For Sale by Owner Tips
Board Monitor
Board Monitor/ Administrator
Posted: Wed Mar 16, 2005 10:58 am
Post subject: For Sale By Owner Tips
My wife and I are considering buying a "for sale by owner" house in order to avoid the 7% fees charged by realtors in our area. We're new to this and would appreciate any tips!
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
Author: BestMortgageInfo
Posted: Wed Mar 16, 2005 6:25 pm
Post subject: For Sale By Owner Tips
It is basically the same as purchasing through a realtor.
You might be careful about values, as unless there are a lot of homes selling in the area, it may be difficult to determine that, until you get the appraisal ordered, and then you are out a 300+-.
Depending on the company the seller is working with, you may have to write up your own contract. I am doing one now, and the buyer and I found a contract to use and changed it a bit.
Depending on your financial situation (most of the people I deal with have 0 down, and not much in the bank) you can ask for up to 6% in seller paid closing costs as a concession. A FSBO knows that they are going to be "hit" with a request for a discount, so it should not be that difficult to get. When you get a seller concession like that, you are actually financing the closing costs into the loan, it is a loophole that most lenders will allow.
I would suggest that you have a home inspection done, and if you purchase the home, get a home warrenty. They can be purchased for about 245.00 and cover the important things.
Hope that helps.
Charles
_________________
Charles Clark
Board Monitor
Board Monitor/ Administrator
Posted: Thu Mar 17, 2005 10:08 am
Post subject: For Sale By Owner Tips
Thanks for the tips Charles! Tell us a little bit more about your services.
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
Author: BestMortgageInfo
Posted: Thu Mar 17, 2005 3:59 pm
Post subject: For Sale by Owner Tips
I get loans for what I call "credit challenged" people. When I can not get a loan for someone right away, I work with them, sometimes for over a year, to help them get to the point where they qualify for a loan. The loans that I do are mostly what I think of as "bandaide" type loans. Gets my client into a home, then 2 or 3 years later, they can get a loan that has more reasonable rates & terms.
Seems like in that period of time, if someone really wants to-has it as a goal-they can save up so they have 2 months of PITI(Principal/Interest/Taxes/Insurance) payments in reserve, and the home should have gone up in value the average 3%, so they now are getting a 95% LTV loan, and having paid their mortgage on time, their scores have gone up to the 660 range, and they WIN. With a great interest rate.
If you can somehow make it easy for me (have a mortgage question tab, etc) I would be glad to come here to answer questions. I still don't know everything, so it is good when someone asks something that I don't know, because then I learn.
Charles
Board Monitor
Board Monitor/ Administrator
Posted: Mon Mar 21, 2005 10:47 am
Post subject: For Sale by Owner Tips
Neat! What is a LTV loan?
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
Author: BestMortgageInfo
Posted: Sat Mar 26, 2005 2:23 pm
Post subject: For Sale By Owner Tips
Sorry, I will start writing out what the loan "short cut's mean"
LTV: Loan to value. It is the percentage of the sales price or appraised value (with a sale, it is the lessor of the 2) that a loan is. So, if the loan in question is 100,000 and your loan is a "95% LTV" loan, you are borrowing 95,000.
DTI: another common short cut: It stands for Debt to Income ratio. What percentage of your income is going towards fixed and minimum payments. When you are purchasing a home the lender adds those figures together with your PITI of the new home and that is your debt.
If 36% of your income, before taxes, goes towards those debts/payments, your DTI is 36%.
PITI: Principal-Interest-Taxes-Insurance (even if you are not having the Taxes and Insurance paid as part of the payment you send to the lender, they still get figured in.
Hope that helps.
Charles
Board Monitor
Board Monitor/ Administrator
Posted: Sun Mar 27, 2005 12:03 pm
Post subject: For Sale by Owner Tips
Great info. Charles! Thanks. Read an interesting article last night by Consumer Reports about all of those hybrid type mortgages and interest only mortgages. Amazing there are so many options these days...
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
Board Monitor/ Administrator
Posted: Wed Mar 16, 2005 10:58 am
Post subject: For Sale By Owner Tips
My wife and I are considering buying a "for sale by owner" house in order to avoid the 7% fees charged by realtors in our area. We're new to this and would appreciate any tips!
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
Author: BestMortgageInfo
Posted: Wed Mar 16, 2005 6:25 pm
Post subject: For Sale By Owner Tips
It is basically the same as purchasing through a realtor.
You might be careful about values, as unless there are a lot of homes selling in the area, it may be difficult to determine that, until you get the appraisal ordered, and then you are out a 300+-.
Depending on the company the seller is working with, you may have to write up your own contract. I am doing one now, and the buyer and I found a contract to use and changed it a bit.
Depending on your financial situation (most of the people I deal with have 0 down, and not much in the bank) you can ask for up to 6% in seller paid closing costs as a concession. A FSBO knows that they are going to be "hit" with a request for a discount, so it should not be that difficult to get. When you get a seller concession like that, you are actually financing the closing costs into the loan, it is a loophole that most lenders will allow.
I would suggest that you have a home inspection done, and if you purchase the home, get a home warrenty. They can be purchased for about 245.00 and cover the important things.
Hope that helps.
Charles
_________________
Charles Clark
Board Monitor
Board Monitor/ Administrator
Posted: Thu Mar 17, 2005 10:08 am
Post subject: For Sale By Owner Tips
Thanks for the tips Charles! Tell us a little bit more about your services.
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
Author: BestMortgageInfo
Posted: Thu Mar 17, 2005 3:59 pm
Post subject: For Sale by Owner Tips
I get loans for what I call "credit challenged" people. When I can not get a loan for someone right away, I work with them, sometimes for over a year, to help them get to the point where they qualify for a loan. The loans that I do are mostly what I think of as "bandaide" type loans. Gets my client into a home, then 2 or 3 years later, they can get a loan that has more reasonable rates & terms.
Seems like in that period of time, if someone really wants to-has it as a goal-they can save up so they have 2 months of PITI(Principal/Interest/Taxes/Insurance) payments in reserve, and the home should have gone up in value the average 3%, so they now are getting a 95% LTV loan, and having paid their mortgage on time, their scores have gone up to the 660 range, and they WIN. With a great interest rate.
If you can somehow make it easy for me (have a mortgage question tab, etc) I would be glad to come here to answer questions. I still don't know everything, so it is good when someone asks something that I don't know, because then I learn.
Charles
Board Monitor
Board Monitor/ Administrator
Posted: Mon Mar 21, 2005 10:47 am
Post subject: For Sale by Owner Tips
Neat! What is a LTV loan?
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
Author: BestMortgageInfo
Posted: Sat Mar 26, 2005 2:23 pm
Post subject: For Sale By Owner Tips
Sorry, I will start writing out what the loan "short cut's mean"
LTV: Loan to value. It is the percentage of the sales price or appraised value (with a sale, it is the lessor of the 2) that a loan is. So, if the loan in question is 100,000 and your loan is a "95% LTV" loan, you are borrowing 95,000.
DTI: another common short cut: It stands for Debt to Income ratio. What percentage of your income is going towards fixed and minimum payments. When you are purchasing a home the lender adds those figures together with your PITI of the new home and that is your debt.
If 36% of your income, before taxes, goes towards those debts/payments, your DTI is 36%.
PITI: Principal-Interest-Taxes-Insurance (even if you are not having the Taxes and Insurance paid as part of the payment you send to the lender, they still get figured in.
Hope that helps.
Charles
Board Monitor
Board Monitor/ Administrator
Posted: Sun Mar 27, 2005 12:03 pm
Post subject: For Sale by Owner Tips
Great info. Charles! Thanks. Read an interesting article last night by Consumer Reports about all of those hybrid type mortgages and interest only mortgages. Amazing there are so many options these days...
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
posted by CardRatings.com at 1:36 PM
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