Mortgage Options for Tricky Situations
BY ALLISON SIMSON AND JOYCE NENNINGERQuestion: Our home is on the market and I think it should sell soon but it hasn’t sold yet. Here’s the problem we found another property that will be a perfect replacement. What financing options would be available to us if we decide to buy before our old home sells?Answer: When you want to close on a new home but your current home hasn’t sold yet, there are a number of financing arrangements that can help bridge the gap. The odds of such a situation occurring is higher when the real estate market cools. The most common interim financing tool for buyers is a a short-term bridge loan, which finances the down payment and closing costs for a new home. When buyers sell, they repay the bridge loan. While it provides lots of flexibility, this type of loan usually carries high interest rates.A better alternative for some is a bridge loan with deferred interest payments. It pays off the first mortgage, eliminating one set of mortgage payments, plus it covers the down payment and closing costs on the new home. The seller often doesn’t pay anything until he sells his home.A third possibility is 100 percent financing on the new mortgage. With no down payment needed, the buyer can manage until his old home is sold. However, the buyer must be approved to hold two mortgages.Don’t Let Ugly Wallpaper Scare Off BuyersQuestion: My townhome in Dillon has been on the market for a long time. My Realtor says that buyers don’t like the wallpaper. I don’t have the time or money to replace it. Any suggestions?Answer: The house is nice, but the wallpaper is such a disaster that it scares off potential buyers. Here are a few ideas from Lori Matzke, a Minneapolis designer, for neutralizing strongly patterned wallpaper that the seller can’t or won’t remove. Downplay the wallpaper by painting any contrasting walls or woodwork a neutral (not a dark) color. Take down artwork that adds to the busy feeling and replace it with simple mirrors. Decrease the amount of color in the room by boxing up knickknacks and covering overly bright carpet with beige or other neutral color area rug. Replace high-wattage light bulbs with low-watt ones, and open the blinds or shutters to let in natural light. Draw visitors’ eyes away from the wallpaper with bouquets of simple flowers.Oversize Homes Meet Community ResistanceQuestion: I am amazed at the size of some of the homes I see in Colorado mountain communities. Is anyone doing anything to control the sprawl of these mansions?Answer: Concerned that huge homes clash with neighborhood surroundings and pose land-use problems, an increasing number of communities across the country are imposing bans on McMansions. For example, homes that encompass more than 15,000 square feet soon may be outlawed in Pitkin County, Colo., where Aspen is located. The county is running out of vacant land for homes and the roads are getting too crowded, says Pitkin County community development director Cindy Houben. In Arlington County, Va., meanwhile, the amount of lot space that can be devoted to a house has been dropped to 30 percent from 56 percent due to concerns that supersize homes do not mesh with existing dwellings. Growth restrictions also have been implemented in Alamo, Calif., which prohibits homes of more than 10,000 square feet. For answers to your real estate questions, call Joyce or Allison at 970-468-6800 or 1-800-262-8442. Email Info@SummitRealEstate.com or visit their web site at http://www.SummitRealEstate.com. Allison and Joyce are both long time locals in Summit County. Summit Real Estate The Nenninger / Simson Team is located at the Dillon Ridge Marketplace. Their long-time residency and years of real estate experience can help you make the most of any buying or selling situation. Both are Certified Residential Specialists (CRS), the highest designation awarded to a Realtor in the residential sales field. Their philosophy is simple, whether buying or selling, they understand that the most important real estate transaction is yours.
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