Lender and Borrower Relationship

Lenders and Borrowers

Lenders and borrowers have a unique relationship when it comes to the home buying process.

For most transactions lenders and borrowers have a formal relationship. However, when the lender and borrower know each other, whether they are family or friends, is an entirely different story. The Internal Revenue Service has specific rules that govern the transaction especially when the parties know each other.

For starters, the loan must be done in a business-like manner. Even though you know one another doesn’t mean that you don’t have to do everything that you would normally do. You are going to want to have a written note specifying the loan amount, interest rate, term and collateral. The Internal Revenue Service requires that the mortgage be a recorded lien to allow the interest deduction.

You may be in a situation in which you have a less than normal interest rate on your mortgage. Though this is a great thing, remember that there are restrictions on this as well. The rate charged in the note is regulated by the minimum applicable federal rate which is published monthly by IRS based on current Treasury securities. You don’t want to make any of these agencies mad, so make sure you follow the guide lines they specific as closely as you possibly can.

The seller must report the interest paid to them along with the name, address and Social Security number on schedule B when the buyer uses the property as their principal residence. If you play your cards right, you may allow the borrower a slightly lower rate without the expenses of a traditional lender while giving the note holder a higher rate than they can earn in available investments.

Your tax professional can guide the transaction whether you’re a buyer or a seller and your real estate professional can help arrange to have the documents drawn and filed. If you are looking for a lender, contact Colorado Horse Property for assistance.
 

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Photographing Property

Photographing property is important. When individuals are looking for a home to buy or rental to purchase for an investment, what is the first thing they do? Search the web of course! In this technological age that we are living in, it is very easy to look for potential homes to buy that are already on the market.

Photographing Property

Photographing Property

Pictures of the property are important when it comes to online searching because it gives the buyer a since of what the property looks like and room for their imagination to show them the way it could look if they got their hands on it. If you are selling your property, you should definitely put the listing online with a lot of pictures.

Buyers typically start looking at homes on the internet before they even think about contacting an agent. For one thing, it is way easier to screen properties by looking at the pictures that have been posted than to make appointments with a homeowner, drive to the property, and waste a lot of time looking at it. Most of the time the properties shown to you by an agent will not meet your criteria.

Yes, everyone loved the pictures you took of your cousin at his twenty-first birthday party, but not everyone is a photographer so you should consider getting your photos taken by a professional. Photographing property isn’t easy. If you need help finding a property photographer, contact Colorado Horse Property for help. Here are a few things you should keep in mind when getting your photos.

  1. Quantity—Don’t forget that you will need enough pictures of your property to adequately represent it. The majority of websites allow for at least two dozen images and more may be needed if your property is large. Also, try arranging the images on the website in a way that will help buyers visualize the floor plan as if they were walking through it in real life.
  2. Quality—You may have the nicest home on the block, but no one will want to purchase it if the images they see online are of bad quality. Horizontal images fit best with most listing websites. Ensure that you or the photographer has proper lighting in the property so that pictures come out crisp and detail all of the room.
  3. The Lens—Make sure that you or your photographer has a wide-angle lens. Images taken with this type of lens will show the majority of the room in one picture.
  4. Perspective—When taking shots of the rooms in your property, remember to take some from a few different angles to give the buyers a different perspective. You can stage a room before taking the pictures; the buyer will have a better idea of what the room might look like with their own things in it.
  5. EquipmentNo one wants to see a blurry imageThink about using a tripod; professionals do to absolutely hold the camera still.

 

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Home Cleaning Tips

Home cleaning tips can help you when life gets away from you sometimes. Routines can be tight, especially if you have a large family to take care of, and sometimes cleaning doesn’t get enough time in the schedule that it needs. Actually, if you manage your time efficiently, you can take care of your family and your home with less time cleaning up.

Home Cleaning Tips

Home Cleaning Tips

I’m not talking about throwing the clothes in the washing machine or the dishes in the dishwasher. I’m talking about dusting, which depending on how large your home is can be a difficult thing to do. You have to be committed to your housekeeping strategy and not only cleans away the dust built up in the nooks and crannies of your home but also what causes the dust buildup in the first place. Remember, dust can cause allergies and asthma symptoms so riding it from your home will make everyone happy. Here are a few tips on how to do that. Get help with spots and stains here at Colorado Horse Property.

  1. Purifiers/Humidifiers—Humidifiers are known to eliminate static electricity which can hold onto dust and air purifiers circulate the air in your home, capturing dust and other pollutants as it does so.
  2. Vacuuming—If you have carpeting in your home that must be vacuumed, don’t forget to change the bag or emptying the container in your vacuum. Consider vacuuming your floors once a week so that the dust don’t have time to build up. Remember to vacuum under furniture and periodically move appliances to clean behind and underneath.It might seem like a hassle, but by using the proper attachments to your vacuum on upholstered furniture and under cushions can really make a difference.
  3. Planning—Plan on dusting your home at least twice a week. That might sound like a lot, but the more you do it the less there will be to dust every time. Try starting with the tallest items and work your way down. Don’t forget about the small things like picture frames, blinds, baseboards and anything that stands out from the wall.Mopping with a damp mop and dusting with plain water helps hold the dust and is environmentally friendly.
  4. MicrofiberMicrofiber cloths have an electrostatic charge and can attract dust more efficiently than using a regular feather duster. Actually, feather dusters can spread more dust than they collect.
  5. Home Air FiltersFilters on heating and air-conditioning systems hold a lot of dust and should be changed often. This will also increase the efficiency of the units themselves. HEPA filters can improve the overall indoor air quality.

 

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Perfect Homes

Perfect HomesPerfect homes comes after finding the right agent. Colorado Horse Property has previously laid out a guideline of questions to ask  your agent to make sure they are right for you. Expanding on that, a broad skill set is required to select the perfect real estate agent for you.

Perfect Homes

The way the market used to work, many buyers did not have access to every home that was for sell. Nowadays with the advent of the internet and the sharing of information that has changed. The National Association of REALTORS® is America’s largest trade association. It represents 1.2 million members, including NAR’s institutes, societies, and councils These members are involved in all aspects of the residential and commercial real estate industries. Right out of the National Association of Realtors (or the NAR) came a study called the Profile of Home Buyers and Sellers. Indicated in that study was that least fifty-two percent of home buyers wanted help in finding the right home to buy. Nearly a quarter of buyers wanted help negotiating prices.

As important as prices, negotiating the terms of sale is paramount. The negotiation takes place when the contract terms are agreed upon. These include the price, closing, and possession. You could be done there, but if you have anything else to bring to the table (problems with financing, inspections or other things) then you will get another chance to bring them up. This is because buyers do not want to pay more than what is absolutely necessary. This is completely understandable in today’s economic climate. Ask the agent representing you to specifically list the tools and talent they have available to address these areas. Ask about their financing and paperwork skills. You may have been through the process before, but if it was been several years then things have probably changed and a good agent will know how to deal with them.
 

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