When people incur debts and own a home, it is possible that they could have a lien placed on the property. A mortgage is a type of lien that uses the home as a guarantee that the homeowner will make timely payments. There are other, less-common types of liens people might encounter, as well. Home buyers should understand how liens work before they start looking for homes or applying for a mortgage. This guide explains what a lien is, what it does, common types of liens, and how they affect homeowners.
For informational purposes only. Always consult with an attorney or financial advisor or before proceeding with any real estate transaction.
1. What Is a Lien?
A lien is an outstanding debt that uses an asset, like a home, for collateral.
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At some point most home buyers must decide whether a fixed rate or adjustable rate mortgage is the right mortgage for them. Understanding the differences between these two types of mortgages can help home buyers decide what kind of loan they'd like to get. If you're a home buyer trying to decide on a mortgage, here's what you need to know about fixed rate and adjustable rate mortgages.
Most home buyers only see a home once or twice before they make an offer on a property. Home buyers who know what to look for find it's easier to identify which homes are a good deal and which homes should be avoided. The following red flags are an indication that something could be wrong with a house.
A person's mortgage can have a big impact on their quality of life while they're living in their home. A mortgage that is too expensive can put the homeowner in a precarious situation, leading them to bankruptcy or mortgage default. Meanwhile, home buyers who choose not to pay off their mortgage in a timely fashion may find themselves paying more interest over time. These tips can help buyers decide whether or not a 15-year or 30-year mortgage is right for them.
First impressions are everything when it comes to selling a home, and that means listings need to be the best they can be in order to draw buyers in. One of the best ways to ensure a listing is effective is to include photographs of the home and all the rooms. However, it’s important for sellers to note that not all photographs are made equally, and in order to get the best results, homeowners need to know the best strategies. Here are four ways to help take high quality photos that impress buyers.
A good home purchase offer can be an excellent way to secure the Rolling Hills home or property a buyer wants under terms they can live with. However, the offer can also alienate sellers and compromise the purchase before it even has a chance to progress past the first round. Because each home sale is different, buyers need to learn the underlying principles of a purchase offer before they begin to structure the right offer for each one.
Homeowners who aren't looking to move anytime soon or who want to increase the value of the Hermosa Beach property may consider a home addition as a way to add some extra character to their home. And there's no doubt that this is a certainly a fun project to think about. Residents picture what an extra bathroom would do for the wait times in the morning, or how they could use a sunroom to enjoy their evening glass of wine. However, there are a few questions to answer before accepting bids from contractors.
Debt-to-income ratio is an important factor to consider when trying to buy a home and obtaining a mortgage. A person's debt-to-income (DTI) ratio can affect their ability to qualify for a mortgage. People who have a high DTI may not be able to get a large mortgage, or may not be able to get a mortgage at all. Knowing the DTI threshold and what can be done to reduce the DTI ratio can help home buyers to get the home they want.
Refurbishing kitchen cabinets is a common practice among homeowners who are trying to improve their home's value without breaking the bank. New kitchen cabinets are a big attraction for home buyers, so this is a good project for homeowners who want to sell their property. This is also an excellent project for a homeowner who wants to upgrade their kitchen without getting involved in an extensive remodeling project.
When buying a home, it's important to consider whether to get a survey or not. Home surveys are a way to find out the details of the property lot or land, and diving beneath the surface to uncover potential problems before they crop up at a later date. Some states require surveys whenever a home or land is sold, while other states make a survey optional.