Are you thinking about selling your home? Has someone approached you about seller financing the home? Is this an option that you need to know more about? Working with a real estate agent can help you avoid costly mistakes when selling your home. He or she can help you learn about seller financing and determine if it would be a good option for you to consider. My real estate agent helped me sell my home to a wonderful family that didn't have credit that was established enough to take out a traditional mortgage. Visit my site to find out what we looked for to determine if this was a wise decision for us to make.
Filing for bankruptcy can be a frustrating experience, and it can sometimes leave you feeling a bit down on yourself. Fortunately, it is possible to recover from this type of financial setback. Part of that recovery can mean buying a new home. If you have just gone through bankruptcy and you feel you are ready to purchase a new house, here are a few things you should know about the process.
Compare Rates
You may have difficulty finding a low-rate mortgage immediately after a bankruptcy, but that doesn't mean you have to sign with the first lender you meet. You do still have some wiggle room for comparison shopping when it comes to mortgages. If you find that the rates you are being offered are more than you can afford, consider putting off your home purchase so you can put more time between you and your bankruptcy. Waiting can also provide you with added time to purchase points off of your interest rate, which can help to make your home more affordable in the long run.
Consult With A Financial Planner
It's important to know how much home you can afford, and for someone who has gone through Chapter 13 bankruptcy, you also need to take your bankruptcy payments into account when planning your budget. A mortgage lender and a real estate agent can help you to determine how much you can afford to spend on a house, but a financial planner can tell you how the house purchase fits into your bigger financial picture. For example, he or she can help you to determine a timeline for when you will be able to take on a large purchase, and he or she can also help you find the right savings plan to help cover the initial costs of your home.
Plan For The Down Payment And Costs
While you don't have to save up the entire cost of a home, you will need to have money to cover the down payment and closing costs. There are programs that can help you acquire a home loan with less than the standard 20% down payment, but remember that the more you pay upfront, the lower your monthly mortgage payments will be. Putting down a higher down payment can also prevent you from having to pay for mortgage insurance every month. You'll also need money to cover the closing costs, pay an appraiser, and perform any small repairs that need to be taken care of before you move in. It's a good idea to save up until you can cover all of these costs before you attempt to buy a home. This helps to make your home more affordable, and it can help you to prevent repeating financial problems you've had in the past.
Make sure you understand both the rules regarding your bankruptcy and the process of buying a home before you start shopping around, and let your real estate agent know exactly what your financial situation is. With this information, he or she can help you to find a home that works for you and your financial situation.
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