real estate tips

How to Begin Investing With No Money Saved

  • Home Equity Loan: You can typically borrow up to 90% of your primary residence’s value or 80% of your secondary residence’s value. The interest is tax-deductible and the application process is not as intense as it would be if you were applying for a conventional loan. This is usually the easiest and fastest way to access cash. Property must have equity.
  • Cash out Refinance: This process is very similar to applying for a mortgage and can take 30-45 days to complete. This type of transaction can be done on any property that you own that has equity.
  • 401K or IRA: You could borrow or withdraw money from these accounts in order to finance a real estate investing project. Another option would be to reduce the amount you contribute or stop contributions all together and instead save those funds for a down payment. Talk to financial adviser about specific rules or penalties.
  • Sell Something You Own of Value: A second car that you hardly drive, a boat maybe, or some forgotten savings bonds. Sacrifice and sell these items in order to finance your investment.

Pre-qualification vs. Pre-approval

photo by danielbertsche 
 
Here is part of an email sent to me by Dan Flavin from Waterstone Mortgage:
 
DaCia,
People often believe that pre-qualifying for a loan or being pre-approved for financing mean the same thing. However, pre-approval entails making a stronger commitment to a buying a property, albeit tentative. Pre-qualification is simply the step you take before you conduct a real estate search to see how much house you can afford to buy. To pre-qualify for a loan then, you need to sit down with the lender and provide him with your income and debt information and an estimated down payment amount. Pre-qualifying helps get the ball rolling when you are looking for real estate. On the other hand, when you apply for pre-approval, you must provide the lender with documentation that details your salary, debt load, and assets. While the process of pre-qualification is free, an application fee is assessed for pre-approval. Your credit information will be run as well. However, just because you obtain pre-approval still does not mean that you can automatically obtain financing. Funding will only be officially approved once a title search is conducted and an appraisal on the property is made.
Dan
 
I hope Dan’s email has shed light on the difference between pre-aaproval and pre-qualification. If you need help getting pre-qualified or pre-approved, please call our office today.

Quick Tip For Sellers

Most buyers will present offers with a home inspection contingency. Depending on the results, they may choose to walk away from the deal, ask that the items cited in the report be repairs, or they may agree to split the report costs.

home_insp2

Having a home inspection completed before the home is listed makes the home more attractive to buyers, which means you are likely to get more offers sooner. Show buyers that repairs have been made by having a slideshow of the work or before and after pictures play during open houses.

The market is heating up! With more and more options springing up everyday, let’s make the buyer’s decision easy. Connect with me today and I’ll help to get your home sold!