More than likely, you’ve been hearing a great deal about mortgages and other real estate financing issues in the news lately. For someone who is not familiar with this type of financing, it can be difficult to understand. Here are some basic tips to know about obtaining funding for Cherry Creek homes for sale.

Your agent can help

While your agent doesn’t have any authority when it comes to approving you for a loan, they can certainly help with the process and will likely know a great deal about it. Agents know a sale isn’t really closed until every little issue has been resolved, and financing is a big issue. Your real estate agent’s expertise may not specialize in obtaining financing, but they have surely navigated the process successfully several times before. Your agent can give you advice concerning all of your options and by suggesting some lenders to work with that they have had good experiences with in the past.

You don’t have to go to a bank

While banks are certainly the most common lending method, there are several options available to homeowners. You could do seller financing, meaning the lender is the actual previous owner of the house, which is a service that the seller would have to be totally on board with—this is something often done if the seller is having a hard time selling the home and offers seller financing as a motivator. The advantage here is that by bypassing the bank, you are going to have a faster and cheaper process.

You can take out a loan against a life insurance policy. This can actually be relatively easy due to the lack of application process. An idea growing in popularity lately has been rent-to-own, where the future owners actually get a trial period of the house while getting a temporary place to live. And don’t forget the cash option. It’s not something you would be able to do on shorter notice, but it’s a good idea to tuck away for the future.

You money may be held by a third party

If you have an agreement with a seller to buy their home, you won’t exactly send the money straight to them. Payments are often held in escrow, meaning a third party holds the funds until certain agreed upon conditions were met. If the conditions aren’t met, then the other party may be able to back out of the sale without consequences.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

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