Armstrong Real estate from time to time answer questions covering the Denver Colorado housing market, regarding best time to buy, mortgage loans, and apartment rental guidelines
The question from the reader is that a reader is in need of a place in Denver but the rent amount is very high. The amount calculated is same as mortgage and the reader has no best credit. The reader want to provide the offer to the owner of the house that to rent the home with option to buy and ready to pay the property tax as the incentive. The reader is asking the opinion for the suggestion.
Ian of Armstrong Real Estate in Denver suggests that search for another house where you can find low amount of rent. If you are interested in the same house then it is better to decide in advance how to handle every possible contingency.
It is better to have a written agreement with everything in writing. The items you must include in writing such as what happens if the rent is not paid, who will pay for the maintenance items beyond the everyday wear and tear such as repairing or replacement of furnace or air conditioning. What will the percentage of cost to be spilt? Who will pay the property tax? How to get deductions from federal income tax return?
One more important consideration is required to be looked upon is the determination of selling price.
Will you leave the selling price up to the appraisal at the time of sale or set in stone with some formula now only?
How to decide the statement if one thinks the price is too low or too high? For how long the option of purchase last? Give the definite time period. It you do not exercise your option with any deadline; the agreement will become null and void. There are number of questions that need proper answers else a legal entanglement is sure to be the result.
You can turn for legal professional help to putting such documents or can contact to the company that renders services of peer-to-peer agreements.
The reader asks the next question at the time of buying mortgages from bank. The question is how much does it pay?
And why mortgage payments go to the bank?
Though you are the owner of loan and the guarantor of the security in which the loan is pooled, it is the bank that acts as a servicer. The bank is the primary interface between the borrower and lender.
Lots of things are important in determining the worth of mortgage property in Denver. The service in this example a bank is paid a fee for to administer the loan. The fee comes from the borrower’s payment before the principal amount and interest is forwarded to investor. A quarter of one percent interest rate is charged by the servicer.
So how much the investor pays for the loan minus the servicing charges versus guaranteeing mortgage backed security is depend on the multitude of factors and also varies from one company to another.
