More Iowans buying homes with cash
Posted By Admin on January 14, 2012
Tips for cash deals
MAKE IT OFFICIAL: Parents buying homes for their adult children and expecting to be repaid should meet with an attorney to get a contract, says Kurt Schade, a Des Moines real estate agent. ?I?ve seen so many family relationships deteriorate? as unexpected expenses arise and kids put repaying their mortgage to Mom and Dad on the back burner. A formal agreement also ensures young buyers can claim the interest on their income tax return.
CONCESSIONS: A cash buyer could get price concessions from sellers, who face less risk than they would selling to a buyer with conventional financing. Schade said getting a loan and the appraisal needed to support the mortgage can be difficult, and it takes up to six weeks.
BEWARE FORECLOSED HOMES: A foreclosed home can be a bargain. It can also be a money pit, say Schade and others. Having no utilities hooked up can hide broken pipes, furnaces and water heaters. Lenders also typically seek higher down payments and interest rates.
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