By TJ Trembley

Financing your home can feel overwhelming. Consider this:

The best way to buy and finance a home is to arrange the mortgage first. Once you are confident that you have been pre-approved for a mortgage and will not have to scramble to obtain financing, then go shopping for your home.

There are several basic home finance techniques.

NEW MORTGAGE. This is the most common home finance method. Conventional mortgages, reverse mortgages, low down payment FHA mortgages, VA mortgages, and many other types of loans are available to meet your specific needs.

ALL CASH. Most home buyers cannot afford this method. Even if you can afford it, paying all cash for a home usually isn’t a good idea. Cash buyers often lose leverage advantages. Usually, the only time you should pay cash for a home, is if it will result in a bargain purchase price. Even then, paying cash may end up costing you more. Consult your financial advisor before paying cash.

EXISTING MORTGAGE. A buyer can assume or take title to an existing mortgage on the home. If the home’s existing mortgage has attractive terms, ask if you can take it over. Many older VA and FHA mortgages lack “due on sale” clauses and will allow the mortgage to be assumed. You will still need to qualify with the existing lender.

SELLER FINANCED. If a home seller has a large amount of equity, and needs income, he or she can carry back a first or second mortgage. Free and clear houses for sale by elderly sellers who need more retirement income are the best seller finance candidates. Higher interest rates and potentially unfavorable terms may be associated with this type of financing.

COMBINATION OF THE ABOVE. For example, if you can take over an existing mortgage, the seller might carry back a second mortgage to finance your home purchase. Or, you can receive a new first mortgage and the seller may carry back a second mortgage.

For more information, please call or email Wealth Enhancement Mortgage Services.

info@we-mtg.com
800-492-1222