Realty Rules and Questions

How old is the property?


When was the roof put on? How much longer will the roof last? Has the roof had any leaks or water damage throughout the house?

Are the neighbors noisy? Messy? Complaints against them?

Are there rodent or bug issues? Termites?

What is the financial situation of the house? Are there liens on the house?

How old is the air conditioning unit?

Do appliances stay with the home?

What plans were there for improvements and why?

Is the total PMI for the life of the PMI payment higher or lower than putting down twenty percent to forgo paying PMI?

Should I worry about getting a tax sheltered account or just save in a regular savings account when saving for a down payment and closing costs?

Did my siblings get pre-approved before going house shopping? Is that why Lincoln got contacted about buying the house because the seller’s already knew that he was pre-approved?

How exactly does interest paid on a mortgage lower your taxes or get you that ‘deductible’ that ‘they’ are always talking about?

Would ARMs be smarter for short term flips than FRMs?

Don’t go looking at homes or dreaming about homes till you’ve got savings for a down payment and closing costs.

Get pre-approved for a certain loan amount and then pick from that amount what you’ll actual borrow before you start to go looking for homes that you couldn’t actually afford if the lender finds things that would hamper you from securing lending.

Minimum of 6% return after paying mortgage every month

Rents should not exceed average weekly wages for the area

Never close on a mortgage on a Monday because prepaid loan interest may be held on Friday, Saturday, and Sunday.

Budget one percent of the purchase price of the home per year for maintenance. (Put into my model)

Getting pre-approved for a loan makes sellers look at you as a serious prospect for purchasing their property.

Underwriters determine how much of a risk you are when lenders give them a loan to look at or you to look at.

Example of equity sharing: Non-occupant investor pays the down payment and closing costs for a 25% stake in the home. You the occupant are responsible for everything else. That includes the mortgage, insurance, maintenance, and taxes. In return you get a 75% stake in the property. When the house is sold you each get the portion that you committed to in the beginning.

Tell your lender to shop around for different PMI provider because the numbers do vary.

Ask about prepayment penalty (Read Federal truth-in-lending disclosure and or promissory note-> same for negative amortization, but that is for arms.