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Explain why you want the property.
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Tell the seller why you love their home and why it’s an excellent fit for your family. For instance, if the seller has lived in their home for 20+ years and raised a family of their own there, they may be focused on selling their home to someone who will take good care of it.
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During your walk-through take note of some items in the house. For example, did you love their garden? Was your alma mater’s flag hanging in the garage?
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Big or small, by sharing a common interest in your letter, you’ll make yourself more relatable.
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Don’t go overboard – keep it short and sweet! The key is to be sincere in a sentence or two.
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In your letter, make sure to include your offer price, earnest money deposit, loan status and the amount of your down payment.
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Having a pre-approval letter is more important than ever.
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A pre-approval letter is an official letter from your lender (Greenway Mortgage) that provides documentation of exactly how much you are approved to borrow.
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Note: A seller may not consider your offer without a pre-approval letter.
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Sellers look for buyers that are pre-approved because it gives them confidence that you can secure the financing needed to complete the home purchase.
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Contingencies are the conditions that must be met by either the buyer or the seller before the home buying process can move forward.
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Common contingencies include securing financing for the property, a home inspection and home appraisal and sale of the buyer’s existing house.
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Be transparent about your expectations. Include the proposed closing date.
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Before you deliver your award-winner letter, make sure you proofread it thoroughly. Mistakes may make the seller think you don’t take your offer seriously.
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Remember what we said before? Short and sweet. No one wants to read a lengthy letter of your personal history.
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Keep your letter to one page, even if you have to make a few edits.
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Focus on a few of the most important reasons why you are the BEST buyer for the home.
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Don’t forget to close with a thank you!
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Finish the letter off by expressing your appreciation that the seller is considering your offer and reiterate why you are the perfect buyer.
Private MI is there only as long as it’s needed. When the balance on the mortgage reaches 80% of the home’s original value or its current appraised value, the homeowner may request cancellation of their mortgage insurance.
To cancel your MI, you should first gather some basic information for your mortgage lender, including:
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Any names on the loan
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Social Security numbers
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Property address
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Loan number
Yes, when the mortgage balance reaches 78% of the homes original value and all payments are current, the lender is required to cancel the mortgage insurance automatically.
You may be eligible for a refund of the mortgage insurance premiums when the MI policy is cancelled. It depends on the type of MI product you have and other criteria.
Finding a house you want to buy is very exciting! The house you like may appear great in photos and it feels right when you visit. However, many houses hide darker secrets that might not be immediately obvious, especially some older homes.
Older homes can be high on charm and built to last, but they may also be hiding unexpected secrets. There’s no need to worry! A little vigilance before you buy can prevent you from falling into an expensive trap.
Here are some things to watch out for when you’re on the hunt for an old charmer!
Part 3: Forms of Homeownership: Housing Cooperative
You can also visit our website here to learn about the different forms of homeownership.
Have questions? Reach out to us at any time by contacting us here.
In today's blog (Part 3), we'll take a look at Housing Cooperative (Co-op) Ownership. You'll learn how a Co-op works, what types of co-ops exist, and more! In case you missed Part 1 and Part 2 of this 4-part series you can find them here:
Part 1: Forms Of Homeownership: Fee Simple
Part 2: Forms of Homeownership: Leasehold
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Some co-op owners are allowed to sell their co-op shares in the open market, depending on the market rate for co-ops in that location.
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Co-ops can be less expensive than apartments since they operate on an at-cost basis, collecting money from residents to pay expenses.
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However, before buying shares of a company, be sure to check out the company's financial situation and the fees involved.
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Smaller co-ops are run by the residents, with everyone pitching in to take care of maintenance, landscaping, rules, etc.
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Large units may be run by a board of directions that consist of residents.
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Market Rate: Allow partners to buy and sell shares at whatever rate the market will bear.
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Limited Equity: Set restrictions on the price at which shares may be bought/sold.
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Leasing Co-ops: The co-op corporation leases the building rather than owning it and builds no equity.