Posts

Showing posts from November, 2019

Title Insurance

Image
Most people who have car, home and health insurance have probably made claims and wouldn't consider being without it.However, it might be difficult to find a homeowner who has made a claim on their title insurance which could lead a person to think that it may not be necessary.Title insurance covers the largest investment most people have and if there was a loss, it could be devastating.Title insurance indemnifies the policy holder from financial loss sustained from defects in the title to the property.The policy holder is determined by their interest in the property. An owner's title policy protects the owner of the property from title issues that may arise other than the mortgages that are being placed on the property at the time of purchase.The title of the property goes back in time to check that clear title (no unsatisfied liens or levies and poses no question to legal ownership) was passed from owner to owner up to the current seller.A mortgagee's or lender's pol…

7 Reasons to Buy a Home

Image
Some people don't need a reason to buy a home, they just want it.That can be enough justification by itself.Other people need some solid logic before they're ready to make the commitment.The following reasons might help you to make a decision.Pride of ownership ... among the most popular reasons given by homebuyers is that they want a place they can call their own and decorate and improve it the way they want.It is a place to feel safe and secure and a place for their family.They can share it with their friends and enjoy living in it.Good investment ... Homeowners have a 80 times greater net worth than renters.By investing in a home that appreciates over time, it contributes to an increasing equity.The high loan to value mortgages that are available combined with the low mortgage rates also contribute to the investment through leverage which has been described as "using other people's money" to control an investment.Interest and property tax deductibility ... Hom…

What's the Difference in Pre-Qualification and Pre-Approval?

Image
Before looking for a home, you need to know how much you can afford. While you may have a number in your head, the lender has the final say. Securing a pre-approval from a lender helps make the home buying process easier and helps to avoid delays. Many buyers confuse the terms pre-qualification and pre-approval. They mean two different things. In simple terms, a pre-qualification is an estimate of what you can afford. A pre-approval is a conditional approval based on the proof you provide.
The pre-qualification is a preliminary step some borrowers take to get a feel for what price home they can afford. Based on your income, assets, and estimated credit score, lenders can estimate what you can afford.
It's important to know, there's nothing binding about a pre-qualification. It's simply a starting point. When you are serious about buying a home, though, you want a pre-approval.
Before you shop for a home, meet with a recommended lender to get a pre-approval letter. Sellers and…

Buy Your Retirement Home Now

Image
Maybe you're not ready to move into it but that doesn't mean that you shouldn't take advantage of the present opportunities to acquire the home you want to live in during retirement. The combination of the low mortgage rates, high rental rates, positive cash flows and tax advantages can help you get it paid for by the time you're ready to move into it.Your tenant could literally buy your retirement home for you.  One idea would be to finance it with a 15-year loan that will have a lower rate than a 30-year loan and it will obviously be paid for in half the time. With every monthly rental check from your tenant, you make the payment on the mortgage which includes a portion that reduces debt and builds equity. Even if you don't have the home paid for by the time you retire, your equity will be larger.  Consider you sell your current home which could be paid for by then when you are ready to move into this retirement home .  Taxpayers can exclude up to $500,000 of tax…