What You Need to Know When Buying a Home in Austin

Buying a home in Austin, and pretty much anywhere for that matter, is an exercise in distrust. You cannot take anything for granted or anyone at face value. The one thing you will get tired of when buying a home is confirming every little detail of every transaction. It is not actually an issue of trust, per se, but of awareness. A seemingly legitimate transaction can still become a bad deal if you later discover the terms are not something you can live with. It is much better to know what you are getting into from the start.

Among the many people and outfits you will butt heads with when buying a home include agents, lenders, brokers, appraisers, title companies, mortgage companies, and possible lawyers. Each of these represent a phase of buying a home that you need to pay close attention to in order to find property that you can get financing for that you can afford. According to the website of Easy Road Home, knowing how much you can afford is the most important consideration in buying a home. For each person or company you deal with, you should always be wary of anything that seems too good to be true, because it probably is.

One of the most important things you need to do when you find a property you like is to have it verified by an independent title company. A title company will check the records for any unpaid taxes or other legal problems with the property, and will also verify if the seller is the legitimate owner. You will have to pay for the title insurance, but it is essential that you have this before making any sort of commitment for buying the property.

Buying a home is a lot of work, but if you don’t want to be left holding the bag, you will slog through it. Some people take a shortcut and go to real estate assistance companies because these often have extensive networks dealing with all aspects of the real estate industry, including properties for sale. This is a perfectly good idea as long as you make sure that the company you select operates in your desired area and has a good reputation. As always, do your research before committing to anything.

Owner Financing and Its Advantages to both Seller and Buyer

Behind the excitement of finally having their own home first-time buyers will discover how difficult and complicated the process can be. Exactly what house to buy and which financing program to apply for can be decided upon intelligently, though, with the help of real estate market firms, whose job is to help home buyers in all the needs they will have.

According to the website of Easy Road Home, one of the many forms of assistance provided by real estate market firms to home buyers is the program called owner or seller financing. This program, which has become quite famous lately due to traditional lender guidelines being tightened, has the owner of the property extending credit to the buyer of his or her property

Owner financing actually presents various benefits to both seller and buyer. Some of these benefits include:

Benefits to the seller

  • Highest price – by offering flexible owner-financing terms, the owner can definitely insist on and receive the highest price, sometimes higher than the fair market value of the property.
  • Cash earnings – owner financing offers the most net cash from any deal. This is due to the future yields that will result from the sale of a property by an installment sale.
  • Fast closing – a buyer applying for a loan from a lending firm can spend months waiting for such loan to be approved (or disapproved). An owner-financed transaction does away with this application; there is also no need for any survey, underwriting or appraisal to be done. Besides these, you can also save a substantial amount from real estate broker fees when you get to sell your property yourself.
  • Savings on tax – besides the amount you can save by combining the installment sale with an I.R.C. 1031 Tax-Deferred Exchange, you will only be required to pay gains from the payments you receive every year – a huge advantage, especially if you have owned the property for many years.

Benefits to the buyer

  • Easy qualification – many buyers would definitely choose an installment sale over conventional financing since it does not call for the customary income and credit approval. Poor credit, which will result to the bank’s disapproval of his / her loan, makes owner financing the only possible solution for his / her easy qualification.
  • Improved credit rating – being able to purchase and own a home through owner financing plus make timely payments can help improve a buyer’s credit rating.
  • No loan charges – through owner financing, the buyer can save thousands of dollars from appraisals, underwriting charges, title insurance and other fees that conventional lenders usually charge.