I am paying $1000 per month in rent right now. Can I afford to own a home?

Very likely.  It can depend on what type of loan you qualify for and what interest rate you receive.  Here is an example of a loan that might be available to you.

• The purchase price of the home is $150,000
• you receive a 30-year loan with an interest rate of 3.77%
• You make a down payment of $4,000
• Your laon amount is $146,000
• Your payment would be around $1,000 per month.

*This is a rough estimate.  Every loan type has different requirements and costs involved.  In addition different proerties have different taxes.  Lenders can give you specific calculations that are applicable to you and the loan type you choose.

I would love to work with you in connection with your purchase.  Lisa Baumberger 208-5560

What is earnest money and why do we need it?

Earnest money is a deposit that a prospective buyer provides to the seller to show good faith that the buyer plans to complete the transaction.  This money is held in a Trust Account until closing.  The money will be applied to the amount that the buyer owes, in other words it will be credited to the sales price amount.  So if the buyer purchases a home for $100,000 and provides $500 in earmest money, the buyer would now owe $99,500 to be paid at closing.  Earnest money is not essential in a home purchase, but many sellers will not accept an offer without it.  The earnest money ensures the sellers that the prospective buyers are making a serious offer.  If either party defauts (fails to follow through) on the home purchase the disbursement of the earnest money will be held in the Trust Account until it can be determined who should receive the money.

Call one of us for all of your real estate needs:  Lisa Baumberger 208-5560 or Krista Bailey 519-3653

What is PMI and when is it applicale?

PMI is private mortage insurance and is used with conventional mortgages. Lenders use the formula of 80% loan to value, which means ideally they want to loan no more than 80% of the propery's value. If the loan exceeds 80% then they want to be insured for the difference in the risk.  For example:  a $100,000 property, the lender wants to loan only $80,00 but the buyer does not have $20,000 for the down payment.  According to the buyers' credit standing the lender will accept a $10,000 down payment therefore the loan will be 90% loan to value and the lender will require the buyer to purchase a $10,000 PMI policy to cover the lender's extra $10,000.  Later if the loan to value equals or goes below the 80% the PMI policy can be cancelled if the homeowner's credit with the lender is in good standing.

Call Larry Thomas for help in the purchase of your home 406-628-2903

Are you ready to buy your first rental property?

• Get your finances in order:
• Determine how much money you have available for a down payment
• Identify which lenders have suitable loans for income property
• Take advantage of the low itnerest rates while they last
• Decide what type of rental property is best for you:
• Single family
• Side by Side or Up/Down duplex
• Multiplex properties (three or more units)
• Mobile home parks
• Apartment buildings
• Choose neighborhoods that are in demand:
• Low crime
• Good schools
• Desirable location
• Work with a Realtor with personal experience and success with rental property

Call me today and let me share my knowledge and experience with you about making money owning rental property in Billings                           
                                                  Colleen Foreman
                                                  cforereal@aol.com
                                                  406-671-0412

Do seller's help buyers with closing costs?

In today's market they do.  With changes in lending and buyers having to put cash down they need help with closing costs, so they can have enough money to purchase.  Most buyers have enough income to qualify for the mortgage payment but are usually short on the cash for the down payment and closing costs.  So it helps buyers if the seller pays them.  Some buyers offer over asking price to cover the closing costs and sometimes they are split or the seller pays all.

Call Sharon Weber for help with all your real estate needs.  406-670-6776