Bernadette Calvario


Posted by Bernadette Calvario on 12/11/2019

Photo by Charles Thompson via Pixabay

A vast majority of homebuying  transactions rely on the buyer qualifying for a mortgage through a bank. After all, most people don't have enough cash lying around to buy a home outright. Nowadays, you have more options with different types of lenders and alternative financing companies where you can seek pre-approval online. But sometimes even these options don't work out, as pre-approval doesn't mean you're actually going to get the underwriter at the lender to approve you.

This could make you consider other alternative options like seller-financed mortgages.

What is a Seller-Financed Mortgage and How Does It Work?

As the name implies, you are financing your purchase with the person or company selling the home instead of taking out a mortgage with a lender. It's a private transaction where you, the buyer, make an arrangement with the seller to buy the property.

The seller draws up a promissory note that details the terms of the mortgage: interest rate, payment schedule, and the consequences if you default on the mortgage. In most cases, the seller then finances the sale for a short term, usually five years, with a balloon payment at the end of the period. However, the promissory note can be sold at any time to another financing company: sellers don't necessarily need to wait for the buyer to refinance with a more traditional lender.

Why Would I Consider a Seller-Financed Mortgage?

There are situations that make it difficult to work with a traditional lender, such as:

  • Self-employment / entrepreneurship
  • Foreign employment
  • Frequent job changes, or you haven't held the same job long enough
  • Poor or no credit
  • Tax-related issues
  • Debt-income ratio is too high

Sometimes, these situations can be incredibly frustrating when you know you'd be able to afford the mortgage payment or it's even far less than market rent where you want to buy! Alternative lenders may have options but sometimes even they don't want to lend to the self-employed or borrowers with high student loan or credit card debt.

This makes seller financing a more viable option when you can demonstrate your ability to make payments but are having trouble with the traditional channels.

What are the Key Pros and Cons of Seller-Financed Mortgages?

The down payment, interest rate, and other terms are more flexible although they may not necessarily be better than what you would get with a bank. There are also no points, PMI, or origination fees which can save money upfront and over the life of the loan.

Closing is also much faster, easier, and cheaper because there's no loan officer or underwriter involved. 

However, the seller may not always confirm they're able to finance the sale. If the seller has a mortgage, most of them have a due on sale clause that forbids them from selling the home without paying off their mortgage balance first. If the seller still does this without paying off the mortgage first, your new home could get foreclosed on.

The homebuying process can be a difficult undertaking, but we're here to help you find the best options so you can buy your dream home as quickly as possible. Reach out today to learn more!





Posted by Bernadette Calvario on 12/4/2019

The decision to buy a house may be one of the biggest choices that you make in your lifetime. As such, a potential home purchase should be fully evaluated to ensure you can achieve the best-possible results during the homebuying journey.

Furthermore, it may be beneficial to discuss your homebuying plans with family members, friends and other loved ones. There are many reasons why you may want to share your homebuying plans with loved ones, and these reasons include:

1. You can gain homebuying insights that you might struggle to obtain elsewhere.

Loved ones frequently are happy to share their homebuying insights with you. Thus, if you keep loved ones up to date about your homebuying plans, you may be able to gain comprehensive real estate insights that you won't find anywhere else.

Let's not forget about the past homebuying experiences of loved ones, either. If a loved one had a positive or negative homebuying experience, you may be able to learn lessons from this event that could help you navigate the homebuying journey.

2. You can look at the big picture.

Oftentimes, the temptation to rush through the homebuying process can be overwhelming, particularly for a first-time homebuyer. If you consult with loved ones, however, you can slow down and look at the big picture as you prepare to pursue your dream residence.

Loved ones are unafraid to be honest, especially when it comes to a life-changing decision like buying a house. Therefore, if you reach out to loved ones before you enter the housing market, you can assess your short- and long-term plans and map out your homebuying journey accordingly.

3. You can get the help you need to succeed.

No one should be forced to pursue a house on their own. Lucky for you, loved ones are available who can help you discover your ideal residence in no time at all.

Sharing your homebuying plans with loved ones may enable you to get plenty of support throughout the homebuying journey. Plus, if you ever have concerns or questions as you pursue your dream house, loved ones are ready to assist you in any way possible.

As you prepare to embark on a home search, you may want to consult with a real estate agent too. In fact, a real estate agent will ensure you can enjoy a seamless homebuying experience, regardless of where you want to live.

Typically, a real estate agent will set up home showings, keep you informed about new residences as they become available and help you submit offers on houses. This housing market professional also will negotiate with a seller's agent on your behalf, guaranteeing that you can get the best price on any home, at any time.

Ready to kick off a successful home search? Connect with loved ones – and a real estate agent – and you can get the assistance that you need to find your dream house.




Categories: Buying a Home   buying tips  


Posted by Bernadette Calvario on 11/27/2019

When pests come into your home, there’s no creepier feeling that you may have as a homeowner. You may turn to your house insurance for assistance if the problem gets really bad. Let’s say that termites have taken over your home and gotten into your walls or foundation. Maybe mice have gotten into the walls of your home, or a squirrel has caused some major issues in the attic. Whatever the problem is, you want to remedy it quickly. It might be an expensive fix no matter what, but it has to be remedied for you to continue to live comfortably in your home. 


The Truth About Homeowners Insurance


Unfortunately, homeowners insurance doesn't cover pest infestations. It doesn’t matter if the termites have literally eaten you out of house and home, the insurance companies consider pests to be an avoidable problem. Even though you may wonder how bugs can be considered “avoidable,” it’s simple. The insurance company believes that regular maintenance and checking of your property can help to prevent bug infestations. This is why it’s so important to take care of your property and not neglect it. 


Collateral Damage


There are a few exceptions to the rule. If your ceiling caves in and it was caused by some of the pest damage, your insurance may cover the cost of the repairs to the ceiling. They may not cover the materials that are needed to repair the ceiling itself. Insurance claims can be tricky, so you’ll need to ask a lot of questions if these problems do occur for you.


What Homeowners Insurance Covers


There’s nothing more frustrating than paying an insurance premium to find out that it doesn’t actually cover anything that you need at a certain point and time. As a general rule, homeowners insurance policies cover things that are considered accidental. This would include natural disasters like hurricanes, hailstorms, or high winds. If a tree falls on your home due to a windstorm, there was really no way of preventing that from happening. Your insurance would cover this. Damage that happens over an extended period, like that of a pest infestation or an aging home generally is not covered by house insurance. 


Separate Policies


Some insurance companies do offer separate policies to cover damage from certain types of pests like termites. There are several varieties of insects that cause damage to wood structures, so these policies may be more general stating that they provide “wood destroying insect” coverage. If you live in an area that’s prone to termites, there’s a few options available to you including something called “termite bonds.”


Your best course of action as a homeowner is prevention. Keep up with regular maintenance around your home and inspect your home regularly for any problems that you may find.





Posted by Bernadette Calvario on 11/6/2019

Securing a mortgage to buy a home is probably one of the best and most important milestones in a person's life. It comes with a lot of benefits and bragging rights.

But, even with all of the butterflies and feelings of being on cloud nine, the truth of the matter is that there are also costs in securing a mortgage — before and after the transaction.

The costs incurred before securing a mortgage.

The following are the costs incurred before you can secure a mortgage:

1. Before you obtain a mortgage, you need to pay for appraisal fees. An appraisal fee is a professional fee that you pay to get an estimated value of the house you want to buy. This one is the first step that you need to fulfill before securing a mortgage. It allows creditors to determine your loan-to-value ratio. A third party does it. The price ranges between $300 and $1,000.

2. You also need to pay for an inspection fee. The inspection fee is the amount that you spend for the potential house to get checked for leaks, pests, problems, and everything that may make or break your decision to purchase. It depends on the creditor if they require this, but it costs roughly around $300 to $500 for a home inspection service.

3. You also have to pay for your credit report fee. You may think that this should be free of charge, but it is not. More often than not, potential borrowers need to obtain a copy from each of the credit bureaus even before they apply for a loan. Some professionals would say that this is the first cost of securing a mortgage because if you have a bad credit rating, you might as well not push through with the loan. This aspect is all debatable. It will cost the borrower around $30 to $50 per report. If you are lucky, you can get this for free because some lenders cover the cost themselves as part of their credit check.

These three costs get incurred mostly before approval of the loan, and there are different costs once you get the approvals and purchase the house. The critical thing is for you to be a hundred percent committed to the purchase. Being fickle minded does not pay off in the real estate market. 

If you are still potentially on the fence with your mortgage needs, ask a real estate professional to help you decide on what mortgage options might work best for you.




Categories: Mortgage   homebuyers   cost  


Posted by Bernadette Calvario on 11/1/2019

This Condo in Hopkinton, MA recently sold for $368,000. This Townhouse style home was sold by Bernadette Calvario - Coldwell Banker Residential Brokerage.


4 Lilac Court, Hopkinton, MA 01748

Condo

$364,900
Price
$368,000
Sale Price

7
Rooms
2
Beds
2
Baths
Easy living at Indian Brook with lush green grounds. Bright airy immaculate end unit with many updates is nestled in on a private location of the community. First floor offers open concept living with kitchen updates, granite counters, under cabinet lighting, marble back-splash, appliances & tiled floors. The Dining area is open to the LR w/ bump out bay window & hardwood floors. Cathedral LR has hardwood floors, wood burning fireplace, overhead lighting, open to 2nd story loft & large private side deck. First floor offers large updated full bath & bedroom w/walk in closet. Airy, open loft area on second floor provides many options for flexible use space. The second floor cathedral bedroom includes double closets, & full updated bath. Spacious updated LL w/many windows, offers a walk-in cedar closet, separate laundry room & huge storage area. Move-in ready, A+ Hopkinton Schools, walking distance to restaurants & more!

Similar Properties





Tags: Hopkinton   Real Estate   Condo   01748  
Categories: Sold Homes  




Tags