Nishant Baxi - All You Need to Know About Real Estate

© Nishant Baxi, 2019

ISBN 978-5-0050-6569-8

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Nishant Baxi

What you need to know about real estate

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All You Need to Know About Real Estate

Nishant Baxi

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Table of Contents

What You Need to Know About Real Estate 1

Introduction 4

Chapter 1 5

Getting Ready to Purchase a Home 5

To Buy or Lease a Home 5

Understanding Your Credit 6

Can You Afford a Home? 6

Fear of Investing 7

Initial Investments 8

Knowing the Market 9

Finding a Real Estate Team 9

Home Owner’s Insurance 12

Chapter 2 14

Loans 14

Loan Prequalification 14

Ten Loan Terms That You Must Know 15

Deciding on a Loan 17

Types of Loans 18

Balloon Loans 18

Interest Only Loans 19

Home Equity Loans 19

Home Equity Lines of Credit 20

Loan Divisions 21

Chapter 3 23

Real Estate 23

Types of Real Estate Investments 23

Finding Your Dream Home 24

Your First Home 25

Preventing First Home Downfalls 26

Profiting from Real Estate 27

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Becoming a Landlord 28

Flipping Properties 29

Partnership Investing 29

Protecting Your Assets 30

Advantages of Owning Real Estate 31

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Introduction

Purchasing a home can be a very challenging task. It is hard to know how much you can afford to spend on a home and it can even be frightening to think that you may not be able to afford a home. There are also many other questions that you have to think about when purchasing a home.

Is the market is good for buying a home?

Do you need the assistance of a realtor?

What type of loan is best for me?

Are you purchasing a home to live in or to try and turn a profit?

What tax advantages are there to owning a home?

This eBook will serve as guide to assist you when it comes to purchasing a home. We will talk about how to obtain good credit, finding a realtor to assist you in finding the perfect home, the different types of loans that are available, and how to invest in property and turn a profit.

It does not matter if you are purchasing your first home, or if you are looking for property that you can turn

a profit on, this eBook will provide you with the information that you need to make any real estate buying experience a good one.

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Chapter 1

Getting Ready to Purchase a Home

Many people think that all they have to do

to purchase a home is find one that they like, obtain a loan, and move in. Unfortunately, this is not how the home buying process actually works. There are many things that you have to do before you even set foot into an open house.

To Buy or Lease a Home

It is not always an easy decision when it comes to purchasing a home, you have to know exactly what you want or need before you decide to make an investment. It does not matter what is going on in the market, you will always have an option when it comes to purchasing or selling your home.

If you want to get into the real estate market, but you are not ready to make the big leap and purchase a home, you could always lease a home instead. In fact, this is a good step for many people who are not quite ready to purchase a home. One benefit is that you will have lower payments when you lease. You will also be able to build up your credit and increase your credit score. Many homes that are for lease will give you the option of purchasing them after a certain amount of time. This will allow you to live on the property for a while and decide if you like it before you purchase it.

Leasing can also be a great option if you are trying to sell your home. You may find that you are having trouble selling your home and you do not want to have to pay double mortgages. Leasing your home is one option that will prevent you from having to make two mortgage payments every month. If you decide to lease your home, you will become the landlord for a period of time that will be determined by the contract that is signed by both you and the tenants that states all of the terms, conditions, and how much the tenants will have to pay each month. After the contract ends, the tenant will have the option to purchase the property from you.

It does not matter if you are trying to sell your home or if you are looking to get in the real estate market without having to purchase a home, leasing a home can be a great option no matter what your situation may be.

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Understanding Your Credit

It does not matter if you are purchasing your first home, or if you are an investor and are purchasing your tenth property, your credit score will play a big role in getting approved for your mortgage loan. By properly managing your credit and understanding how your credit score will affect your mortgage, you will be able to make the most out of your investment.

Before you ever apply for a home loan, you will want to check your credit report and verify that you have the proper credit score to be able to obtain the loan that you want. Your credit score is a number that is given to you by the major credit reporting agencies based on how good your credit is. The higher your credit score, the better your credit is. There are three major companies that you can obtain your credit score from and they are Experian, Equifax, and Transunion.

By having a higher credit score, you will be able to get a better loan. Many lending companies will be more willing to work with if you have a high credit score and they will also be able to lend you a higher amount of money.

The best way to get a high credit score is

to be responsible when it comes to paying your bills. You will want

to avoid having late payments and large amounts of outstanding bills, like large credit cards. However, your credit score is not the only deciding factor that will determine if you are approved for a home loan. Lenders will also consider your financial stability, your income, and you job status.

By understanding how to maintain your credit and how your credit score will affect the type of loan that you will be approved for, you will be one step closer to being able

to purchase the home of your dreams.

Can You Afford a Home?

You have reviewed your credit report and your credit score is high enough for you to be approved for a home loan, the only problem is that you do not think that you can afford a home. There are many people that are in similar situations and many

of these people do not invest in homes because they do not have the large amounts of money that are

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normally required up front. If you are finding yourself in this situation, you should know that there are programs available to help you purchase a home and stop wasting your money paying rent.

One option that you can take advantage of are grant programs. Every locality will have several different grant programs that you can apply for and most of them are easy to qualify for. The grant programs that are available will vary depending on your specific needs and your current living situation. There are some grant programs that will simply give you the money that you need to purchase your first home while other programs will only give grants for special situations, like starting your own business.

If you do not know what type of grant program is best suited for you, simply ask your real estate agent. Many times they will be familiar will all of the local grant options that are available and they will be able to assist you in selecting the one that will provide you with the most benefit.