Should I talk with a bank before looking at homes?

What is mortgage pre-qualification?

Mortgage pre-qualification is an evaluation by a lender that determines if you would qualify for a home loan. It also shows how much the lender would be willing to lend you. Getting pre-qualified is the first step towards getting a mortgage, but it does not guarantee a loan. Your pre-qualification letter should be submitted along with your offer to show sellers that you are a serious and qualified buyer.

How to get pre-qualified for a mortgage?

The first step to get pre-qualified for a home loan is to find a mortgage lender to work with. You can use this site to find a licensed lender in your area in minutes. Then, your lender will ask for some basic information about your financial history and will need to run a credit report. If you meet the lender’s guidelines for issuing a loan, he or she will issue you a pre-qualification letter, which states the home loan amount the lender is willing to let you borrow.

Why should I get pre-qualified for a mortgage?

There are a number of reasons why it’s a good idea to get pre-qualified for a mortgage. A pre-qualification letter can help your offer stand out in a competitive market, and help show sellers that you’re a credible buyer who can act fast and secure the financing needed to purchase a new home. In some cases, sellers may require a pre-qualification letter from every prospective buyer who needs financing to purchase the home. Getting pre-qualified can also help you during your home search because it can tell you what you can comfortably afford to spend on a home.

What if I am turned down for my mortgage pre-qualification?

If you don’t qualify for a mortgage pre-qualification, there are some things that you can work on that may increase your chances: work to improve your credit score, fix any errors on your credit report, or create a plan to reduce debt and/or save for a larger down payment. In many cases, your lender can work with you and give you tips on how to improve your chances of getting your home loan pre-qualification.

In the mean time if you want to purchase a home we can help you buy purchasing a home on a contract for deed. The buyer does not have to go thru the long process of getting pre approved or waiting for appraisals. Less closing costs. Buyers will save 1000s on closing costs when purchasing a home on a contract for deed.



“Purchasing a home can give you equity. Renting you get nothing and the landlord reaps all the profits. Home owners receive tax benefits. Owning a home the buyer gets to have pets-paint add equity-if the home owner wants to sell they can and take the profits- Renting a hoe the renter moves and gets nothing.

I own a home, should I buy another before selling my current home?

Very few people can afford to buy a home before they sell theirs.” But, he says, not all buyers deal with the uncertainty the same way. For many, personality determines whether to buy or sell first. … “You’re in a better negotiating position if you don’t have a house to sell.

Do I really need a Realtor when buying a home?

A real estate agent is there to work on your behalf. … Realtors are typically well informed about the properties for sale in a particular area. If you opt to buy a house on your own, without a Realtor, you’ll have to do the house-hunting yourself.Unless the buyer has elected to personally compensate her agent, buyer’s agentsare paid from their broker who receives the commission from the listing broker. The real estate commission is pre-determined by the seller in the listing agreement.If there is not an upcoming open scheduled, then definitely look for an agent to show you the home. The listing agent would be happy to, but be aware that the listing agent’s client is the seller. … The listing agent will represent the seller. A Realtor will be able to help you with other homes if this one isn’t the one.

What is a short sale?

Short sale and foreclosure are two financial options for a homeowner in financial distress, but each option has a different process and will have different financial consequences. A short sale occurs when a homeowner’s lender allows the homeowner to sell the house for less than the amount owed on the mortgage.Foreclosure is a fairly well understood process. When a lender agrees to accept a mortgage payoff amount less than what is owed in order to facilitate a sale of the property by a financially distressed owner, it’s called a short sale

What is a foreclosure?

The action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments.

1: Missed payments

It all starts when the homeowner — the borrower — fails to make timely mortgage payments. Usually, it’s because they can’t, due to hardships such as unemployment, divorce, death or medical challenges.

Stage 2: Public notice

After three to six months of missed payments, the lender records a public notice with the County Recorder’s Office, indicating the borrower has defaulted on the mortgage.

Depending on state law, the lender might be required to post the notice on the front door of the property. This official notice is intended to make borrowers aware they are in danger of losing all rights to the property and may be evicted from the premises.

Stage 3: Pre-foreclosure

After receiving a NOD from the lender, the borrower enters a grace period known as pre-foreclosure. During this time — anywhere from 30 to 120 days, depending on local regulations — the borrower can work out an arrangement with the lender via a short saleor pay the outstanding amount owed.

If the borrower pays off the default during this phase, foreclosure ends and the borrower avoids home eviction and sale. If the default is not paid off, foreclosure continues.

Stage 4: Auction

If the default is not remedied by the prescribed deadline, the lender or its representative (referred to as the trustee) sets a date for the home to be sold at a foreclosure auction (sometimes referred to as a Trustee Sale). The Notice of Trustee’s Sale (NTS) is recorded with the County Recorder’s Office with notifications delivered to the borrower, posted on the property and printed in the newspaper. Auctions can be held on the steps of the county courthouse, in the trustee’s office, at a convention center across the country, and even at the property in foreclosure.

In many states, the borrower has the right of redemption (he can come up with the outstanding cash and stop the foreclosure process) up to the moment the home will be auctioned off.

At the auction, the home is sold to the highest bidder for cash payment. Because the pool of buyers who can afford to pay cash on the spot for a house is limited, many lenders make an agreement with the borrower (called a deed in lieu of foreclosure) to take the property back. Or, the bank buys it back at the auction.

Stage 5: Post-foreclosure

If a third party does not purchase the property at the foreclosure auction, the lender takes ownership of it and it becomes what is known as a bank-owned property or REO (real estate owned).

Bank-owned properties are sold in one of two ways. Most often, they are listed by a local real estate agent for sale on the open market

Canceling a Contract for deed?

A contract for deed, more informally known as a land contract, is a type of seller financing. Typically, it runs from three to five years. The property’s title remains with the seller until the full sale price is paid; a balloon payment at the contract’s end is common.

The IRS does allow you to deduct the interest portion of the payments you make under a contract for deed from your income taxes if you itemize deductions. You can also deduct any real estate taxes you pay, just as with a mortgage.

Since contracts for deed typically do not require the seller to provide a year-end statement of interest paid, buyers should keep careful records of their payments. Less stringent financing standards. Since it is the seller’s deci- sion, they typically have less stringent underwriting standards than a mortgage loan.

Contract for Deed Refinancing. In many cases you may be able to refinance your contract for deed, though you‘ll need to work with a mortgage lender. In a contract for deed refinance, the seller currently providing your financing sells you the home and you use a new mortgage loan to purchase it and gain legal ownership.


How does Rent to own work?

Rent-to-own homes: How the process works. … With a rent-to-own agreement, a buyer agrees to rent the home for a set amount of time before exercising an option to purchase the property when or before the lease expires. Here’s how rent-to-own works and when it may be a good choice for someone looking to buy a home. Renting to own a home is somewhat similar to a car lease. The seller has given his tenant the right to buy the house at some point in the future, usually one to three years out, for a price that is agreed upon today. Generally, the tenant will pay a fee, called option money, that will keep open the option of buying. I always recommend a land contract its a better way to go.

Ask about a contract for deed property

We work with contract for deed listings daily. Our company is a full service real estate company with over 20 years of sales experience. If you want your home SOLD we will get the results you are looking for.We work with virtually all types of properties. We are located in the twin cities metro area and service the entire state of Minnesota and Western Wisconsin.


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