Dean Graziosi

The android smart phone is ubiquitous. It seems everyone is upgrading their older model phones so they can carry the newest technology in their pocket. And people are getting smarter about how they use their smart phones. While games will always remain a hot product, eventually people have to get back to work and focus on the task at hand. And when that task includes buying a home, here are some suggestions for the top real-estate related apps.

Glossary Real Estate Terms: This application will be useful by anyone who is involved with a real estate transaction. It is a comprehensive dictionary of real estate terms that is easily accessible. (Cost: Free)

Housing Loan Calculator: Trying to figure out what payments on a mortgage will be is easier for people with this app. Users can check their estimated monthly mortgage rate at any point in the buying or negotiating process. Use this app to help you configure the cost of a home mortgage. (Cost: Free)

Realtor.com: With this app, users can quickly find available houses in their area. It is updated every 15 minutes if the user has an active data connection. Houses viewed on the app can be saved and viewed later on a computer. (Cost: Free)

Google Maps: A priceless app that does not cost a penny! For people who get lost easily this app can point you in the right direction quickly. The interface is simple to use, especially for users accustomed to using Google Maps online. (Cost: Free)

Craiglist: It might not seem an obvious app to be included on a real estate list, but since Craig’s List includes home listings, it is a perfect fit. Utilize this app for finding homes that are not on a real estate agents radar. And then, once the house has been bought, app users can search for appliances and furniture to fill the house. (Cost: Free)

Real Estate by Smarter Agent: At first glance this looks like just another app for finding homes for sale. However, this app is set apart by the ability to search for sold homes as well. It is helpful to know what the neighborhood’s average sold home price is before an offer is made. (Cost: Free)

USHud Property Search: A free listing of foreclosures that one can browse on the go. Sounds good! Find distressed or ROI properties that might be available for a quick sale or a short sale. (Cost: Free)

There are other free Android real estate apps available and just as consumer should be smart when they shop for a home, so should they be smart when they download apps. Always check the current ratings and optimizations for each app to be sure it will work with the intended phone.

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When selling your home, you want to make sure it is attractive to all who view it. The same is true for the terms of the sale. A prospective home owner will be more likely to consider buying your home if it is presented in the best possible light. This also means choosing flexible terms. The offer will be one the buyer can’t refuse and your house will sell more quickly.

Owner financing is an important part of your sale. Understanding the mechanics is essential.

Let’s say you begin with a property that is owned free and clear. This means there are no mortgage liens on it. You owe nothing to the bank. You agree to sell it for $100,000 with the terms 5 percent down and owner-financing for $95,000. This equals 95 percent of the purchase price. The buyer agrees and pays the $5,000, thus agreeing to pay the remaining $95,000 as discussed. You deliver the deed turning over ownership of the property to the seller. The promissory note, ( promise to pay), is secured by a mortgage recorded against the property as a lien in your favor. Here, you will act as lender, funding part of the purchase price of the home. You can set a balloon date in the promissory note designating when the loan is to be paid in full. When this date arrives, the buyer must either sell the home, or obtain a loan from a traditional source. This would include a bank or mortgage lender. Once this new loan is obtained, you will be paid off and the lien removed from the property. Some states use a different form of mortgage known as a “deed of trust”.

It is possible to execute owner financing with a mortgage and some equity. Let’s say your home has some equity because it has appreciated in value since it was purchased, or you made a sizable down payment when purchasing it. Let’s say you own a property that is worth $100,000 and it is encumbered by a $80,000 mortgage. You agree to sell it for $100,000. Because there is $20,000 in equity, ($100,000 minus $80,000), the buyer offers to pay $10,000 as a down payment and borrow the balance of the $90,000 from a mortgage lender. At the last minute, the lender decides not to fund the loan. Instead, the lender decides to fund only $80,000, which is $10,000 short.

Here you could decide to drop the price of the home. If you don’t feel this is a good option, you can always simply put the house back on the market. One more option is to accept a promissory note for $10,000 as part of the purchase price. At closing, the buyer will pay down $10,000, borrow $80,000, and give you a promissory note for $10,000. You sign over the deed to the buyer and the buyer signs a mortgage lien to the lender for $80,000. The lender will then possess a first lien on the property. The buyer will also sign a secondary mortgage lien over to you. After a year has passed, the buyer can then obtain another loan of $90,000, thus paying off both mortgage liens. In the meantime, the buyer makes interest payments to you on the $10,000. This will be a nice income stream for you the seller.

Understanding the mechanics of owner financing is important. There are other options you can use as well. If you are unsure about them, ask your realtor or a mortgage lender for more information.

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The trend in obtaining a home mortgage tends to lean towards home buyers choosing a mortgage broker. And mortgage brokers are happy to let people continue on that trend, as evidenced by the number of them who comment on websites and articles that address this issue. Unfortunately, what too few of them add is that for some individuals, obtaining a mortgage directly through a bank is truly a better choice.

The first advantage is about saving money. Prospective home buyers who only need to borrow relatively small amounts will end up paying more in fees relative to buyers who are financing a larger amount of money. Mortgage broker fees of $1000 might make sense for a $250,000 loan, but make less sense for a borrower who only needs $50-$60,000. Those fees would be a full 2% of the amount being financed and that does not make sense. Skipping a broker will remove a layer of fees and reduce the costs attributed to financing a home purchase.

Another advantage of obtaining a mortgage directly through a bank comes when borrowers work with a bank with whom they have already established a relationship. Financial institutions want to keep as much of their depositors money as possible which is why they all offer a variety of home loans. It is a commonly held belief of financial institutions that if they can hook a client into using at least 3 or 4 of their services, then the client will stay with them longer. So to that end, banks and credit unions create attractive financial products to keep their existing customers in house.

Most people might not realize this, but not all mortgage brokers have access to every possible loan option available. Many times brokers will have a limited lender panel to choose from and then their clients are not presented mortgage options that might exist through community bank or credit unions. For this reason, shopping for a mortgage directly with a bank can result in lower fees and or rates.

The choice of how to obtain a mortgage is a personal one. All of the various pros and cons of mortgage brokers or working directly with a bank need to be weighed carefully by the prospective buyer. Even if that buyer has used a mortgage broker in the past, that does not mean it is the right choice for them now. Ultimately, one size does not fit all in the home financing market.

Due diligence is required of anyone who wants to purchase a home. For most people this is the largest single investment they will ever make and it makes sense to take the extra time needed to choose the financing option that is the best fit for your life at that time.

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