Buying a House Without Using your Own Money

December 11, 2009

Real estate is in very high demand nowadays, and it is quite normal for all of us to be willing to buy it. The problem is that the purchase of a house requires investing a hefty amount of money in it, which is often not something you have right away. So is it at all possible to buy a home without spending any of you hard earned cash? Yes, it is possible, and in this article we shall try to give you some tips on this matter, which, hopefully, can help you to buy that house you want.

The first tip to give here is to use you other assets, if you have some. If you do have some assets that are stable and strong enough, you might well be able to borrow money from those. How can it work? Very simple: your assets may serve as a security for your loan to back it up in case of missed payment. And there is one more positive aspect here: having built up strong and stable assets will make you look more financially sound in the eyes of your potential lenders, positively affecting their willingness to work with you.

Tip two: get someone to guarantee your loan. Of course, the first thing to look for should be an unsecured loan, but this option is quite difficult to find – most banks will not be willing to accept it. So the next thing you should try is to persuade someone to act as a guarantor for your loan. A guarantor is a person responsible for the loan in case some unforeseen circumstances arise. It’s not so easy to find someone who will agree to act as your guarantor, but it really is worth trying, because having a guarantor may help you get lower interest rates.

Tip three: try to find a 100% mortgage. They are hard to find these days, but it is actually still possible. The requirements on these are usually a bit tougher than those on a normal mortgage, but well, it costs you nothing to at least find out, so if you happen to find a lender offering 100% mortgages, look into this option by all means. This may well be the best deal to get, if you don’t want to spend any cash right away.

Tip four: use no-interest credit cards, if you have them. 0% cards are a great option, and buying a house is probably one of the most appropriate situations to use them. Zero interest surely gives you great advantages when doing serious property purchases.

And one final tip: only buy property at a time when you actually can afford it. Don’t try to jump over your head – you surely do not want to end up with huge debts because of being unable to repay your mortgages. Before embarking for serious property purchases, make up a detailed plan accounting for all possible factors, both positive and negative, and follow it. Thinking and planning will surely pay off.

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Buying a House – 3 Tax Reasons it Should be Part of Your Personal Financial Plan

November 9, 2009

The further you go in life, the more you’re starting to feel like buying a house certainly provides serious tax shelter advantages.
Rare thinking people like you already know that the ability to borrow by taking advantage of the equity in your home is an important one. If you live in the United States, buying a house should be a priority of your personal financial plan because of the opportunity to shelter income from taxes.
Tip number one already discussed how expenses related to home ownership can be tax deductible. Two large deductions of owing a home are the mortgage interest deduction and the property tax deduction. It is easy to look at these deductions as the government helping to pay for the cost of owing or buying a house.
Remember the second tax benefit of owning a home is the tax-free sale. Individuals may be able to exclude up to $250,000 from tax liability due to the sale of a house or up to $500,000 if a married couple. By meeting the ownership test and the use test, it is possible to enjoy such an incredible benefit. The tax-free sale is in and of itself sufficient cause to add buying a house to the smart financial plan.
This third tip is amazing. The next benefit you can enjoy from buying a house is the ability to borrow tax-free against home equity without having to sell your house.
Accordingly, when your house appreciates in value you create equity in your home over and above the original loan amount for the mortgage. Over the years you also pay down the mortgage, freeing up more equity. You are then free to borrow against that equity.
Here is an example. Suppose you bought your home for $200,000 using a mortgage of $160,000. Since you purchased, the house has appreciated to $350,000 while you have paid down the balance to $150,000. Subject to a lender’s appraisal of course, you may have as much as $200,000 that you can borrow.
Also notice there are several ways to do this that you should discuss with your financial advisers and mortgage lender. You may choose to refinance the entire amount of the mortgage balance plus cash out, taking advantage of any additional equity you want to borrow against. During times of declining rates, you might even end up with a lower monthly payment.
Along these same lines there is another method to access your equity yet not have to take it in one lump sum. Ask your mortgage lender about applying for a line of credit. The difference between the value of your home and the amount you owe, the equity, becomes the basis for the mortgage.
Without a doubt a line of credit loan has several advantages. It is easy to see the benefit to having money on stand-by but without a payment until used. Any costs to establish a line of credit are usually small versus refinancing which usually includes origination fees and closing costs.
Finally, a line of credit, sometimes called an LOC, can be repaid easily but you still have the option of accessing the LOC again without a new application being formally submitted. The costs are also significantly lower versus a personal loan or credit card.
Other methods include applying for a 2nd mortgage sometimes referred to as an equity loan or home improvement loan. A favorite is the 15 year fixed rate although do not assume this as there are many variations. Rely on yourself to find out the terms of the 2nd mortgage such as payments, lump sums of money due later on in the loan, and whether the interest rate is fixed for life.
This advice applies to any mortgage whether it for buying a house, refinancing, or obtaining a line of credit, or equity 2nd.
Even though using a home in the manner described here may result in tax savings, consider the cost to refinancing. Banks are in the business of making money as are all mortgage lenders. Whether you decide to refinance your 1st mortgage entirely, apply for a line of credit, or acquire a 2nd mortgage, you must be sure you understand completely what closing costs will be incurred, what is the period for the loan to be repaid, and what interest rate you will receive. In addition you must know if the interest rate and payment can adjust and if so, how much and how often.
Even though you are near the end of this article, pay attention to what could become a big headache. When getting any type of mortgage for buying a house or refinancing, you must inquire if the home loan is going to have a pre-payment penalty.
Lenders use pre-payment penalties to assure a profit in the first few years either by collecting the borrower’s payment or imposing a penalty for premature payoff. It usually lasts from one to three years. Whether or not you accept a pre-payment penalty as part of the terms of your mortgage may or may not be important to you. However it is important that you are aware of it especially if you have plans to pay the loan off early.
Regarding tax implications, it is always recommended that you consult a qualified financial adviser.

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We Want To Buy Your Charlotte Mecklenburg Area House Today…On The Spot!!

November 2, 2009

We Buy Charlotte North Carolina Home’s On The Spot!!!

Do you have a house in Charlotte North Carolina you need to sell quickly? If you need to sell your Charlotte North Carolina home FAST, you’re on the right track. You need to know about this first class professional home buying company On The Spot Home Buyer, LLC. At On The Spot Home Buyer we do exactly as our name says. We will buy your Charlotte North Carolina house on the spot today! It may be a quick cash purchase, we may take over your existing mortgage payments, or we may use any one of 100 different purchase techniques we have in our arsenal of home buying tools to help frustrated homeowners sell your house fast. Whatever the situation, the bottom line, We’ll buy your house on the spot today!. If you’re upside down on your mortgage, that’s ok too. At On The Spot Home Buyer, LLC we have a saying

“No equity no problem, we’ll buy your house on the spot, TODAY!!”

We are your best solution for selling your home fast. If you’ve tried to sell your Charlotte North Carolina home either for sale by owner or through a realtor who has not produced a buyer as of yet, we can buy your house today, on the spot. Without question, we offer you the best chance of a fast sale. Why would you want to spend more time looking for a buyer when you just found one. If you want a local professional home buyer to buy your Charlotte North Carolina Home, then sell your North Carolina home to us. If you’re in foreclosure, if you’ve lost your job or had a reduction in income, a family illness, divorce or any other challenges for that matter, whatever the reason, we buy houses fast and we want to buy your house today. Stop waiting day after day, week after week, month after month, for that buyer and contact us today.

We are professional home buyers. Sell your home to us today so you won’t have to keep looking for a buyer. Most people looking at houses are just kicking tires. They are unqualified buyers who want to walk through your home at dinner time, peek in your closets and open up your cabinet drawers. Now that’s creepy. Who knows what they’re real intentions maybe. You can sell your house before you know it. We’ll either buy your house on the spot fast, or have a written offer in your hands within 36 hours so you can get your house sold and move on with your life!

On The Spot Home Buyer, LLC is a professional home buying company extensively skilled and experienced in solving all of your housing problems. We are a team of professional house buyers in Charlotte North Carolina who specialize in offering fast cash or other creative solutions to get your house sold ‘On The Spot Fast!”. We buy homes in Mecklenburg County, North Carolina. Yes, we are located in, and we buy houses in Charlotte North Carolina. But we also buy houses in Iredell County North Carolina, we buy houses in Cabarrus County North Carolina and we buy houses in Union County South Carolina and we want to buy your house too!

What are we looking for? We buy single family houses in all types of neighborhoods in and around Mecklenburg County North Carolina. New or old, big or small, wood or brick we buy them all. We buy houses in and around Charlotte North Carolina, in any area, any condition and in any price range. If it shows like a model home, we’ll buy your house. If your house has been seriously neglected, that’s OK, we’ll buy your house too. If your house is beet down nasty and ugly, or fire, water or wind damaged, we’ll buy your house today, on the spot! Repairs are no problem. We can buy your Charlotte North Carolina house “as-is” and you can move on the day of your choice. Buying homes is our business. We are not real estate agents who want to list and sell your house. We are professional house buyers who want to buy your Charlotte North Carolina house and we are willing to make you one or more offers to buy your home quickly.

Sell your home On The Spot Fast!! To sell your Charlotte area home fast, or to sell your North Carolina home quickly, please complete our Seller Questionnaire. Tell us all about your home for sale. Let us know how we can reach you and one of our knowledgeable house buyers will contact you ASAP about buying your house fast.

We’ll make you an offer to buy your home fast. If your North Carolina home qualifies for our On The Spot Purchase plan, one of our professional house buyers will schedule with you to come visit your house and make at least one, and as many as three offers tailored to fit your wants and your needs. No one size fits all. With over 100 available purchase plans we’re sure we can find at least one to make you happy. So contact us today, so we can buy your Charlotte House, On The Spot Fast!

We Buy Charlotte North Carolina Homes. Please visit our website and tell us about your home so we can make you and offer. Please be sure to bookmark our website so you know where to find us in the future. We also have an entire Florida division where we buy Florida Homes. We also buy homes and land nationwide

 

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