Today's market offers buyers multiple options to finance real estate transactions. Cash remains the ideal way to pay for real estate since it eliminates the uncertainty of approval by a third party, and often affords a discount on the purchase price since the deal can usually be expedited. The most common way buyers pay for a new home is through a Mortgage or Loan of some kind. Generally, banks lend money to qualified buyers in the form of a mortgage. There are several kinds of mortgages available depending on what you qualify for. Some examples of mortgages are: Conventional, Construction, VA (for Veterans) and FHA (Federal Housing Administration criteria) as well as Commercial Loans.

Another method people use to purchase real estate is by Land Contract or Lease with Option. A Land Contract is where the owner "lends" the buyer the money in exchange for a down payment to purchase, where the buyer would own the home, pay taxes, insurance and monthly payments with interest for an agreed upon term. A Lease with Option is simply a Lease where the prospective buyer does not own the property or pay taxes, but generally pays monthly rent, and usually has also paid an additional agreed upon amount to reserve the option to purchase at a given time in the lease. A Lease with Option is the Right of First Refusal to buy the property, usually at an already agreed upon price at the end of the lease.

The first step in any purchase is to begin the process to secure financing, or know what you can afford. That's why it is of the utmost importance to connect with a professional to determine the method of financing that would work best for you and what information you need to begin to gather to get approval underway - since the final approval process may take several weeks and will be based on financial documentation and proof of income.

There are many lending institutions that offer a variety of mortgage products, and a number of sellers who would be willing to negotiate a deal to purchase without going through a bank or third party lender.  Financing guidelines, options and rates can vary widely, so it is important to do your research and shop around to ensure you get the loan that meets your needs at a competitive price.

We would be happy to refer you to the appropriate professional to assist in securing the best  possible method of financing terms and rate for your real estate purchase.

Please feel free to use the Mortgage Calculators below to assist you in making some decisions around financing your deal.

Mortgage / Loan Payment Calculator & Amortization Table

This calculator will help you determine what your mortgage or loan payments will be based on purchase price, interest rate and term, as well as other factors. The amortization table shows what the interest and principal payments will be over the term of the mortgage or land contract.

Mortgage Loan Calculator