FREQUENTLY ASKED QUESTIONS
Question 1
What does easy qualifying mean?
Answer: Easy qualifying means that you do not have to jump though
the hoops like a Bank. All we require is a basic application which we can complete
over the phone (or we can mail or fax it to you). There is NO COST to you. Once
you are pre qualified, we can make an appointment to meet with you at the property.
Question 2
Our Credit is not good. What do you look for on the application?
Answer: We Look For Three basic things:
- Verification of employment. We are looking for someone who makes a
reasonable income with established job history.
- Regular Rent payments (or house payments). We are looking for someone
who has a history of making their rent (or house) payments on time.
- Credit. The credit doesn't have to be perfect, but it does need to
be reasonable. A few slow pays or even a bankruptcy can be okay. What we're
looking to avoid is the person who makes a habit of not paying their landlord
or mortgage company on time.
Question 3
We're new to the area and we don't have any local references. (employment,
landlord, etc.) Can we still buy a house?
Answer: Yes, we simply verify all information from your previous
area, Thus it is very important that you provide us with all information, including
addresses and telephone numbers.
Question 4
How long does the whole process take?
Answer: We can usually give you an answer within two to three days.
From there it's just a matter of paying the deposit and arranging an appointment
with your solicitor to sign the contract. Once the contract is signed you can
move in.
Question 5
I'm not sure how this works. Do I own the home?
Answer: You have legal rights to possession and the right to purchase
the property. Basically we exchange contracts but do not settle for 25 - 30
years or until the contract is paid out. You have "control" of the
property.
Question 6
How do I protect my ownership position?
Answer: A caveat is noted on the title deed. It clouds the title
preventing us from selling or refinancing the property without your express
written permission - in other words you are in charge.
Question 7
The house needs some fixing up. Are you going to do it?
Answer: If we fix the houses up we would then have to charge a $9
- $10,000 deposit. The problem is that most people do not have that sort of
money in their pocket. We have found that most people would rather pay a small
deposit and move into the house that was in livable condition, that needed a
little fix - up. It gives the buyer a lot more benefits. First, you can afford
to move in today. Second, you can fix the house the way you want it. And third,
you can pick up some sweat equity for your efforts.
Question 8
Can I refinance my loan?
Answer: Yes. You may use any lender to refinance the loan. However,
remember that in all likelihood it would be at least a few years until you build
up enough equity to qualify for a new loan.
Question 9
What does "lease with option to buy" mean?
Answer: It means that on some of our homes (usually the more expensive
homes) you can lease the property and take up an option to buy the same property
in 6 - 12 months time. You will be given an opportunity pay rent and at the
same time we will give you back some money in the form of a rent credit to go
towards your deposit . When you take up the option to buy and enter into the
purchase agreement, Home Now will give you the agreed rent credits as deposit
for the home. As long as you don't default on any payments you will receive
all your rent credits at the time that you enter the purchase agreement.
Question 10
What does rent credit mean?
Answer: It means that some portion of your payment will be credited
to the deposit of the home. For example if you paid $405 per week in payments,
$270 would be rent and $135 per week would be given back to you to go towards
deposit. So in 12 months time you would have accumulated $7020 as deposit! The
idea is to have enough deposit to enter into a purchase agreement and allows
you to demonstrate a good payment history.
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