Financing between buying and selling your home
---------BETTER JUDGEMENTS--------- Better Judgements eZine Terria Judge, Realtor CRS, ABR, GRI, Broker Associate Better Judgements is a newsletter on home matters, from Terria Judge, your Garden City, KS real estate agent! Contact Terria Judge at 620-271-2129! Terria Judge Coldwell Banker, The Real Estate Shoppe, Inc. John P. Judge, Broker 1135 College Dr. Suite E Garden City, KS 67846 1-877-275-7497 x 223 620-275-7421 x 223 http://terriajudge.com http://gardencityksrealestate.com http://gardencityrentals.com Terria@TerriaJudge.com Subscription Management at end of newsletter. Thanks for your subscription to Better Judgements, the newsletter from your Garden City Kansas Realtor, Terria Judge. ---------BETTER JUDGEMENTS--------- In this Issue ============= 1. Article: Bridging Loans - Fulfilling Financial Shortfall Between Real Estate Transactions 2. Features at TerriaJudge.com 3. Featured & New Listings 4. Article: Real Estate For Beginners: Residential Property Taxes 5. August Stuff: Interesting Days of the Month ---------BETTER JUDGEMENTS--------- Bridging Loans - Fulfilling Financial Shortfall Between Real Estate Transactions By Natasha Anderson You are trying to buy a new property and selling the current one to raise money for the new purchase. It is usually difficult corresponding sale of one property with the buying of another. This almost always leads to financial gap. For this particular circumstance bridging loans are organized. Bridging loans are another term for short term financing. It is meant for real estate financing until permanent financing is secured. Commercial real estate transactions require bridging loans to \"bridge\" in cash gaps. Bridging loans can serve to fill up temporary shortfall while buying property, business or even paying for renovation. Bridging loans can serve the same function if you are buying property at an auction. Bridging loans are secured loans, secured on property. The borrower would be required to place significant collateral. A Bridging loans lender would accept the following as security for the loan – * Residential properties * Auction properties * Commercial and semi-commercial properties * Development sites * Sites with planning permission * Buy to let properties * Retail shops * Overseas property Heavy machinery, business equipment, inventory can also function as collateral. Bridging loans can be secured by getting a mortgage on the new property and taking out a second mortgage on the property being sold. Bridging loans involve an evaluation of property. Bridging loans are offered on the value of the property and not the purchase price. Bridging loan approval process is the beginning of getting a bridging loan. If this is your first time at loan borrowing, start looking around for loan lenders that you are at ease with. Getting pre approved would give you an idea of how much you can get. Being pre approved, enables you to act quickly when the property is available. Loan amount on bridging loans can range from £25,000 to £500,000. The loan amount usually depends on loan lender so shop around for better deals. Higher amount can be arranged but usually takes longer time. Bridging loans, loan term that can be anywhere between a week and six months. The maximum term is two year. The borrower must be certain of his situation and that he can repay it within a short period of time. Speedy finance is probably the most sought after benefit of bridging loans. Bridging loan can be made available within 24 hours, if you have all the necessary documents ready. Most bridging loan lenders do not ask for upfront legal and arrangement fees. Usually there are no redemption penalties with bridging loans. Self certification in the context of bridging loans is also possible. Be prepared to pay more on bridging loans. A bridging loan poses a sizeable risk to the loan lender because the old home may not sell for some time. The interest rate on bridging loans is comparatively higher than conventional mortgages. The typical interest rate is one half of a percent. The interest rate is generally dependent on credit history, value of collateral placed and loan term. The borrower starts making interest payment at the end of the term, in case, the old property is not sold. After the old home is sold, the bridge loan is paid back. If the house is sold within the term limit, all the unearned interest is credited back to the borrower. It is a short term mortgage and bridges in temporary shortage of finances in the face of a real estate transaction. The bottom line is bridging loans are for short term financing. They are devised for a specific purpose and therefore not meant for everyone. It is also available for bad credit. Thus, bridging loans can assist in forming a record so that you can apply for conventional mortgages. Having a trust relationship with the loan lender makes bridging loans process highly uncomplicated. However, if you can\'t boast of such an association, don\'t sign anything related to bridging loans without completely understanding the loan process. The market for bridging loans is constantly increasing. Healthy competition has resulted in keeping the bridging loans interest rate low. This has made bridging loans a realistic option for those who need funds quickly. About the Author: After having herself gone through the ordeal of loan borrowing, Natasha Anderson understands the need for good quality loan advice.She works for the UK secured loan web site uk finance world.To find a Secured or unsecured loan that best suits your needs visit http://www.ukfinanceworld.co.uk Source: http://www.isnare.com ---------BETTER JUDGEMENTS--------- New Features at TerriaJudge.com ==================================== MORTGAGE CALCULATOR: http://terriajudge.com/calculator.html OPEN HOUSES: http://terriajudge.com/calendar.html ---------BETTER JUDGEMENTS--------- FEATURED & NEW LISTINGS ======================== *new* http://terriajudge.com/featuredlistings.html Just visit Terria at http://terriajudge.com/marketevaluation.html to fill out an interest form if you'd like to list your home! ---------BETTER JUDGEMENTS--------- Real Estate For Beginners: Residential Property Taxes By Nicole Soltau Whenever you own a piece of land, you will be taxed for it. Whether it is commercial property or residential property, there is still a tax to pay, whether it is for a village, town, city, county, or state. Most residential private property taxes are handled on the local level, going no higher than the county. Depending on the nature of the business, it may be handled by a variety of entities, including state and federal agencies. Each specific area and state has its own way of levying property taxes. This article is intended as real estate for beginners and will focus on property taxes as they relate to residential private property. Your Credit Union financial advisor can also provide a good deal of valuable information; call today to schedule your free consultation. How property taxes are used. Each locale uses the revenue earned from property taxes for different purposes. It can be anything from road repairs and utility upkeep to firefighter salaries and emergency response. Most areas, however, use the money received from property taxes for school districts. Taxes are levied and then distributed to schools in a district according to the amount of money received from property taxes. This often puts homeowners in a bind, as most of them want quality education for children, but are reluctant to vote to pass measures that will result in a property tax increase. How property taxes are determined. Before buying a home, it is important for real estate beginners to understand how the amount you pay in property taxes is decided upon. Everyone pays a different amount, depending upon how much a home is worth. The tax rate for an area is the same throughout that area, but due to varying home values, the property tax you pay may be a little higher or lower than your neighbors. If the property tax rate in your area is 9 percent, and your home is assessed at 250,000 dollars, your yearly property tax would be 22,500 dollars. If your neighbor\'s home were only assessed at 235,000 dollars, he or she would pay 21,150 dollars in taxes per year. Many areas have specified periods of time required for a new assessment. Most places require a new assessment every five to seven years. This means that your taxes could go up or down as your property value changes. What goes into a property assessment? There are some guidelines assessors use when determining the value of your home. By being acquainted with these, you will be more likely to understand why your home has been given a certain value. Here are the most common benchmarks taken into consideration when determining a home\'s value. * Sale price of similar properties in the area: the assessor will know how much other homes in your immediate area are selling for, and will assess your house to reflect the value of the neighborhood. * Property\'s historical value: records of the property\'s value through the years will help the assessor determine whether the home\'s value keeps with current trends, and whether the home increases in value over time as a general rule. * Cost of replacing the property: it is possible to determine how much the materials to replace the property, or to add improvements to increase value, would cost. This can figure into the value of the property. * Potential value of the property if it is used to make money: many people use their property as income through rental or sale, and this value can be used to help the assessor decide how much he or she should value your property for. Disputing an assessment. Because home values are subjective, it is possible to dispute a value. You can speak with neighbors and realtors to discover what homes in the area are valued at. Recent home buyers and sellers can give you a good idea of what others are paying in property taxes. Visit your tax board or the local tax assessment office to find out what the procedures are for dispute an assessment you feel is unfair. Paying your property taxes. As a real estate beginner, you want to be sure that you are paying the taxes on your property. There are a number of ways to do this, including paying to the tax commission quarterly or yearly. However, the simplest way to pay your taxes is to have them integrated into your home loan. They can be added to your monthly mortgage payment, making it a relatively hassle-free way to make sure everything is taken care of. With a little savvy, even a real estate beginner can have a good handle on what it takes to get a fair value assessment and know the ins and outs of paying property taxes. About the Author: Nicole Soltau is the President and Founder of CreditUnionRate.com. The Leading Credit Union Directory. Search, Find, Join. http://CreditUnionRate.com Source: http://www.isnare.com ---------BETTER JUDGEMENTS--------- Weird August Days of the Month August 1 is . . . . . Friendship Day and National Raspberry Cream Pie Day August 2 is . . . . . National Ice Cream Sandwich Day August 3 is . . . . . National Watermelon Day August 4 is . . . . . Twins Day Festival August 5 is . . . . . National Mustard Day August 6 is . . . . . Wiggle Your Toes Day August 7 is . . . . . Sea Serpent Day August 8 is . . . . . Sneak Some Zucchini Onto Your Neighbor's Porch Night August 9 is . . . . . National Polka Festival August 10 is . . . . Lazy Day August 11 is . . . . Presidential Joke Day August 12 is . . . . Middle Child's Day August 13 is . . . . Blame Someone Else Day August 14 is . . . . National Creamsicle Day August 15 is . . . . National Relaxation Day and National Failures Day August 16 is . . . . Bratwurst Festival August 17 is . . . . National Thriftshop Day August 18 is . . . . Bad Poetry Day August 19 is . . . . Potato Day August 20 is . . . . National Radio Day August 21 is . . . . National Spumoni Day August 22 is . . . . Be An Angel Day August 23 is . . . . National Spongecake Day August 24 is . . . . Knife Day August 25 is . . . . Kiss-And-Make-Up Day August 26 is . . . . National Cherry Popsicle Day August 27 is . . . . Petroleum Day August 28 is . . . . World Sauntering Day August 29 is . . . . More Herbs, Less Salt Day August 30 is . . . . National Toasted Marshmallow Day August 31 is . . . . National Trail Mix Day ---------BETTER JUDGEMENTS--------- This newsletter is compiled and published by Mitone Griffith, http://BIGad.org
Message Added: August 4th, 2006 at 1:43 pm
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