Some people don’t think of purchasing a home with cash. In their minds, this is financially impossible. But while most people rely on home loans to purchase their homes, some people are in a position to pay cash. There are benefits of financing a property, such as the convenience of paying off the home slowly over 30 years, and the option to write-off mortgage interest and save on taxes. There are, however, also benefits of buying a house with cash. 1. You can negotiate a lower price Home sellers want to get as much money for their properties. For this matter, they typically choose offers that are close to their home’s asking price. But in real estate, the highest bidder doesn't always win the property. Sellers prefer a smooth process with as few delays as possible. This is why they like cash buyers. There’s no bank serving as a middleman, and since a cash buyer isn’t depending on financing for the purchase, sellers don’t have to worry about a mortgage lender canceling the closing at the last minute. Since cash… Read more

Whether you're buying or selling a home, you can expect a lengthy process. You'll go back-and-forth negotiating with a buyer or seller, and as a buyer you’ll work closely with your mortgage lender in preparing your loan package. In all, it can take between 30 to 45 days to close on a sale and mortgage. Seasoned buyers typically know what to expect from the process. If you're a first-time buyer, however, you may be overwhelmed and unsure of what to expect from day to day. The good news is that you don't have to tackle the purchase alone. Even so, it’s important to understand key players in these types of transactions. Mortgage Lender Once you've made the decision to purchase a home, the first step is meeting with a mortgage lender to see if you qualify for a home loan. The pre-approval step isn’t required, but recommended. You'll sit down with a mortgage lender and discuss your options. Based on information provided to the lender—such as your income, assets and credit history— the bank determines whether you're eligible for financing,… Read more

There are different types of mortgage products available, each with its own set of terms. When applying for a mortgage, it's important to understand the ins and outs of the loan. Since a mortgage is a big commitment, you should only agree to terms you're comfortable with. To avoid mortgage problems or regrets, here are five mortgage terms you might skip. 1.Interest-only home loan Interest-only home loans were popular in the mid-2000s. With these loans, many people purchased a property and only made interest payments for the first few years of the mortgage term. This approach helped many afford homes as prices skyrocketed. The problem, however, was that mortgage payments would nearly double once interest-only payments ended. Many borrowers couldn’t afford their new payments and this triggered a string of foreclosures. These products disappear, but have recently made a comeback. Nowadays, some lenders only offer interest-only products on investment loans or jumbo loans. These loans have stricter qualification requirements, so buyers often need a larger down payment and excellent credit. Even if you qualify for an interest-only mortgage, be aware… Read more

Your 20s is an exciting time. It's when you graduate college and secure your first real job; and for many young adults, it's also a time to think about a home purchase. Unfortunately, tapping the American dream is harder than some people realize. Mortgage requirements constantly evolve, and after the most recent mortgage meltdown, lenders have tightened the belt, making it harder for some to get a home loan. This doesn't mean you can't qualify for a mortgage in your 20s, but it will take advanced preparation. 1.Pay rent while waiting to buy Managing a mortgage is a huge responsibility. If you didn’t live on your own prior to buying a home, transitioning from your parents’ house to a mortgage can be challenging. You’re not only responsible for the mortgage payment, but also the costs of home repairs and maintenance. There's no rule saying you have to be a renter before you can become an owner. But for a smoother transition, consider renting before buying. This way, you can get accustomed to paying rent and managing household expenses. Options include… Read more