The Crimes We Commit Against Our Wallets

Originally posted 2009-12-12 05:00:33. Republished by Blog Post Promoter

Taylor-Brown Real Estate prides itself on deliver top-notch information that you can use about the topics of mortgages, real estate, and insurance.  Therefore, it is imperative that from time to time specific information is given that may not be found anywhere else on the web.

There are several often over look but very important facts that you will want to know so that you can protect your investment, as well as, your wallet.  Therefore, there are several valuable documents, blogs, and books that needed to be read before purchasing a home:

• Don’t Buy A Foreclosed Property WIthout An Inspection

“However, the potential financial rewards of buying a foreclosure don’t come without their share of hard work and headaches. Foreclosed homes are distressed and neglected homes. Repair issues in foreclosed homes may not be as obvious, nor simple as damaged drywall or dirty carpet……”

• The New Rules For Mortgages

“When getting a mortgage in today’s market, it’s not who you know, but what you know! Before getting a mortgage, you really need to know the rules.  Read this book!……”

• Do You Make These Mistakes When Getting a Mortgage

“Often times, the buyer’s excitement about being told that he or she has been approved for a mortgage that often stops him or her from asking the right questions when applying for a mortgage. When shopping for mortgages make sure you asking the following questions:…….”

• What is Closing Cost

“Closing cost only accrues when a seller conveys title of a property through a real estate contract. When the contract is executed through changing of deed of ownership, transfer of funds, and signatures of all parties, there is an action commonly called a “closing”……..”

• The Little Mistakes that Cost a Homeowner Over $6000 a Year

“There are a couple of little mistakes that cost homeowners a lot of money. One of those mistakes is not filing for tax exemptions. Another mistake is not understanding the mortgage. Still yet another mistake is not knowing your right if you are trouble with your mortgage…..”

• I am a First Time Homebuyer What Next

“As a first time home buyer, there are things that are important to your successful ownership of your first home. The most important things that will make you successful in home ownership understand your market, understanding your mortgage, and knowing what you can and cannot handle…..”

The above blogs and books will arm you with the information needed to conquer the hold on the money in your wallet.

Related Recommended Articles:

• Real Estate News: Loan Mods Disappoint, Lehman Sells Funds (blogs.wsj.com)
• FHA Improvements: New guidelines and Fewer Restrictions (zillow.com)
• Homebuyer Tax Credits Threaten the FHA (online.wsj.com)
• Real Estate News: Fannie As Landlord, Tax Credit Extended (blogs.wsj.com)

What is Closing Cost?

Originally posted 2009-05-01 15:10:36. Republished by Blog Post Promoter

Have you ever worried what is included in closing cost?  Closing cost only accrues when a seller conveys title of a property through a real estate contract.  When the contract is executed through changing of deed of ownership, transfer of funds, and signatures of all parties, there is an action commonly called a “closing”

                       

The closing cost is paid at the closing of the transaction are:

• Title service cost
• Recording fees
• Document or transaction stamps or taxes
• Survey fees
• Brokerage commission
• Mortgage application fees
• Points
• Appraisal fees
• Inspection fees
• Home warranties
• Prepaid insurance
• Pro-rated property taxes

 

The title search is most important of these simply because it ensures several things that are important to the ownership being conveyed.

• Title search ensures the individual who is selling the property owns the property and can convey title.
• Title search ensures that there are no judgment and/or liens on the property.

 

The recording fee is the fee charged to file an official recording of the change ownership.  The instrument used to convey ownership is a deed, so the charge is for filing a new deed. 

 

Home warranty can be paid for by party, the buyer or the seller.  A home warranty ensures major household systems against repair or replacement for a least a year after purchase of the home. 

 

Pre-paid insurance is paid for by the buyer.  The insurance protects both the buyer’s personal assets and the property that the buyer is purchasing. 

 

Document or transaction stamps or taxes are not necessary in all states. However, if required it must be paid at the closing of the transaction.  The document or transaction stamps or taxes are simply an excise tax charged by the government when change in ownership occurs.

 

Survey fees are charged if a buyer requests a survey.  It lets the buyer know the boundary of the land that is being conveyed. 

 

Brokerage commission is the compensation to the brokerage company for brings the two parties, the buyer and seller, together. 

Mortgage application fees are paid tot the lender.  It covers the cost of processing your loan application. 

 

Points are paid by the buyer to the lender to lower the buyer’s interest rate on the loan.

 

Appraisal fees are usually paid for by the buyer to the appraiser.  The appraiser gives the lender a professional evaluation of the value of the home that the buyer is purchasing. 

 

Inspection fees are usually paid for the buyer for a home, pest, or inspection that the buyer deems is necessary so that the buyer can ascertain the condition of the property. 

 

The title cost is an important and necessary cost in purchasing a home so it is important that the buyer understand what the cost covers.