The thought of buying real estate is exciting. As a first-time buyer or a seasoned professional, there are always a lot of things to keep in mind when making a real estate purchase. The biggest aspect of buying real estate is the financial aspect.
If you already own a piece of real estate, you have the advantage of taking money from the sale of that property and putting it towards the purchase of something new. However, when you choose this option, you need to be careful about timing your real estate sale to coincide with your real estate purchase. It helps to have a real estate agent to work with on both transactions. If you cannot get your purchase property ready for you as soon as you close on the sale of your existing property, you need to arrange for a temporary place to live. This, in addition to moving costs, will take funds away from the total profit you stand to gain upon the sale of your property. A The Tapestry Condo real estate can help you find affordable housing in an instance like this. Do not worry that too much money will go towards temporary housing, since that amount is likely to be negligible on the sale of property. When selling property in order to purchase real estate, remember to factor all costs into the sale of that property. It is easy to think a home that is worth several hundred thousand dollars is going to leave you with that money to use to buy real estate, but be careful. If you have a mortgage on your existing property, it needs to be paid off at the time of closing on the sale of your home. Additionally, there may be real estate transfer taxes to pay, escrow charges and real estate agent commissions to consider. Finally, the cost of moving and any temporary housing costs must be figured into your final sales costs. The amount left over is what you have to put towards the purchase of your new property. If you are new to real estate altogether, there are options such as no-money down loans. You do want to be very careful about choosing this option. A no-money down loan is often for people with excellent credit. Also, a no-money down loan is one that mortgages the entire property value. Financing all of the property values makes these types of loans risky. It is possible the value of the home declines, leaving the owner with no equity in the home. This means when they go to sell the property, they are likely to owe money to their mortgage company because the property value does not cover the entire mortgage amount. These loans are good for individuals who know that they are only going to be in their new place for short time period. Consult with your real estate professional to find out what financing options are best for your upcoming real estate purchase.
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