Different Ways to Finance Your First Real Estate Property

As the economy shows some signs of growing by the day, more and more people are thinking of tapping into the residential real estate market. It is a very promising market especially when you buy property in a down market but unless you have an excellent credit rating or rather a reasonable amount of liquid assets, buying real estate property as the credit market stands could be more of a detriment than a springboard to your prosperity. Even when you have a flourishing credit record and some sort of financial security, at least you require some financing options that will grow your net worth. This article highlights some of the most viable finance options that you may wish to consider.  When in Greenville SC please see Greenville Mortgage Place for Financing your Property.

Private funding

There are several individuals out there who are willing and ready to provide private financing, a process which is awfully similar to mortgage lending but the process is faster compared to the conventional mortgage process. The option comes with a downside of a higher interest rate, but this should not deter you especially when you have come across the most appealing homes for sale and you need quick cash.

Cash-out refinancing

Cash-out refinancing is the simple option used when the lender makes use of an existing property that he or she owns as security to get a loan. This process is also similar to applying for a mortgage, and you can actually get up to 80% of the home’s value without encountering any serious issue. Cash-out refinancing will pay any existing debts on property, create some new mortgage and bring in the difference as cash-out.

Home equity loan

This is applicable when the owner uses an existing property to serve as security for the loan. The lender will give you all of the funds upfront, which means that you will be required to pay a fixed amount at the end of each month, which is inclusive of the principle amount as well as the profit. It is typically a mini version of the conventional mortgage.

Conventional financing

This is a financing option in which the lender uses the property that you are about to buy as the security for your loan. With this mode of payment, you will benefit from a low monthly payment because the installments are spread over a long duration of time. Even so, most of the lenders will require you to pay some amount as a down payment.

Lease option

When you have run out of options to buy your next real estate property, this becomes the last resort. Ideally, the lease option allows you to get into the house with some little money and the agreement that you will purchase the property with time. The time period provided (usually two or three years) allows you to procure some financing to buy the property.

In summary, buying any real estate property requires proper planning and adequate financing. However, your hands are not tied when it comes to financing. Provided you remain open to some of these options that are readily available, you will definitely run into a deal that will leave you comfortable.

For more great information on the home buying process visit: http://www.wikihow.com/Buy-a-House

Tips for Buying Real Estate

Charleston Real EstateIf you are looking for good real estate values then you will have to be rather cautious when doing so. While the process of buying real estate might sound like something that looks easy to do, you have to be rather careful when actually going out there and doing so. When you are looking for Real Estate in Charleston SC, Check out Premier One.  They have a great MLS listing website where it is easy to find Charleston SC Real Estate.

Get Pre-Approval For a Loan

If you can get pre-approved for a home loan then you will have a much easier time with figuring out what type of home you can afford to get. Don’t assume that you can get pre-qualification for a loan. Make sure you are actually pre-approved so you can find out whether or not your budget will be sensible for the particular home that you want to acquire. This can help regardless of how big or small the loan that you are asking for is in terms of its value.

Watch For Size

Be aware of the sizes of the properties you are looking at. Only choose something that you know is not only large enough for your space but is also going to be large enough for whatever you will be dealing with in the future. This is especially important if you are going to be starting a family at some point in time.

Get a Proper Inspection

Always hire a professional inspector to take a look at any home you are interested in. It can cost a few hundred dollars to utilize but sometimes the inspector will find some issues with a property relating to its condition and other features that can cause the cost of a home of interest to decline in some way. This could make it so a home that was out of reach for your budgetary needs could end up being affordable in some way.

Watch For Added Costs

The next tip is to watch for the added costs that will come with your property. From the property taxes to the homeowners fees and so forth, you have to be aware of the regular costs that you will be bearing with alongside the traditional mortgage payments that you will have to work with at some point in time when acquiring a home.

Avoid Market Trends and Timing

Finally, you need to avoid timing your market based on things like the market trends and values that come with your properties of interest. You have to be fully aware of when the time is right for your personal home-buying needs while comparing it with your budget. It is next to impossible to try and predict if home values are going to increase or decline no matter where you go when finding a good home to live in.  More on Trends in Charleston Real Estate