Viewing posts categorised under: Bridge to Own®

3 Ways to Invest Your Tax Refund

Bridge to Own® | 0 comments | by newman

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3 Ways to Invest your Tax Refund

It’s no question that most people would rather own a home than rent. You can choose your own paint colors, have all the dogs you want, and not have to worry about sharing walls with another family.

So what’s keeping you from buying a home?

MYTH: There’s a perfect buyer that the lenders are looking for, you have to have perfect credit, and you can’t have messed up once in your life, because if you do, a lender won’t take you.

Our advice: Don’t focus on the negative!

We love to solve real estate problems. From buying your unwanted home to helping first-time homebuyers navigate the unknowns, we love a good challenge!

We believe in investing – In your family, your future, and yourself. What could be a better investment than a fully remodeled home?

With tax refunds coming in, we think this is a great season for investing. If you’ve been thinking about purchasing a home, consider using your tax refund to help you get closer to your goal!

We know that saving your tax refund for a down payment sounds ideal, but sometimes it is not what is really needed. You can instead use your tax money to pay down other debt. This can help bring money back into your budget and increase your buying power.

 

3 Ways to use your tax refund if your goal is to own a home:

 

1. Use your tax refund to increase your credit score. 

Pay balances down on some credit cards to increase your credit score. You want to keep a little bit of revolving debt, so it’s best to keep your balance just under 10%.

Pro tip: If you have 3 different cards that are all maxed out or have high balances, it’s best to spread out the payments. So having all three cards at 50% is better than having one card at 10%. This can be hard to keep under control because sometimes you can have good intentions. But paying off debt has to be done strategically when you are looking to buy a home.

 

2. Use your tax refund to pay off high-interest payday loans.

You could be paying upwards of 60-70% on these loans, which means you are paying a lot for a little bit of money that you have been given access to. You want to go after these loans first if they are there, and this will free up money to be able to pay off other debt or put down on a mortgage.

 

3. Use the tax refund to pay off collections.

This is where it can get tricky, so it’s important to have a strategy in place! Sometimes, you don’t want to jump on an older collection. It looks better on the front end to pay off credit from the earliest to the oldest.

 

Coming in for an initial consult with us is important! When you come in for a consult, we are able to look at your specific situation and put a strategy in place that is best for YOU. We said that we love problem-solving, so we offer in-house credit repair services.

Start your journey home today! Schedule your free consultation with us below.

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Rent to Own is for Furniture

Bridge to Own® | 0 comments | by newman

The world is full of rent to owns and lease options. For people who can’t get a mortgage, these appear to be a way to move beyond renting and own a home. The problem is the traditional rent to own works better for buying furniture than buying houses.

The Problem with Traditional Rent to Own Programs

At New Again Houses®, we hear rent to own horror stories weekly.

“The landlord kicked me out after 5 years and sold the house.”

“The seller took my payments and didn’t make his. The house was foreclosed on.”

“The house is in such bad condition, no bank will give me a mortgage.”

“I’m at the end of my contract and I still can’t qualify for a mortgage.”

Many of these rent to owns are done with individual landlords who have little accountability when things go wrong. They aren’t members of the Better Business Bureau and don’t even have a Facebook page. If you put your money toward buying a house, you need to be sure the seller is legitimate, committed to selling the house, and you have a path that leads to a 30 year fixed rate mortgage.

It’s not enough to sign a rent to own contract. Eventually, you’ll need to qualify for a mortgage and that doesn’t just happen magically with time. You’ll need help with credit issues and the $29.99/month credit repair plans can cause more problems than they solve. Self-employed or commission based? That’s tricky and you’ll need help getting your finances in line with mortgage regulations. Then, there’s the house. Old windows with peeling paint? That could be a deal killer for an FHA loan. No heat pump? Old roof that’s survived a few hail storms? Knob and tube electrical wiring? The lenders and appraisers will go running in the other direction.

Our Bridge to Own® Program Solution

At New Again Houses®, we’ve developed the Bridge to Own® program to solve the problems keeping you from owning one of our remodeled homes. We won’t let you move in until we’ve done the following:

  • We look at your finances to ensure you can qualify with a licensed mortgage company or bank.
  • A credit expert develops a detailed plan to get your credit to the required score.
  • A licensed mortgage broker reviews the file to make sure we haven’t missed anything.
  • We invest in the house remodel so it will pass any lender’s inspection and be a good investment.
  • We talk through the contracts so you fully understand your responsibility in the process.

The Bridge to Own® program is not seller financing and it’s not your traditional rent to own. It’s a short term bridge that enables you to get a 30 year low fixed rate mortgage within six months. To get started, contact us today to see how our unique program can help you buy a home.

Bridge to Own®

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