FINANCING YOUR NEWLY PURCHASED HOME IN TOWSON

Real estate financing in Baltimore County made easy.

Few home buyers are in a position to pay cash for a home. So, we rely on our friendly mortgage lender for financing. Yes, lenders are our friends. They lend home buyers huge amounts of money. In return for their money, you give them a promise to repay the loan, with interest. At settlement, you'll sign a NOTE to the lender stating your promise to pay.

WHO OWNS YOUR HOME?
That Note, along with a Deed of Trust (mortgage) is recorded in the land records of the county courthouse. Who owns the house??? YOU DO! ! ! Make no mistake about that. You own the home you purchased. The lender simply has a lien on the property, which will be released when you pay the loan in full, either by regular monthly payment or through a sale of the property in which your purchaser will pay you and you'll pay your loan.

WHO CAN BUY A HOME??
Just about anyone can buy a home. It's just easier for some home buyers than others. There is a loan for just about anyone. The difference is that some will qualify for the best interest rate, terms and conditions. If you have good credit, sufficient income to qualify for the home price you wish, you will get the best rate. If you have damaged credit, you can still get a loan, you'll just pay a higher interest rate to compensate the lender for the additional risk. If you have low income but lots of cash, you can still get a loan. You'll just pay a higher than the best interest rate since the lender is taking a bigger risk. These loans are known as "sub-prime" loans.

Some examples of folks who utilize the sub-prime loans are:

• Non-citizens who do not have a "green card".
  
• Buyers who have damaged credit, but sufficient cash to make a good down payment.
  
• Buyers who have low income but sufficient cash to make a good down payment.
  
• Buyers who have good credit, cash for down payment, but high debt.
  

All of the home buyers above can get a home loan, but the interest rate will be approximately 2.5% or more higher than a conventional loan.

WHAT DOES THE INCOME TAX BENEFIT MEAN?
You are taxed on your adjusted gross income. However, when you have additional deductions such as mortgage interest and real estate taxes, this money is subtracted from your gross income before computing your tax. We'll explain more when we help you find a home. Just remember that the income tax benefit cam mean $Thousands of Dollars in your pocket each year. It will help you pay your mortgage payment. Ask us about it.

CLICK HERE to learn about types of loans; VA, FHA, Conventional, Jumbo.

CLICK HERE for our informative FINANCIAL WIRE. A monthly publication of interesting financial news.

CLICK HERE for our real estate NEWSLETTER. A monthly publication of real estate news.

CLICK HERE for our unique easy to use MORTGAGE CALCULATOR. Find out approximately how much home you are qualified to buy.

CLICK HERE if you would like to get preliminarily credit approved. You'll have a credit approval letter from a reputable local lender and you'll be ready to write a contract if you see the home you want to buy. BE PREPARED. Homes sell quickly here and you need to be ready to compete with other home buyers.

CLICK HERE for information about CREDIT SCORING. Few home buyers understand this tool lenders are using to qualify good buyers. Let's find out where you stand.

Towson Real Estate
A part of the Homefinders.com Network