Filing for bankruptcy can affect your existing mortgage and future home-buying ability. If you keep up with payments, some bankruptcies let you keep your home. Chapter 7 vs. Chapter 13 Bankruptcy Chapter 7 : Known as total bankruptcy, it wipes out most of your debt but may require you to sell the property. Chapter 13 : This repayment plan allows you to keep your property by making scheduled payments. Liens and Bankruptcy Liens on your property remain even after bankruptcy, meaning lenders can still foreclose if debts aren't paid. Filing for Bankruptcy with a Mortgage You won’t automatically lose your home. In Chapter 7 , your property is either exempt or nonexempt. Exempt properties can be kept if you stay current on payments. Nonexempt properties might need to be surrendered or paid for in cash. Chapter 13  generally allows you to keep your home by including mortgage payments in your repayment plan. Getting a Mortgage After Bankruptcy You can't get a mortgage during bankruptcy, but you can after it’s discharged. The waiting period depends on the type of loan and bankruptcy: Chapter 7 : 2 years for FHA/VA loans, 4 years for conventional loans. Chapter 13 : No waiting for FHA/VA loans if payments are current; 2-4 years for conventional loans. Alternatives to Bankruptcy If you're struggling with mortgage payments, options include mortgage modification, short sales, or a deed in lieu of foreclosure. For other debts, consider negotiating with creditors for relief. Bottom Line Bankruptcy affects your mortgage and credit, but with time and proper steps, you can still obtain a mortgage in the future.

House flipping has gained popularity, thanks to TV shows that make it look easy and exciting. But before you buy a flipped house, it's important to understand the pros and cons. What Is House Flipping? House flipping involves a real estate investor buying a house, making updates, and selling it for a profit. While the results can be appealing, buying a flipped house comes with both advantages and risks. Pros of Buying a Flipped House: Modern Aesthetics and Appliances:   Flipped houses often feature modern designs and updated appliances. Move-In Ready:   These homes are usually ready for immediate occupancy, saving you from the hassle of renovations. No Closing Delays: Investors typically don't live in the homes, so you can move in quickly. Cons of Buying a Flipped House: Risk of Shoddy Craftsmanship:   Not all renovations meet high-quality standards or legal building codes. Potential Compliance Issues:   Lack of proper permits for renovations can lead to costly legal issues. How to Identify a Flipped House: Check Property History:   Recent purchases may indicate the house has been flipped. Investigate the Seller:   Look for sellers who are corporations or LLCs, as they are likely investors. What to Look Out For: Be Skeptical:   Don’t be swayed by flashy upgrades; look closely at the details. Verify the Contractor:   Ensure that renovations were done by licensed professionals. Review Permits:   Check for proper documentation to avoid legal trouble. Hire a Home Inspector:   A thorough inspection can help spot potential issues. Conclusion: Buying a flipped house can be a great opportunity if you do your research and take the necessary precautions. Always inspect thoroughly and verify the quality of renovations before making a decision.

Buying a house can be expensive, but purchasing a "fixer-upper" might offer a below-market price if you invest time and money into renovations. A fixer-upper requires significant work but can be a smart investment if done correctly. What Is a Fixer-Upper? A fixer-upper is a property sold at a lower price due to the need for major repairs. While you may be able to live in it, expect to spend considerable time and money on improvements. Finding Fixer-Upper Homes Work with a real estate agent to find fixer-upper homes, or consider buying a foreclosed property at an auction. Be cautious, as auctioned homes are sold "as-is." Steps to Buy a Fixer-Upper Get a Home Inspection:  Essential for identifying potential issues. Estimate Renovation Costs:  Create a budget for materials and labor. Determine Permit Requirements:  Check if your renovations need permits. Identify DIY Projects:  Save money by handling some renovations yourself. Explore Loan Options:  Some loans cover both the purchase price and renovation costs. Make a Smart Offer:  Avoid overpaying by considering the cost of necessary repairs. Pros and Cons Pros: Lower purchase price Less competition Customization opportunities Quality control over renovations Cons: Expensive and unpredictable renovations Potential unexpected issues Long-term construction Should You Buy? Consider your budget, needs, and lifestyle before purchasing a fixer-upper. Ensure it’s a worthwhile investment by comparing renovation costs to the home's potential value.

Overview: Rent-to-own contracts help prospective first-time home buyers build their credit scores or save for a down payment. Lease purchase agreements are the most legally binding of these options. What Is A Lease Purchase Agreement? A lease purchase agreement is a rent-to-own contract where the tenant agrees to buy the property at a later date. The renter pays an upfront option fee for the exclusive right to buy the property, with a portion of the monthly rent often going toward a down payment. If the renter can't secure a mortgage at the end of the lease, they forfeit the purchase option. Lease Option vs. Lease Purchase: Both lease option and lease purchase agreements involve a nonrefundable option fee and prevent the landlord from selling to others during the lease term. However, a lease option only obligates the seller to sell, while a lease purchase binds both parties to the sale. Structuring A Lease Purchase Agreement: Set The Lease Period: Define the lease term and monthly rent, typically up to 3 years. Include Special Clauses: Cover maintenance costs, property taxes, insurance fees, option fee amount, purchase price, and down payment allocation. Allocate Rent To Down Payment: Specify the portion of rent contributing to the down payment. Contract Of Sale: Agree on a purchase price at the start, regardless of market fluctuations. Professional Review: Have a real estate attorney review the agreement before signing. Benefits For Buyers: Down Payment: Save for a down payment while paying rent. Convenience: Avoid moving by buying the current rental home. Credit Score: Improve credit score to qualify for a mortgage. Home Equity: Build equity if the property's value increases. Benefits For Owners: Upfront Payment: Keep the option fee even if the buyer defaults. Attract Tenants: Appeal to responsible renters. Default Benefit: Retain the down payment if the tenant defaults. Locked-In Price: Set the purchase price in advance. Simplified Selling: Avoid traditional sales processes. The Bottom Line: Lease purchase agreements can benefit both property owners and renters. Treat them as seriously as a home purchase and seek legal advice. For more information, apply online or call us at (949) 226-7474.

If you’re house hunting or planning to start while still leasing, you might wonder about breaking your lease to buy a home. You may expect the process to take a while, but sometimes it moves faster than expected. This could leave you facing the decision of breaking your lease. Can you do this, and should you? Can You Break A Lease To Buy A House? Yes, you can usually break your lease after discussing it with your landlord, but be prepared to pay a penalty fee. Legally, breaking a lease is justifiable in extreme circumstances like an uninhabitable apartment, military relocation, or domestic violence. However, breaking a lease to buy a house is more complicated and varies by state. How To Get Out Of A Lease Notify your landlord or property manager if you want to break your lease. Always check your lease agreement’s rules and conditions. Options to get out of a lease include: Home Buying Clause: Some leases include a clause allowing early termination if you purchase a new home. Paying an Early Termination Fee: This usually involves paying 1-2 months' rent plus an additional penalty. Switching to a Month-to-Month Agreement: This offers more flexibility but may come with higher rent. Always get any agreement in writing and keep records. The Pros And Cons Of Breaking A Lease To Buy A House Pros: Quick Bid: You can move out immediately if your offer is accepted. Potential Lower Costs: Near the lease end or with a cooperative landlord, breaking a lease may not be too costly. Building Equity: Buying a home allows you to build equity. Cons: Paying Remaining Rent: You might be asked to pay the remaining months' rent, which can be costly. Credit Score Impact: Unpaid lease amounts can hurt your credit score. Rental History Impact: Breaking a lease can affect future rental references. Alternatives To Breaking Your Lease Subletting: Rent out your space to someone else, with landlord approval. Delaying Closing: Ask the seller to postpone the closing date. The Bottom Line: Is Breaking Your Lease Worth It? Breaking a lease to buy a home can be feasible, but it has potential financial and credit consequences. Ensure you understand these impacts before making a decision. Ready to buy your own home? Start with V Nation Corp® today.

Wraparound Mortgages: A Shortened Guide When a buyer can’t qualify for a traditional mortgage, a wraparound mortgage might be an alternative. This financing option helps both parties close the deal but comes with risks. What Is A Wraparound Mortgage? A wraparound mortgage allows the seller to keep their existing mortgage while the buyer’s mortgage “wraps” around it. The buyer pays the seller monthly, and the seller continues paying their original mortgage, often profiting from the interest rate difference. How It Works Seller Financing: The seller offers a loan to the buyer, wrapping the new loan around the existing mortgage. Payment Flow: The buyer pays the seller, who uses a portion to pay their mortgage. Assumable Mortgage: The original mortgage must be assumable, or the lender must approve the arrangement. Example Adam sells a home for $160,000 with a $40,000 mortgage at 4%. Linda, the buyer, gets a $150,000 wraparound mortgage at 6%, paying Sam monthly. Adam profits from the 2% interest difference. Pros and Cons Benefits for Buyers: Easier qualification. Potentially lower closing costs. Benefits for Sellers: Profit from higher interest rates. Access to a larger pool of buyers. Risks for Buyers: Higher interest rates. Risk of foreclosure if the seller defaults. Risks for Sellers: Need for lender approval. Responsibility to collect payments from the buyer. Risk of foreclosure if the buyer defaults. Alternatives to Wraparound Financing FHA Loans: Lower credit score and down payment requirements. VA Loans: No down payment for qualified veterans. USDA Loans: No down payment for rural areas. Bottom Line Wraparound mortgages can help buyers who can't get traditional loans and sellers looking for more buyers. However, they carry significant risks. Consulting a real estate attorney is advisable.

Assumable Mortgages: A Quick Guide Prospective home buyers have various financing options, and choosing the right one can be tricky. One option to consider is an assumable mortgage. What Is An Assumable Mortgage? An assumable mortgage allows the buyer to take over the seller’s mortgage loan, potentially benefiting from a lower interest rate if rates have risen since the seller purchased the home. Which Loans Are Assumable? Not all home loans are assumable. Most conventional loans aren't, except in special circumstances. However, FHA, VA, and USDA loans can be assumable, subject to specific requirements. How Does It Work? Buyers assume the seller’s loan and must get approval from the lender. Skipping an appraisal can save money, but a home inspection is still recommended. Pros and Cons Pros: Potentially lower interest rates Possible savings on appraisal costs Limited closing costs Cons: Sellers might face financial risk if the buyer defaults Buyers cannot shop around for better loan terms Approval is not guaranteed Qualifying for an Assumable Mortgage Verify the mortgage is assumable. Meet credit score and DTI requirements. Gather necessary documentation. Apply. Pay closing costs and complete the required paperwork. Costs Costs vary but may include assumption fees based on the unpaid principal balance or a flat fee. VA loans usually include a funding fee of 0.5%. Special Situations In cases of divorce or death, the lender will verify the financial qualifications of the person assuming the loan. Bottom Line Assumable mortgages can offer a lower interest rate and simplify the home-buying process. Evaluate the risks and benefits to decide if it's the right option for you. Ready to start your home-buying journey? Get started with V Nation Corp today!

One key factor affecting mortgage payments is the loan interest rate. Lower rates save you money monthly and over the loan’s life. Lenders often offer the option to purchase mortgage points, allowing borrowers to pay a fee upfront for a reduced interest rate. What Are Mortgage Points? Mortgage points, or discount points, are fees paid to lower the interest rate on your mortgage. One point costs 1% of your loan amount. For example, on a $300,000 mortgage, one point costs $3,000. You can also buy fractional or multiple points to further reduce your interest rate. How Do Mortgage Points Work? Each point typically reduces the interest rate by 0.25%. Points are paid at closing or rolled into your loan. Generally, buying four points lowers your rate by 1%, the maximum most lenders allow. Impact on APR Buying points lowers your loan’s annual percentage rate (APR), as it includes the interest rate and additional fees. Points and Adjustable-Rate Mortgages Points work similarly for adjustable-rate mortgages (ARMs) and fixed-rate loans, but the ARM rate adjusts after a set period. Benefits of Mortgage Points Savings Over Loan Term: Points increase closing costs but can lead to significant long-term savings. Lower Monthly Payments: Reduced interest rates mean smaller monthly payments. Tax Deductions: Mortgage interest, including points, may be tax-deductible. Savings Example For a $350,000 loan at 7% interest: 0 points: $838,281 total mortgage cost 0.5 points ($1,750): $827,730 total, saving $10,551 1 point ($3,500): $817,234 total, saving $21,047 2 points ($7,000): $796,406 total, saving $41,875 When to Buy Points Long-Term Stay: It is more beneficial if you plan to stay in the home long-term. Breakeven Point:  Calculate when savings from lower payments exceed the cost of points. Breakeven Example A $350,000 loan at 7%, buying two points for $7,000 lowers the rate to 6.5%, saving $117 monthly. Break-even is approximately 60 months (5 years). When Not to Buy Points Short-Term Stay:  It is not beneficial if you plan to sell soon. Extra Payments:  Points may not save much if planning to pay off the loan early. Limited Funds:  Don’t deplete savings for points; prioritize down payments. Refinancing Plans:  Avoid points if you plan to refinance soon. Conclusion Mortgage points can save money but aren’t for everyone. Assess your budget, down payment, loan terms, breakeven point, and future plans before deciding. If ready to buy or refinance, start your application with V Nation Corp® today.

What Are Closing Costs? Closing costs are fees paid to your lender and third parties during real estate transactions, such as buying a home or refinancing a mortgage. These costs include origination fees, appraisal fees, title searches, and taxes. They typically range from 3% to 6% of the loan amount. For example, on a $100,000 mortgage, closing costs might be between $3,000 and $6,000. Are Closing Costs Negotiable? Yes, many closing costs can be negotiated whether buying a home or refinancing your mortgage. Here’s how you can negotiate these fees: Negotiable Closing Costs: Homeowners Insurance:  Shop around for the best rates from different insurance providers. Discount Points:  You can pay a lower interest rate or request a lender credit for reduced upfront costs. Origination Fees:  Ask your lender to lower or waive these fees, typically around 1% of the loan amount. Underwriting Fees:  Similar to origination fees, these can often be negotiated. Loan Application Fees:  Negotiate this fee, especially if you’ve already paid other fees. Title Insurance:  Request your lender to use a more affordable title company. Non-Negotiable Closing Costs: Appraisal Fees: Necessary for determining your home's market value. Credit Check Fees:  Covers the cost of checking your creditworthiness. Government Fees:  Include title transfer or recording fees. Courier Fees:  For transferring loan documents. Property Taxes:  Paid upfront at closing. How to Lower Your Closing Costs: Be Prepared:  Understand your closing costs and know which fees are negotiable. Work with Your Lender:  Review your Loan Estimate form and ask your lender to reduce or waive certain fees. Ask the Seller:  Request seller concessions to cover some closing costs, although this may be challenging in a competitive market. Roll Closing Costs into Your Mortgage:  Opt for a no-closing-cost mortgage, means paying higher monthly payments instead of upfront costs. Close at the End of the Month:  This reduces prepaid interest costs. Research Assistance Programs:  Look for grants and programs to help closing costs, especially for first-time home buyers. When to Negotiate: Timing is crucial. In today's buyer’s market, you may have more leverage to negotiate seller concessions. In a seller’s market, where sellers receive multiple offers, negotiating closing costs can be tougher. Be prepared to pay more in such scenarios or consider walking away if negotiations fail. The Bottom Line: Negotiating closing costs can save money, but success depends on market conditions and negotiation skills. Ensure you're financially prepared to cover these costs to avoid surprises. For personalized assistance, contact V Nation Corp® and let our Home Loan Experts guide you through the home-buying process.

Final Walk-Through Checklist for First-Time Home Buyers Introduction The final walk-through is a crucial step before closing on your new home. It ensures everything is in order and meets your expectations. What Is a Final Walk-Through? A final walk-through allows buyers to inspect the property room by room, verifying that everything is in the same condition as when they last saw it and that any agreed-upon repairs have been made. Final Walk-Through Checklist Inspection Repairs Bring your home inspection summary and offer letter. Verify all agreed-upon repairs are completed. Request warranties or receipts for repairs. Belongings Moved In or Out Ensure the seller has moved out completely. Check all rooms, closets, attic, basement, garage, and sheds for left-behind items. Confirm all items included in the purchase agreement are present. Locks and Windows Test all locks and windows for proper function. Check for defects in window screens and ensure they are secure. Test alarm systems on windows and doors. Appliances Verify all appliances (oven, dishwasher, washer, dryer, HVAC, etc.) are working. Run water in all sinks, showers, and toilets. Check garage door and security system functionality. Mold Inspect moist areas like the bathroom and kitchen for mold. Check under sinks, around toilets, and near the refrigerator. Electricity and Outlets Test all outlets with a charger. Inspect electrical switches and light fixtures for damage. Ensure doorbells and garage door openers work. Backyard and Outdoors Inspect the yard and landscaping for any missing plants or trees. Check the condition of fences and gates. Inspect the pool, irrigation system, and any sheds for damage. Pests Look for signs of termites, rodents, or other pests. Inspect the chimney and areas where pests might nest. What to Do If You Find Issues If you find problems, consider the severity: Minor issues: Request the seller to fix them before closing. Major issues: Delay closing, withhold money for repairs, or consider legal action if necessary. Final Walk-Through FAQs Who Attends? Usually, the buyer and their real estate agent. When? A few days before or on the day of closing. Duration? 15 minutes to an hour, depending on the home size. Can You Back Out? Yes, if significant issues are found that breach the contract. Conclusion The final walk-through is your last chance to ensure your new home is in the condition agreed upon. Address any issues with your real estate agent to find the best solution. Ready to start the home buying process? Begin your mortgage approval with V Nation Corp® today. Inspection Repairs Bring your home inspection summary and offer letter. Verify all agreed-upon repairs are completed. Request warranties or receipts for repairs. 2. Belongings Moved In or Out Ensure the seller has moved out completely. Check all rooms, closets, attic, basement, garage, and sheds for left-behind items. Confirm all items included in the purchase agreement are present. 3.Locks and Windows Test all locks and windows for proper function. Check for defects in window screens and ensure they are secure. Test alarm systems on windows and doors. 4. Appliances Verify all appliances (oven, dishwasher, washer, dryer, HVAC, etc.) are working. Run water in all sinks, showers, and toilets. Check garage door and security system functionality. 5. Mold Inspect moist areas like the bathroom and kitchen for mold. Check under sinks, around toilets, and near the refrigerator. 6. Electricity and Outlets Test all outlets with a charger. Inspect electrical switches and light fixtures for damage. Ensure doorbells and garage door openers work. 7. Backyard and Outdoors Inspect the yard and landscaping for any missing plants or trees. Check the condition of fences and gates. Inspect the pool, irrigation system, and any sheds for damage. 8. Pests Look for signs of termites, rodents, or other pests. Inspect the chimney and areas where pests might nest. What to Do If You Find Issues If you find problems, consider the severity: Minor issues: Request the seller to fix them before closing. Major issues: Delay closing, withhold money for repairs, or consider legal action if necessary. Final Walk-Through FAQs Who Attends? Usually, the buyer and their real estate agent. When?  A few days before or on the day of closing. Duration?  15 minutes to an hour, depending on the home size. Can You Back Out?  Yes, if significant issues are found that breach the contract. Conclusion The final walk-through is your last chance to ensure your new home is in the condition agreed upon. Address any issues with your real estate agent to find the best solution. Ready to start the home-buying process? Begin your mortgage approval with V Nation Corp® today.

Home makeover shows make house flipping easy and exciting, with stunning results. If you're considering buying a flipped house, it's essential to understand what to look for. What Is House Flipping? House flipping involves an investor buying a home, updating and repairing it, then selling it for a profit. Should You Buy a Flipped House? Flipped houses offer modern aesthetics and appliances and are often move-in ready with no closing delays. However, they also come with risks, including shoddy craftsmanship and potential compliance issues. How to Identify a Flipped House Check the property's history and the seller's information. Look for recently bought homes and sellers who own multiple properties. During your visit, pay attention to renovated areas like bathrooms and kitchens. What to Look For When Viewing Flipped Homes Be Skeptical: Look beyond flashy upgrades. Make a Viewing Checklist: Inspect windows, doors, and other areas prone to shortcuts. Verify the Contractor: Ensure the renovations were done by a reputable, licensed contractor. Review Permits: Check for proper documentation to avoid legal trouble. Work With a Home Inspector: Hire a third-party inspector to examine the home's structural integrity. The Bottom Line With careful research and due diligence, you can enjoy the benefits of a flipped house while minimizing risks. Start your home buying process and mortgage application online today.

What Is Price Per Square Foot? Price per square foot evaluates a home’s value, considering location, age, condition, and renovations. A high or low cost per square foot alone doesn't indicate a good or bad deal. How to Calculate Price Per Square Foot Divide the home’s listing price by its total square footage. For example, a 1,000-square-foot home listed at $200,000 has a price per square foot of $200. Neighborhood Average Price Per Square Foot To find the average, add the price per square foot of comparable homes and divide by the number of homes. The median price per square foot is the middle value of these prices. Why It Matters Price per square foot provides a starting point for evaluating home value and space. It helps buyers compare similar homes and ask relevant questions about pricing differences. Example Two neighbors sell their homes: Brian & Tina updated a 1,500-square-foot home for $280,000 ($187 per square foot) and Christina & Bob's 2,000-square-foot house for $300,000 ($150 per square foot). Brian & Tina's higher price per square foot might reflect recent updates, making it potentially more attractive despite the higher cost. Current Trends As of May 2024, the U.S. median price per square foot is around $233. This can vary significantly by location, with high-demand areas like New York City exceeding $1,000 per square foot. Median vs. Average Price Per Square Foot Median: The middle value in a set of prices, giving a more typical price for an area. Average: The total of all prices divided by the number of homes, which can be skewed by extreme values. Conclusion Price per square foot helps compare home values but should be used with other information. Consult a real estate agent for a complete picture of a home’s value.