For people considering buying a home for the first time, things can be a bit intimidating. You just have to keep in mind the benefits far outweigh the risks.
Various factors enter a borrower’s decision-making process when it becomes necessary to obtain an ARM (Adjustable Rate Mortgage) or a FRM (Fixed Rate Mortgage) to finance a home purchase or refinance an existing mortgage; and on some occasions, not all factors are known to the decision maker until s/he is in the presence of a bank or mortgage lender representative.
The reverse mortgage loan – also known as the HECM (Home Equity Conversation Mortgage) loan – is a FHA-insured mortgage available to homeowners who have attained the age of 62 and have enough equity in their homes to support the mortgage. The loan size is determined by two primary factors: Equity in the home and age of the home owner. While there are other factors taken into consideration based on how the loan proceeds are paid out (lump-sum, line of credit or monthly disbursements), the application process cannot begin in the absence of sufficient equity or old-enough owner(s).
Is it priced right? How long has it been on the market? Are there repairs that need to be done? All vital questions when it comes time to make your offer!
Todays real estate market is a complex maze of obstacles like contingencies, counteroffers and closing costs! With so much to think about during this time, sometimes the one questions that has the most impact is, “What should I offer for that house?”