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buying: Real Estate Term: FHA Loan - 05/12/10 01:21 PM
Definition: A loan made by an approved lender in accordance with the FHA's regulations and insured by the Federal Housing Administration.
From "About.com":
The Federal Housing Administration (FHA) runs several programs to promote home ownership. In most cases, FHA loans are mortgages obtained with the help of the FHA. With a small down payment, buyers can purchase a home. FHA loans make it easier for people to qualify for a mortgage, but they're not for everybody.
What is an FHA Loan?
An FHA loan is a loan insured against default by the FHA. In other words, the FHA guarantees … (2 comments)
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buying: Real Estate Term: Equity - 05/10/10 03:23 PM
Definition: The interest or value which an owner has in real property over and above any liens against it.
Discussion: Equity in a house is the difference between the value of the property and the liens (loans) on the property. An owner may access that equity by obtaining a "Home Equity Line of Credit" (HELOC), or a "Second Mortgage".
Equity grows as (1) the market value increases or (2) as mortgage payments are made and therefore the principal is paid down.
Home equity is how our parents gained wealth. They bought a home, lived in it for 30+ years. They would … (0 comments)
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buying: Real Estate Term: Tax Assessment - 04/09/10 01:43 PM
Definition: The official valuation placed on property for ad valorem taxation or public improvements.
Discussion: The County Assessor assesses the value of your property for purposes of determining how much property tax you will pay. It has nothing to do with the Market value of your property or the Appraised value of your property.
For more information on the Grant County Tax Assessor, click on this link:
http://www.grantcountynm.com/grant_county_nm_info.php?CID=381
For more information on Property Valuation, check out the Grant County Assessor's website at:
http://www.grantcountynm.com/grant_county_nm_info.php?CID=382
Today's Saying: Courage is going from failure to failure without losing enthusiasm.
Linda Ferrara - … (0 comments)
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buying: Real Estate Term: Appraisal - 04/07/10 11:44 AM
Appraisal:
Definition: An estimate or opinion of value of a specific property as of a specific date resulting from an analysis of the facts about that property by a qualified impartial third party.
Discussion: There are several benefits to having an Appraisal.
•- Assists the Buyer in knowing that they are not over-paying for the property.
•- Insures to the Mortgage Company that the loan amount does not exceed the value
*****Note: When you look at the current economic situation around the country, you may notice that an Appraisal can be useless to a Mortgagor. The home may be worth … (3 comments)
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buying: Surveys - Part 2 - Kinds of Surveys - 04/01/10 01:21 PM
Kinds of Surveys:
Below is a list of the most commonly known types of surveys on our area.
ALTA Survey
A survey made for the purpose of supplying a title company and lender with survey and location data necessary for the issuing of title and/or mortgage insurance. A detailed map is required to be done to "ALTA" specifications. The acronym "ALTA" stands for American Land Title Association. Specifications of this type of Survey include (but are not limited to) determining property lines, location of improvements, identifying all easements, utilities and other conditions affecting the property. ALTA surveys are very comprehensive surveys … (0 comments)
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buying: Surveys - Part 1 - 03/31/10 01:40 PM
A survey is used to measure and identify the property boundaries. Certain kinds of surveys also will show the improvements on the land including fencing, buildings, easements, etc. It is important to the property buyer to ensure that you are purchasing the amount of land and in the location you intended. In the case of a mortgage, the mortgage company will require a survey (no more than 6 months old) to protect them from any issues. Potential issues include: - Encroachments of someone else’s property onto the subject property. This may be someone’s fence or shed encroaching onto your property. - Encroachment … (2 comments)
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buying: The 3 things you can do as a result of an inspection (1. Continue, 2. Terminate, 3. Negotiate) - 03/25/10 01:50 PM
When purchasing a home, there are different inspections that can be performed. They include (but are not limited to): Home Inspection, Septic Inspection, Well Inspection, Survey, Appraisal, Wood-Destroying Insect Inspection. There are 3 things you can do as a result of any inspection.
•1. You may read the results and decide that everything is fine and you wish to continue.
•2. You may determine that as a result of an inspection, you wish to terminate the deal. If you choose this route, you will receive your earnest money back. This is usually reserved for items that are serious. A structural problem … (2 comments)
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buying: Lead Based Paint Information - 03/17/10 11:41 AM
Lead-Based Paint Addendum - Lead was used in paint prior to 1978. If lead is ingested, it can be deadly or harmful. Any house that was built prior to 1978 may contain lead-based paint. Because it can be harmful, there is a lead-based paint disclosure that must be signed by all parties. The Disclosure must be signed, with date and time, prior to writing the Purchase Agreement. You will receive a pamphlet explaining Lead-Based paint hazards and you will also receive the opportunity to obtain an analysis.
Please remember that it can be harmful if ingested (not inhaled).
Today's Saying: … (1 comments)
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buying: Explanation of the Insurance Contingency - 03/15/10 02:36 PM
After Hurricane Katrina, two paragraphs were added to the Purchase Agreement giving the Buyer the opportunity to get insurance quotes and determine that home insurance is affordable. Hurricane Katrina made insurance in some areas very expensive. We have not observed this in our area. I usually put a 2 week time frame in this area to give the Buyer some time to get quotes and determine affordability. They then have a few more days to object. To date, I have not had anyone object due to an insurance price issue.
I will help you keep track of all your Due Dates … (1 comments)
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buying: Basic Information on Septic Systems - 03/03/10 02:56 PM
New Mexico requires all septic systems to be permitted, approved, and inspected by the NM Environmental Department. All individual systems require a minimum ¾ acre lot (or a variance).
The two most commonly used are:
1. CONVENTIONAL SEPTIC TANK SYSTEM
In this system, wastewater flows from the house to the tank where settling occurs. Heavier solids (e.g. organic waste) sink to the bottom of the tank forming the sludge layer. Lighter solids (e.g. grease, soapsuds) float to the top forming the scum layer. The clearish liquid in the middle layer is the effluent.
After settling out for 24 or more hours, … (2 comments)
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buying: 1031 Tax-Deferred Exchanges - 03/02/10 12:41 PM
A Tax-Deferred Exchange is a way of deferring capital gains tax. If you are selling one real estate investment and buying another of the same kind, you can perform a 1031 Tax-Deferred Exchange and defer paying capital gains tax. There are certain time requirements so using a Realtor who is detailed oriented is important.
The two major rules to follow are:
•1. The total purchase price of the replacement "like kind" property must be equal to, or greater than the total net sales price of the relinquished, real estate, property.
•2. All the equity received from the sale, of the relinquished … (1 comments)
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buying: The Closing Process - 02/26/10 02:31 PM
When we talk about ‘closing' we are actually talking about a series of events. A closing takes place at the Title Company or through the mail. (We don't require an Attorney to close in New Mexico).
Here are the steps to the Closing Process:
•1. The Title Company creates the Final HUD (Housing Urban Development) Statement and gathers all other required documents with information from the contract and the Lenders.
•2. The Title Company sends the statement to the Lender and the Realtors for review.
•3. Lenders and Realtors make any required changes.
•4. Title Company updates statement.
•5. Buyer and … (0 comments)
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buying: Seller's Disclosure Description - 01/28/10 10:59 AM
A Seller's Disclosure is a multi-page document that the Seller completes to show all the details about their property. In New Mexico, a Seller is not required to complete this form. However, if the Seller HAS completed the form, the Buyer is required to receive and sign it. There are times when it is not appropriate for the Seller to complete the form. For example, the Owner passes away and the Brother of the Owner is selling the property. He has never seen the house and certainly doesn't know anything about the property.
Sellers are required to disclosure any material facts … (0 comments)
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buying: Difference between Appraisal and Home Inspection - 01/26/10 11:50 AM
I sometimes have customers confusing an Appraisal and a Home Inspection so I thought that I would clarify this for you.
An Appraisal is an opinion of value used most often by a bank who wants to ensure that they are not giving a loan for more than the value of the property. If a Buyer is paying cash, they may request an Appraisal to ensure that they are not overpaying for the property. Generally, The Bank requests the Appraisal and the Buyer pays for the Appraisal which is sent directly to the Mortgage processing department.
A Home Inspection is not … (1 comments)
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buying: An Offer Vs. a Contract - 01/20/10 10:59 AM
The words ‘offer' and ‘contract' are often interchanged or misused.
An ‘offer' is a demonstration by the buyer showing intent to purchase. An ‘offer' is made using a ‘Purchase Agreement'.
A ‘contract' is a legally enforceable document where both parties have signed and agree to abide by the points in the contract. Once both parties have signed the ‘Purchase Agreement', it becomes a ‘contract'.
When you make an ‘offer', the Seller can do 3 things:
•1. Accept it
•2. Decline it outright
•3. Counteroffer
If there is a counteroffer, it means that they agree to everything in the ‘offer' except … (4 comments)
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buying: Home Inspection Explanation - 01/19/10 10:03 AM
One of the first things done after getting a property "Under Contract" is to have a Home Inspection. I occasionally get a buyer who does not want a Home Inspection. To me, it is the best money ever spent. If you REALLY do not want a home inspection, I will make you sign a document that says that although I encouraged you, you chose to not get an inspection and that you will not hold me or my Broker liable for any problems at the property. We feel that they're that important.
A good Home Inspector will show you how the … (3 comments)
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buying: Basic Information on Septic Systems - 01/13/10 02:31 PM
New Mexico requires all septic systems to be permitted, approved, and inspected by the NM Environmental Department. All individual systems require a minimum ¾ acre lot (or a variance).
The two most commonly used are:
1. CONVENTIONAL SEPTIC TANK SYSTEM
In this system, wastewater flows from the house to the tank where settling occurs. Heavier solids (e.g. organic waste) sink to the bottom of the tank forming the sludge layer. Lighter solids (e.g. grease, soapsuds) float to the top forming the scum layer. The clearish liquid in the middle layer is the effluent.
After settling out for 24 or more hours, … (2 comments)
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buying: Take the Trauma out of Buying a House - 01/05/10 12:35 PM
January 5, 2010
Buying a house, moving. It's traumatic. I remember telling a young couple that it was normal to be nervous, to lose some sleep. Still, it's one of the best investments most of us ever make. Consider the following when buying a house:
If you're not comfortable with your Realtor, find one that you are comfortable with. It's important to find someone you respect, you understand, and that you're confident they respect and understand you and your needs. Be sure their communication style fits with yours. Educate yourself on the process. Even if you've bought properties in the past, … (2 comments)
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buying: Your Property Wish List for Silver City, NM - 01/04/10 10:34 AM
January 4, 2010
If you're ready to move to Silver City (and I hope that you are!), there are some things to consider. I hope this list will help you determine your needs and wants:
How close / far to town? How many acres? Home Requirements # of Bedrooms # of Baths Age of Home Other Requirements (Workshop, Office, Guest House, Horses, Close to Forest, Off-the-grid, etc.) What kinds of things would you love to have? (fireplace, views, southwest-style home, views, green building, etc.) What is your price range? Do you require a fenced in yard for children or pets? How … (0 comments)
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buying: Home Inspection Explanation - 12/17/09 01:51 PM
December 17, 2009
Today's blog is about our next Purchase Agreement topic, "What are your options as a result of a Home Inspection?"
One of the first things done after getting a property "Under Contract" is to have a Home Inspection. I occasionally get a buyer who does not want a Home Inspection. To me, it is the best money ever spent. If you REALLY do not want a home inspection, I will make you sign a document that says that although I encouraged you, you chose to not get an inspection and that you will not hold me or my … (3 comments)
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Linda Ferrara
Silver City,
NM
More about me…
Coldwell Banker Enchantment Realty
Address: 501 Silver Heights Blvd., Silver City, NM, 88061
Office Phone: (800) 456-3132 x 12
Cell Phone: (575) 519-9249
Email Me
Everything you wanted to know about Silver City, NM including area events, popular activities, relocation information, home buying ideas and much more!
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