1. Real Estate Marketing and Sales Essentials Steps for Success Dan Hamilton

2. Financing Introduction:

3. Financing 1.Good credit. 2.Substantial, steady, and verifiable income for at least two years. 3.Large reserves of cash on hand. If a buyer has two of the following three things, he or she should be able to finance a property:

4. Financing 1.Loan fees, including: 1.Nonallowables 2.Title charges 3.Taxes 2.Hazard insurance 3.Total cash out of pocket needed to close Here are several things to look for in a good faith estimate:

5. Financing Government Financing With these type of loans, the federal government insures the lender against losses due to default.

6. Financing Conventional Financing Conventional financing is defined as any financing that is not government backed.

7. Financing Seller Financing Some sellers want to finance their property for a buyer.

8. Financing Wrap-Around Loan This type of transaction usually involves a seller who has a current loan that does not have an alienation clause. The seller “wraps” an additional loan around the existing loan.

9. Financing Balloon Note A balloon note is any note that the final payment is larger than any of the previous payments.

10. Financing Lease/Purchase A lease/purchase is a lease for a few months with a purchase at the end of the lease.

11. Financing Buy-Down Mortgage A buy-down mortgage is a fixed-rate mortgage in which the seller prepays some of the loan interest to “buy down” the interest rate for the buyer-borrower for some period.

12. Financing Buyer Qualification Buyer qualification refers to the process of determining the risk of loss on a residential loan.

13. Financing Summary: