Northern Neck Real Estate Blog

Aug. 14, 2023

Financing Basics

When buying a home, land, or commercial property, there are two ways to pay for it - use 100% of your own funds or finance it and repay the money over time.  Paying cash is the simplest way to purchase real estate, but not everyone has the financing ability to do this.  Financing allows the buyer to put down less cash and repay the loan by making payments, typically monthly, but sometimes other time periods.  There are many variables that will determine the type of loan, the terms of the loan, and the buyer's/borrower's ability to obtain the loan.  If you are selling a property, it's important for you also to understand the basics of financing and how it can affect the sale.

THERE ARE THREE KEY COMPONENTS INVOLVED IN OBTAINING A REAL ESTATE LOAN...

1. The borrower's financial ability to repay the loan

2. The property

3. Intended use

Feb. 2, 2023

Bay River Realty Client Appreciation 2022

Posted in Videos