So... you're ready to buy a house, but if you are like most people, you probably have some questions. Don't worry, you're not alone. Home buying can be one of the most exciting things you do in your lifetime.
However, it can also be one of the most stressful, BUT, only if you let it! The best way to prevent it from becoming stressful is to take some time to learn about the process, especially the financing.
Besides, we're talking about your money here so why wouldn't you take the time to learn everything you need to know so you can make an educated decision about your home buying and financing options?
Financing a house isn't like financing a car, or anything else for that matter. Do you know all you need to know about financing a house?
Are you sure?
Here are the
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Cons of Owner Financing
• You might have to pay a higher interest rate than you would with a traditional mortgage.
• You might ultimately pay more for the house.
• The balloon payment that's due after five years could cause you to lose the house if you don't have enough money to pay it.
Again, the decision whether to go with an owner financing deal or a traditional mortgage will depend on your particular situation and if you are comfortable with the terms of such a deal and any other factors affecting your situation.
However, you can never go wrong with traditional financing (unless you don't make the payments) because there are laws and legalities that protect you from the potential of losing your home due to a seller's financial errors or other missteps.
Is 100% Financing a House Ever a Good Idea?
While 100% financing, also known as a no money down loan, sounds like a good idea, you really need to fully understand what you're getting into before deciding to go this route. The Pros of 100% Home Finance Loans
• These types of loans enable you to keep and use your cash for other