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Are You Thinking About Buying a Home?

Are You Thinking About Buying a Home?

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buying a home

The process of buying a home can be overwhelming at times, but you don't need to go through it alone.

Source: Are You Thinking About Buying a Home?

Buying a Home - Helping many buyers and sellers to successfully transact real estate, we offer this comprehensive guide to buying a home this winter. With information including four great reasons to buy a home today instead of waiting, what will happen to interest rates, whether it's better to buy or rent, and more, the experts at the Axiom Realty Team are standing by to help and not in the traditional sense either.

After many years of institutional lending experience as a mortgage loan officer for major banks, we are experts at helping both buyers and sellers understand the lending side of things, a crucial part of the process. Still active in non-owner occupied lending circles, we are also able to help with hard and private money, business lines of credit, lease options, land contracts...whatever it takes to make the deal happen.

Partner with us and work with the finest professionals in the title, insurance, remodeling and other related service providers to make sure everything comes together smoothly and efficiently.

If you are thinking about buying a home, be it this winter or next summer, we are here to help. Please subscribe at the top left of this page and/or ask for your personalized consultation via the contact form at the bottom right. We'll work together with you to make it happen.

Thanks for reading. See you on the other side!

What Credit Score Do You Need To Buy A Home?

What Credit Score Do You Need To Buy A Home?

millenials, credit score, FICO score, buy a homeIn a recent article by the Wharton School of Business at the University of Pennsylvania, it was revealed that some millennials are not looking to buy a home simply because they don’t believe they can qualify for a mortgage.

Source: Millennials: What Credit Score is Needed to Buy a Home?

The question, what credit score do I need to buy a home is a difficult one to answer because, dependent on numerous factors, not the least of which being the type of buyer, the answer can run the gamut.

For example, if you are a traditional first time home buyer seeking institutional lending rates (high 3% to low 4% as of this writing), you’d be hard pressed to qualify with anything less than a 620 yet, are there exceptions? Of course there are.

On the other hand, if you are an investor, the distinction being one that will not occupy the home as their primary residence, or someone with difficulty qualifying for more traditional lending, then you may not need any credit at all depending on how much you can buy it for versus how much it’s worth, repairs, and the like.

Perhaps most important is the question not asked meaning, contact a local professional with your desire, wants/needs and qualifications (or lack thereof) and let us sort it out. That's what we do. Until then, all the best!

 

Norberto Villanueva is a licensed broker and experienced loan officer offering full service real estate and related services in Colorado Springs and surrounding areas. Contact Norberto at 719-453-8690 for a free consultation or by submitting a request in the lower right hand section of this page.

Invest in real estate

Invest in real estate

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"It's amazing what 10 years of good hard work will do."

Source: How to start investing in real estate - Business Insider

A mortgage loan professional starting in 1997 and a licensed real estate broker today, it should come as no surprise I am a huge proponent of real estate. Using lease options, land contracts and traditional financing, I have personally experienced the joys of home ownership, building (and losing) equity and, in inaugurating many into the club, have also shared this joy with others.

For many others, getting started is no easy undertaking, starting with financing, especially when it comes to using conventional, FHA/VA or similar institutional financing. The three C's of credit (character, capital and capacity, not necessarily in that order) requires would be home owners (investors) submit to an increasingly thorough examination of DTI, employment history, credit use...that read like lions, tigers and bears, right? Yes, not only can it be brutal, but also an exercise in futility for many, especially the non-owner occupied type.

Enter hard (and private) money, which mostly and sometimes only cares about the property...what it is or will be worth in the future in comparison to how much it's selling for today, that is. They don't call it hard money for nothing, as the cost and fees (double-digit interest rates when owner-occupied is in the low single digits, 4% of the loan amount, application fees) associated with this strategy can hurt yet, so can a vaccine when you tense up in anticipation. Right? But when in the hands of a learned professional, look away and, not only do you barely feel a thing, it's all better in no time, except for when you get sick from it, but I digress.

Take the median home, $240k in the Colorado Springs market. Being short-term financing (3 - 12 months, max), held for 12 months the total interest at 14% is $33,600. Add 4% in points and 10% in holding costs, and the cost is an admittedly hurtful $100,800 AKA a real kick in the pants. You might ask, what logical investor would want to pay $100,800 in fees and costs to acquire a $240,000 asset? One who understands the time value of money, that's who.

You'll need to look at this differently to understand. But first, let me take this opportunity to mention the most important factor here is the need to be working with a motivated (unemployed, bank, divorced, estate, probate) seller because it won't work otherwise. What hasn't been mentioned is this asset was purchased for say, 70 cents on the dollar ($156k) or less. I also left out the part that factors a shorter holding time, say 3 months or just enough time to rehab the property at a cost of about 10% of purchase price say, $16k. Effectively cutting time and fees by 75%, we now have a cost of funds equal to roughly $41,200 including rehab. Get the picture? We "just purchased" a $240,ooo asset for $156,000, added $41,200 in costs and fees and came up with an "investment" of $197k, theoretically netting $43,000 in three months. What's so hard about that? By the way, and where the intrinsic value is different from that of a non-owner occupied investor, any home owner who has looked at a truth in lending statement as they were called will say, "what a deal" as they look at the total interest paid during the life of a 30 year loan, even at 4%!

Of course, the process, including costs and fees has been simplified tremendously but the scenario is real and it works.

Interested in getting started? With our experience and relationship with lenders at every spectrum, including hard money financing at up to 100% of ARV (after repaired value), we are uniquely qualified to you invest in real estate. Just use the contact form in the lower right to get started.

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