Posts Tagged ‘process’

In this segment from Mark “First-Time” Boyer’s interview with Carol Dorsey of Prudential SourceOne Realty, Carol talks about the home-buying process, touching on home tours, inspections, offers, counter-offers, and attorney reviews.

This mini video series brought to you by www.bestmortgagerates4u.ca shows the process of buying a home. Thinking of Buying a Home? Step 7 : What professionals are needed in the home buying process? Stay tuned for the other steps. This step by step advice was compiled by a seasoned mortgage…

By Mike Manosky

Getting a good deal on a home is often more about timing than purchase price. Because most homes are financed through at least a 15-year mortgage (usually 20- or 30-year), the amount paid in interest has an enormous impact on what the home will ultimately cost. The contract price may be $150,000. By the time interest is calculated over 30 years, however, you could easily pay twice or even three times that amount, depending on what the interest rate is on the day you lock into a mortgage rate.

Lower interest rates make it possible to finance the same amount of money for a lower payment, or finance more money without increasing the payment. How so? Let’s look at financing $150,000 for 30 years at 6.50%.

Your approximate principal and interest payment would be about $948 monthly. Another option would be to finance $158,000 with a monthly payment of roughly $947. This option would allow you to borrow an additional $8,000 without hardly changing the payment. If the interest rate dropped to 6.00%, however, the payment would decrease to approximately $899 per month. Whether you’re looking to buy your first home, or thinking about upgrading to a bigger one, lower rates open the opportunity to find a great buy. The other vital element is location. The award-winning city of Huntsville, Alabama has much to offer.

The Value of Huntsville

No one wants to buy a home that won’t resell well. So, where do you look to ensure you get value? In a June 30, 2007 survey, the Office of Federal Housing Enterprise Oversight (OFHEO) reports, “Of 287 metro areas, 131 recorded decreases in house prices during the quarter.” The Huntsville real estate market, however, was ranked 36 out of 287 in price appreciation, and came in above average with a second quarter increase of 1.76%. Plainly stated, while houses in many areas are losing value, Huntsville, Alabama is still an affordable and wise housing choice.

What Does Huntsville Have To Offer?

Huntsville is widely recognized as being one of the country’s best places to work, live and go to school. The September 2007 issue of U.S. News & World Report says, “The University of Alabama in Huntsville ranks among the top ten percent of business schools in the county.” Check with MSN/Sperling’s Best Places and you will find that Huntsville is named one of the country’s top ten cities for job growth and affordability. So, what makes this southern town such a remarkable place to live? Huntsville offers a thriving job market, lower than average cost of living, plenty of options for entertainment and a climate that enjoys the best of all four seasons.

If you’re considering buying a home, now may be a good time to do so if you’re looking in the Huntsville real estate market. And with all it has to offer, Huntsville could easily be just what you’ve been waiting for.

Selling a house is no different to selling any other regular product. The only difference is that selling a home entails more marketing strategies compared to normal goods which can be bought at whim. Certainly, purchasing a home is one of the single most important decisions a person can make in his lifetime. And thus, when a buyer decides which home suits himself and his family best, this is expected to be a very long process. If a person can be picky when it comes to buying ordinary products, then much more so if he is choosing a home to stay in. This is where home staging enters the picture.

Basically, home staging is the practice of preparing a home for sale before it is made available on the housing market. This process is necessary and utterly important because it helps sellers advertise their houses better and it hastens the decision of buyers to consider the house. 

Home staging is all about creating an illusion. If you want to sell your house, you must make it look attractive and desirable. You should appeal to the desires of buyers. What does this mean? It means that you should exhaust all means by which your house will look better compared to all the others out in the market. Surely, competition is one thing you have to be prepared for.

In order to stage a home, you could use the expertise of a professional stager, whose services can cost you anywhere from $500 to $5000. You could also search online tips and do the staging yourself. Of course, you should start with surveying your house. Look for possible fixes. Detect everything that might need repairs. See to it that the interior and exterior parts of the house look attractive enough and are free of clutter.

Speaking of clutter, the other important thing to do next is clean. A dirty house will surely turn off a buyer. Make sure that all nooks and crannies of the house do not have visible dust and that they are free of mites and cockroaches. Put away your children’s scattered toys and make sure that your pets do not leave any visible stains on carpets and floors.

There are other things you can do to stage your home. You should remember that, if you want the house to get sold much quicker, you have to do all of these procedures. Nobody is going to take a second look at your house if it is dirty and not too appealing. And the only way to avoid this is by having the house ready for viewing through staging.  

You plan to have your house to undergo home inspection; you will surely discover certain issues that might need immediately attention.  You want to identify if you will need the plumber or electrician to repair the damages.  Your ceiling, chimneys, roofs and other parts should also be checked to prevent from encountering problems later on.  Basically, you want your house to be inspected to know the actual condition of the property and a lot more reasons that you can possibly think.

Home inspection procedure will allow you to evaluate if you are indeed paying for the right house.  If the home inspector starts to check various areas in the house, looks that there are a lot of damages, you can ask for some considerations on the price.  You really don’t have to shell out a huge sum of money at the start of the buying process.  On the other hand, if he looks at it that there are only a couple of damages, and then you can be assured that you have made the right decision.  You will not have to worry if it is durable enough to last up for decades.

After you have purchased the property, it is also beneficial if you have it inspected so you can see those things that need immediate repairs.  Based on the form given to you by the inspector, you can see which one needs more attention and have it repaired as soon as possible.  These repairs will not have to be done all at ounce.  You can do it one at a time depending on which will fit within your budget. 

A home inspection after closing the transaction will allow you to realize that you are not putting more value to the house without going through appropriate documentation.  It will simply show that you took your own initiative to fix and improve the house.  When you sell the property, you can ask for a higher price compared to the original amount that you have paid before.  Possible home buyers can feel secured in acquiring your house if this is the case.

Allowing your house to undergo home inspection, before or after the transaction, is a wise move.  It is some sort of a protection from possible problems that will come in your way which can be more costly if discovered later on.  It can help you evaluate if the house that you wish to buy is indeed a worthwhile investment to make.  It can also be a form of formality on your part to place everything you have made on the house into appropriate documentation.  In this way, you can inform the public about the current status of the house.

For security purposes, gather all the necessary documents given by the home inspector.  You can use them in the future.  You will see the essence of home inspection process as soon as you have started to stay in the house.  Hence, do not miss the chance to have your house inspected by a reliable home inspector.

start to end of home buying process

www.CheaperThanForeclosures.com Buying a home can seem like a difficult process, and this video simplifies it. This video is about the steps involved in buying a home effectively.

Here are the 15 steps that need to be taken to purchase a home:

1. The Initial Interview

Determine what you need and want in your new home

Discuss the parameters of your search

Discuss financing

2. Get Pre-Qualified By a Lender

Obtain a pre-qualification letter

3. Property Tours

View available properties that match your needs and emotions

Listen to you carefully to find out what features you need in your ideal home

Provide you with information about the current market and what it means to you

4. Find the Home That Matches Your Needs and Write The Offer

Writing the offer will take between 1-3 hours

Complete the purchase agreement contract

Deliver the earnest money deposit(this will be held until and accepted contact is created)

5. Present the Offer

Prepare a presentation by highlighting the strengths of your offer and your strengths as a buyer

Present the offer to the seller and the sellers’ real estate professional

The sellers will either accept, counter or reject the offer

6. Counter-Offer

Discuss the counter offer and how it relates to your goals, and prepare a response

7. Escrow

When the offer is accepted and has been signed by all parties, the escrow will be opened

Your earnest money deposit will be deposited

The Escrow Officer will order a Preliminary Title Report and send copies to the lender and I

8. Loan Application

Submit a complete loan application and all the necessary loan documents to your chosen lender

9. The Contingency Period

Your approval of the sellers Disclosures

Your approval of the Preliminary Title Report

Physical inspections and pest inspections

Property appraisal and loan approval

10. Homeowners Insurance Coverage

Select an insurance company and discuss coverage

Give the insurance agent the escrow information(they will need to order a copy of the policy for the new lender prior to escrow closing)

11. Signing Documents at the Title Company

The lender will send the loan documents directly to the title company

You will receive copies of the title and lender documents

You will need a current photo ID

12. Down Payment and Closing Fund

Bring a cashiers check to the title company(depending on circumstances) several days prior to closing

The Escrow Officer will prepare a Buyers’ estimated closing statement, which will itemize costs and credits, and estimate the total money due

13. Funding

The lender will wire the funds to the title company

14. Close Of Escrow

The deed will be recorded at the county recorder’s office by the title company(you will receive the original back from the county in approximately six weeks)

I will coordinate the transfer of the house keys

15. It’s Time to Move In!

Despite recent turmoil in financial markets, and trouble for the UK’s fifth largest mortgage provider Northern Rock, there is no shortage of companies offering mortgage quotes. One of the questions you will often be asked when you’re at the cashiers in the bank is whether you’ve got a mortgage, followed by when your mortgage is up for renewal and if you would be interested in a quote for a mortgage. There are over 8,000 mortgage products in the market, so you’ll never be left wanting for mortgage quotes.

Companies claim to and try to make the mortgage and re-mortgage process as easy as possible. Mortgage advisors can compare more than 8500 mortgage products from ALL UK lenders to provide you with mortgage quotes. If you go online you will very quickly be able to request a free, no obligation, quote, either by choosing a mortgage from a selection of market leading mortgages, by completing a form or by calling a ‘hotline’ number.

Mortgage advisors are able to search the whole of the UK mortgage market to find a mortgage which will suit your needs, all without obligation. Doing this yourself would be time-consuming almost to the point of impossibility, and approaching easy-to-reach high street lenders is not always the route to the best route available. Getting a number of mortgage quotes will enable you to choose the best rate for you. Using forms on some website will give you access to several mortgage quotes instantly and for the completion of only one form – a great time saver that will enable you spend time comparing the different mortgage quotes, rather than spending time and effort on actually obtaining a number of mortgage quotes.

Things to look for when receiving mortgage quotes go beyond the headline interest rate. While you are obviously keen to get as low an interest rate as possible, you need to look for the fees that come attached. These usually include a mortgage arrangement fee (which can be as high as nearly £2,000), how long your low deal lasts, what are the exit penalties if you wish you pay off all or part of your mortgage before the end of the term, is there any commission attached that will go to the broker; what other fees are there? All these may make a low interest rate deal actually cost more in the long run.

When looking for mortgage quotes you will often see best mortgage tables. These are free to use and easily accessible, but may not be quite what they seem because different tables use different criteria to order the mortgages.

So, although you can compare the mortgage deals of the UK’s top mortgage lenders in minutes, you may still be confused. It is better to get a number of mortgage quotes for your personal circumstances. To do this it is probably best to consult a mortgage broker or mortgage advisor who will talk to you about your own financial situation, your requirements, both long and short term, and come up with a number of sensible mortgage quotes just for you.

As thrilling as it is to go looking for a new home, it\’s even more exciting to finally close on the house that is right for you. When bearing in mind the costs of buying a home, a typical rule of thumb is to prepare to pay at least 10 percent of the house\’s selling price needed for a down payment and closing costs. Your monthly bills, which encompass the mortgage payment, should be below 40 percent of your gross monthly wages, and your employment or savings should be sound enough to maintain payments efficiently. You can then select who will help you with the buying process.

After choosing which realtor, or attorney is good for you, check your credit report, in order to prepare for your mortgage loan application. Take the required steps for any corrections or disputes, and make copies of all correspondence. For your loan application, in addition to the particulars of any outstanding debts and related disputes, you will also want copies of the following: photo ID or green card, social security card, residence history, employer contact information, bank account contact information, one month of pay stubs, W2 forms, information regarding any assets, and retirement, social security, child support, and divorce decree papers if relevant. If you own part or all of a business, you will want to supply documents pertaining to such, and in the case you are self-employed, you will need to present tax returns. If you have already found a house you are interested in, you will have to include information on it, as well as any documents or agreements that have been written up between you and the selling party, and information regarding the sale of your current home, if applicable.

Within three days of submitting your loan application, you will typically receive a booklet outlining the payment or closing process, in addition to a good faith estimate. The good faith estimate will provide you with a general idea of what all of your home loan costs will be. Remember that it is called an estimate since costs are subject to change depending on conditions, and some fees and requirements may differ from state to state. The loan process involves a few sub-costs, such as for the underwriting, brokering, home appraisal, credit report, and discount (or points) of lower interest rates. Another main cost is for researching the existing title, which will guard you from any potential issues. Other typical costs may be for assumption, which is if you are taking over an existing mortgage; notary and attorney services; survey of the property; and inspections such as for plumbing, codes, roofing, lead paint, and pests. Don\’t forget that fees may acquire for the preparation of all documents, particularly recording fees for city and state government agencies, as well as the transference of all relevant documents such as the title insurance and an owner\’s policy, or expanded homeowner\’s policy.

All loan documents have been prepared, money is in escrow, and any needed repairs have been finished. Once you have done a final check on the property and read through and agreed with the HUD 1 Settlement Statement (which details all cost incurred by you and the seller), you\’re finished! You should be given a truth in lending report, which outlines all details of your loan, the mortgage papers, the deed, all additional related documents or affidavits, and at long last, the keys!

Mark Mitchell Virtual Properties Realty www.markmitchellhomes.com 404-353-0185 This video is for first time home buyers and for people who want to know more about the buying process. It covers the basic steps from the beginning stages all the way through the closing. It gives you a place to go for your home buying process brochure that you can print for your reading. The video lets a buyer know what to expect from a buying transaction. I service Northeast Atlanta including Alpharetta, Roswell, Suwanee, Duluth, Cumming, Woodstock, Sandy Springs, Buford, Lawrenceville, Dacula

When you decide to sell or buy a property, you will surely have to under go a tedious process.  You need to secure that it is a worthwhile investment that you are doing.  Thus, procedures such as home inspections are conducted to secure buyers and sellers about the actual condition of the house.  However, most of them do not see the essence of this process.  They only think that this is an added expense.  If you are really a wise consumer, you certainly want to be assured of the investment that you are making.  And one way of doing this is by going through a home inspection process.

Usually, to make home inspections reliable, they are done by certified home inspectors.  There are specific learnings that they observe in performing the entire proceeding.  But these steps all boil down to one goal that is to determine the actual condition of the house.  At the end of the proceedings, they come up with a report showing all the good and bad features of the property which is, of course, done by the inspector.  This is where you can actually verify if the house is worthy of your money or not.

When you are still on the road to finalize your decision, home inspection process can justify all your doubts about the house.  One concrete example of this is the actual value of the property.  You can verify the amount if had it inspected before paying for it.  Aside from that, you can in fact discover the existing damages of the house which you might have overlooked before you purchased it.  Issues such as these must be identified before you close the deal.

The areas that necessarily need extensive inspection are the whole structure of the property, amenities, the electrical and plumbing systems, and the water supply.  You have to determine the actual condition of these areas.  By knowing their performance, you can already determine the longevity of the property as well as the possible living condition you will have.  Hence, home inspection results can greatly influence the decision of every home buyer.

The built-in facilities in the house such as walls, kitchen, bedroom, bathroom and the like must also undergo the process.  This is very essential when you are going to cook, arrange your personal belongings and even when you clean the house.  If they are still at their best performance, everything will be easy for you in your home.  Aside from that, the electrical and plumbing systems must also be in good condition since they are the most utilized supplies.  You do not want to end up spending another expense for a generator or water tank right? 

Make sure that you do not have shortage with water and electricity.  They are the most important commodities and thus always secure the supply of these things.  There are so many factors that must be considered in home inspection process.  These are just some of the few to mention.  Although they cost a bit but the peace of mind that you can achieve as soon as you live in your house is irreplaceable of any amount.  Just be sure to hire a certified home inspector to get the best results.

Do not be confused between home appraisal and home inspection.  There is a big difference between the two; appraisals are concerned with the value of the property.  On the other hand, inspections focus more on the actual state of the house. 

Are you ready to buy that first home? Are you sure you’re ready to begin? Some would say you need to begin with finding the house you want to buy. But really there are steps you need to take as first time home buyers before you begin. Let’s say you’re planning a wedding, you don’t begin the process by picking a reception hall when you haven’t even popped the question! The same with buying a house. There are some steps you need to take before you pick the location.

Beginning Steps for First Time Home Buyers:

You need to find out how much you can afford. Can I qualify for a loan? Do I have enough money saved for a down payment? What type of loan programs are out there? Which one is best for me? Do I need a bank or a broker?

Step One:

In order to figure how much you can afford you need to take a look at your income and expenses. Do you have enough left over at the end of the month to make a mortgage payment? If you’re renting you probably already have a certain amount of money budgeted. Will that amount buy you the size home you want? There are mortgage calculators out there that will help you estimate how much you can spend.

Step Two:

The first thing in qualifying for a loan is your credit rating. You may need to get a credit report pulled. Most lenders use the middle score to figure your credit rating. They get this figure by taking the credit score from all three credit reporting agencies and picking the middle one. If your credit score is too low, then you have some work to do before you go looking for that new home.

The second thing in qualifying for a loan is the ability to pay it back. So your debt-to-income (DTI) reflects whether you are a good risk or not. If you’re expenses are higher than your income, you need to lower those first.

Step Three:

Now you need to look at your savings account. Do you have enough money saved for the down payment? If not, then you may need to consider down payment assistance or grants to help you. Or perhaps you may need to set up a savings plan to help you save for that down payment.

Step Four:

It’s a good idea for first time home buyers to be educated on the different types of loan programs out there to see which one is a good fit for you. There are programs that have low down payments, ones that are best for buying in suburban areas, ones that have low interest, and many more. It never hurts to be educated.

Step Five:

You will have to make a decision on who you’re going to use to process the loan. You may wish to go to your bank and have them start the application process. Or you may wish to pick a broker. There are pros and cons to both, so spend some time learning the pros and cons so you can make your decision.

Now you’re ready to propose marriage!!! But before you buy that ring, know your rights. First time home buyers should understand things like Fair Housing, Real Estate Settlement Procedures Act (RESPA), Predatory lending and what the borrower’s rights are before they initiate their search.

Once you’re really engaged, I mean have all these steps in place, then you can begin looking for that first home. You’ll be happy you did all this planning ahead of time.

Jeffrey Ragan wants to help you get into your first home by offering a free buyers guide and other helpful informatin on their website, First-Time-Home-Buyer-Solutions.com.

David Lyng Real Estate We Sell Homes When Others Dont! Discover how DL Video has revolutionized the buying and selling process. Sellers Your Home will be professionally taped and distributed to over 20 of the top real estate search websites. Buyers View EVERY David Lyng listing on our own YouTube channel www.DavidLyngOnYouTube.com Available EXCLUSIVELY at David Lyng Real Estate Contact us for the best real estate experience in Santa Cruz County. http

Representation

Most people just do not appreciate the job of a realtor. Yes, while minimal training goes into being a realtor, it is none the less training that society at large has come to appreciate. An old law exists that underpins a primary purpose for realtors- statute of frauds. It is the adoption by nearly every state regarding this old law from England that governs real estate transactions and that it- if it is not in writing it does not exist. There are many paragraphs contained in a standard Real Estate Purchase Contract that each state has adopted peculiar to how common misdeeds and oversights have posed problems in that past. Certain situations that require addressing these things or additional items to a contract to be written up separately on an addendum underscore the importance for some training and expertise, so that people do not get exploited.

Now, many a transaction has taken place without realtors, that have gone just fine, which transactions are commonly called “for sale by owner”. But it is those that don’t go fine that sometimes lethal consequences can happen for the unrepresented and all instances do not involve the statute of frauds.

Usually, the largest body of investment of money within a person’s lifetime takes place during a real estate transaction. They can and do go wrong. Just ask all the people who bought way to high without the help of a realtor who could have warned them about the home being above market value, who are now in foreclosure and they will tell you, yes, most certainly, I should have had a realtor. Conversely, many more “for sale by owners” do not know that they have just “given their home away” for less than what is was worth. By the way, many know or have not cared and are less greedy than the rest of us, praise be to them. On a personal note as a realtor, it strikes me as how amazingly common it is, as I even myself was raised with a ‘garage-sale’ like mentality, that we expect not just a good deal when we are buying, but also when we are selling, and somehow call ourselves ethical and “All-American”. What about the the poor guy on the other side who didn’t get the good deal… how considerate have we been to them? Yet, we appear to have clear consciences all the way to singing ‘Dixie’.

The current problems we are having involving the sub-prime market and with bad lending practices came about because the institution built their projections on untried models. They are now re-mapping how they do that. Real estate bases its practice off of comparables, and on-the-ground information about supply and demand, not off models.

It is precisely because of such circumstances, both preserving an otherwise exploited public, to market value transactions and the statute of frauds, that the value of a realtor’s profession is honorary and civic in nature and not just about capitalistic salesmanship. It is like having insurance, we don’t like the co-op expense, but it protects those who need it. Only in this case, all benefit in some way.

Buyer Representation

In most areas the Multiple Listing Service (MLS) is ran by your Local County Board of Realtors that gives listing access to participating brokerages and most brokerages, if not all, participate. You’ll need to check your local area to see if this is the case. Rules governing listings in the MLS, typically specify in the listing, or have as there norm, a percentage of commission that will be split in some fashion between a buyers agent and a sellers agent. Therefore, if the existing rules that govern, have gone through considerable trouble to get the seller to “put up” enough commissions in the asking price to cover both the sellers agent AND the buyers agent, you may want to use the system because it has made your representation free.

Now given the current system, that while the seller pays both ends when selling and as a buyer they pay nothing, there is another way to look at how cost is transferred across the table. If the seller uses a realtor to sell and then uses a realtor to buy it could have been arranged that given an equal sell of home to an equal purchase price, with a total of 6% being incurred, that a 3% charge is levied for selling and 3% for buying. Only in our current system, you pay it all when selling.

This can tend to underscore the importance as a buyer, to be sure to defer to your own realtor, if you see other realtor signs or other opportunities for things you need information on. This is in the case you plan on using the free representation of a buyers agent provided you on participating realtor sold homes. That’s right free, because the Seller has already agreed to “foot” the bill for your side of representation, already represented in the asking price.

Many people will sometimes call the sign in the yard, and as the buyer may end up choosing to have the Sellers realtor represent them, in states where it is legal. Do people understand fully that, that Sellers Agent will get both commission sides, those held out for representing his seller and now those for representing you, the buyer? So, you may want to be careful when “choosing” to “go the sign in the yard” route. If you are calling for information, you may want to introduce first that you have an agent, but that you have some questions. Don’t expect the Sellers agent to direct you toward any other representation, but what he or she will gain by wooing you with the enticements you now possibly feel for a showing of that property, which if in showing it to you, you may now tend to a felt sense of obligation toward that agent. Still, only at the very end of that trail in having the Sellers agent help you, if in making an offer, will you find in bold letters, the disclosure of such Limited Agency situation, which you now find yourself in… that ‘you do not have to go that route, but are now consenting to it’ (yes, but fine, after you’ve inadvertently made that agent do all the work and he/she is holding a pen for you to sign it).

If the Seller represents both sides, this is commonly referred to as Limited Agency. Limited Agency is when the agent that represents the Seller is also going to be representing the Buyer. Limited Agency has the following possible disadvantages:

The listing or LIMITED realtor may not be inclined to:

Go after information that can be used to leverage your position as a buyer and there are all kinds of questions a buyers realtor can ask the listing realtor if they are astute to the art of negotiations that appreciates that knowledge is power.

Share with you any reasons why not to buy “this” property.

Negotiate the best price and terms for you, because that would hurt the interests of his Seller.

Include contingencies in the contract that protect YOU rather than the seller, including standard clauses.

Keep confidential any information that could hurt your bargaining position. This is where your bottom-line on price or something else that is confidential, un-be-knownst to you, may have been shared with the Seller.

Remain neutral, when taking sides is an option.  For example; a parent would never confess to admitting to having a favorite child, even if his/her siblings know who the favorite is.

Where Limited Agency is legal there is a possible advantage:

It is possible that you may have less trouble melding terms you know the Seller will accept when his/her agent is also present to help you with yours; typically when you thing you can make your case stronger than the other agent. Although it may not always happen ideally, the Limited Agent can try to depict an objective picture of value, when it comes to helping you negotiate an asking price. However, fiduciary (or ethical) duties keep the ‘Limited’ Agent from giving away the Sellers motivations, bottom line, etc. In other words, the agent is bound by fiduciary duty to become less involved in sharing or ‘going after’ otherwise tedious (research driven) or privy information. Thus, the Limited Agent acts as neutral as possible.

Remember that in most cases, having an agent, can really help you, both in your search process and in being represented well. Now may be the time, to become knowledgeable and comfortable with the choice of an agent and thereby in finding your dream home to be purchased.

The above information can depend on the area so check with local professionals deemed by local (sometimes national) governments to be the appropriate professionals for consulting and doing real estate transactions, including disclosure for appropriate professionals in all areas of expertise and confirming or denying any information held in this article.