Lenders use a Good Faith Estimate to explain closing costs to a home buyer. These estimates contain recurring and non-recurring closing costs.
Definition of Closing Costs
Some home buyers are shocked when they discover it costs more than the price of a home to buy it. When you buy a car, for example, dealers don’t tack on fees and charge extra (except for sales tax) when buyers finance that vehicle. But buying a home is different.
While a buyer doesn’t pay sales tax on a single-family residence or condo, a buyer does incur additional fees to get the loan and for processing the paperwork to buy a home. The closing costs run about 3% of the sales price when the home is priced over $200,000, and a higher percentage applies when the price of a home is less than $200,000.
• Impound / Escrow Accounts -
Lenders may require that a buyer establish a reserve account held by the lender for future payment of taxes and insurance.
• Closing Agents - The individuals who prepare the closing documents and deed charge a fee.
• Title Policies - Title companies charge to issue title insurance that protects the borrower and the lender.
Definition of Non - Recurring Closing Costs
Fees that are paid once and never again are called non-recurring. These fees are one-time charges for such items as:
• Escrow or closing
• Appraisal
• Credit Report
• Title Policy
• Notary
• Wire fees
• Courier / Delivery
• Attorney fees
• Endorsements
• Recording
• State, County or City Transfer Taxes
• Home Protection Plan
• Natural Hazard Disclosure
• Home Inspection
• Fees paid to the lender in conjunction with the loan on the HUD-1, line 800.
Definition of Recurring Closing Costs
Recurring fees are those charges that you will pay again and again. They include such fees as:
• Fire Insurance Premium
• Flood insurance
• Property Taxes
• Mutual or Private Mortgage Insurance Premiums
• Prepaid Interest
Monday, January 31, 2011
Friday, January 28, 2011
Did you know.......
That FHA allows for you to have someone co-sign on your home loan without them having to live in the property? Once qualified, if a person fits the criteria to co-sign based on FICO score, debt and income (amongst some of the requirements) they can go on the loan and help you meet the required income level to qualify for your home and can still currently own a home or buy a home in the future themselves. Please contact me to find out how this works and what preperation is needed for this process.
Wednesday, January 26, 2011
Top 5 Reasons to Short Sale Your Home and Avoid Foreclosure
1. Credit - You do not necessarily have to be late on your mortgage payments to be a candidate, therefore no negative reporting on your credit to your FICO score. Foreclosure is also more damaging to your credit than a short sale.
2. Time - Banks are averaging approvals sooner than before, 4-8 weeks.
3. Savings - No out of pocket expenses in most cases.
4. Incentives - You may be eligible for HAFA (Home Affortable Foreclosure Alternatives) and receive relocation incentives of up to $5000.
5. Peace of Mind - Having someone take over the hassle of dealing with the bank.
Contact an Experienced Realtor who can guide you and let you know what to expect.
2. Time - Banks are averaging approvals sooner than before, 4-8 weeks.
3. Savings - No out of pocket expenses in most cases.
4. Incentives - You may be eligible for HAFA (Home Affortable Foreclosure Alternatives) and receive relocation incentives of up to $5000.
5. Peace of Mind - Having someone take over the hassle of dealing with the bank.
Contact an Experienced Realtor who can guide you and let you know what to expect.
Monday, December 7, 2009
Food for thought
Our character is forged in the furnace of adversity. In what ways have you been uniquely prepared to serve others?
Tuesday, November 17, 2009
Prioritize Your Life!
Feeling overwhelmed? I totally understand! Between juggling work and family and dealing with everyday obligations and distractions, life can get a bit chaotic. The best way to handle it all is by prioritizing. Identify what's really important.
When it comes to work-related tasks, this can be fairly simple. Deadlines usually dictate what jobs need to get done now and what tasks aren't as pressing. If you're unsure, ask your supervisor to confirm what your priorities should be. And if you're overloaded, don't be shy about requesting that some of your duties be reassigned.
Home-related priorities are trickier. You want to be as efficient at home as you at work, but you can't do it all! So go easy on the house rules. Instead of rushing to clean dirty dishes immediately after dinner, take some time to sit for a while and chat with your family. Strengthening these relationships is what matters most!
Use your Journal to make note of all the things you'll need to get done that day — or week, if you prefer — then rank each task in order of importance. Stick to accomplishing three things per day. Yes, just three. If you go over that amount, then fantastic! The point is to give yourself a break. Hey, you're only human!
When it comes to work-related tasks, this can be fairly simple. Deadlines usually dictate what jobs need to get done now and what tasks aren't as pressing. If you're unsure, ask your supervisor to confirm what your priorities should be. And if you're overloaded, don't be shy about requesting that some of your duties be reassigned.
Home-related priorities are trickier. You want to be as efficient at home as you at work, but you can't do it all! So go easy on the house rules. Instead of rushing to clean dirty dishes immediately after dinner, take some time to sit for a while and chat with your family. Strengthening these relationships is what matters most!
Use your Journal to make note of all the things you'll need to get done that day — or week, if you prefer — then rank each task in order of importance. Stick to accomplishing three things per day. Yes, just three. If you go over that amount, then fantastic! The point is to give yourself a break. Hey, you're only human!
Monday, October 26, 2009
Recession Drives Surge in Youth Runaways
Worth reading ... and watching: Recession prompts a surge in young runaways. http://bit.ly/1NzULf. Video: http://bit.ly/FcqVP
Tuesday, October 13, 2009
5 Things You Never Knew Your Cell Phone Could Do
Real things your cell phone can do that you didn't know about
There are a few things that can be done in times of grave emergencies. Your mobile phone can actually be a life saver or an emergency tool for survival. Check out the things that you can do with it:
FIRST
Emergency: The Emergency Number worldwide for Mobile is 112. If you find yourself out of the coverage area of your mobile network and there is an emergency, dial 112 and the mobile will search any existing network to establish the emergency number for you, and interestingly, this number 112 can be dialed even if the keypad is locked. Try it out.
SECOND
Have you locked your keys in the car? Does your car have remote keyless entry? This may come in handy someday. Good reason to own a cell phone: If you lock your keys in the car and the spare keys are at home, call someone at home on their cell phone from your cell phone.
Hold your cell phone about a foot from your car door and have the person at your home press the unlock button, holding it near the mobile phone on their end. Your car will unlock. Saves someone from having to drive your keys to you. Distance is no object.
You could be hundreds of miles away, and if you can reach someone who has the other 'remote' for your car, you can unlock the doors (or the trunk).
Editor's Note: It works fine! We tried it out and it unlocked our car over a cell phone!'
THIRD
Hidden Battery Power: Imagine your cell battery is very low. To activate, press the keys *3370#. Your cell phone will restart with this reserve and the instrument will show a 50% increase in battery. This reserve will get charged when you charge your cell phone next time.
FOURTH
How to disable a STOLEN mobile phone? To check your Mobile phone's serial number, key in the following digits on your phone: *#06#.
A 15-digit code will appear on the screen. This number is unique to your handset. Write it down and keep it somewhere safe. If your phone is stolen, you can phone your service provider and give them this code. They will then be able to block your handset so even if the thief changes the SIM card, your phone will be totally useless. You probably won't get your phone back, but at least you know that whoever stole it can't use /sell it either. If everybody does this, there would be no point in people stealing mobile phones.
And Finally....
FIFTH
Free Directory Service for Cells: Cell phone companies are charging us $1.00 to $1.75 or more for 411 information calls when they don't have to. Most of us do not carry a telephone directory in our vehicle, which makes this situation even more of a problem.
When you need to use the 411 information option, simply dial: (800)FREE 411, or (800) 373-3411 without incurring any charge at all. Program this into your cell phone now.
There are a few things that can be done in times of grave emergencies. Your mobile phone can actually be a life saver or an emergency tool for survival. Check out the things that you can do with it:
FIRST
Emergency: The Emergency Number worldwide for Mobile is 112. If you find yourself out of the coverage area of your mobile network and there is an emergency, dial 112 and the mobile will search any existing network to establish the emergency number for you, and interestingly, this number 112 can be dialed even if the keypad is locked. Try it out.
SECOND
Have you locked your keys in the car? Does your car have remote keyless entry? This may come in handy someday. Good reason to own a cell phone: If you lock your keys in the car and the spare keys are at home, call someone at home on their cell phone from your cell phone.
Hold your cell phone about a foot from your car door and have the person at your home press the unlock button, holding it near the mobile phone on their end. Your car will unlock. Saves someone from having to drive your keys to you. Distance is no object.
You could be hundreds of miles away, and if you can reach someone who has the other 'remote' for your car, you can unlock the doors (or the trunk).
Editor's Note: It works fine! We tried it out and it unlocked our car over a cell phone!'
THIRD
Hidden Battery Power: Imagine your cell battery is very low. To activate, press the keys *3370#. Your cell phone will restart with this reserve and the instrument will show a 50% increase in battery. This reserve will get charged when you charge your cell phone next time.
FOURTH
How to disable a STOLEN mobile phone? To check your Mobile phone's serial number, key in the following digits on your phone: *#06#.
A 15-digit code will appear on the screen. This number is unique to your handset. Write it down and keep it somewhere safe. If your phone is stolen, you can phone your service provider and give them this code. They will then be able to block your handset so even if the thief changes the SIM card, your phone will be totally useless. You probably won't get your phone back, but at least you know that whoever stole it can't use /sell it either. If everybody does this, there would be no point in people stealing mobile phones.
And Finally....
FIFTH
Free Directory Service for Cells: Cell phone companies are charging us $1.00 to $1.75 or more for 411 information calls when they don't have to. Most of us do not carry a telephone directory in our vehicle, which makes this situation even more of a problem.
When you need to use the 411 information option, simply dial: (800)FREE 411, or (800) 373-3411 without incurring any charge at all. Program this into your cell phone now.
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