Wednesday, July 2, 2008
Do not fail to take advantage of outside finance as banks are willingly coming forward to lend money to buy houses. This is because unlike other forms of investing, banks have enough money to keep if you decide to foreclose. Banks are usually not as willing to give loans for stock or gold investing because the value of your stocks may dwindle by the time you sell them. And gold prices fluctuate. The worth of real estate, on the other hand, is always steady and may increase in value every year. Several hundreds of lucrative real estate investment opportunities are available in the market and with a little experience, knowledge, and desire, you can exploit them.
There is no denying the fact that real estate is today becoming a fast-paced and rewarding business proposition. Due to the high dollar amount of home sales, agents’ commissions are often very high which is what drives so many new people to into real estate every year. When you compare the time and money you spend for getting a real estate license, the potential yearly income you will make as a real estate agent, is formidable. In all such cases, you will certainly require professional help in ascertaining the value of the house.
You have to invariably consult an architect, real estate value or an experienced civil engineer to assess the total cost of the construction and its present day value. If the house is a few years old, then consider the then cost of construction and add today's land value to evaluate the worth.
The value of the building depreciates with every passing year. Verify with the banks the depreciation value and deduct the same from the total assessed value.
Charge reasonable rents for your property. Have good terms with your tenants. Never fail to satisfy their reasonable needs. Make sure to get rental or lease agreement letter from the tenants for confirming the status of tenancy. Be careful with the contents of the rental or lease agreement.
He will be able to help you evaluate complicated sales offer and also evaluate complicated leases and mortgages. He can even review the contracts and closing process for the home sale. The services of a real estate lawyer are recommended to any sellers who don’t have much experience with home selling. Spending a small amount of money for a professional to take care of your best interests will save you from lot of headaches as well as money.
Wednesday, June 25, 2008
But new laws that are being contemplated could change the equation. A law passed by Illinois legislators earlier this month and backed by state Attorney General Lisa Madigan aims to do just that. The law envisages a "fiduciary duty" to mortgage brokers, making them legally bound to do the best thing for their clients.
Similar laws are under consideration in other states in US. In Minnesota, legislators recently approved new rules defining mortgage brokers as agents of home buyers, requiring them to act in clients' best interest. But similar measures in Iowa and Colorado were defeated.
As things stand today, mortgage brokers have no such fiduciary duty towards their home-buying clients. Brokers regularly recommend loans driven by selfish interests because they stand to gain financially. It is certainly not unlawful for a mortgage broker to persuade a client into paying a higher interest rate for a loan so that he can pocket the difference, or to prevail upon a buyer to agree to a pre-payment penalty so the broker rewarded with a bonus from the bank.
A majority of home buyers run after mortgage brokers, primarily for two reasons - either they want a person to practically guide them through the mortgage process or they are keen on getting a cheaper loan.
The first reason has no meaning as there's only one kind of loan - the traditional fixed-rate loan with 5, 10 or 20 percent down. You certainly do not require a mortgage broker to educate you about these choices. If you are a daredevil in taking financial risks, then you may opt for some weird loans, but even in that case, you do not need a broker to explain the nature of those loans.
As regards the second reason, it is true that a few brokers may be able to get you better terms. The only way to find out is getting two estimates from two reliable brokers and one from the bank on the same day for the same kind of loan.
Always consider your broker as a commission agent having valuable expertise - butt ensure you keep him at arm's length without giving him any opportunity to exploit you.
Any mortgage broker will help you free of charge how to act on the three most important issues:
How to advertise effectively to attract as many prospective buyers as possible to inspect your home?
What types of mortgage loans does your home qualify for?
Will the intending buyer qualify for a loan?
You may end up wasting a lot of time with a buyer who sincerely wants to buy your home but does not qualify because of credit issues or inadequate income. This is where your mortgage broker can play a useful role. Besides, most people who view your home will not be candid or forthcoming with you but they will confide with a third party like a mortgage broker.
Banks invariably have only few programs and are not willing to work with anyone who has less than a perfect portfolio. But a full service mortgage broker has every conceivable loan product, which means your buyer will never be turned away. Most brokers have 40 to 60 different lenders and can usually get better terms and rates than a bank.