The American Dream; what does it mean to you? citizen have distinct jobs or hobbies or passions in life, but one constant remains the same among all of us, and this coarse thread that unites our dreams is that of Home Ownership! Unfortunately, in this current economy, achieving the dream of home rights is becoming more difficult than any time in new history. Too many Americans are following the unwritten rule of home rights that tells us to 'Find a Realtor and Get a Bank Loan'. In past economies, with thriving job markets, lower inflation, and less reputation restraint, that 'rule' may have made sense to follow.
But our current economic ideas is production it difficult for the mean person to achieve the American Dream of Home Ownership. In times of unstable job markets, with double digit unemployment forcing citizen to come to be self-employed to make a living, the banks are requiring a W-2 stable job history in order to issue loans. In times of a great reputation crisis, the banks are requiring stricter reputation scores than most citizen are able to achieve. Fewer and fewer honest, hard working Americans who are used to following the 'traditional rules' for owning a home are having the opportunity to own their own homes.
Financing
What if you could achieve the American Dream of Home rights without the assistance of a bank?
The purpose of this document is to allow motivated home seekers an opportunity to write a New Rule of Home rights that allows you to claim your free time from the services of a Bank in order to partake in your piece of the American Dream of Home Ownership!
In order to understand the New Rule of Home Ownership, let's take a closer look at the existing rules of purchasing a house with primary Bank Financing.
The first part of the primary Bank Financing focuses on Qualifying for a Loan. While many distinct loan packages exist, the most coarse loan written in today's shop is an Fha Loan, and therefore, we shall use their guidelines as an example. The following are guidelines for an Fha Loan:
o Fha Loans wish a minimum reputation score of 620 to be eligible for a loan
o Fha will wish 3.5% down on the home. This down payment Must come from your account. You are not allowed to borrow from friends, house or anything else. You must document where the funds for the down payment came from. Specifically, the source of the down payment must be from your personal checking, savings or seclusion list and Can Not be borrowed!
In order to work with most Realtors, you must first get pre-approved for a bank. Many Realtors won't even show you a house unless you can prove that you are able to afford and receive financing for the property. This painful process of pre-approval from a bank can take 2-3 days and involve the following steps:
o Proof of Creditworthiness
o You must provide 2-4 years worth of tax returns!
o You must provide your last 4 pay check stubs if you are an laborer or an updated profit and Loss statement if you are self-employed, a business owner, an independent contractor or entrepreneur. However, if you cannot show a consistent pay stub as proof of income, then you may want to skip ahead to the part of this document where 'Owner Financing' is discussed, as you will find it increasingly difficult to qualify for a mortgage.
o Your bank may wish you pay off other debit to help improve your reputation score to qualify for the loan
o And the worst part... This proof of creditworthiness is done throughout the entire home buying process! Even once you qualify and pick out the home of your dreams; underwriters at the bank will have you go through the same process to make sure you still qualify.
Now that you are pre-qualified for the home of your dreams, you may ultimately begin the process of working with a Realtor to find your new home.
Once you've found your home, the primary Banks will want an inspection performed on the home and may wish the seeder to fix all for the bank to finance your loan. Some citizen just want a small reduction on the house and they will do their own repairs however, many times a primary bank will not allow you to do this! These small fixes may add to the total price of the house.
Also, expect to pay Realtor fees, bank fees, filling fees, "point buy down" fees, loan origination fees, windup costs, title fees, surveys, estimation fees, and anything else incredible for which to be charged. Though many of these fees can be rolled into your loan, over the long term, you may be paying an extra 10% in unnecessary Financing Fees that are loaded into your loan!
What if there was a quicker, easier, and less intrusive way to take your share of the American Dream? What if you could look at homes without having to pay a Realtor fee, pre-qualify for a loan, and go through a 3 month home buying process? After all, we Are in a Buyer'S shop in Real Estate, so why shouldn't we be able to buy?
Consider the possibility of declaring a New Rule. Instead of working with (and paying for) a Realtor, why not work with the seeder directly? Especially if that seeder is a professional Real Estate Investor who is not only willing to sell the house in a quick and straightforward matter, but is also will to Finance the sale of the house on a short-term basis!
Earlier in this eBook, we went over the process of the Tradition Bank Financing. Now, we shall detail the 7 Easy Steps of Purchasing Your Home with Owner Financing:
* Contact the seeder of the Home without having to pre-qualify for a loan and look at the home to decree if you want to purchase.
* Settle on a price
* Agree to a down-payment and interest rate
* Once you've agreed to a price, down payment, and interest rate, faultless a Deposit to Hold form and pay this 1% fee applicable to the sales price of the property. This fee will take the asset off the shop while you are windup on the home.
* Fill out reputation application; provide 2 most new paycheck stubs and bank statements as proof that you can afford the monthly payment.
* (Optional) If you chose, you can order your own home inspection to describe the condition of the home
* Close in 2-5 business days
Buying a home from a professional Real Estate Investor is quick and easy. Once you have settled on the price and monthly payments, you have minimal paperwork to faultless and can close on the transaction within one week! The following is a overview of some of the benefits of Owner Financing compared with primary Bank Financing:
* In many cases, there is no minimum reputation score required
* Instead of 10% primary Bank Finance Fees / windup Costs, your Owner Finance Fee averages to 5% of the transaction.
* Unlike primary Bank Financing, your down payment for Owner Financing may come from roughly anywhere (as long as it is a legal way to raise the funds). You can borrow the money from family, friends, others. There are also some tax incentives for you to use part of your seclusion savings. Whether way, with Owner Financing, you are allowed to raise your own down payment as you see fit!
* You and the Owner Finance seeder will agree on a time to "close" on the home and may close within 5 business days!
* Your Owner Finance loan is dependent on your down payment and quality to pay the monthly payment and Not on your reputation or having a W-2 Job. Therefore, business Owners, Entrepreneurs, Independent Contractors, and the Self-Employed may qualify for Owner Financed Homes!
* You are not required to provide broad documentation to procure your loan
Due to the efficiency, simplicity, and cost effectiveness, you can see why buying directly from an investor with Owner Financing is the New Rule for Buying Homes. Owner Financing interest rates may be a tiny higher than shop price when you initially purchase your home, however, this higher rate, along with a sizeable down payment, will of course help you procure approved financing at a lower rate down the road when you decree to refinance!
A good way to look at Owner Financing is that is a explication to buying a home with short-term financing. Once you have paid your Owner Financed note on time for say 12-24 months, it's easier to refinance your existing note with a primary bank loan at a lower interest. It's much quicker, easier, and less intrusive to refinance a home into primary financing then it is to purchase a home with primary financing!
The following example will detail the process and the costs of owner financing:
o John chooses to purchase a beautiful home for 0,000 with a primary bank loan. John's reputation score is 590 and the bank will not loan him any money until his reputation score is at least 620. John understands the importance of owning a home and wants to buy something now.
o John finds a home that is being offered for 0,000 with Owner Financing. John has ,000 to put down and wants to close in 5 business days. John's new loan is at an 8.5% rate for 30 years and the sellers would like John to refinance his loan in 24-36 months. John's monthly payment is ,350 and it includes Principle, Interest, Insurance, and Hoa fees. John is happy because he can afford ,350 per month and is able to take his part of the American Dream!
o As John pays on time for, say, 24 months, John has an perfect payment history with his current lender. John will also need to be working on his reputation in those 24 months to raise his score to the current minimum of 620.
o When John approaches a primary bank John will be able to demonstrate the following:
o John's ,000 down payment shows that he has 'skin in the game' and is not just going to bail on his house payments
o John Can afford and has been paying ,350 a month at a 8.5% rate for his loan
o John's reputation score is now above the minimum required 620
o If John can afford ,350 a month at 8.5% interest, John can of course afford a ,100 a month payment at 6.5%!
It is much easier to refinance a loan rather than trying to get a loan for the primary financing! Since you are already in the house, there is no inspection required, no lengthily windup procedures and there is no longer all that extra red tape that is associated with buying a home with primary financing!
As you can see, purchasing with Owner Financing can be of course done and speedily accomplished for those who cannot use a primary bank loan but deserve to own a home now.
Summary
In today's market, due to tough economic times, there are many citizen selling their properties. Yet, despite the fact that this is a 'buyer's market', it is tougher to buy a home with primary Bank Financing than ever before. Following the old, unwritten rules will lead you to a long and unhappy life in an apartment complex. Motivated home seekers seeing for their piece of the American Dream are unable to achieve this great promise by primary and approved means due to stringent lending requirements initiated by the very same financial institutions that gladly took over 1 billion of our tax dollars to bail them out! Banks tightening up on their lending practices is causing a shortage of homebuyers in the market. This is one of the biggest reasons that real estate values continue to free fall because there are not sufficient citizen who can qualify for available homes while following the unwritten rules.
Inspired home seekers, seeing to break away from the old rules and ready to write his or her own New Rules to Home rights will be able to take benefit of this buyer's market, and with Owner Financing, you will see more and more citizen purchasing homes. If you are in the shop to buy a home however, you cannot qualify for a primary loan, I strongly suggest you contact a business that specializes in Owner Finance Homes.
Stop drowning in the current cheaper and generate your own American Dream!
The New Rule For Buying a Home - Using Owner Financing
