Wednesday, September 17, 2008
Some of the most basic real estate terms to learn when initiating your first transaction are:
Realtor or Real Estate Agent
Realtors are those individuals who have registered with the National Association of Realtors. Both real estate agents and realtors work to help buyers to locate properties and for sellers to sell their properties.
APR
APR stands for Annual Percentage Rate and this is typically listed on your offer for a mortgage loan. Your APR is typically higher than your interest rate listed on your mortgage.
Seller Note
A seller note is a financing strategy in which the property owner self financing the sale of their property to a buyer. The terms of the self financed mortgage such as the interest rate, duration of the loan and the loan length are all determined between the buyer and the seller.
Assumable Mortgage
This type of mortgage is one in which the loan and payments can simply be transferred to another person, typically a buyer.
Appraisal
When purchasing a property, it is common for the lender to require an appraisal prior to agreeing to fund the loan. An appraisal uses features about the property as well as current comparable properties in the area to determine what the present market value of the home is. Appraisals are also often required when a home owner inquires into refinancing the mortgage or for a home equity loan.
Inspection
A home inspection is common in both residential and commercial properties and is sometimes required by the lender. A home inspection involves carefully examining all portions of the property, including the interior, the exterior and the land itself. Any issues will be reported to the buyer and the seller for remedy prior to closing. Some buyers will request that items be repaired prior to the closing, some will ask for financial renumeration in the amount estimated to repair the items found in the inspection and some buyers will cancel their offer if the inspection items are perceived to be too costly.
Closing Costs
Closing costs are one-time costs that the buyer and/or the seller will be responsible for when the closing takes place, transferring ownership of a property to another party. Closing costs are in addition to the down payment applied from the buyer and can include things such as property taxes prorated, mortgage interest prorated, insurance payments prorated, fees assessed by the title company, fees assessed by the real estate agents and other miscellaneous administration fees required to process the transaction. Closing costs range, but can typically be estimated from 2-4% of the purchase price of the property.
Earnest Money
Many sellers will require a good faith deposit called earnest money when a buyer makes an offer. These funds are held in an escrow account by the title company closing the transaction. And, it is typically applied towards the down payment.
Property Taxes
These are the taxes due annually for your property which are based upon the property value. They are typically due at the beginning of the year, although some municipalities require payments semi-annually. Some mortgage companies collect a portion of real estate taxes due each month to pay the annual real estate taxes on behalf of the property owner.
Tuesday, August 5, 2008
Once you have been tagged, you have to write a blog with 10 weird, random things, facts, habits, or goals about yourself. At the end, choose 10 people to be tagged, listing their names and why you chose them. Don't forget to leave them a comment ("You're it") and ask them to read your blog. You can't tag the person who tagged you.
Now, here's my list:
1. I am a work-at-home mom now, doing three roles everyday: freelancer, nanny, housekeeper
2. I always love to be busy, especially if it gives me more "moolah", lolz!
3. I have a sweet tooth...name it, and I'll surely bite them all! yummy!
4. My heart is for the unfortunate ones so I feel like helping whenever I have much for myself.
5. I am a detail-oriented person, so expect me to have my documents and stuffs organized, even important conversation saved in a file. (ebidenxa!)
6. I am friendly, but B-E-W-A-R-E! When I get hurt, I won't let it pass until I get even (An eye for an eye, a tooth for a tooth) Sorry...
7. I am a dreamer...I want to be a CPA, Interior Designer, Web Designer, Lawyer and NBI agent, but my ultimate dream is to become R-I-C-H!!!
8. I got pregnant at the age of 20 to a cute and smart 'lil boy. I love you my prince!
9. I am uber meticulous when it comes to the tiniest detail at home. I want everything to be organized, arranged in a way that satisfies my eyes, even curtains should flow into place, etc.
10. I may be merciful, but not to arrogant peeps! As long as I am RIGHT, I won't allow you to step on me, ever!
Tuesday, July 15, 2008
Saturday, June 28, 2008
It’s been almost a week that I have been searching for a reliable service to help me find luxury vacation spree. I certainly wish to finally experience Perfect Escapes. It’s just a good thing that I stumbled upon Perfect 10 Newsletter.
I found out that there’s a lot to offer from this service. And my excitement has become more intense when I get to see a list of the world’s best hotels and destinations that I can possibly go to. Now I made up my mind. I really have to go to any of these world’s best destinations as I hate the toxics in the city. I want something new, something fun.
And I’m pretty sure that perfectescapes.com will settle everything that I needed for a grand vacation. I heard a lot of people who are grateful enough to have chosen their service. So I am grabbing the chance and won’t waste time until I can get the best vacation that I’ve been wanting since. I might also consider going to Wynn Las Vegas, which I heard a great place to stay.
Monday, June 23, 2008
The National Association of REALTORS® (NAR) includes 1 million brokers and salespeople, individuals bound together with a strong Code of Ethics, extensive training opportunities and a wealth of community information. NAR members are routinely active in PTAs, local government committees and a variety of neighborhood organizations. Being actively involved in community affairs provides REALTORS® with a better understanding of the area in which they are selling.
Why?Buying and selling real estate is a complex matter. At first it might seem that by checking local picture books or online sites you could quickly find the right home at the right price.
But a basic rule in real estate is that all properties are unique. No two properties -- even two identical models on the same street -- are precisely and exactly alike. Homes differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike.
In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local REALTORS® who serve your area.
How do you choose?In every community you're likely to find a number of realty brokerages. Because there is heated competition, local REALTORS® must fight hard to succeed in your community.
The best place to find a local REALTOR® is from REALTOR.com's® extensive listing of community professionals and properties. Other sources include open houses, local advertising, Web sites, referrals from other REALTORS®, recommendations from neighbors and suggestions from lenders, attorneys, financial planners and CPAs. The experiences and recommendations of past clients can be invaluable.
In many cases buyers will interview several REALTORS® before selecting one professional with whom to work. These interviews represent a good opportunity to consider such issues as training, experience, representation and professional certifications.
What should you expect? (Working with a REALTOR®)Once you select a REALTOR® you will want to establish a proper business relationship. You likely know that some REALTORS® represent sellers while others represent buyers. Each REALTOR® will explain the options available, describe how he or she typically works with individuals and provide you with complete agency disclosures (the ins and outs of your relationship with the agent) as required in your state.
Once hired for the job, the REALTOR® will provide you with information detailing current market conditions, financing options and negotiating issues that might apply to a given situation. Remember: Because market conditions can change and the strategies that apply in one negotiation may be inappropriate in another, this information should not be set in stone. During your time in the marketplace REALTORS® will keep you updated and alert you to each step in the transaction process.
Thursday, June 19, 2008
One of the keys to making the homebuying process easier and more understandable is planning. In doing so, you'll be able to anticipate requests from lenders, lawyers and a host of other professionals. Furthermore, planning will help you discover valuable shortcuts in the homebuying process.
Do You Know What You Want?Whether you are a first-time homebuyer or entering the marketplace as a repeat buyer, you need to ask why you want to buy. Are you planning to move to a new community due to a lifestyle change or is buying an option and not a requirement? What would you like in terms of real estate that you do not now have? Do you have a purchasing timeframe?
Whatever your answers, the more you know about the real estate marketplace, the more likely you are to effectively define your goals. As an interesting exercise, it can be worthwhile to look at the questions above and to then discuss them in detail when meeting with local REALTORS®.
Do You Have The Money?Homes and financing are closely intertwined. (Financing is the difference between the purchase price and the downpayment, commonly referred to as debt or the mortgage.) The good news is that over the years new and innovative loan programs have evolved which require a 5 percent downpayment or less. In fact, a number of programs now allow purchasers to buy real estate with nothing down.
In addition to a down payment, purchasers also need cash for closing costs (the final costs associated with closing the loan). Several newly emerging loan programs not only allow the purchase of a home with no money down, but also underwrite closing costs.
Not everyone, however, elects to purchase with little or no money down. Less money down means higher monthly mortgage payments, so most homebuyers choose to buy with some cash up front.
As to closing costs, in markets where buyers have leverage, it may be possible to negotiate an offer for a home that requires the owner to pay some or all of your settlement expenses. Speak with local REALTORS® for details.
Is Your Financial House in Order?Those great loans with little or nothing down are not available to everyone: You need good credit. For at least one year prior to purchasing a home, you should assure that every credit card bill, rent check, car payment and other debt is paid in full and on time.
Sunday, June 15, 2008
Step 1:
Are you Ready?
Step 2:
Get a REALTOR®
Step 3:
Get Loan Preapproval
Step 4:
Look at Homes
Step 5:
Choose a Home
Step 6:
Get Funding
Step 7:
Make an Offer
Step 8:
Get Insurance
Step 9:
Closing
Step 10:
What's Next?
