Home financing is just not what it used to be. If you have followed my articles, you know that I have prepared for the situation that is developing in the housing market. In this article, I will share with you three reasons why it may be beneficial for you to finance your own home sales.
First of all, most mortgage loans are longterm from the effects of the historical levels of property shielding. Even though a real estate market does not exist, indications may be that it has only been virtually created. This is actually more a result of broad business practices that change and adapt due to the problems they have caused.
Generally, home finance issues have been created by excessive mortgage lenders, which allowed home buyers to make purchases that are not likely to ever be successful. What initially began as a concern for the subpremium mortgage market has now made it known throughout the industry, including the highest levels.
This reality has caused mortgage lenders to regroup, review and revise their previous guidelines and requirements for signing. As you might expect, the socalled pendulum has turned to the other extreme. It would be the utmost care and the associated paralysis of the analysis.
Although they are still in lending operations, many mortgage lenders are reluctant to make loans. It does not matter if you are dealing with a prime or sub prime lender, the excitement is gone because of so many bad loans to recover from. I suppose we can call this phenomenon some kind of posttraumatic disorder. The reality is that it takes longer to process mortgage loans and there are more hoops to run through.
The second reason you may want to consider financing your home sales is the huge amount of housing investment in the market. Some estimates suggest that it takes more than nine months to liquidate the existing inventory.
It depends on how well all elements fit together so that the houses can actually be sold.
One of the main features is how long it takes for sellers to realize that sales prices are downward. Typically, this trend will continue until the market determines the fair value of each property. Since most home sellers resist the idea that their property has actually lost value, it is difficult to say how long this phase will be.
Some experts have reported more than a trillion dollar in special mortgage loans to be adjusted in the next two years. Unless dramatic action is taken, we are likely to see some major additions to the foreclosure that already exists.
Adding this size will surely drive house prices down further and faster.
None of the two reasons described is a problem you can control. In fact, nobody seems to be in control.
The fact that nobody has control over this residential phase is the third reason you might like the idea that the seller is financing your property. When you do not have to worry about the source of home financing, one of your biggest concerns is over. Seller finance actually gives you control over the financing. With you in charge of financing, it is not necessary for you or your buyer to wait for loan approval. You become the bank.
Now its important. Since you will provide funding for your home sales, you want to be sure that your loan will be refunded. You do not want to be guilty of the same kind of disadvantaged guarantees that have caused so much sorrow in the financial industry. This means you have to focus on your buyer and his or her total package.
The total package contains considerations like the amount of the payment, credit score and profile, the ability to pay you and their character. It would also be great if there is an active savings account in place.
Heres a matter of sales finance you might want. You will attract more buyers than with any other type of financing. In the midst of everything in the real estate market, like home sales, you need to stand out and become known as the resourceful, creative, economically fast, problem solver you are!
Heres one thing. Did you know that you can provide seller finance for your buyer home loan and get all your money on closing? Its true. You can.