Is Summer or Winter the Best Season to Buy a Home?

You hear it a lot – there are best and worst times to make any sort of purchase. Whether it’s a television, a car, or a home, statistics are available that may influence your decision on when would be the best time to make a purchase.

Numerical data isn’t the only thing you should be taking into consideration, though. Each season has something different to offer in terms of making the home buying process easier or more challenging. Let’s take a look at the pros and cons of buying during the summer or winter.

What to Think About When Buying a Home During the Summer


Did you know there are more homes on the market during summer? According to the National Association of Realtors, inventory in the U.S. is actually 15% greater in the warmer months than in the colder months.

If you have a lot of items on your home wish list, you might be better off searching during summer as you’ll have more homes from which to choose. The only disadvantage (depending on the climate where you live) is that summer results in more competition, as a greater amount of people are likely to visit open houses in nicer weather.

It probably goes without saying, but moving during summer is a bit more pleasant than moving during winter. For many, sweating beats freezing while trying to pack and unpack a moving truck. You can always cool yourself down, but it’s usually harder to warm up. It also tends to be safer if you reside in or are moving to an area that gets snow or ice.

If you have school-aged children, moving during their summer vacation offers more flexibility than trying to move during the winter holidays or spring break.

Lastly, one nice thing about summer is the lack of snow. That can be a huge obstacle when trying to look at the exterior of a home. You might miss the fact that a few shingles (or the entire roof) need to be replaced when there’s a pile of snow on top of it. The same goes for cracks in the driveway, and curb appeal in general.

What to Think About When Buying a Home During the Winter

There’s less competition in the winter as most people are busy with the holidays, their new year’s resolutions, or getting back into the swing of things at work. At this time of the year, buying a home isn’t typically at the forefront of most people’s minds.

What does that mean for you? No bidding wars, and more room to negotiate if a seller is feeling a bit desperate.

They might be if the reason why they’re moving is a pressing one. Combined with having to work around their real estate agent’s holiday schedule, having less showings, and subsequently, less interested buyers, sellers might be willing to give you a better deal or include more bonuses in the offer.

Again, depending on where you live, the weather during winter can be brutal. You’ll be able to easily identify drafts from windows in a house, and you’ll notice how effective the heating system is.

While snow can work against you, it can also work for you as you’ll be able to see how well the roof and driveway handle several inches of accumulation. Are there noticeable dips in the driveway? Have ice puddles formed on the property? These fairly major repairs can give you an advantage during negotiations.

Considerations for Both Seasons
There are a few factors to be concerned with during both seasons – namely, your real estate agent’s availability, and your neighbors.

Obviously, real estate agents may take time off during the holidays in the winter, but if they have children, they may also be likely to take off during the summer as well. Before you work with an agent, ask them about their availability over the next few months. You want to ensure that their planned absence won’t negatively affect your intentions to buy.

On the other hand, an agent looking to work through the winter holidays may be more motivated to help you, given the number of prospective buyers is lower.

Additionally, when you buy a new home, you’ll want to be surrounded by good neighbors, right? Summertime is great for seeing which neighbors excel at lawn maintenance and which ones let their grass grow for weeks on end. If you’re someone that cares a lot about a home’s upkeep, this might concern you.

At the same time, you’ll be able to see if neighbors work together to get rid of snow during the winter, or if houses on the block are nicely (or obnoxiously) lit up with holiday decorations.

Which Season is Better for Buying a Home?
As you may conclude, there’s no right or wrong answer. There are benefits and impediments to searching for a home in any season. You shouldn’t let weather or the trending numerical data hold you back. When you’re ready to buy, you’ll know it.

Source: Coldwell Banker Blue Matter

Posted on August 16, 2017 at 8:40 am
Kappel Gateway Realty | Category: appraisal, backyard, bid, Bidding War, Buyers, buying, closing costs, community, curb appeal, Homeowners, mortgage, neighborhood, real estate, Spring, summer, trends, Uncategorized | Tagged , , , , , , , , , , , , , ,

Condo vs. Townhouse

Condo and townhouses are often lumped together, but have some significant differences. Agent Jessica Riffle Edwards explains the differences between the two.

I’ll admit it, I’ve owned a condo for the last three and a half years and just found out what the difference was between a townhouse and a condo. While you would think that they’re pretty much the same thing, there are some key differences that might be critical to you depending on your situation and appetite for being responsible for home repair.

Here’s star listing agent Jessica Riffle Edwards explaining what the differences are between the two.

Source: Coldwell Banker Blue Matter Blog
Posted on August 9, 2017 at 9:08 am
Kappel Gateway Realty | Category: appraisal, bid, Bidding, Buyer's Market, Buyers, buying, closing, closing costs, credit score, debt, equity, escrow, first time buyers, Foreclosures, Homeowners, hot market, Offers, real estate, selling, Uncategorized | Tagged , , , , , , , , , , , , , , , , ,

“Alexa: Open Gen Blue News”

Thanks to Amazon, “Alexa” has become a household name. Now, Coldwell Banker is turning up the volume with a Skill for agents and brokers to get real estate news on-the-fly. We’re calling it Coldwell Banker Gen Blue News. Want to learn more? Let us break it down for you.

What’s a Skill? An Amazon Alexa Skill is an app for the voice-controlled Amazon Echo speakers.

How does it work? Once you enable the skill, just prompt Alexa with, “Alexa, open Gen Blue News.” In less than 90 seconds, Gen Blue News delivers best practices, industry insights and quick challenges to help you grow your business.

Why develop the Skill? Coldwell Banker surveyed its brokers and agents and found that 79 percent of respondents would be interested in a smart home speaker, like an Amazon Echo or Dot, that was equipped with real estate news and industry insights. Your wish is our command!

What can I expect from the Gen Blue News Skill? Episodes will feature quick tips and useful info to stay ahead in the market, challenges to act on immediately to drive business and agent success stories that offer an important dose of inspiration.

Who can I expect to hear from in the Gen Blue News Skill? You’ll hear the voices of brand leadership, industry insiders and the brokers and agents who make up the Coldwell Banker network. The first episode of the Skill features Brad Inman, founder and owner of Inman News, the leading source for real estate industry news. This episode is all about how agents can suit up for change with the innovative technology available in the real estate business.

How can I try this out for myself? You can search for the Coldwell Banker Gen Blue News Skill in the Amazon Alexa smartphone app, or using your Amazon Echo or Echo Dot, you can ask Alexa, “Enable Coldwell Banker Gen Blue News.”

Don’t have an Amazon Echo or Echo Dot? Don’t worry, the Echo Dot is available as part of the Smart Home Staging Kit alongside products from Nest, August and Lutron. Or you can buy on the Amazon Marketplace. If you’re with Coldwell Banker please log-in to Coldwell Banker Exchange to get your exclusive discount code.

Learn more about the Coldwell Banker “Home of the Week Skill” here!

*Article from Coldwell Banker Blue Matter Blog

Posted on August 3, 2017 at 2:46 pm
Kappel Gateway Realty | Category: Alexa, appliances, Apps, Buyers, buying, community, Entertainment, financing, gadgets, real estate, Smart Homes, technology | Tagged , , , , , , , , , , , , , ,

How to Tell the Difference Between a Buyer’s Market and a Seller’s Market

This is SO IMPORTANT  for you to know as a Buyer or Seller so that you can strategize your plan of action wisely and accurately. Of course, your agent can easily explain this to you, but you need to understand it! Make no mistake, if you don’t pay attention to the difference in these two markets, you may not enjoy the results of the transaction.

What you need to know when buying or selling a home.

One important thing to remember about the property market is that it’s always in a state of change. Sometimes the market is favorable to buyers and sometimes it’s favorable to sellers. But don’t worry, a knowledgeable agent can guide you in the sale or purchase of your next home, no matter what type of market you’re facing.

What is a Seller’s Market?
A seller’s market is simply a property market that benefits you as a seller. In a seller’s market, there’s a scarcity of properties, which can drive up the price of homes, especially in desirable locations.

Sellers can depend on real estate experts to know what the market is doing, but here are some signs of a seller’s market:
– Low inventory when compared to previous months and/or years
– Homes are selling faster
– Less than six months of inventory on the market
– More homes are selling
– Median sales prices are growing
– Less information in real estate ads; just the bare details
– “For Sale” signs don’t stay up long before being replaced with “pending” or “sold”

What is a Buyer’s Market?
A buyer’s market is the opposite of the seller’s market. If you’re buying at this time you’ll be spoiled for choice as the supply of homes on the market exceeds the number of buyers, giving you the chance to score a fantastic deal.

A sharp agent will quickly be able to tell you where the market lies, but here are some signs of a buyer’s market:
– Inventory that is high when compared to previous months and/or years
– Homes are selling more slowly
– More than six months in inventory on the market
– Sales prices are shrinking
– Fewer sales are taking place
– Real estate ads are growing in size, giving more details and/or images
– “For Sale” signs are staying longer, meaning the days on the market are longer too

How Do I Figure out the Months of Inventory in a Market?
1. Look for the total number of active listings for the month prior to the current one
2. Look for the total number of sold or closed transactions for the same time frame
3. Divide the total number of listings by the number of sales. This figure represents the number of months of inventory there are.

For example, let’s say there were 6,500 listings in one month’s time. During that same time, there were 1,500 properties that were sold. Divide 1,500 into 6,500 and you arrive at 4.3 months of inventory, meaning that this is a seller’s market.

While a savvy real estate agent is the best resource for this information, other resources include real estate listing websites and/or your local real estate association.

Do All Markets Follow the Same Cycles?
Markets are always in a state of flux. At its core, people are the driving force behind the real estate market.

For example, as more people move into a location, the more need there is for housing. If the number of properties in the area cannot support the number of people moving in, prices of existing homes will likely rise until more homes can be built.

This constant change to the supply and demand in a market is how markets shift back and forth from being more favorable for either buyers or sellers.

Can I Buy in a Seller’s Market?
Absolutely, but it’s not going to be a walk in the park. You’ll need determination, knowledge, and most importantly, someone on your side who knows the market inside and out.

Something to consider – you don’t know the seller’s true reasons for wanting to sell. Maybe there’s a divorce pending or another baby on the way and they need more space fast. Whatever is going on with the seller, a savvy agent will spot opportunities to help you and the seller arrive at a mutually agreeable solution.

One key reason it’s vital to engage an agent in a seller’s market is for their negotiating skills. While it’s important to always negotiate, a seller’s market calls for serious help to ensure that you don’t pay more than you need to.

Should I Wait to Sell?
It depends. Is it mandatory that you sell right now or could you wait until it’s a seller’s market again?

Consult with an agent to get his opinion about your chances of getting what you need or want for the sale of your home. He just might have some options you may not have considered that will help you get out from under your home and get on with your life.

Don’t be afraid to sell or buy if you think the market isn’t in your favor. The real estate market can be highly varied, so trust your agent to help you get the best possible results, no matter what the market looks like.

Source: CB Blue Matter

 

Posted on July 26, 2017 at 3:11 pm
Kappel Gateway Realty | Category: Buyer's Market, Buyers, first time buyers, hot market, Inventory, Multiple offers, real estate, Sellers Market, selling, Uncategorized | Tagged , , , , , ,

5 Mistakes Buyers Make In A Hot Housing Market

 

The home-buying process moves quickly in a seller’s market. Be sure to keep positive as you search for your dream home.

 

We are in a hot Real Estate market right now with little inventory. These tips could make the difference in the success of your next purchase!

Buying in a hot house market is sometimes inevitable, but you can save money by avoiding these mistakes.

It’s the never-ending saga of homebuyers everywhere: just when you start looking for homes for sale in Fairfield, CA or Walnut Creek, CA, prices seem to be booming and you’re stuck trying to buy in a seller’s market. House-hunting is hard to time perfectly, and sometimes it’s impossible to avoid buying in a hot market.

But don’t let the fear of tough competition send you into a panic. Avoid falling into one of these traps when shopping in a hot real estate market, and you’ll likely save yourself some money (and a few gray hairs).

5 mistakes that will cost you in a hot housing market:

  1. Acting out of desperation

    It’s hard not to be let down when attractive homes are taken from “new” to “pending” before you even have the chance to look at them, but remember: Desperation has no place in a home-buying transaction.

    Once desperation sets in, you risk making an impulsive and otherwise unwise decision, such as talking yourself into a home that isn’t quite what you really want or paying more than you can afford. Even if you can’t or don’t want to make an offer, every home you research and visit will give you a better insight into the home-buying process and the market and allow you to refine exactly what amenities you want in your future house.

    Once you know exactly what you want, let others know too. Give your contact information to the listing agents at open houses and ask them to drop you a note if they get similar listings.

 

2. Hesitating (This is a biggie!)

What’s worse than seeing great properties come and go before you can get out to view them? Seeing them placed under contract before you make an offer.

Before you walk into an open house, make sure your paperwork is up to date and your loan approval hasn’t expired so you’re in position to make an offer that day. If you haven’t already gotten a loan approval, it’s time to start the loan approval process, stat.

 

3. Ignoring the market entirely

It’s nearly impossible to time the market and make your real estate decisions based on current trends. A better plan is to make your buying decisions based on what’s currently happening in your family, your career, and your life (and what you envision will happen in the next five to 10 years). That said, when it comes time to execute your decision to buy, it’s foolhardy not to pay attention to the market.

You need to be able to play both sides and avoid the panic-inducing fluctuations of the market while staying informed. Ask your real estate agent to help you pay attention to neighborhood-specific information, such as which types of properties move quickly, how many days they generally stay on the market, whether multiple offers are a reality you will face, and how much over asking price homes like the one you want are selling for.

Then use this information to make strategic decisions, covering everything from which properties and areas you’ll focus on to how quickly you’ll need to get out to see listings to — most importantly — what price range you should focus your search on.

 

4. Misunderstanding your budget

Don’t run the numbers in your head. Don’t ballpark your income, loan payments, and bills, stick your finger in the wind, and guess at how much you can spend on a home. Financially speaking, home buying is the big leagues, so you need to be sparkling, crystal clear on precisely what you can afford.

In a hot market, you may be faced with decisions about whether to increase your price range or your offer price on relatively short notice. If you need help, don’t hesitate to bring your tax adviser or financial planner into the home-budget discussion — especially if you’re a new homebuyer. They can help you understand tax breaks for new homeowners, which can free up some extra money for your mortgage, property taxes, insurance, and HOA dues or private mortgage insurance, if applicable.

Also, make sure you include line items for your savings, retirement investing, gifts, school tuition, travel, and recreation — the sort of things that lenders will not account for when they tell you what their guidelines say you can afford.

 

5. Overpaying

Hot markets mean multiple offers on the same home, which often result in a bidding war. And once you’ve had one too many homes pulled out from under you after a bidding war, it can be tempting to pay more than you budgeted for.

To avoid overpaying for a home just because it’s in a bidding war, be sure to go through comparable homes with your agent before you even look at the house.

Bonus: If your agent includes active and pending sales in their pull of the comparable data set, you may find out useful information such as whether other competitive properties have just hit the market, or that all of the competition is now under contract — things that might also inform your motivation levels or price strategy.

Source: Trulia Blog

 

 

Posted on July 8, 2017 at 1:53 pm
Kappel Gateway Realty | Category: Buyers, buying, hot market, mistakes, overpaying, real estate, research, Sellers Market | Tagged , , , , , , , , , , , ,

What Is Equity and Why Is It Important?

This is information, that you, as a homeowner or buyer, really need to know. Read on for the ins and outs of equity!

Have you heard that owning a home helps ‘build equity’ but still not sure what that means? Get the information from the experts at Coldwell Banker.

You’ve probably heard people throw around the word “equity” when they’re talking about homeownership. You might have heard someone say that owning a home helps you “build equity” or perhaps you heard someone talk about “borrowing against equity.”

But what exactly is equity? And why does it matter?

What Is Equity?
Equity is what you own, minus what you owe. It’s the percentage of your home value that belongs to you free and clear.

If your home is worth $250,000 and your outstanding mortgage balance is $200,000, then you have $50,000 of equity in your home.

How Does Equity Grow?
There are three common ways in which your home’s equity can grow: market appreciation, forced appreciation, and debt reduction.

Market appreciation takes place when the value of your home rises due to factors caused by the overall local, state or national economy. If your home is located in a neighborhood that is experiencing a sudden burst of new jobs and population growth – and if that population growth is outpacing new housing starts – then there’s a likelihood that the value of your home may rise due to market appreciation.

Let’s return to the previous example. Your home is worth $250,000 and your mortgage balance is $200,000, meaning that you hold $50,000 in equity. Let’s assume that home values in your area start climbing steeply. Your home is now worth $300,000. Guess how much equity you hold? You now have $100,000 in equity. As the homeowner, you benefit from all market gains.

Forced appreciation is another common way that homeowners build equity. While market appreciation is based on factors outside of your individual control, forced appreciation is the direct result of your actions.

When you hear about people making upgrades for the sake of boosting resale value, they’re referring to forced appreciation. Imagine that you carefully plan and execute a kitchen remodel. You replace the 30-year-old cabinets with a new set; you replace the laminate countertops with builder-grade-granite; you replace the linoleum flooring with hardwood, bamboo or tile.

Assuming that you managed this remodel in a cost-efficient manner and made upgrade choices that are consistent with your neighborhood, the value of your home may exceed the cost of the renovation.

For example, if you spend $8,000 on the renovation, which results in a home that’s now worth $15,000 more, this means you increased your equity through forced appreciation.

Finally, you can boost equity through debt reduction, which means that you reduce the principal balance of your mortgage. Mortgages are amortized, meaning that a larger percentage of your payments apply to interest at the beginning of the term, while more of your payments apply to principal near the end. If you want to accelerate equity growth at the start of your term, you can make extra principal payments. This boosts your equity while also lowering the total interest you’ll pay over the life of the loan.

A combination of these factors can accelerate your equity growth. Since equity is the difference between “what you own” and “what you owe,” the 1-2 combination of boosting home value while also reducing the mortgage balance can be an effective way to rapidly build equity.

Why Does Equity Matter?
There are many advantages of holding equity.

First and foremost, equity boosts your net worth. The higher your equity, the higher your overall net worth. Your net worth can give you feedback on your overall financial health, and can help you make crucial financial planning decisions.

Secondly, you can borrow against your equity and, if you choose, invest this money. Some homeowners borrow against their equity to start businesses; others borrow to remodel their homes or to purchase investment properties.

The home equity loan, home equity line of credit, and cash-out refinancing are several options that homeowners can choose from if they want to borrow against their equity.

Finally, homeowners who decide to move can use the equity from the sale of their home to make a down payment on another home. This allows homeowners to “trade up” without needing to save cash for a down payment.

Furthermore, homeowners who downsize (meaning sell their current home and move into a smaller and less-expensive home) may cash out their equity – using some of their equity to purchase their less-expensive home and receiving the rest as cash.

What Should I Do?
Equity can be a form of ‘forced savings.’ Once this equity is locked into your home, you’ll have the advantages and opportunities that come from holding a high-equity position, without the same temptation to spend this money that you might have if it were liquid cash.

Assuming that you’re not planning any major projects that require a large cash outlay – such as starting a business, buying an investment property, launching a renovation or paying for college – you may want to focus on boosting your equity by accelerating your mortgage payoff, making strategic value-boosting upgrades, or both.

Source: CB Blue Matter

Posted on July 8, 2017 at 1:28 pm
Kappel Gateway Realty | Category: Buyers, equity, first time buyers, Homeowners, real estate, Uncategorized | Tagged , , , , , , , , ,

Why You Really Need a Home Inspection

This is such an important topic and a MUST READ for buyers!

Buying a house is probably the single largest investment you’ll ever make – learn how getting a home inspection can help you get the most value for your home.

Buying a house is probably the single largest investment you’ll ever make, and you want to ensure you get the best value for your hard-earned dollar. That’s why more and more home buyers today are turning to professional Home Inspection experts. A professional Home Inspector takes a close look beneath a house’s surface, and then prepares a detailed written report for the prospective buyer on such things as the condition of the foundation, electrical service, roof, insulation, and other critical structural factors. Your Coldwell Banker sales professional can help you connect with an experienced trusted Home Inspection service in your community.

Although costs will vary, you can probably expect to spend two to three hundred dollars for an inspection of a single family home. And who pays for it? Well, since the benefit is almost entirely that of the home buyer, it’s usually the buyer who pays the cost of the home inspection …particularly in a “hot” real estate market, where the home sellers have more leverage. All things considered, it’s a small price to pay for the peace of mind it provides, and the negotiating power it can give you — especially if it indicates that there are major repairs required, but you decide to make an offer anyway.

When it comes to making your offer to purchase, your Coldwell Banker professional can provide you with good advice on how to allow for a home inspection as a part of this process. Subject to the homeowner’s permission, you can commission a Home Inspection before or even after submitting your offer to purchase. This is done by having your Coldwell Banker salesperson prepare a conditional offer that’s contingent on a Home Inspection report that’s acceptable to you. This approach gives you some distinct advantages: if the conditional offer is accepted, the property is temporarily held against other offers, yet you still have a legal escape route if the report turns up some major negative surprises, such as a bad roof or a crumbling foundation. On the other hand, if the conditional offer isn’t accepted, then the need to pay for a home inspection may never arise. Your Coldwell Banker professional can counsel you on the best approach to suit your market and your individual situation.

Source: CB Blue Matter

Posted on July 8, 2017 at 1:14 pm
Kappel Gateway Realty | Category: Buyers, first time buyers, inspections, real estate, Uncategorized | Tagged , , , , , , , , , , ,

What Are Closing Costs?

First time home buyers…this ones for YOU!  Must read!

What are closing costs? What should I know before getting my next loan?

 

What Are Closing Costs?

Closing costs are fees paid in connection with the refinance or transfer of ownership in real property. They are paid by either the buyer or the seller on the settlement date.

These fees will always vary. What you pay for one refinance or property transfer will not be the same as another. This is due to the different parties involved, different types and locations of property, the financial capacity of a buyer and many more factors.

The law requires lenders to give you a loan estimate within three days of receiving your application. This document sets out what your closing costs will be. These fees, however, are not set in stone and subject to change.

Your lender should provide a closing disclosure statement at least three business days before the closing date. This is a more reliable estimate of your closing costs. Compare it to the loan estimate you’ve received and ask your lender to explain the fees and the reasons for any changes.

What Is Included in Closing Costs?

Your costs will differ depending upon the transaction. Types of costs include:

  • Credit report fees (the cost of checking your credit record)
  • Loan origination fees (which consists of the cost to your lender for processing your loan)
  • Attorney fees
  • Inspection fees (for inspections requested by either you or the lender)
  • Appraisal fee
  • Survey fee (so that both you and the lender know where your property boundaries lie)
  • Escrow deposit which may cover private mortgage insurance and some property taxes
  • Pest inspection fee
  • Recording fee paid to a county or city authority to file a record of the property transfer and/or new mortgage lien against the property
  • Underwriting fee to cover the cost of processing a loan application
  • Discount points (money you pay your lender to get a lower interest rate)
  • Title insurance (protection for you and the lender should there be any issues with title to the property)
  • Title search fees (costs incurred by the company who checks the title on the property)

These fees can range anywhere from 2% to 5% of a property’s selling price. It’s smart to get estimates from two or three lenders so that you can take these costs into consideration before making an offer. For the easiest way to compare lenders who may use different terminology to describe their fees, simply ask for a loan estimate from each.

Can I Negotiate These Costs?

Some fees, such as document, processing, service, underwriting and courier charges are open to negotiation. However, third party fees such as an appraisal or survey, are not.

If you’re worried about how much you’ll need at closing you can find a bank that doesn’t escrow real estate and homeowners insurance. Often, banks will escrow six months of real estate taxes and several months of homeowners insurance premiums. When added to the other closing costs, this can be quite a large sum.

Keep in mind, however, that you will be responsible for paying your homeowners insurance and property taxes when they’re due rather than relying on your lender to pay them for you.

Where allowed by law, you can negotiate with the seller to have them pay some closing costs normally attributed to the buyer.

Can I Add my Closing Costs to the Loan?

Most loan programs will allow for a percentage of the purchase price to go towards closing costs. The easiest way to do this is to ask for a seller credit towards the closing costs.

The seller credit means that the seller will receive a smaller ‘net’ amount at closing, however there is a way to make a seller credit more palatable to the seller. If you can qualify for a higher purchase price – say 2.5% over list – the seller won’t lose any money and you can use the seller credit towards the closing costs.

In this scenario, what you’re doing is financing your closing costs over the life of the loan.

You can also do a lender credit. Like a no-cost refinance, you agree to a higher interest rate so that the lender will pay some of the closing costs. You can potentially get a lender credit of $2,000 to $4,000 – a sizeable amount of fees.

Keep in mind, however, that should you continue paying the same mortgage over the life of the loan, you could end paying more than if you were to pay up front.

What Can I Expect?

Before closing day arrives, contact your agent to confirm that he or she has everything for the transaction to go as smoothly as possible. Pull together any paperwork that you have received and keep it on hand for easy reference on closing day.

Be prepared to take your time reading through all of the closing documents. Make sure you completely understand all of the terms you’re agreeing to. If some of the terms are missing or incomplete, don’t sign until they are resolved to your satisfaction.

Your lender will send money to the closing agent via a wire transfer and may require that you set up a new escrow account with them to pay your property taxes and homeowners insurance together with your monthly mortgage payment.

You should be advised before closing day how much money you’ll need to have for closing, so bring your checkbook with you to cover any necessary escrow and/or closing costs.

Among the many documents you’ll be signing, three of the most important documents will be the:

  • Hud-1 Settlement Statement – a document which sets out the costs incurred with your closing.
  • Deed of Trust or Mortgage – a document in which you agree to a lien being placed against your property as security for repayment of your loan.
  • Promissory Note – a document which can be described as a legal “IOU” which sets out your promise to pay according to the terms of the agreement.

Source: CB Blue Matter

Posted on June 29, 2017 at 7:27 pm
Kappel Gateway Realty | Category: Buyers, closing, closing costs, escrow, first time buyers, real estate, Uncategorized | Tagged , , , , , , , , , , ,