Financial reason for not paying cash for a home ?
Q: Can anyone out there do the math and show me a example of the financial benifit of not paying cash for a home, but rather paying the monthly mortgage?
A: Since most people, especially in our current economy, do not have the ability to pay ‘cash’ for their property, financing is the only option. I would say, that the one single benefit with this would be that the interest on the mortgage is one of the few deductions a homeowner has to claim. Not that the government didn’t try several times to take it away ( can you say - thank you to the REALTORS political action committee). There are other benefits, but it is up to each individual & their financial situation to determine. Here is a link to a site with a number of ‘handy’ financial calculators. Check it out.
Smart Loan Calculator
Contract With Realtor
Q: I am in a contract right now with a realtor to rent my place for me. She hasn’t found anyone and my friend now wants to rent my place. Can I just take my place off the market with her and do all the work myself?
A: Careful, you might be legally comitted to pay a commission for anyone renting your place if is done within the time constraints of the contract you have with her (& her company).I suggest you wait, then if your friend still wants to rent after the contract is expired, go ahead. Otherwise, sit down & have a talk with your agent - see what you can work out. Also, be careful when renting to friends. Sometimes, friends & business (like being thier landlord) don’t work out & your friendship is ‘history’.
Make home purchase my sole property
Q: Being married how do I take title to new purchase property as my sole property?
A: One way would be for your spouse sign off on thier ownership rights.There are other ways, to be sure, have a talk with your county records department, a tax advisor, a tax attorney or even a local title company. Explain all your circumstances - then, after wiighing your options, pick one.
Home purchase question
Q: First, I want to thank you for your time and help you provide here. My question is a long one.
First piece of important info:
I purchased a house in May 2008. In California Residential Purchase Agreement, page 2, items are marked in which seller shall pay:
- Seller shall pay for a natural hazard zone disclosure report
- Seller shall pay escrow fee
- Seller shall pay for owner’s title insurance policy specified in paragraph 12E
- Seller shall pay County transfer tax or transfer fee
- Seller shall pay City transfer tax or transfer fee
- Seller shall pay the cost, not to exceed $350.00, of one-year home warranty plan
Second piece of important info:
I also signed an addendum which stated that "seller to credit buyer $8,000.00 for closing cost".
My final closing cost totaled up to $3500.
My questions are:
1. Should the seller pay my closing cost of $3500 AND give me back $8000? (for a total amount of $11,500) It’s because the seller agreed to pay for items mentioned above.
2. What happened was the buyer agent deducted $3500 from the $8000 and signed me a check of $4500. Is this correct?
A: Well, since it already closed, there is not really a lot you can (or should) do. Question #1 - as long as the seller took care of the items listed on page 2 of the agreement & paid your costs of $3500, you did fine. The wording on the purchase agreement & working with the underwriter from your mortgage company (prior to making the offer) to get the maximum benefit from any concessions (because there are limits & guidelines) might have been structured differently. Question #2 - how you got a check back for the difference (especially after the closing) is beyond me. There are very strict RESPA guidelines that the government sets on those type financial arrangements. I am not sure it was even ‘kosher’ ! Now that it is behind you, I suggest you leave it there - in the past behind you & forget about it, you could be in trouble for being a party to what happened.
Get deposit back if we can not get financing ?
Q: We’ve made an offer on a house that was accepted. We’ve put a deposit down on the home. If sor some reason, we cannot get the financing, will we be getting this deposit back? The agent has preapproved us for the loan, but it seems like the rules keep changing quickly, plus it’s an investment property, plus we’re self-employed.
A: Your contract (if like most I see) should have a mortgage contingency clause. If you cannot obtain financing, can prove it with a denial letter from your bank, then your deposit would be returned to you in full.
Does counteroffer need to be in writing
Q: we have made an offer on a house, the bank (who owns the house) has countered, but will not put it in writing. We would like the counter-offer to be in writing, do we have the right to request this, or is the verbal offer legal?
A: Verbal contracts are in no way binding. Insist that you have something in writing.
