While owning a home has its obvious benefits, the process (especially for first-timers) can be a bit intimidating. When considering the major investment of a new home for the first time, you will need to consider several aspects of your life and financial future. Together, we will consider the following:
- How much should you really spend?
- Qualifying for a mortgage
- How much cash you should put down
- Choosing the financing that’s right for you -
- When to buy a home with little or nothing down
- What it takes to get approved for financing
- What banks and other financial institutions are looking for
- Whether to escrow insurance and taxes with your payment
- Learn how to estimate your mortgage payment
- Tax advantages of owning a home
- Is renting or buying better for you...
Just call our office at 882-7210 and speak with one of our team members to discuss plans for your future home. We firmly believe that preparation is key in making an informed decision to buy a home. We also have preferred partners who can provide quotes for your consideration in the areas of financing, insurance, inspections and closing costs.
If you have questions about moving, building, selecting your first home or moving up to your next home, contact DAVID BRENTON’S TEAM.
When you are serious about moving… put our TEAM to work for you!
Thursday, January 31, 2008
Tuesday, January 15, 2008
Preparing for the Closing
During the course of the average purchase, it stands to reason that some small, easily forgotten items may not come to light for negotiation until just before or right at the closing table. Unfortunately, this is the normal course for most transactions. And, considering the dozens of items involved in selling or buying a new home, it’s not surprising that one or two items remain unresolved until day of (and sometimes at) the closing. The following suggestions will prepare you for the basics, so that the issues that may pop up at the last minute can receive your full attention:
Title Commitment - Whether a buyer or seller, you should be able to review your title commitment prior to closing. This commitment, while not the final policy, specifies what the title insurance covers, the recorded outstanding liens against the property, how it is titled and exceptions to coverage in the event of fraudulent documentation. If selling your home, you should ask your agent to order a preliminary title search at the time of listing. This should bring to light any unreleased mortgages, judgments, or other unanticipated clouds on your title, giving you ample time to resolve such issues well in advance of receipt of an offer or at your closing.
Surveyor Location Report - As with the title commitment, a seller should ask their agent to order a preliminary surveyor location report. Such a report reveals how the improvements are situated upon the land, informs them whether the property is located in a flood hazard area, and outlines possible encroachments. This would give a seller an opportunity to correct or address problems before the closing takes place. If a buyer, always ask for a surveyor location report (unless your intended purchase is a condominium). A surveyor location report usually costs around $150-$175 and is a small investment for peace of mind.
Mortgage documents – If you thrive on the nitty-gritty details, we suggest you request your lender send you a sample loan package so you can review and read every document in detail prior to closing. This will give you time to review the fine print and get your questions answered in advance rather than trying to contact your mortgage company during the closing for an immediate response. Your lender can explain in full detail (ahead of time) each document’s purpose and ramification. Then, while at closing, you will sign actual documents that reflect the particulars of your specific loan; namely the principal, interest rate and APR. If selling, review your mortgage documents for prepayment penalties, and contact your mortgage company to get a final payoff. Ask about their policy on whether they will exhaust any funds in escrow toward your balance, or if they will refund the outstanding escrow to you after closing. Inquire as to how long it may take to receive the check from your escrow account.
If you are not offered the opportunity to view these documents prior to closing, ask for them. We recommend allowing two (2) weeks to review them so all your answers can be addressed and any problems resolved well in advance. Other items that you will need for closing include:
Homeowner’s Insurance – Not only will you need to pay a full year’s premium in advance, but several months may be charged at your closing to fund your escrow account. Bring a copy of your binder and paid receipt for 12 months of coverage to the closing.
Picture ID – it necessary for the closing agent to verify your identity, so bring picture ID.
Certified Funds – any money to be brought to closing should be in the form of cashier’s check, certified check, or postal money order. Make the checks out to yourself, and then endorse them at closing. This includes any negotiation for lease backs, repairs, pro-rations for unused fuel, or personal items purchased from the seller.
If you have questions about moving, building, selecting your first home or moving up to your next home, contact DAVID BRENTON’S TEAM.
When you are serious about moving… put our TEAM to work for you!
Title Commitment - Whether a buyer or seller, you should be able to review your title commitment prior to closing. This commitment, while not the final policy, specifies what the title insurance covers, the recorded outstanding liens against the property, how it is titled and exceptions to coverage in the event of fraudulent documentation. If selling your home, you should ask your agent to order a preliminary title search at the time of listing. This should bring to light any unreleased mortgages, judgments, or other unanticipated clouds on your title, giving you ample time to resolve such issues well in advance of receipt of an offer or at your closing.
Surveyor Location Report - As with the title commitment, a seller should ask their agent to order a preliminary surveyor location report. Such a report reveals how the improvements are situated upon the land, informs them whether the property is located in a flood hazard area, and outlines possible encroachments. This would give a seller an opportunity to correct or address problems before the closing takes place. If a buyer, always ask for a surveyor location report (unless your intended purchase is a condominium). A surveyor location report usually costs around $150-$175 and is a small investment for peace of mind.
Mortgage documents – If you thrive on the nitty-gritty details, we suggest you request your lender send you a sample loan package so you can review and read every document in detail prior to closing. This will give you time to review the fine print and get your questions answered in advance rather than trying to contact your mortgage company during the closing for an immediate response. Your lender can explain in full detail (ahead of time) each document’s purpose and ramification. Then, while at closing, you will sign actual documents that reflect the particulars of your specific loan; namely the principal, interest rate and APR. If selling, review your mortgage documents for prepayment penalties, and contact your mortgage company to get a final payoff. Ask about their policy on whether they will exhaust any funds in escrow toward your balance, or if they will refund the outstanding escrow to you after closing. Inquire as to how long it may take to receive the check from your escrow account.
If you are not offered the opportunity to view these documents prior to closing, ask for them. We recommend allowing two (2) weeks to review them so all your answers can be addressed and any problems resolved well in advance. Other items that you will need for closing include:
Homeowner’s Insurance – Not only will you need to pay a full year’s premium in advance, but several months may be charged at your closing to fund your escrow account. Bring a copy of your binder and paid receipt for 12 months of coverage to the closing.
Picture ID – it necessary for the closing agent to verify your identity, so bring picture ID.
Certified Funds – any money to be brought to closing should be in the form of cashier’s check, certified check, or postal money order. Make the checks out to yourself, and then endorse them at closing. This includes any negotiation for lease backs, repairs, pro-rations for unused fuel, or personal items purchased from the seller.
If you have questions about moving, building, selecting your first home or moving up to your next home, contact DAVID BRENTON’S TEAM.
When you are serious about moving… put our TEAM to work for you!
Wednesday, January 2, 2008
Make Your Home a Giving Home
For each home sold with DAVID BRENTON’S TEAM, a donation to Children’s Miracle Network is made. Our local affiliate is Riley Hospital for Children. Riley is known throughout Indiana and the world as one of the premier hospitals for servicing the medical needs of children.
If you have questions about moving, building, selecting your first home or moving up to your next home, contact DAVID BRENTON’S TEAM.
When you are serious about moving… put our TEAM to work for you!
Determining Value in a Home
You’re in the market to either buy or sell a home, so what is next? In either case, determining how much someone should pay for a home is vital to your success.
For sellers - A home that is under-priced needlessly costs the client potential return. An over-priced home can remain on the market for an extended amount of time, forcing the seller to either wait out a long listing period or have to adjust (lower) the asking price. Getting the price right from the start avoids these delays, and serves as a solid foundation for a great business relationship. We both want a price that is competitive and consistent with your market.
For buyers - A house that is over-priced or over-improved for the area may be difficult to resale (or recapture your purchase price) in future years. The appreciation of a property purchased under these circumstances will not increase as much as others in the neighborhood because your home is already at top dollar. However, one of our buyer specialists can provide a market analysis to determine where your asking price should be and discuss the sales history with you. That way, you can decide if the property is a great deal -- or a great deal too much.
Buyers and sellers can both benefit from reviewing a “Comparative Market Analysis” (CMA) of their property to determine the fair market value. In short, fair market value is the highest price that an informed buyer will pay for the home. Establishing fair market value will enable us to sit down and discuss in detail the pricing and normal closing costs to expect for your home.
If you have questions about moving, building, selecting your first home or moving up to your next home, contact DAVID BRENTON’S TEAM.
When you are serious about moving… put our TEAM to work for you!
For sellers - A home that is under-priced needlessly costs the client potential return. An over-priced home can remain on the market for an extended amount of time, forcing the seller to either wait out a long listing period or have to adjust (lower) the asking price. Getting the price right from the start avoids these delays, and serves as a solid foundation for a great business relationship. We both want a price that is competitive and consistent with your market.
For buyers - A house that is over-priced or over-improved for the area may be difficult to resale (or recapture your purchase price) in future years. The appreciation of a property purchased under these circumstances will not increase as much as others in the neighborhood because your home is already at top dollar. However, one of our buyer specialists can provide a market analysis to determine where your asking price should be and discuss the sales history with you. That way, you can decide if the property is a great deal -- or a great deal too much.
Buyers and sellers can both benefit from reviewing a “Comparative Market Analysis” (CMA) of their property to determine the fair market value. In short, fair market value is the highest price that an informed buyer will pay for the home. Establishing fair market value will enable us to sit down and discuss in detail the pricing and normal closing costs to expect for your home.
If you have questions about moving, building, selecting your first home or moving up to your next home, contact DAVID BRENTON’S TEAM.
When you are serious about moving… put our TEAM to work for you!
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