Local business directories provide a great services to local businesses, allowing other a way to find your local services. Here are a few of business directories I have used:
Posts by admin
The Closing – Settlement
The Closing of your home purchase, also called Loan Settlement, or Closing Escrow is when you make the rest of your down payment, sign all necessary legal documents, and get the keys to your NEW HOME.
So you searched, found, negotiated, inspected and financed your new home and it’s time to close the deal and get the keys, but what is involved in this closing of escrow?
It’s time to “sign on the dotted line” and there will definitely be a lot of signing, specially if you are financing the purchase. Included in the paperwork you will sign, will be documents that put the title of the house in you name, and commit to the terms of the mortgage. Along with these documents the homeowner’s insurance will be verified, your deposit (certified funds) are collected, your lender will fund the loan and the funds are dispursed.
The location of the closing varies depending on your local laws and your real estate contract. In Broward County, the buyer chooses the closing agent, therefore the closing normally occurs at the office of the Buyer’s attorney or title company. Some sellers choose to have their own independant closer, which will provide the seller’s documents. Closings can also occur at the home, but this is rare.
Here are a few of the Expenses generally involved with the closing:
- Transfer taxes are required by some localities to transfer the title and deed from the seller to you.
- Recording fees for deed pay for the county clerk to record the deed and mortgage and change the property tax billing.
- Other state and local fees can include mortgage taxes levied by states as well as other local fees.
- Pro-rated taxes such as school taxes, municipal taxes may have to be split between you and the seller because they are due at different times of the year. For example, if taxes are due in October and you close in August, you would owe taxes for 2 months while the seller would owe taxes for the other 10 months. Prorated taxes usually are paid based on the number of days (not months) of ownership. Some lenders may require you to set up an escrow account to cover these bills. If your lender does not require an escrow account, you may want to set up a special account on your own to make sure you have money set aside for these important, and large, bills.
- Attorney fees. You will probably want to work with an attorney when buying a home. Attorneys usually charge a percentage of the selling price (three-fourths or 1 percent), but some may work for a flat fee or on an hourly basis.
- Title search costs. Usually your attorney will do or arrange for the title search to make sure there are no obstacles (liens, lawsuits) to your owning the home. In some cases, you may work with a title company to verify a clear title to the property.
- Homeowner’s insurance. Most lenders require that you prepay the first year’s premium for homeowner’s insurance (sometimes called hazard insurance) and bring proof of payment to the closing. This insures that their investment will be secured, even if the house is destroyed.
- Real estate agent’s sales commission. The seller pays the commission to the real estate agent. If one agent lists the property and another sells it, the commission usually is split between the two. In some case the buyer might have a processing fee.
- Origination or application fees. These are fees for processing the mortgage application and may be a flat fee or a percentage of the mortgage.
- Credit report. If you are making a small down payment (usually less than 25%), most lenders will require a credit report on you and your spouse or equity partner. This fee often is a part of the origination fee.
- Points. A point is equal to 1% of the amount borrowed. Points can be payable when the loan is approved (before closing) or at closing. Points can be shared with the seller–you may want to negotiate this in the purchase offer. Some lenders will let you finance points, adding this cost to the mortgage, which will increase your interest costs. If you pay the points up front, they are deductible in your income taxes in the year they are paid. Different deductibility rules apply to second homes.
- Lender’s attorney’s fees. Lenders may have their attorney draw up documents, check to see that the title is clear, and represent them at the closing.
- Document preparation fees. You will see an amazing array of papers, ranging from the application to the acceptance to the closing documents. Lenders may charge for these, or they may be included in the application and/or attorney’s fees.
- Preparation of amortization schedule. Some lenders will prepare a detailed amortization schedule for the full term of your mortgage. They are more likely to do this for fixed mortgages than for adjustable mortgages.
- Land survey. Most lenders will require that the property be surveyed to make sure that no one has encroached on it and to verify the buildings and improvements to the property.
- Appraisals. Lenders want to be sure the property is worth at least as much as the mortgage. Professional property appraisers will compare the value of the house to that of similar properties in the neighborhood or community.
- Lender’s mortgage insurance. If your down payment is less than 20 or 25%, many lenders will require that you purchase private mortgage insurance (PMI) for the amount of the loan. This way, if you default on the loan, the lender will recover his money. These insurance premiums will continue until your principal payments plus down payment equal 20 or 25% of the selling price, but they may continue for the life of the loan. The premiums usually are added to any amount you must escrow for taxes and homeowner’s insurance.
- Lender’s title insurance. Even though there is a title search for any obstacle (liens, lawsuits), many lenders require insurance so that should a problem arise, they can recover their mortgage investment. This is a one-time insurance premium, usually paid at closing; it is insurance for the lender only, not for you as a purchaser.
- Release fees. If the seller has worked with a contractor who has put a lien on the house and who expects to be paid from the proceeds of the sale of the house, there may be some fees to release the lien. Although the seller usually pays these fees, they could be negotiated in the purchase offer.
- Inspections required by lender. (termite, water tests) If you apply for an FHA or VA mortgage, the lender will require a termite inspection. In many rural areas, lenders will require a water test to make sure the well and water system will maintain an adequate supply of water to the house (this is usually a test for quantity, not a test for water quality).
- Prepaid interest. Your first regular mortgage payment is usually due about 6 to 8 weeks after you close (for example, if you close in August, your first regular payment will be in October; the October payment covers the cost of borrowing money for the month of September). Interest costs, however, start as soon as you close. The lender will calculate how much interest you owe for the fraction of the month in which you close (for example, if you close on August 25, you would owe interest for 6 days). In some cases this is due at closing.
- Escrow account. Lenders will often require that you set up an escrow account into which you will make monthly payments for taxes, homeowner’s insurance, and PMI (mortgage insurance, if required). The amount placed in this escrow account at closing depends on when property taxes are due and the timing of the settlement transaction. The lender should be able to give you a close approximation of these costs at the time you apply for your mortgage loan.
- Home Inspections. (structural, water quality tests, radon tests) In addition to inspections required by the lender, you may make the purchase offer contingent on satisfactory completion of some other inspections. You and the seller will need to negotiate these fees.
- Owner’s title insurance. You may want to purchase title insurance for yourself so that if problems arise, you are not left owing a mortgage on a property you no longer own. A thorough title search (going back to 1900 if necessary) is often assurance enough of a clear title.
- Appraisal fees. You may want to hire your own appraiser, either before you sigh a purchase offer or after seeing the results of the lender’s appraisal.
- Money to the seller. (for example, for fuel oil in the tank) You will need to pay for items in the house that you want and that were not negotiated in the purchase offer. Such items may include appliances, light fixtures, drapes, or lawn furniture and also fuel oil and propane left in tanks.
- Moving expenses. If you are changing jobs, your new employer may pay for your move. Otherwise, you must figure in the cost of moving, either truck rental and hired help or a professional mover. Shopping around for moving services can pay off. You will also need cash for utility deposits (phone, cable, and the like).
- Escrow account funds. (for example, for cleanup, radon mitigation, untested appliances) In the purchase offer, you can request that the seller set up an escrow account to defray any costs of major cleanup, radon mitigation procedures, house painting, or other items. Also, if you have not had a chance to try out some appliances (the furnace if you buy in the summer or the air conditioner if you buy in the winter), you may request an escrow account to cover repairs if necessary.
Depending on your Mortgage Lender, there might be other mortgage disclosures:
RESPA
Truth in Lending
Final Walk Through
Almost there! We will do a final walk through of the property to make sure there are no new problems, and ensure that all prior issues found during the inspection were corrected.
As your Realtor I will always recommend that this step is not overlooked. Many nightmare situations have occurred with buyer who skip the final walk-through when buying a house. Let’s discuss why it is so important to ensure you perform a final walk-through prior to closing.
This walk-through occurs either the day before closing or the day of closing (settlement). One of the many reason to do a final walk-through of the property is to ensure that the previous owner (or builder) has cleaned out the property, has not caused any new damage and/or ensure that any repairs (if required) were performed.
Just think about, what if you skip this step….. What if the previous owner left a junk all over the house, caused new damage, or removed fixtures that were supposed to stay with the house? What recourses if any would you have. Not many since you have already bought the house!
Since the final walk through is not an Inspection, this may be a good time to have the seller show you how to operate major systems and appliances. While they are showing you how the appliances work you are also making sure they all work and are clean!
Applying for a Mortgage
It’s time to apply for mortgage. Hopefully by now you have talked to a mortgage broker and been pre-qualified through a lender. Even though I am a licensed mortgage broker, I do not active in the mortgage field, but here are a few things you should know.
Mortgage interest rates, fees and other terms can vary widely. It’s best to lock down the rates early in the process, but your Mortgage Broker can advise you on this. The Mortgage Brokers in our Office will ensure you get the best rates possible, specially when buying a home through us.
So you found a home you intend on buying, negotiated the contract and now that your offer has been approved you must apply for the mortgage within a specified time frame, normally three (3) days. You will be asked for several documents and other information that is need to process your Home Loan.
What you’ll need when you apply for Mortgage
When you apply for a mortgage, the lender will want a lot of information about you (and, at some point, about the house you’ll buy) to determine your loan eligibility. Here are some of the documentation you will need to provide:
Bank information, name and address, your account numbers, and statements for the past three months.
Investment statements for the past three months, if any.
Pay stubs, W-2 withholding forms, or other proof of employment and income
Tax returns, generally for last 2 years.
Information on consumer debt (account numbers and amounts due)
Divorce settlement papers, if applicable.
You will also be asked to sign authorization forms that allow the lender to verify your income, bank accounts, and to obtain a copy of your credit report. If you’ve already made an offer on a house, you will also be asked need to give the lender a purchase contract and a receipt for any good faith deposit that you might have given the seller, along with a copy of the check.
Finalizing the application
As your mortgage application is processed and finalized, your lender is required by law to give you several documents.
Your lender is required by law to provide you with the following documents:
Truth-in-lending disclosure. This disclosure includes a summary of the total cost of credit, such as the Annual Percentage Rate (APR) and other specifics of the loan. The APR includes the interest rate, points, broker fee, and any other charge you’re required to pay.
A Home Buyer’s Guide to Settlement Costs. This guide is a government publication that describes the closing or “settlement” process, associated costs, and your rights.
Adjustable-Rate Mortgage (ARM) disclosure. This disclosure includes information about terms and costs associated with an ARM, past performance of the index to which the interest rate will be tied, and the “Consumer Handbook on Adjustable-Rate Mortgages.”
Annual Percentage Rate (APR) information. This is the cost of credit expressed as a yearly rate. The APR includes the interest rate, points, broker fee, and any other charge you’re required to pay.
Good Faith Estimate. This disclosure lists estimated costs you will likely incur in connection with the closing of your mortgage.
Home Inspections
Your purchase contract should permit you to get professional inspections and will govern your rights if the inspections show problems. You either have the right to inspect the house, or you don’t. In most cases you have the right to inspect and there are some limitations as to your rights after the home inspection.
If your purchase contract was “as-is” then you normally have the right to withdraw your offer, re-negotiate (within a time frame). Some real estate contract have a built-in percentage that is the maximum for which the seller is required to repair or pay.
Before you make an offer and sign a purchase contract, ask me or your attorney which inspections are best for your area. Have the necessary inspections included as a contingency of your offer.
With the normal purchase contract I will incorporate for inspections within 5 days and the right to withdraw from the contract if we are not satisfied with the inspection results. This mean we can either withdraw or re-negotiate with the seller to either reduce the selling price or provide a seller concession for repairs.
These home inspection will normally occur 2-3 days after the contract has been executed (agreement has been met with all parties).
Normal South Florida home inspections provide for roof, termite, and general areas. The general area inspector will check almost everything inside the property, to include all appliances, electrical, plumbing and structure.
When buying a home, make sure to get professional inspections done on the house prior to the home purchase.
Finding a Broward Real Estate Attorney or Title Company
In Florida, both title companies and Real Estate Attorneys may issue title insurance for your Real Estate purchase or refinance. Since most policies are issued at rates promulgated by the Department of Insurance, title insurance obtained from an attorney is priced the same as title insurance from a title company. In many cases, title insurance through an attorney is underwritten by the same underwriting company as would be obtained through a title company.
Some people believe that a title company is cheaper for them than an attorney. That is often not the case. Florida law requires that a closing agent issuing title insurance also charge the consumer a fee that is no less than its costs of actually providing closing services.
Quite often, those charges are comparable (if not identical) for both the title company and the attorney.
The big difference in utilizing a local real estate title company or a Broward Real Estate attorney for closing a real estate transaction is that a Real Estate title company may only provide a limited scope of services. By law, a title company may only prepare documents necessary to issue a title insurance policy in connection with a pending transaction.
These documents are usually limited to the deed and affidavits necessary to meet title insurance requirements. You will need, either your Realtor or real estate attorney to prepare other forms and contracts.
Perhaps the biggest difference between representation by a Real Estate attorney and using a title company for closing is that an attorney may provide legal advice. This advice can involve review and explanation of an offer for purchase or sale. However, legal advice can be important at any junction. A title company cannot provide legal advice.
One of the most important areas of legal advice in a real estate transactions is the best method for a buyer to take title to the property.
Many couples take title as husband and wife, so if one dies, the other will be the sole owner. However, that is not often the best way to own property. In many cases, placing title in a living trust is preferable to avoid probate and coordinate with existing wills and trusts of the client. In other cases, it may be advantageous to place title in a corporation or partnership to take advantage of tax planning or other matters.
Sometimes, the real estate closing does not go as planned.
A Real Estate attorney or Realtor, can prepare contract modification and extension agreements, and even agree to extensions on behalf of his or her client. Real Estate Title companies may not prepare such documents and they cannot even provide blank forms with instructions.
Many buyers or sellers of real estate need tax advice. A real estate attorney can help structure a transaction to minimize tax problems. Attorney services in this area may include structuring installment sales, preparation of like-kind exchange documents, and filings with the IRS. Foreign buyers and sellers often find tax advice and explanation of the impact of U.S. law critical in considering how to take title or whether to accept a purchase offer.
In a small percentage of cases, the parties find that there is a problem with title. In those cases, a Real Estate attorney can prepare corrective documents and provide legal advice as to the best method to cure a defect. In other cases, a dispute may arise that could result in litigation.
When a Florida real estate attorney is representing a buyer or seller, the attorney can provide immediate analysis of the legal position of the client and the anticipated result of any ensuing litigation (including expense).
In short, a Broward Real Estate attorney may do everything a Broward Real Estate title company does, but can also provide legal advice and services that may only be provided by attorneys.
In some cases, a buyer does not believe that there will be a need for legal advice because the contract is “standard” and everything should go smoothly.
Even the smoothest closing can be disrupted by problems, not the least of which may be buyer or seller remorse. Many transactions involve leases, including leaseback by a seller where the seller’s new home will not be ready until after closing. In other transactions, a need for occupancy prior to closing may be involved. Real Estate Title companies are not authorized to prepare such documents.
The ultimate decision as to using a real estate title company or real estate attorney for closing remains with the client. I hope the foregoing proves helpful in your decision making process.
Making an offer to purchase a home
Ready to Make an Offer on Real Estate?
If you are ready to make an offer on Real Estate the most important thing is WRITE IT DOWN! This is the first, most crucial and most basic step in making an offer on a real estate property. Deals are not done verbally, we must write an offer!
Determining Terms and Price:
You found a home you like and ready to make an offer to purchase, now let’s determine the offer price and terms to negotiate.
I can perform a Real Estate market study to determine the estimated price of this property. Obviously there are several factors to consider other than price when making a real estate offer. We also want to set some terms (or contingencies)
The Offer:
The first thing you should do is start with a written offer. It’s called an offer, because the seller’s have not yet signed. Having all of the terms written down prevents and unexpected misunderstandings in the future. Well, it doesn’t prevent them, but it makes them easier to clear up if they arise.
The offer will not only list the price, but it will also list any other features that you hope will end up on the contract. This could include the seller’s commitment to help with the down payment or any stipulations like if the price is contingent on a new roof, inspections, condo association approval and a host of other terms and conditions.
As a licensed Realtor, I have all the forms and contracts that from the Florida Board of Realtor to insure that you don’t miss any steps in the process. These real estate forms also insure that the mortgage agreement and selling points are compliant with Florida real estate laws. If you are buying a property in another state other than Florida there may be some differences.
Of course as your Realtor brokering the deal, I will handle many of these duties, but it is always best to know what you are doing.
The Real Estate Contract
Once you make an offer on Real Estate, the seller must accepted it. If it is accepted and the contract is signed, you are both legally bound to comply with every aspect of the contract, even if situations change.
A real estate contract provides for a host of The contract will also provide the blueprint for the final sale. This should contain; Address and legal description of the home, agreed sale price, terms of the real estate sale, all down payments and mortgage conditions, seller’s promise to legally hand over the title of the land and improvements, a target date for the closing of the sale, amount of escrow deposit. The Real Estate contract should also specify whether these escrow funds would be delivered in the form of cash or check, when their deposits are due, and who will hold these escrow funds. You must also specify how that money will be returned if the deal does not go through, and how that money will be paid if you brake the contract.
The Contract also stipulates the method by which all insurance, property taxes, fuel, water bills, and any other utilities with be transferred from the seller to the buyer, who will pay for independent inspections, the type of deed to be given, any state specific clauses. For instance, attorney review of the contract and disclosure of any hazards such as fault lines, flood plains and contamination A time limit that, if passed, nullifies the Contract CONTINGENCIES (very important)
Contingencies
Contingencies are what we call “deal breakers”. Essentially they are things that if not fixed or dealt with before the sale of the home, the contract becomes null and void. While a contingency can be anything the two most common contingencies are as follows:The buyer must obtain a specific lending agreement from a bank or other lending source. If a suitable loan can’t be found, there is no way to pay for the home, therefore it is unreasonable to expect a purchase. An independent contractor completes an inspection. If he determined that portion of the contract was not met (e.g. fixing a roof) then the contract again becomes null and void.
It is contingencies that make writing all of this down so important. If it s not in writing, you could find yourself in an extended legal battle that could be so expensive it will leave you homeless in more ways than one.
Negotiating
You are going to want to be in best bargaining position possible when you make an offer in a home. This will most likely be the largest investment of your life and poor negotiating can mean the difference between thousands of dollars.
If you can hit the negotiating table armed with the following you are bound to get a good deal:
You are willing to pay all cash, You are pre-approved for a mortgage, Your purchase of the property is not contingent on the sale of your existing home.
If you have any of these criteria you are instantly the sellers best friend and they are likely to reward you for it. Especially in a buyer’s market. If you happen to be in a sellers market having all three criteria could also get you the property versus someone who may only have two; providing your bids are close.
If you know you are going to be negotiating it is a good idea to know what is motivating the seller. If they are desperate, or even just highly motivated this can also work in your advantage. How can you tell if a seller is motivated? Try the following.
Is the home for sale currently vacant? If it is they are probably paying two mortgages. They will be eager to ditch one of them.
Was there a recent divorce? Nobody wants to prolong the painful ordeal of a divorce; this could work in your favor.
Estate sales. If the family of a recently deceased individual wants to settle the estate, they too will be eager to sell the property quickly.
Earnest Money
This is not a down payment. It is instead a smaller sum which, if written in the agreement can give you sole bargaining rights for a specified period of time. The money is usually help by the realtor or closing agents in escrow and is normally added to the down payment or subtracted from the your closing costs if the sale goes through.
Offer/Counter-Offer
When you make an offer you are legally bound to it (if accepted without modifications). This is part of the negotiation. If you make an offer and it is rejected or not accepted within the acceptance period, that’s that. It’s dead. In some cases the seller may send back a counter offer. You may then choose to accept it or reject it. But unless the seller agrees in the contract, the counter-offer is merely a means of communication; not a binding document (unless accepted by the buyer without modifications). As your Realtor I can explain this in more detail when we are ready to make an offer on Real Estate.
Withdrawing An Offer
If not working with a Realtor, you will need to contact your Real Estate lawyer about this one. Roughly the answer is yes. You can withdraw your offer. For instance, if you send a offer or counter offer and that is accepted by the seller you can change your mind at the last minute, even if the offer has been accepted. The only thing that does matter is that you do not know that they have accepted the offer. The minute you know the other party has sign the Real Estate contact you are now legally bound to that contract. You can still appeal to the good nature of the seller but this is no guarantee.
One Last Thing
As a buyer, never underestimate the desire of your seller to sell. They may be a master negotiator, but still desperately want to get the property of their hands. Naturally, one of the biggest problems you will face is getting the down payment, earnest money, moving fees and inspection costs all together before you move.
If you think that maybe you are at an impasse with the seller because the market price for the house is well above the appraised price (thus requiring a larger than though down payment) you should mention the option of having the seller pay some of the up front costs.
For instance: When you make an offer ask them if they will pay the initial costs of the following.
Termite and infestation inspection, Home protection policy, Buyer’s closing costs, Survey, Points to the buyer’s lender, Repairs mandated by the lender. When we are Ready to Make an Offer on Real Estate we’ll discuss all these terms and conditions.
Posted in Buying a Home
-
Tagged Buying a Home, making an offer, purchasing a home, real estate offer
Home Hunting
It’s time to Begin home hunting. This is a very exciting step, but one full of decisions!
By now we should have a good idea of the home you are looking for, and the location of your new Home.
As your Realtor®, I can compile all the information and prepare a program that will allow you to sit at your computer and view homes of interests (just fill out my home search form). This allows you to save time and narrow down which homes you want to view in person. With today’s internet technology, home hunting has never been easier.
I also have an MLS search engine for your convenience! Ready to Begin Home Hunting?
When you find a home you like, we will carefully give it our own personal inspection. You will also want to tour the neighborhood and perhaps see the house at different times of day or check traffic patterns and other amenities that may affect your decision.
But remember you probably not the only one looking at this Home.
Broward Realtor
You will want to use a licensed Broward Realtor ® to help you search and buy a home. If you are buying a home, the services of a Realtor is normally FREE, at least my services are free when you are buying a home.
My first role as a good REALTOR® is to listen and understand your goals, expectations and the home you wish to purchase. As your Broward Realtor® I will guide you through the process to buy a home, and answer your questions to help you find a property that meets your specifications.
You will also want a find a Realtor® that will answer your calls. Feel free to call me with any questions you might have. My personal cellular phone is always listed on the top of my site. You can also contact me through my site. I will personally respond.
There are normally two different Realtors involved in a transaction, a listing agent and a selling agent. When buying you will want to find a realtor that works with home buyers, such as myself.
A listing broker or agent lists the property for sale and actively markets the property. The selling broker or agent shows the homes to the buyer. Sometimes, the listing and selling brokers are the same.
Posted in Buying a Home
-
Tagged Broward County, Broward Real Estate Agent, Broward Realtor, Florida
Financing – Mortgage
If you are in the market to purchase a home, the FIRST thing you should do is get your financing in order.
If you are Financing your home purchase, the first thing you need to do is talk to your banking institution or a mortgage broker to see how much you can qualify to buy a home, and how much your monthly payment will be. This will give you an idea of the purchase price range your need to stay within and makes finding a home that you will be able to purchase a lot easier, not to mention that you don’t want to be driving around seeing homes that are not in your price range, just to get discouraged when your find out you could not qualify to purchase the home.
If you are buying Cash, it’s easy, just get a printout of your account balance. This is considered your proof of funds. If you are telling a seller that you are buying their home cash, then they will want to see that the funds are available.