Every
person requires finance to buy a home. But everybody cannot pay the entire
amount just once or pay in two instalments and buy a home immediately. So, they
raise finance from different sources such as banks, co-operative societies, or
other financial organizations. They should normally start repaying the amount
in instalments after they attain a home. The process of attaining finance from
banks is usually difficult. Many people do not qualify for loans. The people
with poor credit history, divorce history, bankruptcy, previous foreclosure
history, poor medical conditions etc cannot attain loans easily. Only some
organizations across the globe provide loans or finance to needy people.
Owner
financing
The
concept of owner financing has become common now-a-days. The buy house owner
financing is a concept for buying home by borrowing financial assistance from
the owner only. The seller acts as a bank and provided finance to the buyers at
a certain interest price. But, such homes are not usually available and the
seller overprices such homes, while they do not even maintain them properly.
But a buyer should find a home that is at least fairly in a good condition. So,
in countries like U.S. many people are buying owner financed homes.
The
seller financed mortgage properties are usually available at a lower price.
RC
system
The
RC system is commonly followed in U.S, where the buyer of the home should
attain a Deed with the help of investor and choose a dream home.
How
to buy a dream home
If
a person wants to buy a home easily from a good financer, then the buyer should
sign an agreement with the seller and follow the terms and conditions as laid
down. Such financers usually arrange for a realtor also, who helps in finding a
right home. Then the buyer should find out the interest rate of all types of
loans and choose a scheme that is suitable. The investors then purchase the
home for the buyers.
Usually,
some financers instruct the buyers to buy 20% down payment to attain the home
of their choice. Usually, most of them strictly verify the employment or
business records to know the financial condition of the buyer. So, people who
cannot produce regular income statements cannot attain loan easily. But some
financers do not check the income statements, but provide finance if the buyer
is able to pay some percentage of down payment.
