how to buy property

Image Gallery Buying land introduces a host of issues you don’t normally face while buying a house.
And buying vacant land may not be exactly the same as buying a house, but similar rules apply.
Property also introduces a host of issues you don’t normally face when buying a house.
If you expect the buying of the house to be a simple, straightforward affair, then you’ll probably only need a realtor, the escrow company, and perhaps a mortgage broker.
The general rule of thumb here is that you can afford a house that’s 2.5 times your yearly household salary.[5] For example, if your annual combined salary is $85k, you should be able to afford at least a $210k mortgage and very possibly more.
Credit unions often offer lower closing costs to their members.) Put the total into a mortgage calculator (you can find them online or make your own in a spreadsheet.
Do this before contacting a real estate agent so you have a firm idea of what you can afford, and you don’t accidentally fall in with a house that you cannot afford.
Some homebuyers don’t believe that you should lead with your highest offer, but you could easily find yourself being outbid and never get the chance to bid on your house.
If your home is more expensive than the comps, or the appraiser has to find comps in a different subdivision or more than 1⁄2-mile (0.8 km) away, beware! Never buy the most expensive house in the neighborhood.
How to Buy: If you’re buying one of the PRA Featured Properties, you might go through a broker, or, if the property is particularly high profile, you might have to submit a response to a Request for Proposals detailing how you would execute the city’s vision for the property.
The PRA does have a map of all its available holdings, but the only information available is the street address, which means you can either plug it into Google Maps and check out a street view, or scout the old fashioned way and visit the property yourself.
The City Council representative for the district the property falls in will need to approve the sale, and you can petition for their support if you want.
What does that mean for you? If you’re looking for a place to build a new house, rehab a crumbling vacant property, or if you just want a yard next door, you’re in luck.
Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible.
When picking a mortgage, you usually have the option of paying additional points — a portion of the interest that you pay at closing — in exchange for a lower interest rate.
Reason: When it comes time to sell, you’ll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.
Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.
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If you stay in the house for a long time — say three to five years or more — it’s usually a better deal to take the points.
Getting pre-approved will you save yourself the grief of looking at houses you can’t afford and put you in a better position to make a serious offer when you do find the right house.
From working mothers raising their kids in RVs to stay-at-home moms who spend their days organizing events for the Oil Wives club, meet the moms of North Dakota’s oil boom.
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If homes have recently sold at 5 percent less than the asking price, you should make a bid that’s about eight to 10 percent lower than what the seller is asking.
In years past, the standard rule was that borrowers would put at least 30 percent down on a land purchase, says Billy Sullivan, mortgage lending officer of the National Bank of Georgia, a locally owned bank in Athens, Ga.
You’ll have a better chance borrowing money if there are other improved properties in the area, Roulac says, and if you’re planning to build a personal residence as opposed to speculating for investment.
Things that never come into discussion in a home purchase — access, utilities, easements, land-use restrictions — become extremely important in a land purchase.
"The loan on the land can be amortized for 15 years or just be interest only; it depends on the borrower’s needs," Sullivan says.
"Depending on the zoning, your dream house may not be permitted," says Norwood Gay, senior vice president and general counsel of Attorneys’ Title Insurance Fund Inc., in Orlando, Fla.
"The old rule of thumb was that if your land was paid for, we’d loan you money to build a house.
15, 2001 Let Bankrate e-mail you when rates change! Click here See Also • Construction loans and other sources of funding to build a house • Dr.
"More than once we’ve been involved in claims where people assumed a road was a public road when it was private access," Roulac says.
If you wanted to buy a rental property, you would open an IRA custodial account, transfer cash from an existing IRA account — or possibly 401(k) — into the custodial account and then purchase real estate under the IRA account name.
Leonard Baron, MBA, is America’s Real Estate Professor®. His unbiased, neutral and inexpensive“Real Estate Ownership, Investment and Due Diligence 101” textbook teaches real estate owners how to make smart and safe purchase decisions.
We are a home and real estate marketplace dedicated to helping homeowners, home buyers, sellers, renters, real estate agents, mortgage professionals, landlords and property managers find and share vital information about homes, real estate and mortgages.
And with property prices going up, you might ponder whether you can invest those IRA funds in real estate to both defer (or eliminate) taxes and earn a fair rate of return.
The real estate you buy must be a business property, not a personal residence, second home or occasional rental.
Those thinking about becoming landlords should do some soul searching before deciding whether they can handle the job, said Thomas Lucier, a Florida-based real estate investor and author of "The No-Nonsense Real Estate Investor’s Kit." Nine out of 10 people aren’t suited for the business of managing tenants or the constant upkeep that the property will require, he said.
And for an investor with a modestly sized piece of real estate, hiring a separate property manager can eat deeply into the bottom line, said Rebecca McLean, executive director of the National Real Estate Investors Association.
You’ll want to tap the knowledge of a local real estate professional for help in finding and evaluating an investment property, McLean said.
A REIT takes the management issue out of the equation, provides more liquidity, can spread risk geographically and also is income producing — REITs, publicly traded companies that own and manage real estate, are required to pay out at least 90% of their taxable income as dividends.
The downside: Investment in real property — unless you’re buying shares in a real estate investment trust — isn’t as liquid as putting money into the stock market.
"Everyone brings a certain amount of sweat equity," said Kyle Cascioli, an adjunct professor of real estate at the University of Denver’s Burns School of Real Estate and Construction Management.
HUD HOMES TOPIC MENU   Buying a HUD Home   Home Inspections   Financing   FHA Special Discount Sales Programs   Available HUD Properties   Additional Information Who Can Buy a HUD Home?Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home.
All offers on HomePath properties must be made using the HomePath Online Offer system.
You may not republish, offer for sale, or otherwise make publicly available HomePath contents, or use HomePath contents for marketing purposes, without Fannie Mae’s prior specific written approval.
After March 5, 2013, all counter offers must be submitted on the Online Offers system on the HomePath.com site.
HomePath offers owner occupants (homebuyers who will live in the home as their primary residence) an exclusive "first look" at newly listed foreclosed properties.
Report possible fraud directly to Fannie Mae at MortgageFraud_Tips@FannieMae.com. You may also call our Fraud Tips Hotline at 1-800-7FANNIE (1-800-732-6643) to report possible fraud or if you have other concerns relating to a Fannie Mae-owned property.
Fannie Mae is committed to preventing mortgage fraud, including REO Sale and Short Sale fraud, whether perpetrated by borrowers, purchasers, real estate professionals or any other parties involved in real estate transactions.
Once you’ve located the property, click the property address link or the Online Offer logo to access the listing details page.
Homepath.com is not responsible for the contents or reliability of any linked websites, or the information, products or services contained therein, nor does this link constitute an endorsement by homepath.com of the site or the information or products presented on the site.
During the First LookTM marketing period, you can make an offer and purchase a HomePath home without competition from investors.
First time using Online Offer? Click here to access instructions and training webinars.
The following guide will help a small business assemble a real estate search team, choose a location, and purchase property.
Buying commercial real estate is a complex undertaking that is difficult even for experts to time right to maximize their investment value, let alone entrepreneurs or business executives whose areas of expertise are in different industries.
Why should a business buy? "To get a greater control over the cost of the real estate component of overhead, as opposed to leasing, where you can be victimized by the market if the lease rolls over when the market is tight and, as a result, you have higher rental costs," says William Martin, chair of the real estate group in the Denver office at Kutak Rock LLP, a firm with 400 attorneys and offices around the country.
Before buying commercial real estate, it’s important to make sure that buying is right for your business for the long-term.
You may want to have a real estate expert help you undertake a rent versus own analysis, taking into account growth forecasts for your business and real estate market trends.
As a small business owner, you’re most likely not a commercial real estate expert.
If you’re buying a property – follow these tips to help make the process run as smoothly as possible.
Which? explains why you need a property solicitor and gives you the top tip on finding a good one when when buying a house.
Free, unbiased advice on buying and choosing the right product for you – plus members can see a full breakdown of test scores and the latest Best Buys and Don’t Buys too.
Learn how to cut an estate agent out of the loop by buying at a property auction.
Get tailored one-to-one advice from our range of legal, financial, travel and technology experts to help you make the right decisions.
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Our top tips for viewing a property will help you make sure you ask the right questions.
It’s essential to get a survey done on any property you are thinking about buying.
Estate agents are hard to avoid when you’re buying a house so make sure you know your rights.
Enter your deposit amount and calculate how much a property within the scheme will cost you, including the mortgage amount, government loan and property price.
For more information and advice on the Equity Loan scheme, please speak to your local house builders, estate agents, mortgage advisors or independent financial advisors.
With the Equity Loan scheme you can borrow 20% of the purchase price of a new build property valued up to £600,000.
For more advice on the Equity Loan scheme you can speak to developers, estate agents, mortgage advisors and independent financial advisors.
For more advice on the Equity Loan scheme you can speak to estate agents, mortgage advisors, independent financial advisors and developers.
If you are interested in buying a new build property, the Equity Loan scheme could help.
Your first step should be to check whether the developer that is building your property is taking part in the Equity Loan scheme.
If you are struggling to raise a deposit to move to a new build home in Wales, then the Help to Buy – Wales Equity Loan scheme could be your answer.
The Mortgage Guarantee scheme makes it possible to purchase a pre-owned or new build property under £600,000 with a 5% deposit.
Whether you’re taking your first step onto the property ladder or moving up a rung, we’ve put together everything you need to know about the two options available: Mortgage Guarantee and Equity Loan.
Interested in the equity loan scheme? Contact a Help to Buy agent (who works with Government agencies) for help with eligibility and the application process.
You can now borrow 20% of the value of a new build property worth up to £300,000 under the Help to Buy – Wales scheme.
Under the Help to Buy – Wales scheme you can make up the rest with a 20% equity loan from the government.
With the Equity Loan scheme in Scotland, if you have a 5% deposit you can get a loan for up to 20% of the total value of your dream new build.
Looking to buy a new build in Wales? The equity loan scheme is available here too.
A mortgage for a non-owner occupied property requires a larger down payment (like 20% or 30%) and always comes with a higher interest rate than a loan for a house that you plan to live in.
Some mortgages don’t allow you to convert your residence into an investment property without paying a penalty or refinancing into a more expensive, non-owner occupied loan.
Are you buying or selling a property? Virtual reality technologies might offer a new perspective on traditional real estate photographs.
Covering all angles of the property cycle, from buying your dream family home to investment property, to first home buyers and downsizers.
Understanding strata will help you to deal with the owners corporation, navigate by-laws and manage the fees and levies that come with buying an apartment, townhouse or villa.
How can you help your kids into the property market without putting your own future at risk? As parents, you can offer experience, wisdom and perhaps even the funds to help your child buy a home.
Here’s why you should check the drainage diagram when you are inspecting a property you’re keen to buy.
Buying Tips & how-to guides to give insight into the property buying process.
Want to get on that first rung? Our free guide helps you find the cheapest mortgage and boost your chances of getting accepted.
For 30+ tools to review a home, including sites to assess crime or flood risks, see the Free House Price Valuations guide.
Property investing newbie or an old hand wanting the top deal? Our free guide outlines all you need to know about buy-to-let.
Buying freehold, if you can, costs about the same as extending your lease by 90 years and you can usually then extend the lease for free, just paying legal fees.

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