For most people, real estate is the most important and expensive purchase
they will make in their lives. Everyone who has purchased real estate
has a story to tell--some have been successful, others have failed.
Often these accounts convince some that owning their own home is an
unreachable dream.
Royal Realtors and Loan Services provides the information and personal
service you need to find and buy the home that is just right for you.
By far, the most powerful tool at one's disposal is to become educated
before beginning the home-buying process. The information is out there,
and it's usually free.
Banks and real estate brokers offer home-buying seminars that provide invaluable
information that can make the difference between a successful experience
and disappointment. During these seminars, the home-buying process is
explained in every-day language. Buyers learn how to:
- Determine how much they can afford to spend on a mortgage
payment per month
- Develop a budget
- Choose a qualified broker
(See article)
- Shop around for the best loan package
- Reduce their debt-to-income ratio
- Get pre-approval from a lender
There are many loan options available even for low and moderate income households.
Many banks offer first-time buyer programs.
Loans are offered by organizations like FNMA, the Federal National Mortgage
Association (Fannie Mae), as well as groups like the American Dream
Coalition. High down payment fears are alleviated with programs that
require as little as 5% and even 3% down.
It is wise to send off for a copy of your credit report
in order to anticipate any possible problems (find
out how).
Luckily for those with less than perfect credit, past credit problems don't
automatically prevent them from acquiring a loan.
If you are aware of the particular problem, a lender may
allow you to explain in writing the mitigating circumstances surrounding
a late payment or even a defaulted student loan.
You can save yourself time and trouble by receiving pre-approval from a
lender. This document states the maximum amount of money the bank is
willing to lend you.
The majority of problems occur when unprepared buyers enter into a contract
and then begin the process of looking for a lender--totally
unaware of their credit status or how much they can afford.
Pre-approval makes your offer more attractive to the seller. If you make an offer
and the seller knows you have qualified for the loan, the seller will
be more likely to accept your offer over someone who hasn't been pre-approved.
In a real estate sales agreement, an "escrow" account is an account operated
by a real estate broker that is used to hold buyer deposits until closing.
Once the legal documents are signed, there is a finite period in which
to receive formal loan approval and pay the down payment and bank fees.
Royal Realtors and Loan Services has a track record of keeping a close watch
on deadlines to ensure that their clients' deals close before the end
of escrow. Over the years, Denise Smith has acquired contacts at banks
and title companies who can assist her clients in meeting their deadlines.
Certainly home ownership has its disadvantages. There is no guarantee that the
property value will appreciate in the first few years. A homeowner has
more expenses and responsibilities than a renter.
But the advantages far outweigh the downside. Real estate is a sound investment.
The equity accumulated can lead to a bigger and better second home or
can be used as collateral to acquire commercial property. Homeownership
also provides the tax advantages necessary in today's economy.
So, in the near future when the discussion turns to real
estate, your story doesn't have to be a nightmare. With a little leg
work, some time invested in a good seminar, and knowing what to expect,
it is possible that the dream of homeownership can come true for you.
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Make
It Through Escrow
