As you know, your ability to borrow money depends on your credit score, your current financial picture and your downpayment. Below are various methods of financing a home starting with the most conventional to the most creative.
- Pay all Cash - Cash is king and with it, you can just buy a house. Of course, very few people can use this technique and many times it doesn't make sense tax wise anyway.
- Borrow Money from the Bank - This is typically how most people buy a house. You put down some money and borrow the rest. The interest rate on your borrowed money determines what you monthly payment will be. The better you financial picture, the better your interest rate and the better your monthly payment.
- Owner Financing - This is where the seller is acting like the bank. A seller can be much more creative in how they finance the house for you. This is where RENT-TO-OWN comes in. The people selling the house are either moving into a new house or they bought the house as an investment and can sell it to you with much more lenient terms.
THIS DOES NOT MEAN THAT YOU ARE PAYING MORE FOR THE HOUSE! Essentially you are paying rent until your finances are such that you can buy the house. You option payment will apply towards the purchase and sometimes some of your rent will to. So really, you are renting for a period of time but the money you are paying for rent is not going into a hole. It is like a slow downpayment on your own home!
| Credit Repair and Loan Processing |
Steven L. Padgett
Heard daily on 1190 AM, NBC radio
Senior Loan Officer - Security Mortgage
480-250-1833
Steven@SecurityMortgageCorp.net
|
|
|
|