real estate: 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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real estate: Real Estate term: Deed Restrictions - 04/26/10 11:19 AM
Definition: The limitations in the deed to a property that dictate specific ways that a property must or must not be used.
Discussion: Deed restrictions are similar to covenants in that they are rules of what can and cannot be done on the property. They run with the land no matter who owns the property. Typical restrictions may include "no manufactured homes" or "land may not be divided into less than 5 acres parcels."
The Seller's Realtor should have a copy of the restrictions available for a potential Buyer. Occasionally a deed restriction is not known about until a title search … (1 comments)
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real estate: Real Estate term: Community Property - 04/21/10 11:45 AM
Definition: In eight western states, the property acquired by husband and/or wife during a marriage when not acquired with the intent of being the separate property of either spouse and where each spouse has equal rights similar to property owned by a partnership of management, alienation and testamentary disposition.
Discussion: New Mexico is a "Community Property" state which means that if a Husband purchases a property, it is automatically property of the spouse unless a "Sole and Separate" document is signed by both parties acknowledging that the property is the sole property of the one party. This is becoming more important … (0 comments)
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real estate: 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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real estate: 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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real estate: Definition of Title Commitment - 03/10/10 04:19 PM
The Title Commitment comes a few weeks after the property is under contract. The Realtor will order this. The importance of the Title Insurance is that it insures the property buyer against any title-search errors or mistakes and against loss due to disputes over property ownership. Title Insurance can additionally offer protection to the lender under similar circumstances. The Title Commitment shows all the criteria for the property to close. Typical items include 1) the existing mortgage must be paid off, 2) a Deed must be recorded at the court house. Less common items are a Mechanic's Lien that must be … (0 comments)
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real estate: Definition of "Prorations" in a Purchase Agreement - 03/08/10 02:32 PM
Prorations - One of the items in a Purchase Agreement is an item called "Prorations". Prorating is dividing or distributing a sum of money proportionately. The most common prorated item is property taxes. The taxes would be divided up like this: The Seller would pay taxes from the beginning of the year to the closing date. The Buyer would be responsible for the property taxes after closing. Since New Mexico collects their dues in arrears (2008 taxes due in 2009), the buyer would receive a credit for the taxes from the beginning of the year until the closing date. When the … (1 comments)
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real estate: 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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real estate: Earnest Money Explained - 12/16/09 04:36 PM
December 16, 2009
If you are planning on buying property, there is a lot to know. So today (and in the future) I will be talking about different aspects of the buying process and the Purchase Agreement.
Today's topic - What is Earnest Money - what is it for?
Earnest Money is a deposit given when making an offer to show the seller you are intending to carry out the terms of the agreement. The amount should be enough to discourage the buyer from walking away, compensate the seller for taking the property off the market, and cover any expenses the … (0 comments)
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real estate: NEW LISTING CHECKLIST - 11/25/09 11:38 AM
Feel free to copy and paste the below Listing Checklist! Look in future days for my version of the "Under Contract" checklist! Happy Thanksgiving!
LISTING CHECKLIST
SELLER: ____________________________________________MLS # ________________
PROPERTY ADDRESS: _____________________________________
_____________________________________
MAILING ADDRESS: _____________________________________
_____________________________________
TELEPHONE #: WORK: _____________________ HOME:__________________________
CELL: ______________________ FAX: ___________________________
EMAIL:
REQUIRED ITEMS:
1. Listing Agreement signed / Listing date: _____________________
2. Expiration Date: _____________
3. Listing Agree. & completed form to Shannon
4. Signed copy of Seller's Disclosure received
5. Signed copy of Lead-Based Paint Disclosure received
6. Signed copy of "Loan Information - Customer Release" … (6 comments)
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real estate: Real Estate Term: Offer to Purchase - 08/18/09 11:01 AM
August 18,2 009
Real Estate Term: Offer to PurchaseDefinition: A presentation of a set of terms made by a potential Buyer to a property owner to purchase his or her property.
Discussion: Most commonly, a person confuses an Offer with a Contract. An Offer is when a Buyer puts in writing the terms of the proposed Contract. The Agent will assist the Buyer in writing an Offer. It becomes a Contract when both the Seller and Buyer agree to all of the terms. (I've even heard Realtors use this term incorrectly. A Realtor may call and say "I'm bringing you … (2 comments)
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real estate: Real Estate Term: Market Analysis - 08/10/09 10:22 AM
August 10, 2009
Real Estate Term: Market AnalysisDefinition: An estimate of value developed for the purpose of arriving at a selling or market price.
Discussion: Realtors perform a Market Analysis (also called CMA - Comparative Market Analysis) when helping a Seller determine how much to list their property for. Often, a Seller will ask several Realtors for this report to see how they differ. They come in a variety of detail, length, accuracy, sophistication, etcetera.
When I perform a Market Analysis, I include:
Positives and Negatives about the property. This helps the Seller to be realistic about what Buyers will … (0 comments)
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real estate: Real Estate Term: Life Estate - 08/04/09 02:48 PM
August 4, 2009
Real Estate Term: Life EstateDefinition: A possessory freehold estate or interest in real property being held for the duration of the life of a named person who could be the person holding estate of the life of another.
Discussion: Would you like that in English? You own a home and give a "Life Estate" to the person living in it. The tenant is obligated to take care of the property, pay taxes, etc. while the Owner is the only one who can sell it.
Here's an example of when you would use this situation: Your mother, who … (2 comments)
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real estate: Has the Real Estate Market hit bottom? - 07/24/09 03:38 PM
July 24, 2009
I have some indications that our market may have hit bottom and is starting to recover. Our "Under Contract" numbers are higher, activity is up, I have 3 closings coming up (I had zero closings from Jan - May 15th).
Yesterday, the agent representing the buyer on one of my listings called to say the buyers wanted to terminate - -the house was too much work for them. Instead of being upset, I said, "Don't worry about it. It's a good deal, I'll sell it to someone else.". I had a verbal offer in 2 hours, and 3 … (1 comments)
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real estate: New Mexico is different - Part 2 - 04/01/09 11:58 AM
April 1, 2009
New Mexico is different - Part 2
- Car Inspection: You are not required to have your car inspected in New Mexico. But your car does need to be in good working order. A police officer may pull you over if your tail light is out, etc.
- Car registration is cheap. The registration fee for passenger vehicles is based on the weight and year model of the vehicle. Registration fees range from $21.00 to $62.00 for a one (1) year registration or $42.00 to $124.00 for a two (2) year registration. Registration fees for trucks with a … (1 comments)
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real estate: No down payment? PROBLEM! - 02/17/09 01:33 PM
February 17, 2009
We all have heard about the foreclosure mess. One of the issues is mortgages with no down payment.
My nephew wanted to buy a house. I told him that I was impressed that he was able to save up a down payment already! When he explained that he was planning on buying a house with no down payment, I sent him an email with the reasons not to do this. I thought that some of you may want to understand this better.
When you have a larger down payment, you can weather storms such as the one we're in. … (0 comments)
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