BAD Credit? I know some lenders that will work with a minimum of a 620 credit score.

Your abililty to get a mortgage will be based off your credit, debit to income ratios, and job stability.

Each Buyer is unique. It might be worth it to contact a Lender to see where you stand. Worse case if you don't qualify, we could always look at rent to own or land contract properties.

Hope this helps and if you need any lender contacts just let me know!

Have a good night!

Caroline D'Andrea
Century 21 Real Estate 217
810-931-5540
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Thu May 16, 2013
Caroline D'Andrea answered:
Hello,

I have heard from many lenders that there is a minimum 2 year wait for financing after a bankrupcy. I know each case is unique for each buyer. I would contact a lender and find out where you stand.

If you need any assistance with lender info, please feel free to let me know.

Have a great day!

Caroline D'Andrea
Century 21 Real Estate 217
810-931-5540
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Mon Nov 7, 2011
Maureen Francis & Dmitry Koublitsky answered:
I love Mack's answer and think he has given you some wise advice as much as I don't think it is what you want to hear.

There are things you can and should do to make sure that you are ready to buy a house when the time is right for you and your fiance. First would be to get your financial house in order, meaning straighten out his credit situation and save a bit more so you have a cushion. As your fiance has already learned the hard way, blips come up and having some money in the bank for a rainy day is important. I am sure that losing the truck was traumatic, but losing a house would be far worse. Talk to a lender (someone who comes recommended to you) about how to address his credit and get on solid footing to buy.

Not to be Nancy Negative, but if you want to accelerate things, look for a home that is a lease with an option to buy. Some landlords will negotiate terms with you where they will apply part of the rent, should you decide to buy the house when the time comes.

Good luck and I hope you find a great job soon that puts your new education to work for you!
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Thu Oct 20, 2011
Doug Ferrell answered:
This question will be best answered by the top lender in Lapeer! Christa Simmonds with Cason Home Loans will go over everything with you on the phone. Call her @ 810-664-4330. it is likely that she will guide you into a Rural Development loan that is low money down and a reduced interest rate. I closed one with her last week that was $500 down, 3.875% interest, no points, on a $75,000 house and the payments were only about $550!! When she gets you approved call me and i will help you find a great deal! ... more
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