The other day I received a call from a gentleman looking to refinance out of his 2-year adjustable rate home mortgage (2/28 ARM) that is now variable. These home loans are typically reserved for subprime borrowers due to a poor credit rating. Although this is not an ideal loan, he wasn’t in too bad of shape because he put a serious 20% down when he purchased the property. I couldn’t help but think that this guy took the 2-year ARM for a good reason (bad credit?). This wasn’t the case however. After running his credit and seeing that he had plenty of credit depth and an impeccable credit rating going back 12 years, I asked him why he took the 2-year ARM. Unfortunately this gentlemen had been duped!
He went into the story of how the original loan officer offered him an incredible rate for what he thought was for a 30-year fixed loan, and the closing costs he quoted him were half what he thought they would be, so all in all it seemed like an incredible deal at the time. The rest of the process went smoothly until the day of closing when he found out that the 30-year fixed rate was actually for a 2-year ARM with a 3-year hard prepayment penalty, and the closing costs ended up being twice what he imagined. None the less, the gentlemen went on to sign the closing documents because the loan officer said that he would refinance him out of this loan for free. He also had nothing in hand to call this loan officer out with since the loan officer never gave him three vital documents that could have avoided this serious train wreck… and he didn’t know to ask for them.
Here are the three documents you need to ask for when applying for a mortgage that will help keep your loan officer honest:
Good Faith Estimate (GFE) - This will break down all of the closing costs of the loan. These numbers are very difficult to get exact but the loan officer should never be off more than a couple hundred dollars.
Truth in Lending Statement (TIL) - This document will disclose several important numbers but most importantly the Annual Percentage Rate, and whether the loan has a prepayment penalty or not.
Financing Agreement - This document right here is gold and you should have a financing agreement early on whether the rate is locked or floating. The loan officer should issue this to you not only for your protection, but also for his since it lays out whether the rate is locked or if it is floating, the loan type, rate and any points being charged. If you’ve locked your loan in, you should immediately request this document as it tells you when the rate was locked and for how long the rate lock is good for. A lot of people feel that with just a GFE they are covered, but really it’s the financing agreement that gives you the most assurance of the loan you are being offered and keeps the loan officer honest. This is your insurance should anything change at, or prior to closing.
With these three items in hand you are now empowered to call the loan officer the day of closing to ask why your financing agreement says you are locked at a rate of 6.5% but the rate on the final loan papers is 7%, or why he is charging 2 points instead of the 1 on the GFE. You actually have a signed financing agreement from both parties that states your loan program, rate and points being charged. So any deviation from this is a call for action! A GFE on it’s own does not have as much power because as the name of the document states, “Good Faith Estimate” so don’t think you’re ‘good to go’ without your financing agreement.
If you keep these three documents in mind when applying for a loan you are insuring a smooth process. Not all loan officers conduct business in this manner so please don’t feel that I am saying that all loan officers need to be kept within arms reach. Like in many professions, the bad loan officers ruin it for the good ones, but none-the-less all loan officer should be offering these documents to you. You shouldn’t have to ask for them… Oh, and in case you are wondering, the loan officer I mentioned previously was never to be found by the home buyer after the closing– so there goes the “free” refinance…
Even Oprah Winfrey might have a hard time selling a mansion in this real estate market. Homes in great neighborhoods possessing exceptional architecture and well-landscaped gardens are suffering. During the housing boom, these properties practically sold themselves. Now, it’s not as easy as putting sign in your font yard.
Here are some tips for selling a high-end home in a soft real estate market:
1. Proper Pricing – No matter the size of your home, pricing will determine how long your home sits on the market. Don’t be afraid to drop the listing price to gain more interest. The chances are the money you lose here will be substantially less than if you priced your home high and brought down.
2. Hiring a Realtor – A good Realtor adds enough value to your home (or generates a good offer) to cover the commission you will pay out. An important factor in choosing your Realtor is to make sure they’re familiar with the neighborhood. Knowledge is priceless when it comes to a Realtor selling your home. Also, how do they plan on marketing your home? Hiring a team of agents can assure you will have the proper representation when
3. Quick Fixes – Investing money in a huge remodel is not usually going to pay off. Unless there is a great need for a fix like a leaky roof, stick with easy inexpensive fixes like painting and landscaping.
4. Web Brokers – Using a service like HomeZill.com will reduce your overhead costs and allow you to sell your home paying a reduced commission. 95% of home buyers use the web when searching for homes so unlike in the past, it is important to have a tech-savvy Realtor with a large online market presence.
5. Staging – Hiring a staging company to fill your home with nice furniture and professional decorations will make your home more attractive to potential buyers. The offers that you will receive often will make up for cost of the staging.
6. Incentives – Think about it... The cost of giving away a plasma TV, paying for hardwoods, or a credit for new appliances is worth it. Especially, if your home is going to sit on the market forever. These incentives are not going to get someone to buy your home, but they definitely get people in the door.
There is no ONE secret that will sell your home, but you do have to consider what will work for your home. Some factors will be the quality of your home, the particular market, the neighborhood you’re selling in, and the condition of your home. Remember, price your home to sell in the beginning to avoid the pitfalls of buyers targeting a “desperate seller”.
Bank of America’s agreement to buy mortgage giant Countrywide Financial in a $4 billion all-stock deal put investors at ease yesterday, sky-rocketing shares of Countrywide by 51%, after the mortgage crisis sank the stock below the $5 level. The deal gives Countrywide 0.1822 share of Bank of America for each share they own, valuing Countrywide at $7.16 each, a 7.6% discount.
This deal is a landmark in the mortgage crisis, given the history of Countrywide being the nation’s biggest mortgage lender until recently.
All of a sudden, a light bulb goes off in your head and you want to sell your home. Well, if you plan on selling your home in 2008, then you need a game plan on how to make yours shine above the rest. Remember it’s more important to keep your home clean, and looking spacious, rather than upgrading everything in sight. If your home is in need of remodeling and you don’t want to do it, it isn’t a bad idea to credit the buyer so they can do the work themselves.
If you want to save a few extra bucks, here are some tips:
Ask for advice. Call a HomeZill agent and we’ll stop by and offer some suggestions. Some little improvements will make a world of difference. Cleaning the carpets, painting the walls and removing wallpaper are common fixes that make your home look new. If you have a lot of extra stuff (a.k.a clutter), then you may need to rent a storage space while your home is on the market.
Inspect. If you own an older home, then think about getting a home inspection before you put it on the market. This will prevent any problems that could keep your home from selling. If a buyer finds something wrong when they go through their home inspection, they’re more likely to think that there are other problems that have been neglected.
Check the outside: Take a closer look at the exterior of your home. More specifically, take into consideration the siding and windows. According to the Cost vs. Value survey, a wood window replacement recovers an average 81% of cost at resale and a siding replacement recovers an average 83%, some of the best payoffs in the survey.
Think about the bathroom. Nothing needs to be cleaner in the house than the bathroom. Knowing that someone can use the bathroom right away without the look of disgust will leave people with a smile. Consider replacing cracked tiles, as well as the sink and the toilet if they need it. An entire bathroom makeover can cost as less as $500.
Don’t go all out in the kitchen: Remodeling magazine found that homeowners could recover 83% of the cost of a minor kitchen remodel at resale compared with 78% of a major kitchen remodeling. Replacing major appliances like the refrigerator and stove are not that important because buyers all have different tastes.
Make the smart decision and replace a countertop if it’s crumbling but not because it’s outdated. The only reason to upgrade to granite is if your competition has granite as well.
HomeZill is like having a real estate professional at your fingertips 24 hours a day! You can make an offer on real estate in Virginia, Maryland and Washington DC. Whether it’s a town house in Northern Virginia, a DC condo in Georgetown, or investment property in Bethesda MD, simply fill out the Express Offer to get started! And, since you are doing a good amount of the leg-work, shouldn’t you benefit? Well with HomeZill, you do! You will receive up to a 2% cash back VA, DC or MD rebate!
Search for a Home Our online navigation tools allow you to search condominiums, townhomes or single family homes in all price ranges, styles and locations. HomeZill incorporates the listings, location maps and aerial imagery for you to see for yourself. Once you find homes that interest you, select and save them to your favorites so you can view them later before scheduling appointments and making an offer online.
Get in Touch If you are interested in a home you find, contact HomeZill’s 24-hour customer service line to schedule a time to view the property at 888-998-ZILL (9455).
Let’s Buy a Home When you have decided on a NEW construction home that you would like to purchase, simply contact a HomeZill agent to schedule an appointment with the builder. For RESALE or EXISTING homes, simply fill out our HomeZill Express Offer and a real estate professional will contact you to review your offer and answer any questions you may have. You’ll have the comfort and guidance of an experienced ReMax agent every step of the way to help you understand and explain each document you sign.
HomeZill in your Corner Your Re/Max agent will negotiate to get you the best deal by consulting the builder or listing agent about any competing offers or special terms. We do this through our years of experience negotiating real estate transactions and the extra mile we are willing to go to get it right the first time.
Closing up Shop One last step before you move in…closing time. Closing usually takes place at an attorney’s office or title/settlement company and typically lasts about an hour. This is where the home buyer and seller gather to sign the documents, say our thank you’s and hand over the keys.
Are you still living in the same home that you purchased 15 years ago? If so, have you visited any homes that have been built in the past five years? I know you would enjoy a private retreat instead of a place where you can only lay your head. This would be a place to go relax, read, or soak in a hot bubble bath away from all the chaos. I’m talking about a master suite. Builders know that an immaculate master suite is on the top of buyers’ lists.
So maybe you have seen what all the hype is about. You want your home to look like the new neighborhood down the street. The only question that lingers in your mind is, “Will I get a return on my investment if I sell the house someday?” It’s a great question to ask before a blast-off into any remodeling, especially if the renovating is being done to make a few extra bucks on the sale.
The number one thing that I suggest is, do your research! There are some great materials available to you and believe it or not, Remodeling magazine publishes a study every year that is titled “Cost vs. Value.” The study looks at home improvements throughout the country. They then compile and analyze the data from agents and reveal the national and regional returns on investment for the range of home improvements.
Now, past results have shown that you will not recover your investment if you plan on selling your home within a year. However, there are exceptions depending on the quality of the remodeling, region, and the market itself.
You’re probably wondering what the best home improvements are. Which improvements will get the highest return on your investment (ROI)? For beginners, minor kitchen and master bath remodeling is always a standout. Some easy revamps are: granite countertops, new appliances, paint/replace cabinets, and recovering your floors. These examples are improvements that have a good chance of recouping the majority if not all of your money back. Of course adding a home office, a new bathroom, or replacing windows are going to be riskier, which may be a high return, but a big factor in your return on investment depends on where you live.
If you intend to live in your home for a number of years, remodeling might not be in your best interest for a short term return-on-investment. However, the longer you stay in your home, the longer you can enjoy your improvements that you’ve made. That my friends, you cannot put a price on!
President Bush signed into law Tuesday a new bill providing tax relief for homeowners facing foreclosure or bankruptcy. The bill eliminates federal taxes due from homeowners who have had mortgage debt forgiven as part of a foreclosure, short sale or the renegotiation of a loan. Currently such debt forgiveness is treated as taxable income.
The bill came in response to the current mortgage crisis, which has become more prevalent in booming metropolitan cities over recent years including Northern Virginia and Washington DC. It is anticipated to reduce taxes on strapped homeowners by $650 million. “When you’re worried about making your payments, higher taxes are the last thing you need to worry about,” Bush said. With some 2 - 2.5 million adjustable-rate mortgages scheduled to reset through 2008, the new law will be a nice holiday gift for many homeowners facing foreclosure in Virginia and Washington DC.
If you fall into this group, be sure to ask your tax preparer what paperwork you may need to provide from your short sale or foreclosure in order to file the proper forms with your tax return.
Your home has been on the market for 3 months now and you're not getting any traffic coming through. You must be thinking, "Oh the market is slow right now, just give it some time." Then another 3 months pass by and you mutter the same thing to your wife. Well Sir, a half year is a long time in any kind of market. Did you ever think that you are preventing your home from selling?
First things first, you must hire a good agent to sell your home. 'For Sale By Owner' (FSBO) is less prevalent now-a-days and 85% of FSBO's end up listing with an real estate agent anyways (click here for FSBO stats). This is a big step and you want to choose a Realtor that will value this decision as much as you do. This is a no brainer- a HomeZill Agent!
Next, the price! Selling a home is a big decision and you have to consider the negatives along with the positives. Is this a smart time for me to sell? --in this market, it is if you are buying a more expensive home. How much could I possibly lose on this sale? Is my bottom line realistic? Remember, buyers don't care how much you "think" your home is worth. You have to put yourself in a buyer's position. They're going to do their research by visiting homes that are similar in your neighborhood. They will research what the comparables have sold for in the past few months. You want to price your home to sell, and not have a 'for sale' sign in your yard for multiple seasons.
Third, does your home show well? When you walk into your home, do you have to weave in and out of the clutter like a gauntlet? Though you might like the way your home looks, not everyone has the same taste as you. You want to clear out as much junk as possible. The less, the better. For paint and carpet, neutral colors also help the buyer to better picture themselves in your home. Again, remember to always put yourself in the buyer's shoes. Wouldn't you want to walk into a sharp looking home? Make it happen! Lastly, are you marketing your home enough? There are many methods for marketing your home, but there are only a handful that are effective. Your real estate agent should help you with this step. A HomeZill Agent will show you the best methods for getting the most exposure through online and traditional marketing tactics. They have done countless hours of research to come up with the most effective marketing strategy for selling a home in the shortest period of time.
To reiterate the aforementioned, the most important factor when selling your home is PRICE! Make sure that it is feasible to sell your home because if you have to accept your bottom line, you should be satisfied with it.
The search is over, the negotiations have ended, the home inspection was a success, and the mortgage has been set. Finally, you come to the last step in the home buying process– Closing, or some call it Settlement. This is where the house transfers ownership and the title is in your name, home owner’s insurance is verified, you agree to the terms of the mortgage, and the keys are put in your hands. Once you leave the closing table, you can go to your new home as a homeowner! The build up of all the anticipation for the past few weeks is settled in usually under an hour at closing.
You typically want to estimate at least 2-3% of the sales price of the home for closing costs. You should receive a Good Faith Estimate (GFE) from your lender, which will include an estimate of the funds you need to bring to closing. The primary items at closing include: the settlement statement (aka HUD-1), the contract, the loan papers, title insurance, homeowners insurance, the Title or Deed, any down payment, and closing costs. It is important that you are adequately prepared when you go to closing. Although your agent will review the information that you need at closing, it’s a good idea to know what is going on in the event you need to handle it alone.
Important items for your closing:
Driver’s License or Government Issued ID: So the settlement company knows you are YOU
Certified Funds: You will need certified funds for closing costs and/or down payments. It’s best to stop by your bank the day before closing once you know the exact amount to bring. This is why it’s important to obtain the settlement statement in advance so there are no problems at the Closing table.
Homeowners Insurance Policy: This should be secured prior to the day of closing for a townhome or single family home. For a condo, the master insurance policy is typically included in the condo fee, you may want to obtain additional insurance for your property inside the condo.
Settlement Statement: Typically your real estate agent will look over a copy of the HUD-1 settlement statement within 24 hours of closing. It’s important to review it beforehand because it shows the total amount of cash you’ll need to bring to closing. It also gives you the opportunity to resolve any discrepancies. If you don’t receive a copy prior to settlement, don’t worry as you will be provided time at the closing table to look it over.
By being prepared in advance, you’ll be far less likely to encounter any unexpected surprises when you’re sitting at the Closing table.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
The other day I received a call from a gentleman looking to refinance out of his 2-year adjustable rate home mortgage (2/28 ARM) that is now variable. These home loans are typically reserved for subprime borrowers due to a poor credit rating. Although this is not an ideal loan, he wasn’t in too bad of shape because he put a serious 20% down when he purchased the property. I couldn’t help but think that this guy took the 2-year ARM for a good reason (bad credit?). This wasn’t the case however. After running his credit and seeing that he had plenty of credit depth and an impeccable credit rating going back 12 years, I asked him why he took the 2-year ARM. Unfortunately this gentlemen had been duped!
Even Oprah Winfrey might have a hard time selling a mansion in this real estate market. Homes in great neighborhoods possessing exceptional architecture and well-landscaped gardens are suffering. During the housing boom, these properties practically sold themselves. Now, it’s not as easy as putting sign in your font yard.
Bank of America’s agreement to buy mortgage giant Countrywide Financial in a 
All of a sudden, a light bulb goes off in your head and you want to sell your home. Well, if you plan on selling your home in 2008, then you need a game plan on how to make yours shine above the rest. Remember it’s more important to keep your home clean, and looking spacious, rather than upgrading everything in sight. If your home is in need of remodeling and you don’t want to do it, it isn’t a bad idea to credit the buyer so they can do the work themselves. 
Are you still living in the same home that you purchased 15 years ago? If so, have you visited any homes that have been built in the past five years? I know you would enjoy a private retreat instead of a place where you can only lay your head. This would be a place to go relax, read, or soak in a hot bubble bath away from all the chaos. I’m talking about a master suite. Builders know that an immaculate master suite is on the top of buyers’ lists. 
President Bush signed into law Tuesday a new bill providing tax relief for homeowners facing foreclosure or bankruptcy. The bill eliminates federal taxes due from homeowners who have had mortgage debt forgiven as part of a 
Your home has been on the market for 3 months now and you're not getting any traffic coming through. You must be thinking, "Oh the market is slow right now, just give it some time." Then another 3 months pass by and you mutter the same thing to your wife. Well Sir, a half year is a long time in any kind of market. Did you ever think that you are preventing your home from selling?
The search is over, the negotiations have ended, the home inspection was a success, and the mortgage has been set. Finally, you come to the last step in the home buying process– Closing, or some call it Settlement. This is where the house transfers ownership and the title is in your name, home owner’s insurance is verified, you agree to the terms of the mortgage, and the keys are put in your hands. Once you leave the closing table, you can go to your new home as a homeowner! The build up of all the anticipation for the past few weeks is settled in usually under an hour at closing.
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