How To Buy a House Debt Free

How to buy a house debt free

Really want to own a home of your own, or take advantage of the many great real estate investment opportunities available right now, but don’t want to join the ranks of the millions of underwater homeowners out there or have the stress of meeting a mortgage payment every month?

The Pros and Cons of Saving to Buy a House With Cash

During the hot housing market of the early 2000s, trying to save up enough money to buy a home with cash seemed like an exercise in futility as home prices frequently jumped tens of thousands of dollars. Now things are a little different.

Paying cash for a home can be a smart move, especially for those who are extra sensitive to stress and can’t handle the knocks on the door or endless harassing phone calls from lenders when the monthly bills can’t be met. Who wants to be afraid to check their own mail?

Perhaps the one great thing that has come out of the foreclosure crisis is the availability of so many inexpensive homes. There are homes and condos all over the country, even in some of the hottest resort areas on the market for as little as $10,000. Even just saving $1,000 a month for the next year could solve your problem of how to buy a house debt free. Plus, coming in with a cash offer and being able to close quickly normally means more bargaining power and even lower prices.

However, not everyone is going to be satisfied with living in a $10,000, one-bedroom condo. Plus, the biggest con of waiting and trying to save up the cash to buy a home outright is that rising prices can quickly mean paying far more for the same home or being priced out of the market altogether. Make sure you weigh carefully the benefits of waiting versus taking out a mortgage now.

How to Buy a House Debt Free Next Weekend!

If waiting just isn’t an option, or you simply lack the patience, there is a way you could land a home for less than this week’s paycheck by this weekend – real estate auctions.

We aren’t talking about the typical auctions in every county, which have been hyped up by real estate “gurus” and are no longer a great source of deals. If you really know what you are doing, have plenty of cash and are willing to risk buying a complete tear-down, okay. Otherwise, you will want to seek out auctions in specific areas of the country where the housing market has been hit the hardest.

In some areas, you could own half a block for less than taking the family out to dinner. You’ll just have to sit on the investment for 10 years until the area is revitalized, or try to turn around and sell quickly.

How to Buy a Home and Get Debt Free Quickly

If you already own a home and have equity in it you could decide to sell, downsize and purchase a new home for cash. If this isn’t an option, and you are tired of making your landlord rich, there are a number of ways to buy a home now and pay off a mortgage faster.

Leveraging your home purchase with a mortgage isn’t always a bad thing. With interest rates and home prices so low this is the optimal time to buy, and locking into a great deal now can help you accumulate a lot of equity through appreciation. In fact, some homeowners who could afford to be debt free choose to maintain a mortgage for the tax benefits and deductions. Just recognize the difference between good debt and bad debt, and don’t sink yourself with too much of it.

There are a number of ways to pay down your loan faster to become debt free far sooner than 30 years from now. Maybe one of these ideas is right for you.

1. Make bi-weekly mortgage payments.
2. Take a shorter loan term with a lower rate. Ask about 20- or 15-year fixed loans.
3. Take out an interest-only loan and do one of the following:
a. Pay down principal with commissions or bonuses.
b. Put the difference in a higher yielding investment, and use the proceeds to offset the interest.
c. Purchase a multifamily property and apply the rents directly toward principal each month.

Content Courtesy of Keller Williams

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Using E-Property Sites to Boost Your Sellers Confidence

EPropertySites Listing Presentation

  1. Drive by the property and take photographs of the neighborhood and exterior pictures of the home.
  2. Put up a basic Property Website outlining the various features of the listing.
  3. Edit the site and tools like a “Text to Voice” voice over to show how you will showcase the listing.
  4. Text yourself the property code to 79564 so it is on your phone already at the presentation.
  5. Order a Sign Rider to really WOW the sellers. You can have a generic one you use on all presentations or you can decide to make one before each listing appointment to show the Sellers that you are already going above and beyond, even before you have the listing. (Some Agents call this listing insurance).
  6. Print up brochures of the home from the Single Property Website.
  7. Print one sheet of Business card stickers (hint: If you put in 1 for price it will make the price say “Call For Price”, you can do this until price is determined. Make sure you change it once you have the listing and Activate the property.
  8. Know the URL to your Listing Appointment “Flip Show”…even email it to the Sellers before hand if you like.
  9. Show up to the home and have the Sellers give you a tour of their property.
  10. If you don’t have a laptop, notice where they keep their computer.
  11. After the tour ask them if you can start by showing them something on their Computer or your Laptop.
  12. Explain that you understand that the appointment isn’t about you as much as it is about their home and explain what you are going to do to help showcase their home to the world, negotiate the contract and make for a pain free sale.
  13. Bring up the “Flip Show” URL (i.e.;249Ruby.FlipShow.com-hint :it is just the address or website key (dot) flipshow.com)
  14. As you flip the pages of the digital book, click on the “See Sample” buttons and show all of the features of your marketing, the property website, two Virtual Tours, Mobile technology with text message call capture, full color sign riders, posting to classified ads…etc.
  15. Explainthatyouarecreatingaseriesof”Commercials”forthepropertyrooted in the Property Website, Slide Virtual Tour, Panoramic Virtual Tour and Mobile Technology that help consumers locally or from all over the world access detailed data to see if they might have interest in viewing or knowing more about the home.
  16. When on each feature, talk about how you are going to put the URLs and text code different places to maximize exposure to their home (i.e.; Multiple Classifieds, on signs, postcards, emails, print ads, in MLS, Realtor.com…etc.).
  17. Show them a sign rider and the brochures and how that will help purchasers driving the neighborhood (60+% of buyers said they drove by the home first)
  18. Text for information (or already have it on your phone) and show the information that is returned, how your number is captured and the Mobile Phone Website…all that allow consumers to access the property information and pictures on the go.
  19. Take your business cards with the stickers on the back that have the URL and information of actual listing you are sitting in. Give the Sellers some to remember you by.
  20. After you are done, go into your traditional listing presentation and CMA.

(Hint: A wonderful technique in both pricing a home and building rapport is to take the sellers to 1-3 homes near theirs that are for sale. Setup a preview before the listing appointment. After you show them some of what you are going to do for them, ask them before you talk price to take a ride or follow you to a couple of homes near theirs. When they are standing in the homes that purchasers will see before they consider theirs, it will make it very easy for them to know if listing their home at this time is reasonable as they will not be able to be in denial about pricing. Ask them, compared to the homes you have seen, what price would make you buy yours first. Usually Sellers will under price their home and now you have the joy of telling them how you actually think they can get more.)

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6 Dont’s After Applying For a Mortgage

Once Qualified, Stay Qualified        (edit/delete)

6 Dont’s After You Apply For A Mortgage

Once you are qualified for a mortgage, you want to stay qualified.  The following are items to think about when making decisions during the buying process.

money pile1. Don’t deposit cash into your bank accounts. Lenders need to source your money and cash is not really traceable. Small, explainable deposits are fine, but getting $10,000 from your parents as a gift in cash is not. Discuss the proper way to track your assets with your loan officer.

2. Don’t make any large purchases like a new car or a bunch of new furniture. New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher ratios…higher ratios make for riskier loans…and sometimes qualified borrowers are no longer qualifying.

3. Don’t co-sign other loans for anyone. When you co-sign, you are obligated. With that obligation comes higher ratios, as well. Even if you swear you won’t be making the payments, the lender will be counting the payment against you.

4. Don’t change bank accounts. Remember, lenders need to source and track assets. That task is significantly easier when there is a consistency of accounts. Frankly, before you even transfer money between accounts, talk to your loan officer. bank pic

5. Don’t apply for new credit. It doesn’t matter whether it’s a new credit card or a new car, when you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.

6. Don’t close any credit accounts. Many clients have erroneously believed that having less available credit makes them less risky and more approvable. Wrong. A major component of your score is your length and depth credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both those determinants of your score. The best advice is to fully disclose and discuss your plans with your loan officer before you do anything financial in nature. Any blip in income, assets, or credit should be reviewed and executed in a way to keep your application in the most positive light.

By following these Dont’s, you will be closer to enjoying your new purchase.

If you need to consult with Mortgage Broker or Realtor about your next purchase…..

Greg Schamp, Strategic Real Estate Marketing and Your Real Estate Advisor!!!

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6 Dont’s After Applying For a Mortgage

Once Qualified, Stay Qualified        (edit/delete)

6 Dont’s After You Apply For A Mortgage

Once you are qualified for a mortgage, you want to stay qualified.  The following are items to think about when making decisions during the buying process.

money pile1. Don’t deposit cash into your bank accounts. Lenders need to source your money and cash is not really traceable. Small, explainable deposits are fine, but getting $10,000 from your parents as a gift in cash is not. Discuss the proper way to track your assets with your loan officer.

2. Don’t make any large purchases like a new car or a bunch of new furniture. New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher ratios…higher ratios make for riskier loans…and sometimes qualified borrowers are no longer qualifying.

3. Don’t co-sign other loans for anyone. When you co-sign, you are obligated. With that obligation comes higher ratios, as well. Even if you swear you won’t be making the payments, the lender will be counting the payment against you.

4. Don’t change bank accounts. Remember, lenders need to source and track assets. That task is significantly easier when there is a consistency of accounts. Frankly, before you even transfer money between accounts, talk to your loan officer. bank pic

5. Don’t apply for new credit. It doesn’t matter whether it’s a new credit card or a new car, when you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.

6. Don’t close any credit accounts. Many clients have erroneously believed that having less available credit makes them less risky and more approvable. Wrong. A major component of your score is your length and depth credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both those determinants of your score. The best advice is to fully disclose and discuss your plans with your loan officer before you do anything financial in nature. Any blip in income, assets, or credit should be reviewed and executed in a way to keep your application in the most positive light.

By following these Dont’s, you will be closer to enjoying your new purchase.

If you need to consult with Mortgage Broker or Realtor about your next purchase…..

Greg Schamp, Strategic Real Estate Marketing and Your Real Estate Advisor!!!

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4839 N 72nd Way, Scottsdale

4839 N 72nd Way, Scottsdale        (edit/delete)

4839 N 72nd Way, ScottsdaleSet in the heart of Scottsdale, this rarely available townhome is now on the market.  Its close proximity to Scottsdale Fashion Square, the Waterfront, and Downtown Scottsdale make it a true find.  Secluded on a private street, 4839 N 72nd Way, Scottsdale is within walking distance to the most exciting restaurants like Modern Steak, Kona Grille, PF Changs, Wildfish Seafood Grille and the list goes on and on.  The waterfront is the historic canal running through downtown Scottsdale with biking and walking paths.  4839 N 72nd Way, Scottsdale is a time capsule with only 44 units, each with their own 2 car garage, a very rare amenity as most of the other properties only have parking spaces that you have to rent or buy at an additional expense.  While many other properties are newer, they also make you feel like you are living in a fish bowl and unless you are willing to spend top dollar, your views are limited to interior courtyards.  4839 N 72nd Way, Scottsdale has the unique opportunity for you to create a rooftop deck with 360 degree views, sunrises and sunsets.  What a wonderful way to wind down your day than sipping on a glass of wine or your favorite cocktail while taking in one of the most beautiful sunsets in the world. 4839 N 72nd Way, Scottsdale will keep you feeling secure if you are looking for a lock and leave second property, vacation home or rental income property.

Contact me for your private tour of this unique property.  602-677-6816 begin_of_the_skype_highlighting            602-677-6816     end_of_the_skype_highlighting or http://www.realestateinphoenixscottsdale.com/listing/mlsid/8/propertyid/4737648/

4839 N 72nd Way, Scottsdale front view4839 N72nd Way, Scottsdale, Great Room4839 N 72nd Way, Scottsdale, Sunset

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To Sell or To Rent? That is the question

Should I Sell or Rent My Home? A Quiz to Help You Decide

sell or rent my home To sell or to rent. It’s a tricky question, especially in a down market. If you are relocating or just ready to move on from your ball and chain of a house, renting might make more sense than selling. Here is a quiz to help you decide whether you should sell or rent your home.

Can You Afford to Sell Your Home?

Here’s an example of a situation where a couple had to examine how affordable it was for them to sell their house. The couple knew they wanted to move to a new home, but they live in an area of Florida where houses have halved in value since the peak in 2006 – the same year their house was purchased. As they debated whether to sell their home, they realized that if they chose to sell, they would be forced to take a $150,000 cash loss, not including closing costs. They looked at the numbers and decided they could not afford to sell their home. For them, it made more sense to rent their home and purchase a second home that then became their primary residence. When you rent, you may take a loss on a monthly basis, but you do not have to come up with the cash to satisfy the loan immediately upon sale. If you sell at a loss, then there is no tax benefit.

Can You Afford to Rent Your Home?

Research the going rents in your market using tools like the MLS listings and craigslist.org. Look for comparable properties in your neighborhood or similar neighborhoods to get sense for what your home might bring in as a rental. It is important to take features like square footage, number of rooms and upgrades such as granite kitchen counter tops, location and proximity to desirable schools into consideration while looking for comps. You can also talk to real estate agents and property managers to get their take on pricing. If it turns out that you can’t cover your mortgage with the projected rent, then calculate how much of a loss you can take to still be able to afford to rent the house.

Do You Need Tax Deductions?

You can often take losses and costs from rental properties as tax deductions. In addition to deducting the cost of your mortgage beyond the rental income, landlords can often deduct all expenses associated with the rental, including property management and maintenance fees. Consult your accountant to ensure that you know what the costs and benefits will be from a tax perspective before you make the decision to rent rather than sell your home.

Can Your Credit Take the Hit of a Short Sale?

If you don’t mind sacrificing your credit score for a few years, you can’t afford to rent and you really need to get out of your house, then a short sale is always an option. A short sale is a real estate transaction in which the bank agrees to accept less than the amount owed on the mortgage to release the owner from their financial obligation. For example, if the mortgage on a home is $200,000 and a buyer makes an offer for $150,000, the bank may accept this offer and forgive the additional debt. Besides mucking up your credit, a short sale can also contribute to your tax bill. Often, the forgiven amount (in this case, $50,000) can be added to your tax bill as taxable income. It is important to consult a lawyer or accountant so that you know the details of how a short sale will impact your taxes and your credit before you move ahead.

Should You Sell or Rent Your Home?

Depending on your immediate financial situation and long-term outlook, it can make more sense to rent rather than sell. In some cases, a short sale is the best remedy for escaping an underwater property and moving on with your life. Before you make any decision about renting or selling, be sure to consult a lawyer or accountant for customized consultation so that you fully understand the tax ramifications and benefits given your unique situation.

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5 Things to Know about Buying A House at A Golf Course

5 Things to Know about Buying A House at A Golf Course

 

Story Courtesy of Keller Williams Market Insider

The idea of life on a golf course is a dream to many prospective homebuyers. Through each window, a golf course can create lush picture-perfect views of vast, meticulously maintained lawns. In fact, in many neighborhoods and towns, golf course homes offer the best vistas available. Another benefit is that houses are often sited so that neighbors are not directly visible, and all views face the fairway. Best of all, for avid golfers, owning a house at a golf course means that their next round of play is right outside.

 

In home buying, what seems ideal seldom is. It’s important to consider the pros and cons of living next to a golf course, especially if you’ve never lived on a course. Here are the top five things to keep in mind when hunting for your golf course home:

 

1. Courses are maintained, early and often. Lawns must be cut and tended to in the morning, before rounds are played. That means that groundskeepers are out on the course before sunrise. In places with a year-round golf season, putting greens are usually maintained every day. If a master bedroom window faces a green, headlights from golf carts and riding mowers will blaze through. The engine noises will be heard as well.

 

The fix: If you’re a sound sleeper, no worries. If you’re a light sleeper, make sure that your home is located on a fairway and relatively distant from greens and tee boxes that require more maintenance. Select a property that positions your master bedroom away from the course or look for window treatments such as blackout curtains. You may even want to consider investing in a white noise machine.

 

2. Pay attention to location of cart paths when house hunting. Many courses built in residential developments are lined on both sides by houses. The path for golf carts will run along one side of the fairway from tee box to green. If a cart path is directly behind a home, golf carts will be zipping by all day. This can be more than a little disruptive to the otherwise serene setting a golf course affords.

 

The fix: Proximity to a cart path does affect housing lot desirability and this should be reflected in the price of a home. Sometimes a house in one of these “high-traffic areas” will be a great deal. Good landscaping can block out some disturbance, but will also block views from the ground level. Smart positioning of outdoor features like decks, pools, hot tubs and other water features is a must to minimize the disruption of carts zooming by.

 

3. Tee boxes and greens are regular stopping points. Every golfer will park his or her cart at every tee box and putting green during a round of play. If a house is located near these course elements, players will be stopping near your home throughout the day. Their chatting and laughter will be audible, and their loud golf pants will be visible. If a house is on a cart path near a tee box or green, carts will park on the path regularly.

 

The fix: Where there’s a golf course, there are golfers. This will always be true. So when viewing a house at a golf course, always sit out back or facing the course and wait for a foursome to play through. Take note of where they park their carts and how much noise they make while playing. If you’re not comfortable with the noise and motion of the golfers, then the house is not for you.

 

4. Understand all of the deed restrictions. One of the potential cons of living next to a golf course is that homes are almost always in deed-restricted communities where certain aspects of home maintenance and modification are regulated by a homeowners’ association (HOA). In order to maintain a certain look and feel of the course, house exterior paint colors usually need to be selected from a limited palette. You probably can’t put a swing set in your backyard, facing the course. Landscaping requirements may mandate that a certain density of trees be planted on your property and which species are acceptable – this may seem un-American, but it is rather common. In golf course communities, homeowners tend to have visible pride of ownership and take these rules very seriously. Golfers who can see your house from the course may complain to the community or HOA if they notice that you’re behind on maintenance.

 

The fix: If you like the feel of a neighborhood, aspects of the deed restrictions probably appeal to you. It means that many qualities of the neighborhood will be retained for years. Always request the HOA documents and read through them when contemplating the purchase of a golf course house that is part of a deed-restricted community. These documents are often available online. If the rules don’t work for you, look elsewhere.

 

5. Golf course land is often off-limits for non-golf activities. Golf courses are great for playing golf, but can’t be used for much else. Recreational walking or biking on cart paths is forbidden at almost all courses. You can’t walk your dog along a fairway.

 

The fix: If you like to walk or bike, make sure that a golf course community also serves these needs as well. Even if you live on a golf course, you won’t play every day, and your golf course home should meet the needs of a well-balanced life.

 

There’s no question that having a house at golf course provides a great quality of life for many people. If you think a golf course home might be right for you, just remember to weigh the pros and cons and carefully research specific properties before taking the leap into homeownership. Then you can enjoy all the perks of living next to golf course views.

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