Tag Archives: owner financing

How to Choose the Right Mortgage Lender

You found the perfect house in the best neighborhood with your ideal yard, all at the right price. Your offer is accepted, the home inspection report comes back without any red flags, final negotiations are settled…all that is left is the work of the mortgage lender to make sure everything is ready for closing. A few days before closing, you hear that your financing fell through and you are left without a mortgage lender. You lose the house.

All too often, buyers lose their home in the final stage of the process, all because their mortgage company dropped the ball and failed to get the job done. With something as important as buying a home, you don’t want to put your trust in a second rate lender that does not have the expertise, customer care, diligence, and motivation to help you close on your home.

If you are looking for a mortgage company in the DFW area to deliver you to closing on your dream home, Colonial National Mortgage is the lender for you! Located in Arlington, TX, loan officer James Miller and the rest of the team at Colonial are dedicated to helping their clients have a positive and stress-free experience that successfully results in their clients closing on their perfect home.

Realtor Angelina Cook with DFW Realty by Design refers her clients to work with James Miller at Colonial National Mortgage for one simple reason – he is the best! When no other lenders can get the job done and the buyers are thinking they are going to lose the house, James finds a way to help the buyers close…on time! For a mortgage company and officer that will take personal care to help you get the necessary financing and navigate around all the potential roadblocks to buy your home, James Miller at Colonial National Mortgage is there for you every step of the way to deliver you to a successful closing.

Contact James Miller at Colonial National Mortgage today for all your mortgage lending needs.

Email: jamesm@colonialsavings.com
Phone: 817.860.8441

Address: Colonial National Mortgage Office
1605 South Bowen Road
Arlington, TX 76013

Check out this article for more tips on how to choose the best mortgage lender for you. (http://www.realtor.com/advice/finance/choose-right-mortgage-company/)

If you are looking to buy or sell your home, expert realtor Angelina Cook with DFW Realty by Design is at your service!

Contact Angelina for a listing appointment or to talk about your wish list for your next home!

Email: Angelina@dfwrbd.com
Phone: 817.217.7779
Website: http://www.dfwrbd.com
Facebook: DFW Realty by Design

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Owner Financing – Is it the right decision for you?

If you are on the house hunt, you may have come across a home for sale listed as ‘Owner Financed’. Here’s a quick guide to see if it is a good fit for you as a buyer or seller!

1. What is Owner Financing?

When the buyer finances the purchase of the house (minus the down payment) through the seller. Basically, the seller gives the buyer the loan on the home, instead of a conventional lender, such as a bank.

2. How is the loan paid?

The buyer and seller agree on the loan terms: interest rate, monthly payment amount, length of loan (usually short, 3-10 years), and consequences of default. Often, there is a balloon payment – an oversized payment due at the end of the mortgage.

3. How much is the down payment?

Amounts will vary (up to 30% or more), but most owner financing sellers will want a significant amount down to protect their equity. If a buyer is willing to put a hefty amount down up front, it gives the seller more confidence that the buyer is unlikely to go into foreclosure.

4. What are the different types of Owner Financing?

Land contracts;

Promissory notes and mortgage: all-inclusive mortgage, junior mortgage;

Lease purchase agreements

5. Why is Owner Financing good for a buyer?

A buyer does not need to go through the difficult qualification process of a conventional lender; although most sellers will at least do a credit check. The flexibility of designing your own payment plan that fits your needs is very appealing to most buyers. Little to no closing costs is one of the biggest perks, as there are none of the fees that go along with a lending institution. In addition, change of possession of the home usually occurs faster since the seller and buyer can schedule their own closing date.

6. Why is Owner Financing good for a seller?

A seller receives a nice monthly income by serving as the lender. Sellers have the opportunity to make money on a current investment as the interest rate is usually higher for owner financing than traditional financing. A seller can ask for a higher interest rate than a traditional lender depending on the market and the popularity of the home (i.e. if traditional interest rates are 4%, a seller could ask for 6-10%). Since owner financing is rare, these homes tend to sell pretty fast because they stand out. The seller can often get full asking price when selling with owner financing. A seller will receive a tax break compared to a traditional home sale because you only have to report the income received per year. It is also a great opportunity to get a buyer in your property faster as the buyer can take advantage of the flexibility of owner financing while they work with a lender to determine what they need to do to obtain traditional financing before the balloon payment is due.

If you are looking to buy or sell an Owner Financed property, expert realtor Angelina Cook with DFW Realty by Design is at your service! Contact her today to take advantage of this unique way to buy or sell your home.

Contact: Angelina Cook

Ph: 817.217.7779

Email: angelina@dfwrbd.com

Facebook: DFW Realty by Design