It’s hard to resist the ‘sell your house’ ads or ‘refinance house’ in your mail and also the frustration of mortgage repayments. Keeping up with monthly mortgage repayments can be a tough task. Is getting a new loan to cut down the expenses your next thought? You might want to reconsider your options.

The pandemic had a hard hit on everyone, with people losing jobs and it being tough to manage expenses. Refinancing your mortgage can shorten the life of your current mortgage and also provide lower interest rates. It can significantly lessen your monthly mortgage payment although, selling your home makes more sense if you’re unable to manage the monthly installments. If you are confused between selling your house or refinancing? Choose what is best for you by reading the blog below.

Possible Reasons To Refinance House

Refinancing is a process where you replace your existing mortgage with a new loan. People usually refinance their mortgages to get a new ones for lower interest rates and reduce monthly payments. There are many reasons for homeowners to refinance some of them are listed below.

To Lengthen Or Shorten The Mortgage Term

Refinancing can help you lengthen the mortgage term which allows you extra time to pay off your loan. It also lowers the amount you are entitled to pay every month. Refinancing also helps in shortening the mortgage term. When you increase your monthly payment you repay faster and save the running interest amount. This way you own your house faster and save thousands on interest.

To Change The Structure Of Your Loan

If you have an Adjustable Rate Mortgage (ARM) and you’re past the fixed period, your monthly interest rates may vary significantly. You can refinance the ARM to a fixed-rate loan which will make your monthly repayment and expenses predictable. Changing the structure of your loan gives you control of your monthly expenses.

To Change The Type Of Loan

Homeowners refinance their government-backed loans to a conventional loan as they build equity. If you pay 10% of the down payment for a Federal Housing Administration (FHA) loan, you are entitled to pay the mortgage insurance premium. Although, when you build a 20% equity on the conventional loan, you can get away with private mortgage insurance.

To Cash Out Your Equity

In cash-out refinance you replace your old mortgage with a new one with a higher balance. The difference between the old and new mortgage is paid in cash to the homeowner at many more favorable terms. As these mortgages have higher principal and low-interest rates they can be used for almost anything like paying off debt or getting new purchases. 

Look For Available Options

Consider refinancing as an option but want to sell your house in the coming future. So why not look at some options? Before jumping to conclusions.

Loan Modification

A loan modification is less expensive than refinancing. When you choose to modify the loan your lender agrees to make changes on mutual terms. It consists of changing your monthly repayment amount, interest rates, and your term. In rare cases, the lender might also reduce a chunk of the principal from the amount. So, if you are facing financial difficulties this might be an ideal option for you. 

No-Closing Cost Refinance

While applying for a refinance house, lenders usually offer you a no-closing-cost refinance. By picking this option you merge your closing costs in the principal of the loan. In a no-closing-cost refinance you pay a higher interest rate and pay nothing while closing.

It may sound enticing although, you’d end up paying closing costs on the term of your loan anyway.  However, if you are selling a house early you might only pay a few dollars. A no-closing-cost refinance may be beneficial when you cash out your equity. It provides financial aid if you are selling your distressed home.

Choose To Hold Off On Your Refinance

It is always better to skip a refinance house if you are not planning to stay in it for long. It makes sense to hold off on your refinance when circumstances aren’t much favorable. Calculate the time you’d be living in the house to earn the money back from closing.

How does Refinancing work for your Home?

Refinancing your house involves many of the same steps as buying a home, but the process is often less complicated. While it can be difficult to predict exactly how long your refinance will take, most refinances are completed within 30 to 45 days. During this time, you’ll work with your lender to gather necessary documents and complete any required appraisals or inspections. Ultimately, refinancing can be a great way to lower your monthly mortgage payments or access equity in your home.

Let’s take a look at the process :

Application

Before applying for a refinance, it’s important to research and compare the different types of options available to find the best fit for your financial situation. Once you’ve decided on a lender, they will ask for the same information you provided when you first bought your home, including your income, assets, debt, and credit score. 

• You may need to provide documents such as your two most recent pay stubs, W-2s, and bank statements. 
• If you’re married and live in a community property state, your spouse’s documents may also be required. 
• Self-employed individuals may need to provide additional income documentation, and having your tax returns from the past couple of years on hand is a good idea. 

Keep in mind that you don’t have to refinance with your current lender and it’s important to shop around and compare rates and client satisfaction scores before making a decision.

Deciding Interest Rate 

When refinancing your loan, you may have the option to lock in your interest rate or float it. If you choose to lock in your rate, it means that the interest rate will remain the same until the loan closes. 

On the other hand, if you choose to float your rate, it means that the interest rate may fluctuate until the loan closes. It’s important to consider your financial goals and the current market conditions before making a decision.

Lock-In your Refinance Rates 

When refinancing your mortgage, it’s important to consider locking in your interest rates to avoid any potential market fluctuations. The length of the rate lock period can vary depending on your location, loan type, and lender, typically lasting anywhere from 15 to 60 days. 

Opting for a shorter lock period may result in a better rate, as the lender doesn’t have to hedge against market changes for as long. However, if your loan doesn’t close before the lock period ends, you may need to extend the rate lock, which could come with additional costs.

Float Your Rate before Locking In

When applying for a loan, you may have the option to float your rate instead of locking it in. This means that you don’t commit to a specific rate and instead take the risk of the rate either going up or down. 

While this may result in a lower rate, it also puts you at risk of getting a higher mortgage rate. However, some lenders may offer a float-down option that allows you to take advantage of lower rates if they become available. 

Ultimately, if you’re satisfied with the current rates, it’s generally a good idea to lock in your rate to avoid any potential rate increases.

Mortgage Underwriting

When you apply for a refinance loan, the mortgage underwriting process begins. This involves your lender verifying all of your financial information to ensure its accuracy. 

Additionally, the lender will verify details about the property, including its value, which is determined through an appraisal. The appraisal is a crucial step because it can impact the options available to you. 

For example, if you want to take cash out, the value of your home will determine how much money you can receive. If you’re trying to lower your mortgage payment, the value could impact your eligibility for certain loan options or whether you can get rid of private mortgage insurance.

Home Appraisal

When refinancing your home, it’s important to get an appraisal to determine its current value. Your lender will typically order the appraisal, which involves an appraiser visiting your property and providing an estimate of its worth. 

To ensure a favorable appraisal, it’s recommended that you tidy up your home and make any necessary repairs beforehand. Additionally, creating a list of any upgrades you’ve made to the property since purchasing it can help demonstrate its value.

After a home appraisal, your next steps will depend on the outcome. 

• If the appraisal matches or exceeds the loan amount you’re seeking for a refinance, the underwriting process is complete and your lender will provide details for closing. 
• However, if the appraisal comes back lower than expected, the loan-to-value ratio may be too high for your lender’s requirements. In this case, you can choose to decrease the amount of money you want to refinance, cancel your application, or opt for a cash-in refinance by bringing additional funds to the table to meet the terms of your current deal.

Closing On Your New Loan

After the underwriting and home appraisal are complete, the final step is to close your loan. 

• A few days before closing, your lender will provide you with a Closing Disclosure document that outlines all the final numbers for your loan. 
• The closing process for a refinance is typically faster than for a home purchase and is attended by the people on the loan and title, as well as a representative from the lender or title company. 
• During the closing, you’ll review the loan details and sign the necessary documents. Any closing costs that aren’t included in your loan will need to be paid at this time. 
• If your lender owes you money, such as in a cash-out refinance, you’ll receive the funds after closing. 

Once you’ve closed on your loan, you have a 3-day grace period before you’re locked in. If you need to cancel your refinance, you can exercise your right of rescission during this time.

Frequently asked questions about (FAQs) Refinancing

What is the cost of refinancing?

The cost of refinancing your home loan can vary depending on several factors, such as the lender you choose and the value of your property. Typically, you can expect to pay between 2% to 6% of the total loan amount. 

However, the good news is that you may not have to pay these costs upfront, especially since the adverse market refinance fee has been eliminated. Some lenders offer a no-closing-cost refinance option, which means you won’t have to pay any fees at closing. 

However, keep in mind that you may end up paying a higher interest rate over the life of the loan to cover these costs.

When should I refinance my mortgage?

Deciding when to refinance your mortgage requires careful consideration of various factors. One important factor is the current market trends, including interest rates. Your financial situation, particularly your credit score, is also crucial to consider. 

To determine if refinancing is worth it, use a mortgage refinance calculator to calculate your break-even point after accounting for refinancing expenses. It’s also important to understand how refinancing differs from other mortgage options, such as loan modification and second mortgages.

Is a second mortgage the same thing as refinancing?

It’s important to understand the difference between a second mortgage and refinancing. Refinancing involves replacing your existing mortgage with a new one, resulting in one monthly payment. 

On the other hand, a second mortgage, such as a home equity loan or HELOC, requires an additional monthly payment on top of your original mortgage. While second mortgages may have lower closing costs, they often come with higher interest rates compared to refinancing. 

It’s important to carefully consider your options and choose the financing option that works best for your individual needs.

Can I reduce my monthly mortgage payment without refinancing?

If you’re looking to lower your monthly mortgage payment without going through the process of refinancing, a mortgage recast may be a good option for you. This involves making a large lump-sum payment towards your principal balance, which allows your lender to recalculate your monthly payments based on the new, lower balance. This can be a straightforward way to reduce your monthly payments and make your mortgage more manageable.

How soon after closing can I refinance?

The timing for refinancing after closing on a mortgage varies depending on the type of loan and the investor in your mortgage. Some lenders may allow you to refinance as soon as 30 days after closing, while others may require you to wait 6 months or even a year. 

The frequency of refinancing also depends on factors such as the amount of equity you have built up and your current mortgage balance. It’s important to check with your lender to determine the specific guidelines for refinancing your mortgage.

Will refinancing my home affect my credit?

Refinancing your home can have a temporary impact on your credit score. This is because the lender will need to run a credit check and perform a hard inquiry on your credit history. 

However, as long as you continue to make timely payments on your debts and avoid opening new credit accounts, your credit score should recover within a few months. So, while there may be a short-term dip in your credit score, refinancing your home should not have a significant long-term impact on your credit.

Sell Your Home For Cash  

Refinancing your home may be flexible but in some cases, it may not be an ideal option.  If you are selling your distressed home, refinancing may not be worth it. Selling your home to a cash buyer is a better deal you can sell remodeled houses to Elite Properties New York and avoid the hassles of refinancing. Elite Properties is a ‘we buy houses for cash company’, which means we buy houses in any condition. You can sell your house fast for cash in NY and close the deal in less than a week. We buy property for cash and also pay the closing costs, which allows you to move faster with your plan. Call us today at 718-977-5462 to know more.

Selling House quickly is always tough no matter how you do it, it will be a mentally and physically draining process. To achieve profit try selling your house in spring or summer when people can opt for walkthroughs. Although, if this is not your plan you might want to read about these obstacles before selling your home in winter. 

Accurate Pricing Can Be Difficult 

Setting a realistic price is a task for homeowners as they have a sentimental value attached to them. In winter, people celebrate holidays at home that add to their emotions and make them set high prices for their property. This can be a bad thing for sellers as it will only keep potential buyers at bay. A wrong or unrealistic price will turn buyers away making your property sit for a long time in the market. It is an unsaid rule when a house sits for a long period people become cautious and avoid buying such houses.   

In this digital world, everything is achieved with just a click, similarly to listings as well. People can easily add a filter and eliminate older listings from the website, which won’t help you sell properties online.  Setting a wrong or unrealistic price come with setbacks, doing a proper in-depth analysis will help in enticing more buyers.

Missing On Deadlines 

There are many facets while selling your house in the winter and one of them is deadlines. Most of the sellers who list their homes in winter are first-timers. When Federal Regulations and State and Local Laws are in the picture in a home sale it lengthens the process. The number of documents involved in a home selling process can be daunting which pushes deadlines further. Another possibility that pushes deadlines is inspections. There are multiple inspections involved like pest inspections, radon tests, etc. 

Agents Come With Added Costs   

There are multiple fees involved when you hire a real estate agent to evaluate the prices of your house while selling house quickly. Furthermore, there are commissions and other added fees when an agent is in the scenario. Most homeowners agree to sign a contract with all the fees involved only to avoid the hassles of paperwork. Although, in most cases, the agents become the biggest obstacle instead of selling their houses in winter.     

Walkthroughs Can Be Stressful 

Constant disturbances can hamper your personal life. We know welcoming people into your house every weekend can be stressful, and you always need to keep your house perfect and tidy. It can pile up even more during the holiday season as families come together for celebrations. Besides, people living in the north have it more difficult due to the snow-capped exteriors. It is almost impossible to carry out a walkthrough in such a tough climate.   

Prepping Your House For Buyers

Spending extra money on your house for improvements while selling house quickly is the last thing you would ever want to do. When you sell your house fast for cash in NY it becomes important to stage your home. In winter you might have to work harder to make your house appear more enticing and appealing to potential buyers. A well-staged house would sell faster than a house with no staging or improvements at all. Make sure you do a proper analysis before hiring a person to do improvements at your place. 

What’s The Solution To Sell Property in Winter?

The obstacles stated above can cause a delay in the traditional listing, which may take up to months to close a deal. You can always consider selling your house to real estate investors like Elite Properties NYC.

Why sell your house to Elite Properties?

• Selling your property to us will help in faster closings
• It avoids the hassles of hiring a real estate agent and paperwork
• You avoid paying them upfront costs
• Sell your house in just 3 days

When you have an easy option to sell remodeled houses then why go anywhere else? You can sell the property for cash in NY to Elite Properties, we buy houses any condition. Sell your distressed house to us and get cash in return, call us at 718-865-3523 today to know more.

Listing your home and waiting for it to sell is a tedious task. Home selling can take up to a few weeks to a year depending on the condition of your house. If a house sits on the market for more than a month it loses its value. People consider it a negative sign thinking the house may have certain defects making it unsellable. If you think your house has been sitting on the market for a long time you may try these methods to sell your house fast.

Things you can do to sell your house fast…

1. Set A Realistic Price

Setting a realistic price for a house is a vital step toward faster home selling. High pricing is the most common mistake made by home sellers. Setting a realistic price for your home is a big challenge. It is recommended to take professional help before fixing the price in alignment with the fair market value of the house. 

In such circumstances, you may consider slashing the price of your house. It is advised to wait for three weeks to a month before dropping the price of your house. The National Association of Realtors state around 40% of home sellers reduce the price of their properties at least once. You must be thinking what is the exact amount to attract buyers? There is nothing like a precise amount but you may consider reducing a significant amount from the total value. Although, deducting some thousand dollars may help gain attention to your house.

2. Lack Of Staging

For a buyer to buy any product or service, it should be appealing to the eyes. Similarly, for houses, it is an essential aspect to stage them properly to make them appealing. A staged home will sell fast for cash than any other house. While listing your home in the market make sure you stage it nicely to entice potential buyers. You can take some ideas from Pinterest or hire a professional stager to make the work easy.

3. Consider Making Improvements

Curb appeal will make faster sales. When you do improvements in your house just before listing it gives a good impression on buyers. Enhancing the interiors of the house requires staging, similarly, the exteriors need enticing curb appeal. Having mold-infected exteriors, untrimmed lawns, leaking pipes, etc. may result in delayed sales. The fix here is to carry out an improvement session to address the basic problem areas of your house.

4. Bad Quality House Pictures May Delay Sales

Nowadays buyers prefer viewing properties online instead of stepping out for house hunting. The National Association of Realtors state that around 87% of buyers find online listing useful. If you have listed your home online and it still isn’t selling, the reason might be poor pictures. Make sure your pictures are not blurry as you’ll be uploading them online for potential buyers. You can click pictures yourself or hire a professional photographer. 

5. Avoid Selling Your House In Winter

Winter is the slower time of the year when sales are typically low.  It is the holiday season when people move out of the cities for social engagements or to go on holiday to warm places. There are chances that your house may take longer to sell or you may have to sell for a lower price. It is advisable to wait for winter to pass on instead of selling during this period. Although selling your house in winter is not an ideal situation; you can still sell it to buyers who are on a house hunt.

6. Keep Renting As An Option

If you’re having a hard time selling your house you can try renting. When you rent your house it promises monthly cash which is a good option when you are running out of savings. If you have moved out already and have the pressure of paying two mortgages then renting can be an ideal option. It will allow an ample amount of time and aid in saving money in the future.

7. Sell To A Cash Buying Company

If you are running out of time and are looking for a solution you can contact companies that give cash for homes. Elite Properties is one such company that buys remodeled houses New York. We close a deal in as less than 7 days, which makes you move with your plans at a faster pace. Selling your house to a cash buying company promises faster sales with no hassles paperwork.

Do you wish to sell properties online but don’t know whom to approach? Well, we are here to suggest and help you pick the right person. Many homeowners contact real estate brokers to sell their homes so that they can make more money. You can also contact Real Estate Investors to sell your house. But, it is advisable to consider both before choosing one to determine which one suits you the most.

You might think what is the difference between both of them anyway? The difference is negligible as they both generate revenue from the same field. Scroll down to know the difference between a real estate agent and a real estate investor.

License Plays an Important Role

To make valid transactions it is important for a real estate agent to have a license. An agent requires a license of his/her particular state of service. An agent should have a license to act as a representative for other people to buy or sell homes. On the other hand, an investor does not require a license to run the business.  

Commission Has Different Aspects

The commission involves agents and investors, while the methods of extraction are different.

What is Real Estate Agent?

Real estate agents earn a commission on every sale carried out by them. The amount can be anywhere from 1-5% of the total share inclusive of the other costs. Agents rely on the sale price of a property to determine how much commission they receive. The higher the price, the higher the commission.

Maintaining The Integrity of the Brand Has Diverse Ways

Real estate agents make sure to market their brand name to attract clients. Networking using websites and business cards can help Agents to expand their network. Real estate investors on the other hand do not spend a lot on marketing. They use signboards with ‘we buy ugly house’ or ‘we buy house for cash’ written on them. These signs are placed in cities or nearby yards, which can be easily spotted from a distance. Retaining the integrity of the brand may have different modes, but the motto stays the same.

Involvement of the Brokers

Real estate agents have to work under brokers. Agents work for brokers after completing their training and receiving a state-issued license. A real estate investor does not have the need to work under a licensed broker isn’t mandatory.

How Elite Properties Is Better Than Any Other Agent

Agents:  Real estate agents sell home with the help of MLS also known as Multiple Listing Service

Elite Properties (Investor): We buy houses individually without any listings

Agents:  You’ll have to pay closing as well as additional costs to cover a sale.

Elite Properties (Investor): We cover everything inclusive of closing costs and legal fees to make your home sale process easy

Agents: A traditional home sale through an agent will take approximately 30-60 days to close a deal

Elite Properties (Investor): We close a deal in as less as 7 days

Conclusion

Picking the right person to sell your house is vital. One has to research their options before proceeding with a home sale. Elite Properties is a cash buying company, we sell your house in 3 days in any condition and at any location. Furthermore, we will also pay your legal fees and closing costs. Call us at 718-977-5462 or visit our website https://www.elitepropertiesny.com/ to know more about the home selling process.

To increase a property’s value there are so many enhancement options available in the market. Although, are they sustainable? Will they add value to the house? Asking such questions will help you choose better options while you do renovations. Instead of paying huge bills you can invest in smart appliances and save later. Switching from grid to solar energy. Getting your home LEED certified. Investing in a rainwater harvesting system are some eco-friendly enhancements to add value to your home’s worth. Taking these miniscule steps will encourage you to live a sustainable life.

Consider Smart Windows for Saving Big On Bills

The weather plays a vital role in your monthly bill savings. On hot days you would need an AC whereas, cold days will require heating systems. The question here is how you can take an eco-friendly step. The answer is installing smart windows. Smart windows come with a darker tint and have an opaque facade. The dark cast helps in regulating the energy intake while the opaque facade helps with maintaining privacy. These windows cut your power consumption by 20% as they are good for retaining temperatures.

Invest In Solar Panels for Good Returns

Solar panels may come with upfront costs, but they will aid in saving energy bills. Installing solar panels will assure great ROI. Although the prices are on the higher end it may lessen the rebate reliant on your state/city. It is also essential to make proper calculations before shifting from the grid to solar energy. If you live in warmer areas, changing entirely to solar energy can be a wise option.

LEED Certification Is Essential

A LEED certification works as a verification platform for a house/locality’s green traits. The analysis features consist of the construction material, electrical appliances, etc. The certification is mostly pertinent to new commercial buildings. Although, the certification may be applicable to the residential sectors soon. Also, if you need cash for homes, it is time to get your home certified.

Switch To High Energy Efficient Machines

Switching to high-efficiency appliances comes with profit. While selling the remodeled houses in New York, energy-efficient appliances act as a bonus for potential home buyers. High-efficiency appliances consume less energy, but it is essential to compare the energy performance before installing them. Switching your old HVAC system with energy star rating appliances cuts the energy consumption by 40%. You may also consider installing a solar water heater and saving a few thousand dollars.

Use Green Seal Certified Materials and Recycled Wood For Renovations

If you are thinking about renovation, you can select from green seal-certified materials. The green seal-certified material is non-toxic and eco-friendly. Products like carpets, industrial glue, wood stains, etc. are prepared with VOCs, which are chemical-free. To increase your home’s value you can also switch to using recycled wood for furnishings. Reusing and recycling is the need of the hour, and using reclaimed wood can be the best choice.

Rainwater Harvesting Adds Value to Your Home

Rainwater harvesting is a natural option when it comes to saving water. It indeed comes up with an upfront price, but the profits may prevail over the costs in the future. Mounting a rainwater gathering system can be favorable for you and can save nearly $200 yearly. This way, you are taking small eco-friendly steps towards sustainable living, which adds value to your home.

Bottom Line

Going eco-friendly is not just a step but a routine in itself. Adapting the above-mentioned changes will entice more buyers and help you sell your home fast. While doing these renovations makes your home green or sustainable and increases your home’s worth. Furthermore, you can contact Elite Properties to sell houses for cash on 7189775462. We buy houses for cash and offer you fast closings and an easy home selling process.

While being an owner, it is evident for you to pick a person, which satiates all your requirements as a tenant. If you are looking for a tenant, this blog will provide the process of screening them. It is essential to cover 6 important points to consider while screening potential tenants and avoid problems later. There are many aspects involved while you screen a tenant like a background check, financial check, etc. Keeping a prior check on candidates will elude hassles and help you build a better-longer relationship with your tenant. 

What Is Tenant Screening?

In simple terms, tenant screening is a process to evaluate potential tenants. The purpose of the process is to assess potential tenants and if they can fulfill the rental agreement terms.

Mandatory Points to Consider While Screening Your Tenant –

There are a bunch of mandatory points you should consider checking with your tenant before letting them in.

Confirming Income Source

Verifying the income will help you reassure that the tenant can afford the rent. It will also help you know if the tenant has a stable job. There is a mandatory income guideline that you can follow to check eligibility of the tenant. You can employ the three-time rule where if a tenant’s income is three times the rent. If the tenant satisfies the requisites then he/she stands to eligible in specific criteria.

Checking Previous Addresses and Employment References

If the potential candidate was a renter, then you must verify their previous addresses and also talk to the landlords. You would want to know their behavior, if they paid rent timely, etc. Having a conversation with the former landlord/s will help you understand better.

As verifying the income is important, confirming its source is essential too. Checking the potential candidate’s designation, salary, his/her tenure in the company will help you understand the stability of the job.

Detailed Credit History

A detailed credit history of the prospect allows you to assess the applicant’s debts (if any). If you want a background check for a prospect, you must abide by the Fair Credit Reporting Act (FCRA). Landlords must have accreditation from Credit Reporting Agencies (CRAs). This doesn’t only apply to landlords or even companies have to comply with CRA to ensure that the inquirer is genuine.  The intent behind the process is to be assured that the inquirer is genuine and the extracted credit data/reports are in safe hands.

Past Evictions

In addition to the rest, you can also check with the renter’s former landlords and local housing court records to see if the renter has any past evictions. If there were any evictions additionally, check for the reasons of damage if they were caused formerly by the renter.

A Criminal History Check

While screening prospects checking both monetary and criminal backgrounds is essential. We know what aspects require a financial check, but what about criminal background checks? You can check with the state and federal criminal records to ensure if the potential candidate has a criminal history. Always check for sex offender registries and terrorist watchlist as they are a part criminal offense. Check for correct spellings of the renter while enquiring as you wouldn’t want to be the cause of any upcoming problems.

Interview Tenant

Once you have all the documents in place, you can proceed with the next process, which is interviewing the tenant. While interviewing, asking questions like the reason for moving, how many people will be living with you? Do you have any pets? etc. If you find anything dodgy while interviewing, you can interrogate further and be assured there are no stones left unturned.

Questions You Must Avoid Asking –

It is also important to maintain decency while you interrogate the tenant, make sure you in no way hurt their sentiment by asking personal questions. The Federal Fair Housing Laws stand to protect the tenant’s rights. Interrogating prospects based on their gender, race, national origin, sexual orientation, etc. is inappropriate.

Bottom Line

Tenant screening is a tiring process, but it also promises good tenants. It is essential to do a proper background and financial screening, to avoid problems later. Additionally, if you want to Sell Your House Fast For Cash In NY, you can call us on this number 718-977-5462 for more details. Elite Properties is a ‘we buy houses for cash company’, which means we buy house as-is and pay the yields in hard cash.

There is always a debate amongst people about what is better. Buying a House Cash vs Mortgage? In this blog, we will try to clear the picture and try to help you in the home selling process.  A lot of finance experts say buying a house in cash can avoid drowning in debt. Although, the other half believes in getting a mortgage and repaying it over the 15/30-year mortgage. Every method of purchasing an asset has its pros and cons. We will share an overview of each method and how it varies in each situation.

Why Must One Buy House in Cash?

In simple terms buying your home in cash allows you to avoid foreclosures and you are free of debt. You have complete ownership of your assets as you buy the property in full cash. Although every scenario has its pros and cons, scroll down below to know more.

Pros Of Buying a House in Cash

• Free Monthly Cash Flow

One of the big reasons to buy a house in cash is free cash flow. If you buy a house in cash you aren’t entitled to pay monthly mortgage installments. It allows your income source in multiple bifurcations as per your convenience and needs. Although, you’d still be paying the homeowners association fees, property taxes and maintenance costs, homeowners insurance, etc. You will pay these extra costs even if you don’t get your house on mortgage. When you buy a house on a mortgage, you pay a big chunk to the lender whereas in this case, you avoid it entirely.

• Save A Lot on the Interest

If you purchase a house in cash, you can save a lot on the interest of the mortgage. When you take out a mortgage, the interest rates are bound to escalate over the tenure. Example: A mortgage of $170,000 having a 4.375% interest rate costs you around $135,000 as interest expense for 30 years. Furthermore, mortgage debts are one of the cheapest in the USA if calculated on the APR (Annual Percentage Rate) basis. So, buying your home in cash might save a big chunk on the repayment.

• You Are a Preferred Prospect

Sellers always prefer cash buyers as the deal closes faster. When a seller sells the property to a cash buyer, it only requires the buyer’s due diligence and mutual closing date. Whereas, when a buyer applies for a mortgage, he/she has to work on a lot of things. Things like the verification process, legal documentation, the underwriting process, etc. The real estate market is big, but sellers usually pick cash offers as they are enticing and close faster. Also, a cash offer allows negotiation in closing costs as you trade in hard cash. If you are a cash buyer, you’ll be the preferred prospect instead of the one with a mortgage.

• Faster Closings and Lower Closing Costs

When you buy a house in cash, you avoid paying the associated loan fees. Also, costs like the originating fee, mortgage insurance premium, credit card report fee, etc. A cash offer may help you get away with legal processes and verification. Remember, an all-cash offer is less than the traditional bidding price. Getting paid in hard cash eventually is better than the orthodox mortgage bid, which is time-consuming. Additionally, as stated above, you close a deal faster with flexible closing costs.

Cons Of Buying a House in Cash

• Tying a Lot of Money into One Asset

If your property is worth $150,000 and you are a cash buyer, it can be quite risky. If you invest a large amount of your savings in one asset, you are tying up a lot of money. Such transactions do not show a positive outcome on your credit score.

• Low Liquidity

The real estate market or a house is an illiquid asset, which means it is difficult to sell it fast. Selling a home is time-consuming and a daunting task. Assets like bonds and stocks which have high liquidity are easy and quick to resell whereas a house is not. Therefore, putting a lump sum amount in one asset is never ideal as it slumps access to the liquid assets.

• Missing Out on Tax Benefits

The itemized taxes may help in putting the money back in your kitty. You can deduct a lot of amounts on mortgage rates through itemized taxes. Itemized tax deductions levy on multiple assets; it is advisable to check the taxes before purchasing. If you are using cash as your primary payment source then you are definitely losing some good tax benefits.

• You Are Left with No Savings

Buying a house in cash blocks your savings, and you have nothing, which means no emergency funds. It is always advisable to keep petty cash handy during an unexpected crisis.

Why You Must Consider Getting a Mortgage?

Buying a house on a mortgage allows you to maintain your savings and caters to the funding. Many people do not have enough savings to buy a house in cash. Prospects get a mortgage and keep building the equity over the tenure of repayment.

Pros Of Buying a House on a Mortgage.

• Flexibility Savings

When you get a mortgage, you have the flexibility to put your savings into other investments, which promise good returns. You can pick from innumerable liquid investments and grow your wealth and manage your monthly payments as well. Buying a house on a mortgage is always a better option as you have more flexibility to manage the money.

• Low Mortgage Rates

Comprehending the pandemic and the current state of the market, it’s a better option to opt for a mortgage. The mortgage rates are low, and the inventory has houses sitting for potential buyers. Hence the above makes it an ideal situation for purchasing a home.

• Improve Your Credit Score

If your credit report shows timely repayments, you will ultimately have a good credit score. Unlike buying a house with cash, it is essential to show the diversity of debts for a better credit profile. Credit reporting agencies prefer timely repayments of debts including home loans. It improvises the borrower’s profile allowing them to get a faster mortgage and boosting their credit score.

• Advantages Of the Tax Deduction

Mortgage debts are tax-deductible, which means more benefits for the person getting a mortgage. Married couples planning to buy a home can write off interest taxes up to $750,000 if filing together. If you are filing separately, you can write off tax interest up to $375,000.  Post the tax reform in the year 2018 write-offs were not as profitable. Although it still is beneficial for homeowners with outstanding mortgages.

Cons Of Buying a House on Mortgage.

• The Intricate Mortgage Process

It’s no hidden truth that getting a mortgage can be a really daunting and tiring process. You have to keep track of all financial documents inclusive of your IDs, which can be frustrating at times. Lenders will ask you for every detail and if you miss even a single document, you won’t qualify for the loan.

• Paying Mortgage Insurance Premiums

When you pay less than 20% on the property, having a mortgage insurance premium will be mandatory. A mortgage insurance premium is an addition to your monthly mortgage payments. Insurance is an added cost to secure the lenders in events if you miss out on paying the installments.

• Drawback Of Additional Costs

When a mortgage has lenders involved, it always comes with extra costs. The buyers are liable to pay lender fees, closing costs, mortgage origination fees, and appraisal fees. These additional fees can add to the existing cost and make the purchase even more costly.

• You Still Don’t Have the Ownership of the Property

When you buy a house on a mortgage, the lender has ownership while you keep making the monthly payments. They are entitled to hold your property until the last installment. If you fail to pay a consecutive number of installments, there is a high risk of losing your home.

Bottom Line

We know buying and selling a home is an overwhelming task. It can be a very confusing, lengthy, and mentally draining process. We tried to cover the pros and cons of buying a house in cash or by getting a mortgage. So, choose wisely keeping in mind your monetary status and plan futuristically.

If you are planning to sell your house fast for cash in NY, get in touch with Elite Properties. It is a ‘We Buy Houses For Cash Company’ which means you can sell your house fast for cash. Give us a call on this number at 718-977-5462 and we’ll help with fast home selling.

We know there are many reasons to enhance the curb appeal of your house and increase its resale value. Many homeowners, although, are not aware of the reasons which may reduce the house’s worth. Selling your house needs a lot of attention either with the upkeep or the functional aspects of the structure. A buyer on the other hand will check the aesthetical appearance as well as the condition of the house.

Factors like bad location, old construction, and crime rates can potentially lower the value of a house. It is a well-known fact that a good house will never sit in the inventory for a long time. If you are a seller and want to sell properties online, you must check the ‘5 Reasons That May Reduce The Value Of A House.’

Following are the points which may reduce your home’s worth –                                  

1. A Shabby Exterior Facade

If you want to sell a home fast for cash, a good-looking exterior is a must. Potential buyers pay attention to the exterior surfaces as nobody wants the extra maintenance cost while buying a house. As wisely put,

‘The first impression is the last impression it applies in home sales as well.”

According to a survey, potential home buyers only take 10 seconds to like a property, just by looking at its exteriors. Conclusively, it is always good to maintain the home’s exterior beauty to sustain its value in the market. Adding a fresh coat of paint, mowing, and cleaning the lawn may make a huge visible difference.

2. Inefficient Energy Ratings

Since 2018 energy performance certificates were introduced in the market to comprehend the energy efficiency of a house. Energy efficiency is correspondent to the pricing of a home, the higher the ratings higher the property prices will be. It is illegal to sell or put your house on rent if your energy-efficiency rating is below ‘E’ on the unit. Many buyers end up purchasing the property and paying huge electricity bills reason being the poor energy ratings. A good energy rating can shoot your home’s worth by approximately 14%, which is a great profit margin for home sellers.

3. Poor Locality

A locality is a compilation of good schools, hospitals, and departmental stores, no crime rates, and easy access to multiple places. To sell your house fast for cash in NY it becomes essential to have basic amenities accessible. A study shows how proximity to certain places can decrease your home’s worth by a specific amount of percentage (sources).

• Bad school – 22%
• Strip clubs – 14.7%
• Homeless shelters 12.7%
• Cemetery – 12.3%
• Funeral homes – 6.5%
• Power plants – 5.3%
• Shooting ranges – 3.7%

If your home is around these places you’ll have to work more on the aesthetics so that no one walks past your house. Additionally, foreclosures in the neighborhood make a bad impact on the home sale. While selling your house, appraisers look at the comparable selling price in the neighborhood. The equivalent price played an important role in estimating your property’s worth and foreclosed houses may turn down the appeal.

4. The Escalating Mortgage Rates

The formula of home selling predominantly depends on the mortgage rate in the market. A high mortgage rate means fewer buyers whereas; a low mortgage rate means more buyers. Potential buyers usually start their hunt when mortgage rates are low as the monthly repayment fits into their budget.

Home affordability decreases for buyers when the rates are high as they pay extra over the life of a loan. As a seller, increased mortgage rates don’t help you to sell your house fast. Your home isn’t valuable for buyers because they pay extra on the home as well as the mortgage repayment.

5. Additional Points To Consider

We’ve spoken about a house’s aesthetics or curb appeal, which plays a huge role in home selling. There are certain things that lower your house’s worth like installing a pool, doing excessive DIYs, cluttered rooms, poor HVAC systems, etc. 

There are specific things to keep in mind before listing your home on the market –

• Take care of the plumbing and upkeep
• Remove the shabby wallpapers
• De-clutter your house; get rid of the extra things in your home
• Keep the decor to a minimum
• Remove the carpets which cover the whole floor
• Mow and clean the lawn, whether it’s a front or a backyard
• Get rid of invasive plant species or climbers
• Keep your pets at pay (while walkthroughs)

We comprehend a house is not just a structure it also has many memories attached to it. Suicides or violent deaths in a home can be a big reason for people to back out from buying it. It is advised to disclose little details to build transparency with potential buyers to avoid hassles later.

The Takeaway on the Value of a House

Selling a house is a daunting task and there are multiple things that may add to and reduce the value of your house. If you want to sell remodeled houses or you want to sell your house as-is, get in touch with Elite Properties. We buy houses for cash which allows you to employ the yields of the sale as per your preferences. Additionally, we buy houses in any condition that eludes the hassles of maintenance and legal processes.

If you have other queries related to the topic or you want to know more about the home selling process call us today at 718-977-5462.

We know businesses around the world faced a hard hit due to the COVID-19 pandemic. The real estate market was great to hit & not left behind. Initially, in 2020 the housing market in the United States started with a good strike. Although, amidst March the coronavirus outbreak came into play; everything including job losses, economic slowdown due to closed business, and uncertainty in home sales waved across the nation. With homestay orders still in the uplifting process, you can see the ‘Impact of COVID-19 on Real Estate Prices Trend’.

Situations Post Covid-19 Pandemic            

As stated in the first week of April, the statics showed one million-plus positive cases around the globe with constant additions. The crises have impacted the global economy, and the unemployment rates have risen.  According to recent claims, the unemployment rate is approximately 30 million. This becomes the justified reason for the steep economy of the states and affected Real estate Prices Trend.

Regarding the real estate sector, the existing home sales witnessed an approximate 7.2% increase from February 2019 to February 2020 (sources). Furthermore, according to the National Association of Realtors (NAR), the recorded static gain was 6.5% in January and February 2020 combined. A joint report on new home sales from the U.S. Census Bureau and the Department of Housing and Urban Development (HUD) stated; that there was a mere drop in home sales by 4.4% since January 2020 (as per the current post-Covid-19 scenario). The home sales report on a year-on-year basis (2019-2020) shows a positive growth although; it started to tumble gradually starting from January 2020.

Housing Inventory Situation

The housing inventory has been quite low. As of February 2020, it went down approximately by 10% on a year-over-year basis. This apparently dropped the supply of housing. As the stay-in-house orders are in the reliving process it is still not possible to choose a house showing or walkthrough service. Although, a great option available for new home buyers is virtual tours. Sources specify the virtual tour requests in April made up one-third of the total requests as compared to the month of March.

A Complete Home Sales Analysis

As mentioned in the previous blogs, the best time to sell a house is from March to Mid-May. The reason being winters are gone and spring blooms, which accelerates the home selling process.  The new listings, as per the pre-COVID scenario were increased by 5% on a year-over-year average. Although the current status of the newly listed properties posts 29th March -5th April has decreased by 34% and 31% on a year-over-year basis (sources).  The percentage stands to be amongst the biggest declinations of this year. If the situation is prolonged, the bar may see a fall in inventory in the coming times.

There are two predominant scenarios in home sales namely V-shaped and U-shaped scenarios. The V-shaped scenario drops in the second quarter and recovers through the summer and the recovery stretches till the end of the year. Whereas, the U-shaped scenario shows the home sales to drop gradually with constant declinations extending through the end of the year 2020.  Not leaving behind, the Coronavirus has Pushed Mortgage Rates Lower, which has also made a great impact on the housing market.

What To Expect From Home Selling Or Buying?

Home selling or buying includes multiple processes to reach the end goal including paperwork, verification process, walkthroughs, etc. As the pandemic is still stagnant in place there are many changes that one has to adapt with respect to real estate.

• If you are looking to sell your house try pushing to the late summer or fall. As per buyers, home prices usually drop in colder months, making it the best time to buy a house.
• The closing process might witness a slowdown. Although, with digital walkthroughs and remote signings are still taking place. If you are a buyer or seller proceeding with transactions can be the best option.
• Use mortgage relief programs if you are a home seller and planning to pay off your mortgage. You may also qualify for mortgage forbearance if you’re unable to repay the monthly installments.

Additionally, to elude the lengthy home selling process you can get in touch with Elite Properties which will help in easy home selling. Also, we buy houses in an as-is condition which avoids the hassles of upkeep and repair without taking into consideration of Real estate Prices Trend. In such tight circumstances the most feasible option is to sell the home for cash with a cash buying company, call us today at 7189775462.