Finding your dream house or apartment is a challenge in itself. But the buck does not stop there, there are several factors to be considered before you rent a house or apartment. Better yet, there are several important questions that you should ask any house owner before you decide to move in.
Here are a few simple ones to get you started.
The first and foremost is to ascertain the mode of payment for rent. Some owners insist on cash payments, others a very particular and ask for a cheque. Decide this beforehand to avoid any issues later on.
Also there might be any late rent payment fess which can be imposed by the owner. Ascertain how much this will cost you sine it has to be factored in with rent.
Read the rent agreement carefully and find out exactly what your notice period will be like in case you want to vacate. Owners are very particular about notice period and insist on some tenants staying for the initial few months after moving in, before they can even give them a notice period. Be careful of such conditions since you might just end up in an apartment which is not working out for you, where this condition would pose a problem.
Have a good talk with the owner, figure out what he likes and dislike in his apartment before signing a lease or an agreement. Find out what the guest policy is, whether you can have your friends over for a couple of days or put up with someone in your family. This policy is normally included in the lease agreement and something like this has to be discussed with owners before.
Ask whether you can sublet the apartment in case you cannot meet the rent and want to split the expenses with someone. Normally this does not create much of an issue, but some owners and the community you are part of might be very particular about subletting.
There are number of reasons in the end where the owner will sate and try not to give your security deposit back. One of the major reasons being the apartment was not given back to the owner just the way it was. Of course, there might be some wear and tear, but major damages or substantial damage to any property can cause you to lose out on your security deposit and worse, even pay for extra repairs.
There are many other factors which you as a tenant, should discuss with your potential landlord before deciding to move in.
A reverse mortgage is a type of loan that allows homeowners to receive payments on their house as opposed to them making payments to the lender. At first glance, this option seems too good to be true. But, before committing to it, there are some nitty-gritty details that people must consider when opting for this type of financing. So, here is some information regarding the pros and cons to consider when getting a reverse mortgage.
Advantages
Disadvantages
A reverse mortgage is a loan that allows individuals older than 62 to improve their financial well-being. They can convert part of their home equity into lump sum cash, fixed monthly payments, or line of credit, according to their preference. The money can be used to pay for medical bills, in emergencies, or to pay off a mortgage. Here’s what you should know about reverse mortgages in case you’re looking for one.
How much can you borrow?
For reverse mortgages, the loan amount can’t exceed the value of the property against which it is borrowed. Federal regulations require lenders to ensure that the loan amount doesn’t exceed the value of the house by structuring the transactions accordingly. Additionally, these regulations state that the owner/borrower is not liable to pay off the balance amount in case it exceeds the property value.
How are reverse mortgages paid for?
A reverse mortgage is payable when the borrower sells the house, relocates permanently, or dies. Unlike forward mortgages, reverse mortgages don’t need the borrower to make any monthly payments. They are only liable to pay interest on the money received, which is rolled back into the loan balance. While the owner gets to keep the title to the home, their home equity reduces over the loan tenure.
Who can take a reverse mortgage?
This type of loan is ideal for seniors and retirees whose net worth comes mostly from the value of their home. Seniors who don’t qualify for a home equity loan or can’t refinance due to limited cash flow or poor credit can opt for reverse mortgages. Home Equity Conversion Mortgage (HECM) for purchase is a reverse mortgage that allows seniors to buy another property. That said, it is complex, and you should study the risk factors before getting one.
What are the risks associated with reverse mortgages?
Reverse mortgage scams are not unheard of. Unreputable vendors could offer to help seniors secure reverse mortgages by undertaking house repairs. They don’t provide quality results and get away with the homeowner’s money instead. For spouses living together in a home with only one spouse named as a borrower on a reverse mortgage, the other spouse can lose the home if the borrowing spouse dies first. Besides, reverse mortgage lenders charge fees and closing costs and may also charge mortgage insurance premiums for federally-insured HECMs.