May
10
Let me answer this question with another question: Would you like to pay more money or less money to buy a house? Most people would like to pay less money. And that’s why a 15-year mortgage is usually a better choice. There are two factors that make a 15-year mortgage cheaper than a 30-year mortgage. …
Apr
21
The federal government’s intervention in the housing market is about to show its face again. Much of the housing market has been more or less stuck in neutral–or even reverse–since the federal income tax credits of 2o10 expired. They caused a home buying frenzy in early 2010, as many buyers bought homes sooner than they …
Apr
19
Dual agency is the situation in which one real estate broker represents both the buyer and the seller in a real estate transaction. Provided that both the buyer and the seller are aware of the situation and agree that they are willing to be represented by the same broker, dual agency is legal in most …
Apr
07
Fifth in a 5-part series. Page 3 of the HUD-1 Settlement Statement outlines all of the buyer’s costs of getting a mortgage and compares the final, actual costs with the costs estimated on the good faith estimate (GFE). It also outlines the key terms of the mortgage, such as the monthly payment, the interest rate, …
Apr
07
Fourth in a 5-part series. Page 2 (Part L) of the HUD-1 Settlement Statement lists all of the “closing costs” associated with the real estate transaction. The majority of the costs are driven by the buyer’s lender, but not all of them. The terms of the negotiated real estate contract determine which costs are paid …
Apr
07
Second in a 5-part series. Part J of the HUD-1 Settlement Statement summarizes the buyer’s side of the transaction in lines 101 through 303. Line 303 is the total of all of the buyer’s debits and credits and shows the amount of money that the buyer must bring to closing. This post is a line-by-line …
Apr
07
First in a 5-part series. The HUD-1 Settlement Statement summarizes the financial aspects of the real estate transaction. From the buyer’s perspective, it confirms the terms of the mortgage loan, shows all of the costs associated with getting the loan and buying the house, and shows the total amount of money that the buyer must …
Mar
31
Fourth in a 4-part series. Almost. Typically, you truly own the home after the transaction is both closed and funded. That’s right, even after the buyer, the seller, and the title company have all done all of the closing paperwork—there are still a few more things that have to be done, most of which are …
Mar
31
Third in a 4-part series. From the seller’s perspective, there are three main things that must be completed for his/her side of the closing to go smoothly. The most important thing is that the seller has to be able to deliver clear title to the buyer. For example, if there are any liens on the …
Mar
31
Second in a 4-part series. The buyer should be concerned with four main things that happen prior to and at closing. Primarily, the buyer has to be able to pay for the property. This means that the buyer must show up with the required down payment and that the mortgage loan must be ready. The …