Jan
1
Questions to ask a realtor
Filed Under real estate | Leave a Comment
Before you hire a realtor to either help you sell your home or help you find a new one there are some questions you will want to ask to make sure the fit is right. You will first want to ask the realtor is they work in and have knowledge of the area that you are selling or buying in. A realtor who understand the area you are interested in will make the process more enjoyable.
You will want to find out from the realtor if there are any other fees that you will need to pay besides the standard commission. The standard commission is 6% total, 3% goes to the listing agent and 3% goes to the buyers agent. You may be able to negotiate this fee with your agent, while these are the customary fees, there are many new companies that charge a flat rate or smaller fees, so some real estate agents will negotiate with you.
If you’re buying, ask about tax rates and trends in various area towns. They can vary considerably and will affect your total cost of ownership. Also, ask the realtor whether they work primarily with buyers or with listing. If you’re a buyer, a buyer-only realtor may be a good bet.
If you have children, feel free to ask the realtor about the local school system, daycare, etc. You shouldn’t hesitate to ask your realtor about the basics either. Things such as where the grocery store is or the nearest dry cleaners, are all questions that your realtor can answer or find the answers for you.
Also, ask your realtor if there are any administration fees associated with the transaction. These are paid to the realty company at closing.
Ask your realtor about Home Owners Associations and covenants for the neighborhoods you are considering. Ask if the neighborhood is part of any special taxing district.
When working with a Realtor one of the questions you should ask them is how long has he/she been a Realtor. An experienced Realtor who has been doing it for a long time has been there and done that, while a new Realtor will obviously be less experienced and may not be familiar with everything still. I would definitely be more apt to second guess something a new Realtor was doing versus an experienced veteran Realtor. This is not to say a new Realtor can not do his/her job as well or better than the veteran, but I would make a mental note of their experience in my head. An example where the seasoning of a Realtor may come into play: If you have a “unique” property that you are trying to sell, the veteran might have more experience or knowledge about selling this type of property than the newbie Realtor.
One of the most important questions to ask your real estate agent is which neighborhoods appreciate higher than others. You don’t want to buy a property in a neighborhood that has seen little to no appreciation.
Jan
1
Closing costs
Filed Under mortgage | Leave a Comment
Customary costs above and beyond the sale price of the property that must be paid to cover the transfer of ownership at closing; these costs generally vary by geographic location and are typically detailed to the borrower after submission of a loan application.
You can determine the breakdown of all the closing cost by reviewing your Good Faith Estimate that is provided by your loan officer.
Many closing costs are a fixed figure, however, some are percentage based depending on the loan amount. This will cause your closing costs to vary depending on the price of your home.
Typical Closing Costs for a homebuyer include, but not limited to, the following fees; Loan Origination, Loan Discount, Appraisal, Credit Report, Inspection, Mortgage Broker, Tax Related Service, Processing, Underwriting, Courier, Flood Certification, Flood Insurance, Hazard Insurance, Private Mortgage Insurance, Title Search, Title Insurance, Attorney, Recording, County Tax Stamps, and Survey.
Expenses, over and above the price of the property, incurred by buyers and sellers in transferring ownership of a property. Closing costs normally include an origination fee, an attorney’s fee, taxes, an amount placed in escrow, and charges for obtaining title insurance and a survey. Closing costs percentage will vary according to the area of the country.
It is important to note that the Good Faith Estimate is only an ESTIMATE. Seldom does the GFE exactly represent the closing costs for a loan with a specific lender. For this reason, you should never do business with somebody based solely on the Good Faith Estimate. Many good brokers will overstate the amount of your closing costs, so you aren’t surprised by an increase in costs when it comes time to close the loan. Conversely, many bad brokers will understate the amount of closing costs in order to lure you into doing business with them. For this reason, you should not base your decision to do business with a specific person or company based solely on the GFE. Consider whether or not they seem honest, hard-working and fair. Ask them tough questions such as “How long have you been in the business?” or “How is it that you get paid?” or “How much do you make on a typical loan?”. Questions like this will allow you to judge the character of the individual, in order to make an informed decision about who you should choose for a home loan.
The Closing Costs for your transaction will be itemized on the HUD-1 form at closing. This form lists all the details of the purchase or refinance, the money going into and out of the transaction. This form is generally finalized and available to the borrower, seller, Real Estate Agents and Brokers 24-48 hours before closing. All parties involved should review the HUD-1 at this time to identify any discrepancies. Depending on your situation and the timing of your closing this form may not be available until the day of closing.
As a buyer in the transaction you may ask the seller to contribute to your closing costs. In most cases the typical amount is 3% but this is not set in stone. It can be as high as 6% depending on what your lender will allow with the program you are using. This is a negotiable amount and not all sellers are willing to contribute. In areas of the country where the real estate market is really hot and you have buyers fighting for properties it can be more difficult to accomplish this. Always ask if the seller is willing to contribute to closing costs because you just might be surprised.