To purchase residential real estate in Massachusetts involves a lot of thought to financing. When looking through the real estate market, you will find that there are a number of different types of sales. In addition to sale types, there are plenty of financing options available. While the number one financing option is through a traditional bank, it is not the only option. In fact, according to Forbes, there are several options available to finance personal real estate.
Short sales are often appealing to real estate buyers. Short sales occur when the homeowner faces his or her own financial difficulties and the bank will allow the homeowners to sell at a price lower than the home’s value. Bank approval is necessary for this form of sale. Foreclosures also involve the bank. In a foreclosure, the bank repossesses the home and sells the property.
Sometimes, the owner of a home will offer financing to the buyer. This provides you with a way to receive financing from the homeowner rather than a separate lender such as a bank. Those who may have difficulties selling their home may offer this form of financing. In addition, you may find lease options. Lease options involve you paying a fee for the rights to purchase the property later. When entering into this agreement, you can decide on a price you will pay upfront or you can decide to pay market value when the future date arrives. If you do not purchase the home at that date, the owner can sell to a different party.
The above information describes the different home financing options. It is not to be interpreted as legal advice.