My blog provides awesome tips for buyers and sellers to help save time and money, while keeping you informed along the way.
When it comes to buying a home the most important thing is to figure out how you will be financing the home. Will you be getting a home loan, cash, owner finance, or rent to own?
Whenever a client tells me they are ready to buy a home the first thing i ask is "do you have a home loan?" Most people don't know this is the first step to owning a home we have to know where you stand in the market. getting a home loan is the second best way to purchase a home, depending on your credit, how much you make, and your debt you can get a home with as little as 3.5% down if you qualify. I try to direct my clients in this direction first before any others, if you need help with getting a home loan reachout to me (firstname.lastname@example.org) and ill get you in contact with my loan officer.
The best way to buy a home is cash of course, i mentioned this method seconde simply because most people don't have $200,000 setting in the bank for a home. The biggest benefit of buying a home cash is the amount of equity (money you own in the home) you have from the moment that close on home, if you bought the home for $200,000 and 3 months latter it is valued at $230,000 you just cleared an extra $30,000.
Owner Finance is when the seller owns the home completely or owes very little on the mortgage and is willing to be your bank they will charge an interest rate and down payment as they see fit. This is usually the first thing people ask for when looking to own a home, the market is not the same as 10 years ago but people still think that today's owner finance interest rate and down payment amount is form 2008 market. In the Houston owner finance market what i've seen is a down payment no lower than 15% and interest rate anywhere in between the 9% and 11%. I always tell my clients to leave owner finance as a last resort and not as the first option you will end up paying way more than the home is actually worth, your down payment can be three times more than if you had a home loan, and only a limited of homes qualify for owner finance.
Now the the last and my least favorite and one I would never recommend is lease with the option to purchase aka rent to own. Rent to own has so many problems because you only have the option to purchase the property if the land lord decides to sell the home. This can cause major legal problems especially if you didn't have a professional take care of the paper work before signing the agreement and i mean a Real Estate Agent or Lawyer not a Notary.
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