FAQ

FAQ

Frequently Asked Questions

Am I Ready to Be a Homeowner?

Financial stability is one of the most important factors to successful home ownership. Buying a home is one of the biggest financial decisions you’ll make. You need a steady source of income that can easily cover your mortgage payment-experts recommend that your home cost no more than 20% to 30% of your monthly income.

Is Renting or Buying Better?

For generations, buying a home was considered the cornerstone of the American dream. However, in recent years, people have been debating whether buying a home is always better than renting. “A lot of financially savvy people are stating to question whether it’s economically rational to buy a starter home or to wait and buy that dream house where they’ll live 30 yaears.”  The renting-vs.-buying question is not something that people usually ask and answer just once. This decision with many moving parts, and things change.

What Is the Lender's Formula?

The Loan-to-Value (LTV) ratio is an assessment of lending risk that financial institutions and other lenders examine before approving a mortgage. Typically, loan assessments with high LTV ratios are considered higher risk loans. Therefore if the mortgage is approved, the loan has higher interest rate.

What Do I Look for in Homes?

It is helpful to know what you’re looking for, and these are major things you should look for every home you’re thinking to buy.  (a)Location of the House, (b)The size of the lot, (3)Number of bedrooms & bathrooms, (4)Kitchen layout, (5)Age of the house & condition, (6)Check Roof, (7)Purchase price, (8)Seller’s Incentive to sell, (9)Homeowner association, (10)Property taxes.

Do I Need a Home Warranty?

A   home  warranty  is  not  the  same  thing  as  homeowners insurance,   which   covers  major  perils  such  as  fires,   hail, property crimes, and certain types of water damage that could affect  the entire  structure and/or  the homeowner’s personal possessions.     A  home  warranty  is  a  contract  between   a homeowner  and a  home warranty company that  provides for discounted repair  and replacement  service on a home’s major components,  such  as  the  furnace,   HVAC,   plumbing,    and electrical  systems.   A  home  warranty may also  cover  major appliances,   such  as  washers  and  dryers,  refrigerators, and swimming pools. 

What Should I Expect at Closing?

Closing  is  the final step—before that house is finally  yours!   Your closing date is the  day you  become the  legal owner of your new home.    During the contract  negotiation phase, you (the buyer)  and  the seller set a  closing date, which must be listed  on the purchase  agreement contract.   After the seller accepts  your  offer  and  earnest  money — money  given  to secure the contract—you  can  expect  to wait a while before your actual closing date.

 Even though  you and the  seller may agree on a closing date, your  agents  will probably  work  with your   lender  and title agency to suggest a timeline that allows them enough time to correctly execute their end of the deal.  That could push your closing  date  out several  weeks  or even months  after  your offer is formally accepted.

 

AM I READY TO INVEST?

Have  you   wondering  if  you are ready to invest ? Here are  indicators   that   you  are   financially,   intellectually,    and emotionally ready to get going in the Real Estate Investment Market.    You  have savings for large, unexpected  expenses.    You   have  extra  cash  coming   each   month.     You want to grow your wealth. You realize that one day you’ll  want to  live  off   your   investments,    not  earnings.   You welcome  excitement  in  your  life.  You  are  willing  to  learn through your  experiences and  you have time and inclination to read about real estate investment.

 

 

HOW MUCH DO I NEED TO INVEST IN REAL ESTATE?

Depending on the project,  you  may need  as little as $500 to invest  in a “fix-and-flip” single-family  property or townhouse, or  you  could easily  invest  $ 100,000  into  a  major  building residential  project.   It  all depends  on the kind of real estate investment you’re looking at. You’re probably also familiar with the idea of “flipping houses.”The quick buying, remodeling, and selling  of residential properties  is a  popular TV show format, and  many  individuals,  especially  those  who  like  hands-on projects, could find this kind of real estate investing incredibly appealing.

is Real estate a safe investment?

If you want a quick answer: yes. Real estate is a generally safe option for many first-time investors. Real estate is a safe investment; properties and empty lots will always be worth something and the market is generally steady

why real estate is a safe investment?

Real estate is a tangible item.   You can’t physically hold stocks. You can hold a stock certificate, but it does not compare to the reality and tangibility of real estate purchases.  If you decide to invest in real estate by purchasing a rental  property or another type of property, you have physical proof of your investment. Real estate will  always be  worth something.  The tangibility of real estate adds to  its worth.   A  house or a piece  of land will never be zero dollars. But a stock can reach those depths in an instant.  The real estate market is steady.    The ups and downs of a volatile stock market can give you nausea. Just look at the last few days of 2018. Real estate investors don’t have to worry too much about inflation. As prices go up, rents go up too. Real estate can provide  a hedge  against  inflation.  If properties are managed   well,  the   value  of   real  estate   will  continue  to appreciate  at  a rate  that  can  fight off inflation and still offer gains for the owner.   It’s  easy  to diversify  your portfolio while still  investing  in  real estate.   Investors can diversify their real estate  portfolio  by  investing in  different  locations,  choosing properties  with different  level of risk, or  buying  into different types of funds or property investments.

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