One should have immense knowledge about the home buying process, as it has a lot of misconceptions and confusion. Since you are a newbie, this surely is going to be a complicated process. The knowledge you conceive about the real estate market differs because it is an ever-evolving market. Buyers would likely fall into the pothole of delusions, without comprehending the facts about the home-to-buy process.
Therefore, here we are providing you with some of the myths and facts about home buying.
A Near Perfect Credit Score
First off, a credit score is nothing but a number. You as a buyer will be evaluated for verification. From that, the eligibility for buying an asset is confirmed. Your credit score shows the managerial aspect of your finances. It has nothing to do with home buying. Credit scores are evaluated on factors like your revenue source, assets, and employment history which has your salary statement on track. So when you have this myth on your mind that you should necessarily have a perfect credit score, you have a piece of good news below.
The myth-buster here is that – There is a fundamental understanding that if your credit score is high you will be able to repay the debts much easier. Hence, you are seen as a loyal remunerator. Ultimately you are not on the financial uncertainty from the creditor’s perspective. In fact, there are some loans under the special category for people who have low-end credit scores.
20% Down Payment Is a Must
Rationally, when you are buying a property, you’ll have to pay a minimum of 20% of the total amount of the home, again a misconception that has a hidden fact that people should know. If you do so, that is paying the ideal percentage, you are saving a lot of money in the form of additional interest, which you are liable to pay covering the span of your loan.
20% is recognized as an ideal percentage to put down for Home Loan. But it isn’t mandatory when you are applying for an FHA (Federal Housing Administration) Loan or VA(Veterans Affairs) loan. You can put down as less as 3% – 3.5% on the desired property. You should be thorough with the terms and conditions as these are Government-backed loans and come with higher restrictions on credits and other finances. Whereas, there are some cases where there is no down payment required at all if the buyer is qualified.
30-Year Loan, Best Policy
A 30-year loan is the most convenient option for home buyers, this is the most common myth among buyers. Homeowners opt for a particular loan category. This strikes down the increased interest rates and provides you with a lot of time to repay the outstanding debts.
But again as a buyer, the actual fact is; that it is not compulsory if you have your finances in place. You can pick a 10, 15, or 20-year fixed-rate mortgage. Choosing this option will cut down your time but, it will also increase your monthly payments. In such a scenario, you have to be confident about the feasibility of repayments that would strike down your other expenses.
Buying Home For the First Time Is Unapproachable
There is a myth around people for endless years that buying a home for the first time is nearly unapproachable. But the reality is if you have a reliable company and good guidance home buying process is as smooth as butter.
Definitely, home buying is one of the most complex phases of your life. Buying a home is every individual’s dream and to turn this dream into reality ‘Elite Properties’ in New York will help you in the journey. We have extended knowledge of home buying and the local housing market. To that, we add to it our real estate agents are genuine and hold expertise in all the real estate-related problems which make the process of buying a home effortless.
It’s Only About The Monthly Payments
There is a big misconception that buying a home only revolves around monthly payments, which is a lie. Whereas the truth is, when you are planning on an estimate, there are many other factors that come into play. It may be inclusive of monthly payments like added upfront closing costs, insurance, property tax, maintenance, and many more. When you consider all of the above, you would be able to calculate the expenses and make a realistic budget.
Your monthly mortgage payments also have various components to them like principal, interest, escrow payment, and Private Mortgage Insurance (PMI). These are the components that make up the total of your monthly payments.
Buying Over Renting Is the Best Option
As the myth revolves around it states, renting sounds like the best option around, you might want to recheck once. The fact is – When you buy a home, you would be paying homeowner’s insurance which is higher than the renter’s insurance. You although won’t be entitled to pay for the maintenance and repairs whatsoever, which is a better deal. It is considered essential to weigh both options before landing on a specific decision. As renting a home could be more economically feasible. But buying a home on the other hand would be a stable investment. It does not require upfront charges for extra luxury.
One could be easily duped by the home buying myths and facts. But our objective is to drive homebuyers on the right path and provide them with their dream property. Whether you are a first-time home buyer or you want to sell your house for cash, Elite Properties, caters to all the real estate problems. And we can give you the most accurate and helpful solutions.
Now, you can decide the best thing is for you, and rest assured you won’t fall for fallacies. This will help you buy the home of your dreams.
There is a myth among homeowners that selling your house to cash buyers will relatively give you fewer gains in comparison to a realtor. Homeowners believe that going the traditional way is always the best way. Whereas, only a handful of them knows selling your home to a cash buyer will give you maximum returns while cutting down your labor of research and paperwork.
Here we would like to shed some light on the topic, stating which is a better choice for the homeowners, selling the house to a cash buyer or a realtor? Given below are some reasons, why selling your home to a cash buyer is a better deal than realtors.
Selling Home Through Realtor
When you list your house in the real estate market with the help of a realtor it will always cost you a decent amount required for selling. Realtors will sell your house only when it is ‘sale ready’ ‘or market-ready as it is articulated in the real estate arena. It is stated one should never judge a book by its cover, in the real estate world it’s completely contrary. Every house will always be judged by its external and internal conditions, as it is a tangible asset.
A realtor will make sure that your house is in great condition and has curb appeal, in order to accelerate the sale process and sell the asset in a short extent of time. You should also make sure about the requirements & laws regarding real estate brokers.
1. Home Improvements Require Money
A buyer will never buy a house that lacks amenities. In such a case, a realtor will evaluate the property in order to see where the house requires improvements and will ask you about doing the required as earliest. Here, the conclusion boils down to the point that if you want to sell your house through a realtor, your repair projects will require loads of dollars.
As people today are much smarter, they know where to spend how much. Everybody loves life at ease which is why home buyers today expect a home that is full of luxury and amenities by spending the least funds.
If your house lacks the basic facilities, it ultimately drops its curb appeal, which eventually decreases the list of potential prospects. If the above case comes into play, your home won’t even reach an appraisal.
2. Time On-Market
The biggest problem, while you are selling your home through a realtor, is the time on the market. The inclination of your home, sitting on the market, could probably prolong as the sales are not defined. Also, if a seller has taken a decision of selling a home in a particular time frame, the realtor will extend the time for reasons like processing of home sale. This thing affects the sale, lengthens the waiting period, and creates obstacles in your planning. Furthermore, there are a bunch of carrying costs that are levied while your home is listed.
Carrying costs is an amount that is required if your home is on the market for sale, this is also known as owning cost of an asset if it has to be sold. These costs will cost you a lot of capital, in the form of payments like property tax, insurance, and utilities (for improvements or upkeep).
3. Annoyances With Mortgages
If a buyer requires a mortgage to purchase your house he or she will also bring along problems like inspection and appraisals, as a seller, it will be a hindrance in the home selling process. These requirements arrive from the creditor’s side, the bank or the lender would thoroughly go on with an inspection to verify if the buyer is genuinely buying an asset.
The contract would consist of contingencies like mortgage approval, insurance approval, appraisal, closing date, scrutiny of the house, and a requested satisfactory walk-through. In the worst-case scenario, if your home doesn’t reach an appraisal, you might want to re-list your house or make a deal for less. Here, you are not only wasting your time but also funds for no gains.
4. You Are Just Another One In The Queue
The line of clients for the realtors is always huge and constantly stacking up. You are just another one in the queue. Here, you have to keep in mind that if your agent is stacked up with too many contracts, your home will certainly not get the required attention. You must make sure that your realtor does his due diligence with utter devotion because no seller likes to witness a deal that falls through.
5. Commission and Added Charges
Now, when you have spent a lot already, you need to make space for some more. There is a question popping in many homeowners’ minds, why you don’t get maximum gains on your property after selling it at a great cost? The answer is commission.
The chief cause of a seller not receiving the desired amount is the realtor’s commission. You have to drop the anchor of money down in the sea for a more 6% commission charge to your real estate agent for the sales. You’ll be entitled to pay for title insurance and tax proration – which makes it all the costlier. The secret to making up your mind about the flowing money is, to keep aside 10-12% of the purchase price. You’ll need it as commissions, administrative fees, and closing costs.
Selling Your House To A Cash Buyer
Cash property buyers are people or companies, who buy your property without obtaining a loan. Selling your home to a cash buyer is the soundest option in the home selling process. It saves your pocket from flooding money. Whereas, selling your home through a realtor will give you a lot of headaches of hiring a real estate agent and then waiting for the rest of the processes, which costs you money.
1. Sell House As-is Fast
Cash house buyers use the terms ‘we buy a house for cash because they buy your property as-is meaning; they’ll buy your house of whatever age, in whichever condition without staging or cleaning. If you put your house on sale through a realtor, it will take a bare minimum of 6 months to find a potential buyer. It can be over a year to get done with the sale of your home. So choosing the not-so-obvious way is probably the best option to sell your house.
2. No More Repair Problems
A real estate agent will advise you to stage your home and hire a photographer to click pictures for listing them in the market. You might want to go down that road if you have a lot of time and money to spend. Usually, homeowners who want to move quickly will eventually opt for cash sales. Because they might have to buy and sell the house at the same time. As an advantage when you choose we buy houses for cash companies, you do not need to repair your homes as these companies buy your houses as-is.
3. No Contingencies
As stated above if the buyer has taken a loan from any lender or has applied for a mortgage, it will eventually bring a lot of contingency clauses. The clauses like inspection and appraisal, which as a seller you’ll have to satiate. But if you prefer skipping the traditional way and choosing cash buyers over realtors, you’ll save yourself from many hassles because companies or buyers will give you cash or saved capital while closing the offer. These buyers are primarily investors, so they actually know zilch about the area, your home, or your neighborhood. Hence, they visit your house to examine it and propose an offer in as less as a week.
4. No Commissions Or Closing Costs
In simplified terms, by choosing the non-traditional way, you’ll be directly saving 6% commission from the realtor. Here, the customers don’t rely upon the quality of your residence. They will buy the house from you and then apply the formula of flip – rehabilitate – sell. By doing this, you will obtain all the money from the sale. You would also be saving the predicted prolonged waiting time.
5. Speedy Sales And No More Working According To Timelines
Companies that buy your house for cash buy your home even if it is not market-ready. The buyer will buy your property as-is and close the deal in as less as 7 days. The buyer even does not require finances for the purchase of the house which makes it a faster sale.
When you sell your home through cash buyers, you don’t have to work according to someone else’s timeline. You don’t have to change your plans according to the buyer. The company will buy your house instantly after viewing the property once. And later after which they will sell it to other potential buyers. Here, the process turns out to be much faster than the anticipated time frame. This helps you move faster to the new destination without losing a significant amount of saving money and time.
Here, the process turns out to be much faster than the anticipated time frame. This helps you move faster to the new destination without losing a significant amount of saving money, and time.
6. Fall Through Of Sales
Financing is the fragment where maximum fall-through of sales and foreclosures occur. It is a stressful part because your home is already listed in the market for sale. You have a potential buyer but, somehow the buyer does not qualify for the loan, or they just back out from the contract. You can barely predict the possibilities.
The best thing you can pick over anything is to find cash buyers or get in touch with our company ‘Elite Properties NYC’. We buy houses for cash. By doing this, you are cutting down your legwork and saving yourself from catastrophes like foreclosure and fall through of sales.
Advice That Matters
We comprehend that home selling is a daunting process. Your situation is desperate, and you are unquestionably searching for a solution, that works in your favor and gives you maximum gains. We have stated many benefits of selling your home to cash buyers for speedy sales and decent gains.
If you have queries regarding selling a house for cash in New York, feel free to call us. Rest assured we will provide you with the best solution for your real estate problems.
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