Post Tagged with: "Property"

The Process of Buying a House in Ogden, Utah

real estate talking with a coupleOne of the advantages of buying a house in Ogden, Utah is the cost of the real estate. According to Zillow, the average home price is $188,500. It can increase by 2.6% in 2019, but it’s still significantly cheaper than that of Salt Lake City. A home may already be worth $352,000, and it has the potential to go up 3.4% the following year.

The process of buying a home in Ogden is also easy, but time-consuming and lengthy. A homeowner who’s not prepared or not aware how it works will surely make many mistakes. As an overview, to purchase a house in the area involves the following:

Pre-qualification

A potential homebuyer can skip this process, but they are putting themselves in a serious financial problem. This step helps them know how much the lender is willing to offer and the possible maximum price of a home they can get.

One of the biggest concerns is how much down payment the applicant can provide. The higher the amount, the better since it lowers the monthly amortization. They may also avoid paying for private mortgage insurance.

A down payment, though, is a lot of money. It’s about 20% of the total home price. Getting a down payment assistance in Ogden from firms like Wasatch Peaks Credit Union may be necessary.

Home search

After the homeowner is pre-qualified, they can already use the information to look for a house that fits their budget. A real estate agent or broker can help at this stage. A person, though, may have to look at about 10 houses before they can find the best one for them.

Offer

Once they have chosen a house, they should be ready to make an offer. The buyer’s agent can assist with this one. The goal here is to increase the chances of having the offer accepted. It may, therefore, help if the individual can provide an earnest money deposit.

After the offer, there may be a period of almost no activity. This is the time when the seller makes a choice, and the lender processes the necessary documents and closing costs in case the buyer wins the house.

Remember, this is the simplistic version of securing a house. For those who have never experienced it before, it may be confusing. Buyers can always benefit from having the right help.

May 31, 2018 at 6:41 pmStudy Section

FHA 203K Loans: Giving You a Chance to Turn a Property into Your Dream Home

Home improvementWhen looking for a new house, you will likely stumble upon a property that is almost perfect to be your dream home; the location is ideal, and the property has great potential, but you need to make several significant improvements.

Without those repairs, that home might not be suitable for living, and you might not be able to afford it as lenders rarely give out loans on a property with problems.

However, do not lose hope, as the FHA 203K loan makes it possible for you turn that property into your dream home.

What is FHA 203K Loan?

Backed by the Federal Housing Administration, the FHA 203K loan program allows you to borrow money for both home purchase and necessary home improvements. You must borrow a minimum of $5,000 but less than the certain maximum limits set by the FHA for the property’s location.

The loan interest rates will also vary, depending on your credit and current mortgage rates. You must finish your renovation project within six months; the FHA will place the funds in an escrow account and pay out your contractors as you complete the improvements.

More importantly, you can only apply for the FHA 203K loan if you are an individual or a nonprofit organization owner, not an investor.

Why Should You Apply for FHA 203K Loan?

Because the FHA 203K Loan gives you the opportunity to make significant improvements to your newly bought property, you get to do the things you want for your dream home. If you want to install energy-efficient roofs, an extra room for guests, or glass splash backs for the kitchen, you are free to do so.

Also, the loan comes with timeliness – if the contractor wants their payout, they have to complete work within six months of work start date. So, you will definitely achieve your dream home in just a matter of months.

But the major reason you should apply for this loan is that you will have the lowest interest rates you can get for home repairs, as the renovation loan is combined together with the mortgage.

The only drawback with FHA 203K loan is that you cannot use it for DIY improvements; you must hire licensed contractors for all the work. But other than that, this type of loan offers a great deal. After all, it gives you a rare chance to turn a property into your dream home.

November 25, 2017 at 1:00 amMind of Money