Real Estate Search Direct

Many people who would like to buy a house are worried about the current housing situation.  They see that so many people who thought they had made a good purchase are now facing foreclosure.

I know of a person, let’s call him Willy, who bought a house for $622,000 in 2003 with 97% financing.  Willy knew that the rate on the loan he got would adjust after a 5 year fixed rate period. But if he got  a 30 year fixed mortgage he wouldn’t have been able to afford the monthly payments.

Willy’s mortgage broker told him that he should refinance the mortgage before the rate started to adjust.  The mortgage broker told Willy that he would be able to refinance at a lower interest rate after the property appreciated in a few years.  Can you guess where this is heading?

Read More

Comments (0) Nov 19 2008

You may wonder why you need to have the right mindset in order to buy a house.  Well, let me tell you a story about Fred…

Fred grew up living with his family in a series of rented apartments.  He moved out when he went to college and lived in the dorm.

After graduating Fred found himself a cozy apartment to rent.  For many years he moved from one apartment to the next.

Fred had a decent job and earned  a respectable income, but at the end of each month he had just enough to pay the rent.  Fred got occasional bonuses at work, but spent them quickly on extravagant luxuries.

After many years of apartment living Fred started to think about buying a home, but Fred had the mentality of an apartment dweller.

He looked at many houses for sale, but he always found some reason why each one wasn’t right for him.  He thought he wouldn’t have time to take care of the yard or the pool.  Or it was poorly maintained and he didn’t know how to fix it up. But in most cases he thought he just couldn’t afford to buy a house.

Fred never found a house that he believed he could afford, although he made more money than many families who bought houses in his neighborhood.  He convinced himself that he was destined to be a renter.

Fred could have easily afforded a house if he had managed to have the right mindset.   For that matter, many incredible goals are possible with the right mind set. So how can you have the mindset to get the house of your dreams? Read More

Comments (0) Nov 13 2008

The question on many prospective home buyers minds today is “How can I afford to buy a house?”  Even though prices have dropped in most areas of the US, it can still be a challenge affording a home.  Regardless of efforts by the Bush administration, Secretary Paulson and Ben Bernanke to spur the lending industry,  lenders are still being very strict with their underwriting policies. This makes it very difficult to get a loan, and unless you are wealthy it isn’t likely that you have enough in savings to buy a home for cash.  Lenders are still willing to loan money if you have enough of a downpayment, though.

Yet there are many less conventional options available to savvy home buyers.  Look for deals that say OWC (Owner will Carry) and you may find a property that the seller is willing to finance all or part of the purchase price for you.   This can help when you don’t have enough downpayment to get a loan.

Even if the seller is not advertising seller financing, it may be possible if you make the offer.  Many sellers never thought of the possibility and they may be interested in receiving payments with interest over time rather than a lump sum today.  If the seller plans to put some of the sale proceeds in a CD, you can offer to pay more interest than they could earn on a CD and it will earn them a nice return on investment.  They also won’t have to pay tax on the lump sum which could put them in a higher tax bracket.

Seller financing can help many people who are having a hard time getting a loan qualify in today’s tough credit market.

Comments (5) Nov 04 2008