TIP TRADE CLOSING COSTS FOR CASH in C#.NET

Scan PDF 417 in C#.NET TIP TRADE CLOSING COSTS FOR CASH

Remember, the closing costs are cash However, sometimes they can be nanced You offer the seller a good price (assuming the property appraises out) and get a big

loan, sometimes for the full value of the home (see 4) In return, the seller pays your cash closing costs Of course, some buyers who are very tough negotiators argue for it all good price, good terms, and seller pays closing costs! As I said, in a bad market where houses just aren t selling, sometimes desperate sellers will agree

Finally, it may be possible to wrap the closing costs into the mortgage Many lenders these days offer no cost mortgages You could opt for one A no cost mortgage is a misnomer There are costs It s just that they are hidden For example, I recently obtained such a mortgage At closing, the lender paid all of my NRCC (nonrecurring closing costs), which included title, escrow, and lender s fees (It did not, of course, pay my recurring costs such as prorations and hazard insurance) In exchange for doing this, the lender increased the interest rate, by 3/8 of a percent I had a choice I could pay the closing costs in cash Or I could pay a slightly higher interest rate (and slightly higher monthly payment) and have no NRCC Other lenders will roll the closing costs into the mortgage In other words, they will give you the same interest rate, but you ll end up owing more The closing costs will be added to the mortgage Either way, it s an effective method of reducing the amount of cash you have to come up with at closing Just remember that the downside is either a higher interest rate or a bigger loan, both of which usually translate into slightly higher monthly payments Closing costs are the bane of real estate transactions To avoid a bad surprise late in the deal, be sure to get good estimates of what they are For more information on closing costs and garbage fees check into, The Homebuyer s Closing Checklist, McGraw-Hill, 2003

A recent buzzword in real estate is ipping It essentially means selling a property as soon as you buy it In some cases, even before you buy it! I m sure that if you ve heard the term, you ve wondered if you, too, could do this The answer is, yes, you can But, and it s a BIG BUT, you have to nd a property that will work as a ipper What works as a ipper Simple any property that you can buy below market value If you can nd a property that s selling for less than it s worth (hopefully far less), you may be able to quickly ip it resell it to someone else And pocket the difference, usually in cash Thus you would have a choice buy it and move in yourself Or do a rapid resale

Don t think that because of the all the hype surrounding the big tax exclusion on homes, you won t have taxes on a ip You almost certainly will Remember, you must have lived in the home as your personal residence two out ve years to get the up to $250,000 per person exclusion You probably won t even get a capital gains tax rate because you won t have owned the property for at least a year Check with your accountant

That s the big question everyone wants answered If you re looking to buy a home to live in, my suggestion is forget about it You ve got enough to worry about in nding a good property On the other hand, if a ipper falls into your lap, don t let it go Take full advantage of it