Why For Sale By Owner Is A Bad Idea

If you’re trying to sell your property yourself to a retail buyer, you’re in for a challenging ride.

When you choose to go the For Sale By Owner route it’s likely you’ll encounter a few (if not all) of these issues:

The Long Wait

It’s often the case that you won’t be able to finance another house before you sell the one you’re in. But when you sell retail, it takes time to find the right buyer. So you’re essentially stuck in limbo until the perfect buyer comes along.

Major Repairs

Retail buyers are picky when they’re looking for their next home. That means, if you want to sell your house, the repairs and upgrades are left to you to do. It can take weeks or months, and cause significant headaches. But, when you sell to an investor, you won’t have to do any of those repairs.

Open houses, Advertising, and Taking Calls

It’s your responsibility to bring the buyer to you, which means that you’re the marketing director for your house sale. You’ll have lots of people looking, and much fewer buying. It’s a total time waster, and an unnecessary one.

Paying Two Mortgages

You think you’ll find someone to buy your house quickly, but in reality it usually takes at least 3-6 months, and that’s if the buyer qualifies for the loan. So many traditional sales fall through because of financing. If you had to relocate for a job and you’re stuck paying two mortgages, that can become a huge financial burden, and fast.

Finding the CASH to catch up up on house payments, or back taxes.

If you owe any money or have any liens on your house, you will not be able to sell to a retail buyer, but you could sell to an investor.

As investors we can save you from all the frustrations above. We’re fair, fast, and knowledgeable. We’ll take the frustration and the fear out of selling your property. Contact us today for a quote.

Hidden Savings Secrets

Today’s interest rates are at their lowest levels. Home prices are more affordable today than they were in the entire past decade.

Owning a home is often less expensive than renting – even without looking at the biggest hidden secret to savings.

In fact, tax savings and benefits are often unknown to new and prospective home owners. Let me explain. When you pay mortgage interest on your primary residence rather than rent, you get to deduct these expenses on your tax return.

Claim More Exemptions Immediately

But not only that! Even as you move in to your own home, you get to claim more exemptions with your employer immediately. That means you will see an immediate increase in your monthly take-home pay, because less tax will be withheld from your monthly paycheck.

If you account properly for the tax savings, owning a home can cost up to 30% less than renting, and sometimes your savings can be even greater.

It Makes Sense to Own

The “Power of Ownership” and being able to do what you want in your own home without having to ask your landlord are just two great benefits. Add to that the actual savings through tax benefits, principal pay-down and low interest rates, and you will agree that it does not make sense to keep renting.

If you are still thinking that you can’t afford to own because you have been turned down for financing before, start the easy home ownership process with Eagle Home Buyers right now!

Knowledge is power and that is what we bring to you. Our program is specifically designed for you, because we believe in you and believe that you have a right to own.

Our job is to show you how put that plan in action.

5 Overlooked Perks of Good Credit

There are many benefits to having good credit, and, if you have bad credit, to repairing it. Now, we all know that a poor use of credit, paying high interest to big credit companies, is a money waster for everyone.

However, there are a lot of perks for people who use credit to their advantage.

Let’s take a look at what good credit can do for you.

1. Lower Insurance Rates

Insurance companies will often look at your credit score when determining your rate for auto insurance, homeowner’s insurance, and life insurance. The higher your credit, the less risky you appear to be and statistically people with high credit are better drivers, responsible homeowners, and make well thought through life decisions.

2. Better Rental Agreements

Most landlords run a credit check on their applicants. If an applicant has a low credit score they’re likely to either reject them completely or charge a much higher deposit. Conversely, people with higher credit scores in a better position to negotiate their rates.

3. Lower Financing Rates on Your Car Lease

Nobody loves an astronomical monthly car payment, but everyone wants the car. When you have stellar credit, you’re in a position to bargain with your car dealer for a lower than usual financing rate. Clean credit tells the dealer you’re a responsible borrower, and if you can’t get a lower rate, you might get a better price. Good credit opens all kinds of options for you.

4. Excellent Mortgage and Refi Rates

Good and clean credit makes a mortgage broker’s heart sing. They’re much more likely to offer you a lower interest rate (saving your potentially hundreds of thousands of dollars over the term of the loan). Great credit also give you bargaining power when it comes to negotiating closing costs and other fees. Remember, banks are competing for your business, good credit makes them want to compete for yours.

5. Top Notch Credit Card Deals & Buyer Protection

The best rewards credit cards come knocking at your door when you have good credit. It pays to use these cards (as long as you pay off the balance each month) because they often offer cash back deals, free gifts, and low rates. Also these desirable cards offer the best buyer protection that shields you against fraud, identity theft and other problems.

At the end of the day, it pays to have a strong credit rating. Credit is something to be used to your advantage, we’ll show you how. Contact us today for your complimentary credit assessment.

Why Credit Repair Takes Time

Honestly we wish we had a magic wand that could fix all negative credit reporting in one go, but unfortunately, credit repair doesn’t work that way.

As with any kind of rehabilitation, credit repair takes time.

Remember that your credit report is a history, it lets lenders know how you’ve managed credit over long periods of time. While disputing negative information that is inaccurate, obsolete or unverifiable on your credit report, repeating those disputes every 30-45 days, and bringing your accounts current will elevate your score quite a bit right away, you have to demonstrate by keeping low balances and paying on time, that you’ve taken control of your credit over time.

That’s why it’s so important to learn how to manage your credit after the initial reparations have been made.

The exact time it will take to restore a strong credit history depends on you, your past, and how you manage your credit moving forward. Often the more severe your past issues were, the longer it takes to restore your credit history. The good news is it can be done! Negative information doesn’t last forever.

Credit repair takes time and consistency, which is why it’s crucial to have someone manage the process for you. Many individuals who go it alone try once and fail to follow up, which is why their credit never becomes as good as it could be.

We’ve seen incredible results for our clients. If you have any questions about the process or how we can help you, please email us or give us a call right now!

7 Tips To Maintaining Good Credit

1. Pay Your Bills On Time
Being late on payments is the number one contributor to poor credit. Just pay on time, even if you’re paying the minimum balance, if it’s on time, it doesn’t hurt you. Collections have a major impact on your score, so avoid those altogether by paying your bills on time.

2. Get Current and Stay Current
If you have missed payments, bring them up to day asap. The longer you pay your bills on time after being late, the more your score will increase. Older credit problems contribute less to your overall score so delinquent payments won’t haunt you forever, if you get current now.

3. Keep Your Balances Low on Revolving Credit
This is simple, don’t max out your credit cards. You want to keep low balances on your cards. High outstanding debt can negatively affect your credit score.

4. Don’t Close Unused Credit Cards
Some people think that closing unused cards is a short term strategy to improving their credit, but it’s not a good one to adopt. In fact, owing the same amount but having fewer open accounts may lower your scores.

5. Don’t Open New Credit Cards You Don’t Need
We’ve also seen this strategy of opening cards to increase your available credit. However, this approach can backfire and actually lower your credit score because every time you apply for a card, it counts as a ‘hard inquiry’ which affects your score.

6. Re-establish Your Credit History
If you have had problems in the past, opening a few new accounts responsibly and paying them off on time will raise your credit score in the long term.

7. Have Credit Cards –
Have them, but manage them responsibly. Having credit cards and installment loans, as long as you’re making payments on time, will rebuild your credit score. Someone with no cards, and no loans, tends to be viewed as higher risk than someone who has responsibly managed credit cards.

Finally know that checking your credit score does not affect your credit score in a negative way. As long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers it counts as a ‘soft inquiry’ and doesn’t impact your score.

So don’t stay in the dark, check your score, and watch it increase. If you have any questions about how we can help you get back on the credit fast track, please email us or give us a call right now!

3 Actions You Can Take Right Now to Improve Your Credit Score

While credit repair does take time, there are a few actions you can take right now to improve your score.

1. Check Your Credit Report
Credit repair begins with your credit report. If you choose to have a free credit consultation with us, that’s where we’ll begin.

If you haven’t already, request a copy of your credit report (it’s free and doesn’t affect your score) and check it for errors. Make sure there are no late payments listed incorrectly and that the amounts owed are correct. If you find errors, that’s the time to dispute them, and we can help with that.

2. Set Up Payment Reminders
Timely payments are the backbone of good credit. They are absolutely one of the biggest contributors to your score. So, either set your payments up on autopay, or set a reminder for yourself to pay them. This will begin increasing your score immediately.

3. Reduce Your Debt
This is the hardest one, but when you pay down your debt, not only does it create peace of mind for you, but it also increases your score. Make a list of all your accounts and what you own, then set up a payment plan for yourself, paying down the highest interest cards first while maintaining timely payments for the others.

Taking these three steps will go a long way to improving your credit score and your peace of mind. If you have any questions about how to go about disputing claims and repairing credit thoroughly, contact us today. We’re here to help.

What Is Rent to Own?

A rent to own agreement gives the buyer control of a property, not full ownership, with the ‘option’ to purchase the property at the end of the contract period. Essentially it is a contract to buy a property with an extended closing date. That way you, as the buyer, have time to save a down payment, clear up any credit issues, and to line up financing.

Typically, you, the buyer, will put down an option consideration, like a deposit for a rental, to secure your place as the future owner of the home. Then you’ll make monthly payments, and at any time during the option period, you are authorized to complete the transaction of the home.

3 Questions to Ask Yourself Before Renting to Own

A lease option can work out beautifully for you as the buyer if you walk into the arrangement with your eyes open. We want everyone to succeed in their dream of homeownership, so here are three questions you need to ask yourself before you decide that renting to own is for you.

1. Will You Qualify for a Mortgage Later?

Renting to own essentially pushes the purchase date out 12-36 months so that you have the time to save for a down payment, raise your credit, and line up financing.

So if you can’t qualify now, what is your plan to qualify in a couple years? If you need to repair your credit, have you spoken with a credit reparations company to help you with that? Do you have a savings account set aside for your down payment? Are you committed to make the necessary changes so that you can own your home in a couple years? When you have a plan in place, you’re much more likely to succeed.

2. Have You Done Proper Property Value Research

You are as responsible as the seller for agreeing to the purchase price. Educate yourself about the area, and ask the seller for comparables so that you know the agreed upon price is a good one.

The option is usually 1-3% of the agreed price paid upfront, and it is forfeited if you choose not to buy, so knowing that you’re locked into a good deal, with honorable people, will make you all the more motivated to make sure that, at the end of the option period, you are ready, willing, and able to follow through with the purchase.

3. Read the Contract

We recommend that you have an attorney read through the contract with you. We recommend consulting an attorney or going through the contract line by line with the seller and having them explain it to you because knowing what you’re agreeing to is essential to a successful outcome.

Renting to own is a fantastic option for many future homeowners, and we want to see you succeed – it’s why we do what we do – but the bottom line is that, like with anything else, you need to educate yourself on what you’re getting into. When you are knowledgeable, there is no need to worry or fear.

If you’re ready to explore renting to own for yourself, contact us and we’ll answer all your questions.

Why Renting to Own is a Smart Choice Today

Like all great agreements, renting to own is beneficial to both the seller and the buyer.

But, let’s take a look at the advantages for you as the buyer.

In a rent to own agreement, you, as the buyer, freeze the price on the home for a year or two in advance of when you’ve agreed to close on the purchase. Since most markets appreciate, you’re locking in a good deal with built in equity.

During your time as a tenant buyer, you’re making payments that contribute toward the down payment of the sales price. It’s like a built in savings account that you cannot touch.

You also have the ability to test drive the house, the neighborhood, the school system, etc, prior to buying. If it turns out you were wrong about the whole thing, renting to own is a lot less expensive than purchasing the house outright and finding out you’re stuck with it later.

The extended closing date allows you the time to clear up any credit issues, save down payment money, and get pre-qualified for a loan. When you meet with a mortgage broker you’ll understand the amount of debt you can shoulder each month and still be approved for a loan. You’ll also discuss down payments and loan types, making you a well informed future borrower.

Essentially, renting to own gives you the time to get your finances in order while you’re living in your dream home.

If you’re ready to see how this could work for you, contact us and we’ll answer all your questions.

What to Expect as a Tenant Buyer

Being a tenant buyer is different than being a renter. In a rent to own agreement, since you’re both a tenant and the future owner of the home, you’re expected take greater pride in the property and have greater responsibilities towards it, and you’re expected to uphold your duties as a good tenant as well.

While usually the mortgage, taxes, and large repairs are covered by the seller during the option period, you as the buyer are responsible for the maintenance and upkeep of your new home, just as you would be if you bought it outright.

As it is with a bank mortgage, you will be expected to make payments on time; if you don’t there can be financial consequences, such as forfeiting that month’s percentage of the rent that goes towards the purchase of the home.

Being a tenant buyer is sort of like a bridge loan between renting and homeownership. You have the obligations of being a good tenant, but you’re also held to a higher standard that you would be held to as the owner of the property.

Renting to own gives you the future opportunity of homeownership while grooming you for the responsibilities that come with it.