What Are Closing Costs?

/in /by

Whenever you buy a home, many pieces must come together for the property to be appraised, sold, and transferred to a new owner. While you may only communicate with your realtor and a representative from your lender, many professionals are working behind the scenes to make sure the home buying process goes smoothly. Closing costs cover all the fees these professionals charge for their services.

Since closing costs is a blanket term that covers a variety of different fees and charges, there’s no way to give someone a definite answer as to how much their closing costs will be until they actually close on the property and sign all of the required documents. However, lenders do try to be transparent about estimated closing costs by providing all mortgage applicants with a Loan Estimate (formerly known as a Good Faith Estimate) a few days after submitting an application. This Loan Estimate will list all the expected closing costs associated with the prospective mortgage loan. The Loan Estimate is the best tool available for estimating your closing costs so you can budget appropriately. Read more

What is a Conventional Loan?

/in /by

A conventional mortgage loan is a mortgage loan that is not backed by a government agency. Conventional mortgage loans can be categorized in many different ways, including conforming v.s. non-conforming, fixed-rate v.s. adjustable-rate, and more.

Conventional mortgage loans are great for potential property buyers who don’t meet the requirements for other mortgage types, such as debt-to-income ratio or credit score. Since conventional loans are backed by private financial institutions instead of government agencies, they don’t always have to follow the strict regulations set in place by government officials. Depending on the buyer’s current financial situation and intended use of the property, a conventional loan may offer a lower interest rate and more favorable terms than a government-backed loan. Read more

In Real Estate, What Does “Exclusive Right to Sell” Mean?

/in /by

Selling your home can be very overwhelming and confusing. In addition to navigating the various laws and deadlines, there’s also a completely new language to learn. When you first speak to a realtor or start researching selling your home on the internet, you may be overwhelmed with all the jargon. If you decide to go with a realtor, they will probably present you with an “Exclusive Right to Sell” contract during one of your first meetings. Before you sign anything, you need to know exactly what that means.

What is an “Exclusive Right to Sell”?

When you sign an “Exclusive Right to Sell” contract with a realtor, you’re agreeing that only the realtor can market, promote, and sell your home until the contract’s end date. No other agent or broker can list, promote, or market your home, and all buyers must go through the exclusive agent. This also means that they get paid no matter who brings in the buyer for the house.  Read more

Why You Should Get a Mortgage Pre-Approval

/in /by

Mortgage Pre-ApprovalBuying a home can be a complicated process, but there are things you can do to ease some of the stress. Preparation for purchase should begin well before you ever look at a potential property. Important things to consider when purchasing a new home include crime rates, school district reputations, commute times to work or school, availability of public transportation, HOA fees, and, of course, how much you can afford. Obtaining a mortgage pre-approval is the best way to estimate how much you can finance for a new home.

Know Your Purchase Power

Determining your budget can be difficult if you plan to finance a purchase. Without knowing the exact term and interest rate you’ll be paying, you can’t accurately calculate the total purchase price you can afford. A mortgage pre-approval letter will tell you what a lender estimates they can finance based on your background and credit history. You’ll need to provide the lender with some detailed information about yourself to obtain the pre-approval, including your income figures, credit report and score, and employment history. You won’t have to worry about falling in love with a home you cannot afford as long as you stick to the pre-approval letter’s limit. Read more

First-Time Homebuyer Programs in Florida

/in /by

First-Time HomebuyerThere aren’t many things in life as exciting as closing on your very first home! While you’ll certainly be excited and feel accomplished as a new home buyer, the process can also be intimidating and hard to navigate, not to mention expensive. Luckily, in the state of Florida, there are several ways first-time homebuyers can reduce the monthly payments, down payment, and closing costs on their mortgages, making homeownership easier than ever!

Florida hosts several programs that offer 30-year, fixed-rate mortgages for first-time homebuyers, collectively known as the Homebuyers Loan Programs. With one application to Florida’s state housing authority, Florida Housing Finance Corporation (FHFC), you can be considered for all available loan types within this program. These loans are backed by various federal agencies, including the FHA, VA, USDA, Fannie Mae, and Freddie Mac. There are a few requirements to receive one of these loans: Read more

A Complete Guide to If and When You Can Back Away From Buying a House

/in /by

Despite its excitement, the actual process of buying a home can feel rather daunting. You might get halfway through and find yourself facing changes, obstacles, or concerns that make you consider backing away from your purchase. 

That’s why it’s important to educate yourself on the home buying process before you begin. In addition to learning the ropes on how to buy a home, don’t forget to learn more about how to not buy a home. What reasons allow you to back away from a deal, and when does it become too late? Here’s what you need to know. 

The Best Time to Back Out is Before Your Offer is Accepted

You find a house you love and put in an offer, but then have a chance of heart. You can withdraw your offer and walk away without any complications. 

Read more

Types of Home Loans: Which Option Works Best for You?

/in /by

You need a home loan — more commonly known as a mortgage, but which type of loan is best for your financial situation? Make sure you understand the ins and outs of each home loan option before you launch into the search for your dream home. 

Conventional Mortgages

Conventional loans are funded by private financial lenders. They’re the most common type of mortgage because they don’t have strict regulations on income or home type, and location. However, they do require stringent credit score and debt-to-income ratio numbers.  Read more

Why Is It Important To Have a Home Inspection?

/in /by

Buying a home involves more than the transfer of money; the buyer and seller must both complete and uphold certain processes that protect and respect all parties involved. 

A home inspection is one such process that is essential to ensure that the buyer is not investing in a property that will turn into a money pit. This is only possible with a thorough and reliable home inspection. 

What Exactly Is a Home Inspection?

A home inspection is completed by a professional inspection specialist to provide an objective visual examination of the physical structure and systems of a home. This includes every major system from the roof down to the foundation: the heating, central air, interior plumbing, electric, roof, attic, walls, ceilings, floors, windows, doors, basement, and structural components.  Read more

What You Need To Know About Closing Costs

/in /by

When you think you’ve completed every step of the home buying journey, from saving for a down payment and getting approved for a mortgage to finding the perfect home and making an offer, there’s one more hurdle to jump — closing costs.

Closing costs can come as an unpleasant surprise to buyers who aren’t prepared for the final expenses of their home purchase. Make sure you understand what closing costs cover and budget for them accordingly.

What Are Closing Costs? 

The term “closing costs” is used to encompass a range of fees for the services and expenses required to finalize and approve your mortgage. The seller is responsible for a handful of closing costs, but most of the burden falls on the buyer. You can expect your closing costs to total between 2-5% of your total loan amount.  Read more

5 Common Mistakes To Avoid When Selling Your Home

/in /by

It’s every seller’s dream to sell their home quickly and without hassle. Nobody wants their home to languish on the market for months on end. Make sure you avoid these five common mistakes to help your home sell as easily as possible.  

Mistake #1: Setting the Price Too High

Pricing your home too high is a common pitfall that creates an unwanted domino effect. First, the higher price will deter legitimate, qualified buyers searching for a home in your price range. As a result, you’ll be less likely to receive offers from eager buyers. Your home will sit on the market instead. And the longer your home’s up for sale, the less urgency buyers feel to make a quick offer. In the end, you’ll be forced into a price reduction that gives the buyer extra negotiating power. Read more