2022 | Page 2 of 3 | Buy and Sell Properties Online New York 2022 | Page 2 of 3 | Buy and Sell Properties Online New York

Year: 2022 Posts

House Hunting: 4 Common Mistakes To Avoid

Are you ready with your checklist for house hunting?

If yes, then ensure that you do avoid the most likely mistakes that may hinder you from buying your dream house. Whether you are house hunting for your first home or be it second, you may fail to commit these mistakes.

House hunting is not as easy as just visiting a few houses and choosing the best one. Along with following the best house-hunting practices, you also need to ascertain that you do not make mistakes that can cost you both time and effort.

Your house-hunting process can become more systematic if you are ready with the right pre-requisites.

So, let’s make your house-hunting process smarter and easier by diving deep into the four huge mistakes that you should avoid while house-hunting.

Not Getting Mortgage Pre-approval

You must have made up your mind about house hunting and may have also estimated how much you can spend. The next action step that you shouldn’t miss is meeting a lender and getting a mortgage pre-approval.

Get a mortgage pre-approval before involving an agent in your house search and starting the house-hunting process.

You may be at risk if you are trying to buy a house beyond your budget without mortgage pre-approval. On the other hand, you might also lose the chance of buying your dream house due to a lack of insufficient financial proof.

Hence, it is highly advisable to get the mortgage pre-approval once you have made up your mind to go for a house hunt. This will be advantageous to you in two ways:

  • It will give you a clear idea of what amount of money you will need to spend as well as the exact amount of loan you will be able to borrow.
  • It will help you gain the seller’s confidence for closing the deal when you get the house you might be interested in.

When you meet your lender to obtain the mortgage pre-approval, he/ she might ask you for documentation such as proof of income or your credit score. He/she might also evaluate your debts if any that already exist.

Once the verification is done your lender shall issue a letter of mortgage pre-approval if you are eligible. This will take you a step closer to making a strong offer while buying the house.

You Are House Hunting Without an Agent

As online house listings are available, you may think of going on a house hunt all alone. Probably, you might intend to save up on the commission.

But sometimes house hunting without an agent might cost you more or you may even lose up on the house that you have always dreamt of.

Also, usually, the seller pays the commission to the agent. Hence, you don’t have to worry about spending extra on the commission charges.

You might also get access to new house listings that wouldn’t even be known in the local real estate market where you are trying to find a house if your agent has a strong network.

With his expertise and knowledge, a good real estate agent can help you select the best options for your house hunting.

So, if you wish to make your house-hunting process more efficient, you should get the help of a real estate agent.

Ignoring The Price, You Can Afford

Ignoring the price that you can afford can be a significant mistake that you may make which will leave you dissatisfied.

You may likely fall for houses that are beyond your spending limits while you go on a house hunt. It is absolutely essential to be self-aware of how much you can afford.

Some houses may make you feel very tempted because of their interior, spacious rooms, high-end appliances, or top-notch location.

However, it is good to buy a house that pleases you, but if it’s beyond the price that you can afford, you may go into a state of stretching your financial means.

You may try to arrange the extra amount that you cannot afford. But you should also realize that arranging the extra amount can increase your expenses as you may require to pay interest if you are buying the house with a mortgage.

Sometimes, you may also control your emotions and try to buy some other house than the one you like which is beyond your budget. This will leave you with deep dissatisfaction.

This is why it’s important to recognize and consider the price range that you can afford. Your best bet is to identify and explore the house listings within your budget.

Not Considering the Locality

Once you have decided on the housing options to be considered further for buying, try to assess the neighborhood of the selected options.

Look for various factors in the neighborhood, because it is as crucial as buying the right house.

It shall not be a good choice to purchase a suitable house in a locality you may never prefer.

Evaluate the surrounding area, community in the neighborhood, availability of public transportation and necessary infrastructure, and the time to commute to places that you visit daily like your office, gym, and so on.

Also, ensure the availability of vital amenities that are important to you.

Choosing an unsuitable locality may again lead you to hunt for another house in a good locality.

It’s wise that you effectively consider the locality and neighborhood while narrowing down your housing options.

Bottom Line

House-hunting is a challenging process but can be made effortless if you are aware of the problems that you may face and the mistakes that can cost you both time and effort. Buying a house is a big decision, so making rational and realistic choices without being impulsive can be immensely beneficial for you and your finances.

For making the right decision, get expert words of advice for your house-hunting need from Elite Properties. We buy houses in any condition and provide fast cash offers. Call us at 718-977-5462 today.

 

One of the most heartbreaking ways to lose your home is if you can’t make your mortgage payments or if you’ve fallen behind on them. For borrowers who are in a situation where their house is on the verge of foreclosure, there is still some hope. Introducing… Loan Modification.

In a nutshell, loan modifications can make your life stress free by ensuring you pay your current mortgage and save your home from foreclosure.

In this article, we will take a deeper look at what loan modification is all about.

Little More about Loan Modification

A loan modification occurs when the lender changes the loan terms. Loan Modification is an acceptable agreement between the lender and borrower. In it, the lender gets paid and the borrower keeps the house. The modification may be a decrease in the interest rate, extend of the payback period, or a new type of loan.

In most cases, loan modifications are only available in circumstances wherein the borrower is unable to make full payments and their credit is not sufficient to refinance the loan.

If you are only interested in getting a lower interest rate, then you’ll not qualify for it.

For such cases, the option of refinancing is the ideal solution.

Under What Circumstance Should A Borrower Choose The Loan Modification Route?

Loan Modification is a tool for people who are in a lot of trouble and have no other way to save their homes.  It is not for everyone, and it is important to speak with a professional to see if it is the best option for your particular situation.

A borrower who is experiencing a temporary setback is eligible to request help from the lender with their mortgage. In some instances, a lower payment could help the borrower get through the difficult patch and prevent foreclosure on their home.

Generally, loan modifications occur when one is unable to repay the original loan. The attorney or workout company will help you negotiate modification procedures.

How Do Loan Modifications Work?

Although loan modifications can be requested for any type of loan, the most typical loans for which they are requested are secured loans such as mortgages. In the event of possible foreclosure, the lender may be open to modifying the terms of the loan after he/she has concluded that a foreclosure would be a more expensive route than a loan modification which is beneficial to both parties in the long run.

Are You Qualified For A Loan Modification?

It’s not possible to get a loan modification for everyone who’s having a hard time paying their mortgage. To be eligible, homeowners must either be behind on their mortgage payments or be delinquent— they are paying now but there is a risk that they will delay.

Some of the eligibility criteria for a loan modification include job loss, spouse death, and permanent physical or mental issues/injuries that render you disabled and unable to repay the mortgage.

What Are The Benefits of modifying your Loan?

One of the main benefits of an extended term is that it directly affects your annual interest rate. Your 30-year mortgage can become a 40-year mortgage. In exchange for this, you will receive the following benefits:

• A reduced fee makes it possible to provide the borrower with some respite to make it through.

• The opportunity to keep the house as banks would choose to avoid going through the costly process of foreclosure whenever possible.

Loan modifications allow the homeowner to continue making payments.  While at the same time keeping the house is the most beneficial resolution for both concerned parties.

What Are Some of the Drawbacks Of Getting a Loan Modification?

A modification to an existing loan may be a costly but necessary lifeline. The following are the drawback of choosing this path:

• Your loan will most likely end up costing you more money in the long run. This indicates that the greater the number of years added, the more interest you will pay throughout the course of the loan.

• Loan modification is a time-consuming process. We need to get all the necessary documentation such as pay stubs, bank statements, and tax returns. Also, you have to fill out a spreadsheet that compares your income to your expenses. It is mandatory for loans to get modified. You will need to submit a hardship statement explaining why you need a loan modification.

• Depending on how serious your situation is, your loan modification will not approve. You need to provide evidence that you are capable of repaying the loan to win the lender’s trust. If you are actually unable to afford the home, the bank may decide to deny your request for loan modifications. Bank may leave you with the option to short-sell your house.

Loan Modification Programs for You.

  • 1. Conventional loan modification (Flex Modification Program)If you want conventional mortgages, you have the option to go through FMP. FMP will help you reduce monthly payments by 20%. Also, you can extend the term up to 40 years and lower the interest rate.
  • FHA loan modificationFHA loans include various strategies for borrowers. It gives them the option to reduce payments with an interest-free loan for 30% of the borrower’s balance. The borrowers will only have to pay the remaining part of the loan. After that, he can pay an interest-free loan when the home is about to sell. In this Pandemic, the borrowers also have the option to get a lower rate and also a 25% cut on the monthly payments. FHA borrowers have the option to extend loan terms up to 40 years.
  • VA Loan modificationBorrowers with VA Loan can add their missed payments back to their loan balance. Borrowers will work with lenders for a new manageable repayment schedule. They also have an option o extend their loan.
  • USDA loan modification – Borrowers backed with USDA loans have the option of modifying the mortgage. It gives an option for you to extend the term for 4o years, lowered the interest rate, and get a “mortgage recovery advance”.    All these programs in the end increase the loan balance due and the total interest paid.  If you have a permanent loss of income your best bet might be selling and moving to a less expensive home or renting.

How to apply for Loan Modification?

1. Collect data about your financial position.

You have to give your lender or servicer tax returns to pay studs. It is to prove your financial hardship and that you’re unable to make your monthly loan payments. You’ll also need to provide a letter explaining your situation. This letter should be clear, accurate, complete, and business-like. Keep emotions out of it.
 

2. Make a plan for your case.

Be honest with yourself and consider the circumstances if you want long-term or short-term way. Be prepared to make your case.
 

3. Contact your servicer

Contact your lender or servicer and ask for a loan modification. If it is denied, you have 14 days after the denial date to review your application. But you can only apply for modification at least 3 months before the foreclosure sale of your home. Keep records of your correspondence and actions along with any supporting evidence.

What Happens to Your Credit Score When You Get a Loan Modification?

If you are considering going for a loan modification, chances are your credit score has already slipped. The majority of the borrowers involved in the procedure are already past due on their payments.

While you’re going ahead with the loan modification process, the “paying by modified terms” remark is on your credit report.

While you’re paying your loan on time, there may be a chance to have a positive impact on your credit score. This positive impact in turn makes up for the previous negative impact.

If you are not sure about this, there is an option for refinancing the loan at a later date as well if necessary.

To know more about the options available to you, contact Elite Properties NYC, one of the companies that buy houses for cash in any condition.

As the rate of unemployment continues to climb, a growing number of people are actively looking for methods to reduce their monthly expenses and save money. For those who have a mortgage on their heads, there is a high possibility that you may find yourself in a situation where your funds are dry and you’re not able to pay for your mortgage.

It is important to remember that falling behind on your mortgage payments can have a far more significant impact on your credit score than failing to pay your rent on time. In the worst-case scenario, it could put your house at risk.

Nonetheless, there’s always a way out of such situations and this article will take you through the various consequences you may have to face as well as the options available to help you sail past the storm.

Let’s get right down to business.

What Are the Consequences of Falling Behind on Mortgage Payment?

After the first 15 days have gone and you still haven’t been able to make your payment, they’ll charge a late fee.
 
After 30 days if you are still unable to make the payment on your loan, it is considered a default.

When this happens, your lender will notify the credit bureaus that you have gone way past your due dates and your credit score will tumble.

There are some situations where you may go past the 120-day late mark on your mortgage payments, which would then begin the foreclosure process. After that, there will be a long legal battle where the lender will take control of your house and you will be forced to leave the property.

The mortgage lender’s intention is to sell the home and use the money to pay off the remaining sum on your mortgage.

What Are The Stages Leading To The Foreclosure Process?

Delaying payment on your mortgage can often lead to foreclosure, which can be a long and difficult process. Foreclosures only occur once you’ve missed mortgage payments for more than 120 days. Your creditor will investigate other possible methods of payment before beginning the foreclosure process.

Typically these are the stages leading up to the foreclosure:

Grace Period

Your mortgage is not considered late until 15 days have passed from the original due date. This time frame is referred to as the grace period by lenders.

Letter with Late Fee

At this stage, your lender will send you a letter. In the letter, they will specify the amount due, the date of payment, and the late fees.

Pre-foreclosure

At this stage, your lender will submit a “notice of default” to the county’s office. Depending on who is in charge of servicing your loan, this term might extend anywhere from 30-120 days. You still have a chance to sort things out with your lender during this period by negotiating a revised repayment plan or any other amicable solution.

Foreclosure

If you have surpassed more than 3 months, the lender will proceed with the foreclosure process on the property. You will be forced out of your house, and it will be sold either through a real estate company or will be auctioned.

Also read: Reasons For Refusal Of Mortgage Pre-Approval

What options are available to you if you want to avoid foreclosure?

Lenders are aware that many people are going through difficult times right now, and they want to help those who ask for it.

If you’re feeling overwhelmed by the pressure of making decisions about your home, don’t worry- there are options available to you. You can always get in touch with your lender if things start to escalate, but there are typically some alternatives that they will offer you before it gets to that point. Here are some of the most common options:

Refinancing

The lender will give you a new loan to cover up for the delayed payments in addition to what you owe on the property. This new loan will come with a different interest rate and the terms and conditions will also be different. With this option, your credit score will not dip, and will help you ease off your monthly payments a bit.

Repayment

This is an option in which you and your lender mutually devise a strategy that is suitable for your financial situation and enables you to start making payments. You will strive towards continuing to make payments as well as making up for the late fees over time.

Forbearance

In this option, the mortgage company agrees to halt your mortgage payments for a while temporarily. The delayed payments will be added to the end of your loan.

 

Loan Modification

The mortgage company will change the terms and conditions of your existing loan. This includes the amount owed, the interest rate, and the duration of the loan. It’ll help you reduce the premium amount you are going to pay the lender each month.

Sale of the Home

Selling your home may be the best financial option if it is worth more than you owe on it. In today’s market, a home in good condition can sell quickly. Just remember that missing mortgage payments during the sale process can damage your credit score. If possible, try to keep up with your payments while you sell your home.

Renting

If you can work out an arrangement to live with friends or family at little to no cost, renting out your home could be a good option as long as you can collect enough rent to cover your mortgage payments. Just keep a few things in mind before becoming a landlord:

  • You’ll typically pay increased property insurance costs on the property.
  • You’ll be financially responsible for home maintenance and repairs.
  • You’ll need to arrange to repay any mortgage payments you miss while setting up the rental.

Short Sale

If you’re having trouble selling your home, you may be able to do a short sale. In a short sale, the lender agrees to let you sell your home for less than what you owe on the mortgage. Even though it will lower your credit score, a short sale is better for your credit than a foreclosure. And in some states, you may even be able to avoid paying a deficiency judgment (a penalty that lenders can sometimes get when the value of the collateral on a loan is less than the amount of the debt).

Deed in Lieu of Foreclosure

If you agree to a deed in lieu of foreclosure, you are essentially agreeing to vacate the home and give the keys back to the mortgage lender. This is often seen as a more positive outcome than foreclosure, as it can be less costly and time-consuming. Additionally, some mortgage lenders may offer a “cash for keys” arrangement, where you are given money to help pay for a new place to live.

While a deed in lieu of foreclosure does have some negative consequences for your credit score, they are typically not as severe as those associated with foreclosure.

How do prevent yourself from falling behind?

You can look for a way to increase your income or get a second job. While working a temporary job, you can stay in your home and can avoid falling behind if you have a money issue. You might wanna think about a roommate as an option, according to your situation.
It’ll also discover a strategy to increase your income. You have to be ready to buy a home. It involves:
 
1. Try saving up for a large down payment. This will give you equity on your home from day one. You can also prevent from owing more than your home is currently worth later on the line.
 
2. Pay off bills. Pay your credit cards, student loans, and other debts to free up your income and manage your house payment.
3. Only buy a home that you can afford. Before securing a mortgage, play with numbers and figure out if you can afford it.

Conclusion

When you’re behind on the mortgage payments the experience is never pleasant. Loan Modification will only be the last resort in case of dire emergencies.

At times there are some lenders that may force you to evacuate your house. This will impact your credit score, and at times, few will do both. If you are in survival mode, you can try to reduce collateral damage and help you get back on track.

Irrespective of how bad your financial outlook may be, there are various solutions. Finding solutions proactively can help you avoid foreclosure or bankruptcy.

When you feel like you’ve no other option left, we have the solution. Elite Properties purchase properties in as-is condition and can save you. We will help you avoid foreclosure and assist in your future.

The most common kind of loan utilized to purchase a home is a conventional loan. With a good credit score and a substantial minimum down payment, a conventional loan can be a good fit for you. But how much money do you need for a conventional loan’s minimum down payment?

  • A conventional loan’s minimal down payment is determined by numerous factors, including the sales price and the borrower’s credentials.
  • A conventional loan’s minimal down payment might be as low as 3% of the purchase price.
  • Borrowers who want to avoid paying private mortgage insurance should budget for a down payment of at least 20% of the purchase price.

What is a conventional loan?

Mortgages that are not insured or backed by government organizations are referred to as conventional loans. They’re offered and guaranteed by private lenders, and while most follow government norms and regulations, they’re not issued or backed by the government. “Conforming loans” are those that adhere to government norms and regulations.

Private mortgage insurance (PMI) is normally required on conventional loans if the down payment is less than 20% of the purchase price.

Private mortgage insurance is a monthly charge that is added to your mortgage payment. It protects the lender if you default on your mortgage payments.

Conventional Loan Down-Payment Requirements

Although a minimum down payment of 20% is frequently recommended, it is not required. Depending on your lender and the loan, you can put down as much as you like or as little as 3%.

Because a 20% down payment eliminates PMI, your monthly payments will be lower than those of a borrower who pays PMI. Using our mortgage calculator, here’s what the difference looks like for a home with a sale price of $250,000, a 30-year fixed-rate mortgage, and a borrower with a high credit score:

 

Down PaymentInterest RatePrincipal & InterestTaxes & InsurancePMIMonthly Payment
20%=$50,0003.13%$856.75$444.33$0$1,301.08
5%=$12,5003.13%$1,017.39$444.33$148.44$1,610.16

 

In comparison to the buyer who does not have to pay PMI, the monthly payment for the buyer with PMI is $309 higher. This sum includes the PMI payment as well as any additional interest charges. If you pay this until you’re halfway through your 30-year loan, your lender will remove PMI regardless of your equity, that’s an extra $3,708 each year or $55,620 over 15 years.

PMI is required for conventional loans with less than a 20% down payment, but it is not required for those with a 20% down payment. However, keep in mind that if you choose this option, you will incur an extra PMI fee.

Other Conventional Loan Requirements

Your credit score: Credit score criteria for conventional loans vary per lender and loan. Your interest rate will be cheaper if your credit score is higher. You’ll pay less in interest over the term of your mortgage if you get the lowest interest rate offered. If you want to get a loan, you should have a credit score of at least 620.

Your DTI: Another criterion that lenders consider is your debt-to-income ratio (DTI). This ratio is calculated by dividing all of your monthly debts by your gross monthly income. Your DTI shouldn’t be more than 43%, but the lower it is, the more likely you are to get accepted for the entire loan amount. A low DTI indicates to lenders that you will be able to comfortably pay your mortgage in the event of an emergency. 

 

 

The total amount of the loan: You can only borrow a certain amount with a conventional conforming loan. In 2021, the average cost of living in most counties was $548,250, or $822,375 in high-of-of-living locations. In 2022, this rises to $647,200, or $970,800 in high-cost-of-living areas. If you believe your home’s price is higher than these figures, you may want to look into other financing options.

Unconventional Loan Options

Conventional loans may be appropriate for some people, but they are not for everyone. Before applying for a traditional loan, be sure you meet the minimum requirements. To find out if you qualify, speak with your realtor or mortgage broker. If you don’t, they might recommend something else.

FHA: The Federal Housing Administration backs loans for consumers with credit scores as low as 500 and down payments as little as 3.5 percent, depending on the lender.

USDA: The United States Department of Agriculture backs house loans for low- and moderate-income customers in rural areas. With a USDA loan, you can put down as little as $0 for a home. There is no prerequisite for credit.

VA loans, which are available to military personnel and their families, are backed by the Department of Veterans Affairs. You don’t have to pay anything upfront, and if you qualify, you can use it as many times as you like. 

Frequently Asked Questions (FAQs)

Q: What is the minimum down payment on a conventional loan without PMI?

If you want a traditional loan without private mortgage insurance, you’ll need at least a 20% down payment. It isn’t essential to qualify for a traditional loan, but it will save you money on PMI.

Q: To acquire a conventional loan, what credit score do you need?

Most lenders require a credit score of at least 620 to qualify for a conventional loan.

 If you don’t meet the minimum credit score standards, you can consider a USDA loan, which doesn’t require a credit score, or an FHA loan, which allows you to borrow with a credit score of at least 500.

Additionally, refer to our experts who can assist you in making the right decision. We are a cash buying company that suggests we provide fast closings. Call us at 718-977-5462 today.

Are Home Prices Likely To Fall In 2022? – In terms of real estate horror stories, 2021 was full of them, including sight-unseen bidding wars and mansions flying off the shelf for cash with no inspection.

Congratulations if you were able to find a new home in 2021. If you’re still seeking to buy, you’re undoubtedly wondering if it’s a good idea to buy in today’s market and if anyone will want to buy your house. Will a home acquired in early 2022 lose value or increase in value in the future?

Our business at Elite Properties is real estate. We closely monitor the market and can tell you that statistics indicate that property prices will continue to grow in 2022.

We’d like you to keep in mind that your home is more than just an investment. This is where you will spend most of your time, and a property will be worthless if it does not suit your financial circumstances or lifestyle. Also, if we get into the numbers, these figures will be more relevant to Move-in ready homes.

Let’s take a look at what’s been going on while keeping all of that in mind:

In 2021, home prices reached new highs.

Everyone wanted to buy in 2021, and housing inventory was extremely limited across the country. As a result, prices reached an all-time high this summer.

“Inventory fell in 2020 and 2021 as demand for homes increased, owing to the Great Reshuffling, cheap mortgage rates, and a demographic surge of millennial and baby boomer home purchasers.” According to a September 2021 press release from Zillow, “the combination of little supply and tremendous demand pushed prices into new territory, reaching a record-high 17.7% annual increase in August.”

You might be wondering, “Who will buy my house?”

Although inventory is improving, the market remains heated.

Inventory will improve as more people prepare to list their houses this winter. But we aren’t yet out of the woods! Because there are still more potential buyers than available properties, home prices will continue to climb as a result of the competition. They’ll simply rise at a more moderate pace.

To back this up, let’s take a look at what the experts have to say about home prices likely to fall.

None of the top experts predict a drop in value in 2022. They’re all in agreement that housing prices will continue to rise next year, while they disagree on exact figures.

“Price increase is likely to return to a normal range,” Realtor.com’s Danielle Hale adds, “but this is on top of recent high prices… As a result, prices will [still] reach new highs. The rate of price rise will slow significantly…” So’Home Prices fall is unpredicted.

So, while the market isn’t as hot as it was last year, property values continue to rise.

“The recent unsustainable rate of home price increase will halt sharply,” says Brad Hunter of Hunter Housing Economics. The price of a property will not fall… “However, they will rise at a more sustainable rate.”

Although it’s still a seller’s market, things aren’t as bad as they were last year.

“Along with the predicted slowing of price appreciation in the coming months, the market is beginning to shift toward a balance between buyers and sellers — though that middle ground remains a long way off,” said Nicole Bachaud, Zillow’s economic data analyst.

What does this imply for potential buyers?

While 2022 appreciation will not be as high as 2021, it does not appear that the market has reached its peak and is about to implode. That should help you out.

Elite Properties: If you decide to sell your present house and buy a new one, we can make the process of selling your current home simple and stress-free.

Let’s address some of your concerns:

Q: Will you buy my house in its current condition?

A: Of course! You will not be required to make any repairs.

Q: When you acquire my house, would you charge commissions or fees?

A: No way! When you engage with Elite Properties, there are no agent commissions or fees.

Q: If you buy my house, will you assist me with packing and moving?

A: Of course! We strive to make the process as simple as possible for you, and we’d be delighted to discuss how we can assist you.

Contact us today for a no-obligation quote if you live in areas such as Washington, D.C., Maryland, Virginia, or Pennsylvania. We’ll assist you with moving out of your current residence and into a new one. 

Additionally, refer experts from Elite Properties who can assist you in making the right decision. We are a cash buying company that suggests we provide fast closings. Call us at 718-977-5462 today.

You’re undoubtedly dreading paying a real estate commission if you’re thinking of selling your property (home sales). You may be wondering if there is any way to avoid having to pay for it. After all, the total commission is usually around 5-6 percent of the selling price, so if your home sells for $250,000, you’ll lose roughly $15,000 in fees.

If that’s money you don’t want to part with, the Elite Properties team is here to explain how commission works and how you may avoid paying it.

How Does a Commission Work?

Real estate commissions are deducted from the home’s sale price, as you are already aware. Although the fee is paid by the buyer, the money would otherwise go to the seller. Typically, the buyer’s agent receives half of the commission and the seller’s agent receives the other half.

Real estate brokers will occasionally agree to different payment structures (such as a flat fee) or a lesser percentage (typically for a high-end home), although this is more of an exception than the rule. Paying a commission is always expensive, regardless of the terms of the arrangement. Sellers will have to pay the extra fees with the extra commission to cover marketing costs.

Getting Rid of The Commission

Of course, listing FSBO (For Sale by Owner) is one option to avoid paying commission—but that just eliminates commission on the seller’s agent’s side. Many agencies will refuse to show your home to potential purchasers if you refuse to pay a commission to the buyer’s agents.

Your buyer pool will be quite small if you solely work with unrepresented clients. You’ll almost certainly have to deal with a large number of folks who aren’t serious about purchasing.

Is it possible to sell a house without paying a commission?

All of this begs the question: Is it possible to sell a home (home sales) without paying a commission? The answer is a resounding YES

There are no commissions or fees when you sell to Elite Properties.

We provide home sales with no commission. When you work with us, we’ll make you a cash offer on your house the same day, no questions asked.

A commission isn’t the only thing you avoid when you cooperate with us. You can sell your house using the following methods:

1. No repairs: Even if your house is in good shape, it will almost always need to be repaired before it can be sold. This is both costly and time-consuming. We at Elite Properties are unconcerned about these fixes. We’ll buy your house as-is, whether it needs major renovations or minor ones.

2. There will be no showings or open houses: You don’t have to keep your house immaculate and ready for visitors all of the time. We work around your schedule rather than you working around the schedules of possible purchasers.

3. No need to wait: we’ll schedule a same-day meeting to make you a reasonable cash offer. You can even specify the exact day of your closure!

There are no headaches: Selling to us is simple and straightforward from start to finish. At every step of the journey, we’ll be there for you. In many cases, we can even assist you with packing and moving. When we say we buy properties for cash and as-is, we mean it. No repairs, no inspections, no open houses, no agent fees, and a quick closing are all options for selling your home.

Working With Elite Properties Entails the Following Steps:

We are the best company to work with if you want to avoid paying commissions (home sales). We take pleasure in offering a stress-free selling experience that allows you to move out swiftly without having to renovate, stage, or market your home.

We’d love to show you how simple it is to sell your house in Washington, D.C., Maryland, Virginia, or Pennsylvania. Please contact us right away for a quick and reasonable cash offer.

Additionally, refer experts from Elite Properties who can assist you in making the right decision. We are a cash buying company that suggests we provide fast closings. Call us at 718-977-5462 today.

Is there anything more satisfying than having money in your pocket? Perhaps not when it comes to selling a house to a cash buyer. Selling your property to a cash buyer or contemplating cash offers for homes can help you walk away from the closing table with a lot more money than you started with. But, what exactly is a cash offer, and when is it a good idea to sell a house for cash?

What Is The Difference Between A Cash Offer And A Counter-Offer?

Buyer gives seller cash for the cost of home instead of financing from a mortgage lender or any other way. This is a cash offer.

Most home purchasers require some form of finance to be able to purchase a property, which is usually in the form of a mortgage. A cash house buyer, on the other hand, will be able to purchase a property without the need for a mortgage loan or other forms of financial aid. Cash offers are often less than the full market value of a home, but there’s a reason for that. To begin with, cash offers are low-risk because sellers are not concerned about buyer financing falling through. Second, the fact that the seller does not have to spend time, money, or resources selling, improving, or negotiating the property offsets the majority of the drop in the offer price.

Is It Common To Sell A House For Cash?

It’s not uncommon to receive a cash offer. The most usual circumstance in which a cash offer is made is when a property is purchased by an investor or an investment business.

A homeowner can usually sell their home as-is in certain situations. A cash house buyer, on the other hand, may be interested in your property for a variety of reasons.

Some purchasers have cash on hand, like profits from selling their last house. In competitive seller markets, where financing delays may drive the seller to choose a more appealing offer, cash purchasers are also prevalent. This occurs because cash purchasers have an advantage over mortgage buyers when purchasing a home.

In addition, if the property is a fixer-upper, a cash sale may be able to assist the owners in selling their homes as-is. When a house is approaching foreclosure, cash purchasers are frequently courted since homeowners must close fast in these situations.

Is It A Good Idea For Me To Work With A Cash Home Buyer?

Accepting cash offers for homes has various advantages. To begin with, the average mortgage buyer takes 30-45 days to complete the transaction, but a cash offer may take a week or two. Overall, in a competitive market, selecting a cash home buyer offer over a mortgage buyer will benefit sellers. The easiest and most successful buyers are those who present the fewest hurdles.

Elite Properties has been assisting homeowners in Washington, D.C., Virginia, Maryland, and Pennsylvania for years. We’ve helped thousands of customers sell their houses for cash, and as a consequence, we’ve established ourselves as one of the top real estate firms. We’ve helped every single one of our customers sell their home on their terms, for cash. If this sounds appealing, keep reading for the top five reasons why selling to a cash home buyer is a good idea.

  1. A more adaptable and quicker sales process

Cash offers for homes are more appealing to sellers because there is no chance of the acquisition falling through and the transaction closes faster.

A cash home buyer does not require a mortgage since, as the name suggests, they already have the funds to acquire the home. As a result, the application and approval processes for mortgages can be bypassed.

There is less of a danger that the financing will fall through if you don’t have to acquire a mortgage. Financial troubles, such as a job shift or identity theft, might cause a mortgage transaction to fall through. Furthermore, the mortgage underwriting process might take a month or longer, and there’s always the risk that the purchase will go through owing to the buyer’s inability to acquire financing during that period. As a result, mortgage purchasers have a lower level of trust and assurance.

There is no mortgage application, documentation, underwriting, or appraisal when you sell a home for cash. The buyer will need to arrange for title insurance and insurance, as well as present evidence of finances and sign closing documents, but this should only take a week or two. A buyer who makes a cash offer must produce proof of finances to the seller, demonstrating that the buyer is ready and able to close swiftly.

You don’t need to hire a real estate agent when you sell your house for cash. As a result, you won’t have to wait for them to take photos, advertise your home, or hold open houses for you. A quicker closing means more money in the seller’s pocket.

A cash offer’s closure entails merely a settlement statement, title, deed, and a cashier’s cheque. Because no loan fees or transactions are required, there is less paperwork and overall closing costs.

  1. There is no need to make changes or updates.

When selling your house for cash, you may usually sell it as-is. When you sell your home “as-is,” the buyer has the option to take it or leave it. Before a buyer agrees to buy your house, you do not have to commit to making repairs or upgrades. As a result, with cash offers for homes, there are usually few, if any, contingencies.

  1. There are no real estate fees.

When you make a cash offer on a home, you avoid having to pay a commission to a real estate agent. Commission fees are typically approximately 6%, which can add up to a significant portion of your selling price. A seller will save money on upgrades, bank fees, agency costs, and interest fees by taking less money from a cash house buyer than they would from a mortgage buyer.

  1. Stay away from the nitty-gritty.

A buyer also does not require an appraisal, as a mortgage buyer’s lender would.

The mortgage lender will need a home appraisal. This will add to the cost of purchasing a home. As a result, a cash home buyer will typically skip this step. As a result, a cash offer can assist people in selling their houses fast by removing the cost and time associated with obtaining an assessment.

Some of the same fees will be paid by cash home buyers. For example, a buyer must pay an earnest money deposit as well as transfer taxes, escrow fees, and closing costs in either situation. In addition to homeowner’s insurance, HOA fees (if applicable), and property taxes, the homeowner is responsible for purchasing homeowner’s insurance.

  1. Aids in the Avoidance of Foreclosure

When your home is on the way to foreclosure to an unpaid mortgage, consider selling your house to a cash buyer. It’ll allow you to pay off your debt and start again. Elite properties have assisted innumerable homeowners in this predicament, as well as those wishing to downsize, sell a house they recently inherited, elders looking to relocate, and persons in a variety of other situations that necessitate a quick and painless home sale. Contact us immediately if you’d like to work with a cash house buyer. We’ll work with you on your schedule, and you’ll walk away from the closing with cash in hand. You’ll get early results for Selling a House To A Cash Buyer.

Cons of selling your House for Cash.

Before thinking of selling your house for cash, you must also know its disadvantages of it.
 

Low Buy Offers

 
The borrowers are eager to buy because they hope to locate undervalued houses. And can later resale for a rapid profit. They refurbish and resell them.
 
In other situations, they might renovate and lease them. No matter what their goal is, they want to pay the least amount. The aim is to buy houses for no with over 50% to 30% of what they can sell for in the future. Selling a house to a cash buyer can really give you some low-buy offers. 

The sale has no guarantee

 
There is no definite guarantee of a close until the contract is fulfilled to the last detail. You have the money in your hand, even if a rapid closing and an all-cash transaction are undertaken.
 
Some of these advertisers might have the capital and be planning to shut down. Others have received training to place contracts on houses before shopping the transaction. It is to see if someone else will pay more. They let the contract expire, wasting your time if they can’t find someone within that time range.
 
Or they can try to persuade you to use a novel kind of finance, such as owner financing or a lease option.
 

Deduct Repairs & Improvements from Your Price

 
While some buyers won’t need you to perform any repairs or even clean up your house. By this, they will deduct this fee from the sale price. You can guarantee that they will subtract that amount from what they are offering. It’ll along include the profit margin they want to make.
 
That might be up to 25% less than the anticipated resale price. The majority of people won’t offer more than 70% of the market worth, less any closing and repair charges. In this case, they would aim to make an offer that is closer to $45,000 on a $100,000 house.  You’ll have the best shot of selling a house to a cash buyer.
 

Lack of Competing Bidders

You’ll be limited to one “take it or leave it” quote. If you Realtor they will handle all your buyers and market your house to millions of home searchers. The Realtor will handle all your buyers and market your home to millions of home shoppers. Listing your home with a Realtor could create a bidding war and more competition for your home.
 

Are businesses that buy homes for cash legitimate?

Many companies buying houses for cash have the license for it. You should be aware of their business practices and the way they operate.

Additionally, refer experts from Elite Properties who can assist you in making the right decision. We are a cash buying company that suggests we provide fast closings. Call us at 718-977-5462 today.

The first step in purchasing a home is Mortgage Pre-approval. But what happens if your preapproval is turned down?

Though it may be discouraging, it does not necessarily imply that your home-buying ambitions are over. Here’s what went wrong and what you can do to enhance your chances of getting approval in the future.

What Is Mortgage Preapproval and How Does It Work?

A mortgage pre-approval letter is a letter from a lender stating that, based on the financial information you’ve submitted, you’ll most likely qualify for a mortgage loan. The letter will also state the amount of money you may be eligible for.

Every lender’s pre-approval procedure is different. Some may only require basic information such as your name, annual salary, and predicted credit score, while others may require a credit check and extensive financial paperwork.

A pre-approval is not the same as a mortgage approval; it does not imply that the loan will be funded. Preapproval letters are intended to assist you in the home buying process by providing you with a budget and demonstrating to sellers that you are a good candidate for financing.

Why Do Lenders Refuse to Issue Preapproval Letters?

Lenders reject applications for a variety of reasons, but it all boils down to how dangerous of a borrower you are. High debt-to-income (DTI) ratios were the cause of about a third of declined mortgage applications, according to the Consumer Financial Protection Bureau’s (CFPB) examination of 2019 mortgage-application denials.

Poor Credit and collaterals are the grounds for denials from lenders. In 2019, 8.9% of mortgage applications have denied.

Here are some of the variables that may have contributed to your denial:

You Have An Excessive Debt-to-Income Ratio

Your debt-to-income ratio (DTI) measures how much of your monthly income your loans consume, such as school loan payments, credit card bills, and your projected future mortgage payment. According to the CFPB’s investigation, DTI was responsible for about 30% of the refused applications.

Your Credit Record Isn’t Up To Mark

It’s also possible that your credit history played an impact. Lenders look at your payment patterns, how much of your credit limit you’re using, and how many credit cards and loans you have when reviewing your credit history.

Late payments, collections accounts, and a large number of debts could all play a role in your denial. According to the Consumer Financial Protection Bureau, poor credit history was the reason for 19% of refused applications in 2019.

Low Home Value/Bad Collateral

Your home serves as security for your loan. If you don’t pay back your loan, your lender may foreclose on your home and sell it to recoup their losses.

The lender may reject your application if the residence isn’t valuable enough, especially in comparison to the amount you’re asking to borrow. According to the Consumer Financial Protection Bureau, insufficient collateral was the basis for around 14% of all purchase application denials in 2019.

What To Do If You Are Turned Down

If your lender declines your preapproval request, find out why. Obtaining an explanation for your refusal can assist you in identifying the problem (high DTI, low credit ratings, etc.) and devising a strategy to address it:

  1. Improve your credit score by paying down credit card balances, clearing any collections accounts, catching up on missing payments, and notifying credit bureaus of any inaccuracies identified on your credit report.
  2. Consistency is key: Make sure you pay your payments on time, every time, and that you have a solid job. Both of these things can help you become approved.
  3. Pay off your debts: The more debt you can pay off, the lower your DTI will be. Aim for a DTI of less than 43 percent.
  4. Create a second source of income: Raising your income can help you lower your DTI. Consider picking up a side gig or asking for a raise, but keep in mind that lenders often look at your income for the last two years when determining your capacity to repay your mortgage.
  5. It’s also a good idea to apply to a few different lenders. Because qualifying requirements differ by lender, shopping around can help you increase your chances of getting approved.

Final Thoughts

Your homebuying quest isn’t over just because your preapproval application was declined. You have to find out why the bank refuses your loan. You can take action to address the concerns and make sure to check your report in a regular manner.

A financial or housing consultant can also help you. They can advise you on the best course of action for your specific situation and credit.

Additionally, refer experts from Elite Properties who can assist you in making the right decision. We are a cash buying company that suggests we provide fast closings. Call us at 718-977-5462 today.

A Security Deposit is a sum of money paid to guarantee the use of a piece of property. This phrase associates itself with leasing or renting an apartment. It can also refer to situations where a security deposit is necessary. The Security deposit for renting a home is an essential thing. You should take care of it before going out there to look for a rented place. 

Security deposits, often known as “damage deposits,” are either refundable or nonrefundable. This means you may or may not be able to recover your money. It’s beneficial to know when and why a security deposit is a must before providing it.

Security Deposit Definition and Examples

A security deposit, in its broadest sense, is money you pay to someone else as part of a contract to utilize their property or services.

When it comes to rental properties, a more specific security deposit term is employed.
 
A security deposit is “the money to secure the landlord in the event of tenant damages the place or fails to pay. The landlord might need a security deposit before you move into an apartment that you rent or lease.
 
Depending on where you live, the local landlord-tenant laws, may change and exceed one to two months of rent. The security deposit is the financial security for the landlord in the event of a breach of the lease, damage, or eviction.

The landlord can keep your deposit if your lease contract permits it to pay any financial losses or damage they suffer as a result of your activities.

What are the basics of a Security Deposit?

A security deposit is one-time, refundable money given to the landlord besides the rent. The collection of a security deposit is not required by the law. It only helps you protect yourself from tenants causing damage or leaving without paying rent. While your state may have a cap on how much you can collect, all states let you collect at least one month’s worth of rent.
 
There is something you need to know about security deposits:
 
1. Limit on State Security Deposits – The amount requested from tenants as a security deposit varies by state in the United States. There is no upper limit on the amount in some states, such as Texas and Illinois. In Connecticut, a security deposit cannot be greater than two months’ worth of rent. If a tenant is 62 years of age or older, this cap is lower than one month’s rent.
 
2. Due date for deposits – You have to collect the security deposit before giving the possession to the tenant. This clause needs to be in the lease and allows you to end the agreement if the tenant is unable to pay the whole sum.
 
3. Holding Deposits– States do not have rules about where the security deposit is deposited by you. But it can be deposited in its own interest-bearing account.
 
4. Giving deposit back – The state legislation governs the time for releasing or holding the security deposit.

How does A Security Deposit work?

A security deposit is necessary before you can use the facilities or services. If you’re moving into a new apartment, you have to pay the security deposit in full upon lease signing. State and/or local landlord-tenant laws safeguard security deposits for rental agreements.

The laws can dictate:

  • How much can a landlord want as a security deposit?
  • When are security deposits due?
  • Where must this money be kept?
  • When can I get my security deposit back, and how long do I have to get it back?
  • When does a landlord have the right to hold a tenant’s security deposit?

Your landlord can keep all or part of your security deposit to cover cleaning and repairs. This happens if you vacate an apartment with stained carpets or broken fixtures. You can also look for FAQs when it comes to Security Deposit.

You may lose your deposit if you violate your lease and leave early. The deposit will be used to cover any remaining rent payments.

 

Factors_affecting_security_deposit

 

Landlord-tenant regulations may also outline what options you have as a renter for reclaiming your security deposit. If you suspect your landlord is unjustly withholding your deposit, you may be eligible to bring a civil complaint in small claims court.

Do You Need a Security Deposit?

When you rent an apartment or another place to reside, the landlord will almost always require a security deposit. If you don’t have the funds to pay a significant deposit upfront, you might be able to negotiate an alternate deal.

For example, you can split the deposit over the first three months of your lease term. Let’s get to know key takeaways about Security Deposit for Renting.

Key Takeaways

  • The payments made in advance as a part of the contract to get access to the property is a Security Deposit.
  • When renting a property, the lease agreement should specify the security deposit. The landlord-tenant legislation governs the lease agreement.
  • Depending on the conditions of your agreement with a service provider or landlord, security deposits may be refundable or non-refundable.
  • If your security deposit is not given in an unfair manner, you can sue them in civil court to get it back.

Additionally, refer experts from Elite Properties who can assist you in making the right decision. We are a cash buying company that suggests we provide fast closings. Call us at 718-977-5462 today.

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