I don't know why I'm so fortunate tonight but I've stumbled across a second video that I just have to share with all of you. Whether you're a home buyer or seller - watch out! Now, I really know how to negotiate.
Check it out and leave me a comment below.
Cheers.
Showing posts with label home buyer. Show all posts
Showing posts with label home buyer. Show all posts
Thursday, February 7, 2008
Are Home Buyers Acting Like This?
I just saw this video and was wondering if anyone thinks that it could be a metaphor for what's happening with home buyers these days.
Please let me know what you think of this.
Please let me know what you think of this.
Friday, January 18, 2008
Do You Know What Your Closing Costs Will Be?
It's not enough to know the interest rate of your loan. You have to know what the closing costs will be also and that can add many thousands of dollars to your total cost of ownership.
Closing Costs is a general term representing all the related miscellaneous expenses associated with closing a deal like:
But there are no fixed closing costs as such. It just depends on the deal is structured, the price of the house, etc. You can negotiate some of the closing costs (like loan application and origination fees). But some others (like mortgage insurance and taxes) cannot be negotiated.
However all closing costs must comply with the Real Estate Settlement Procedures Act (RESPA). According to RESPA, the lenders must provide you with a clear statement of the cost of the loan and the closing costs so that as a consumer you can compare alternative offerings and make an intelligent decision.
The lenders are supposed to provide you with a Good Faith Estimate of the total loan-related expenses that you'll be asked to pay at the settlement table. But if your application is turned down, then they do not need to disclose such closing cost information.
Closing Costs is a general term representing all the related miscellaneous expenses associated with closing a deal like:
- Loan application fees
- Loan origination fees
- Attorney's fees
- Transfer Taxes
- Title inspection fees
- Mortgage insurance premiums
- Survey fees
- Deed preparation and recording fees
- Prepaid interest
- etc.
But there are no fixed closing costs as such. It just depends on the deal is structured, the price of the house, etc. You can negotiate some of the closing costs (like loan application and origination fees). But some others (like mortgage insurance and taxes) cannot be negotiated.
However all closing costs must comply with the Real Estate Settlement Procedures Act (RESPA). According to RESPA, the lenders must provide you with a clear statement of the cost of the loan and the closing costs so that as a consumer you can compare alternative offerings and make an intelligent decision.
The lenders are supposed to provide you with a Good Faith Estimate of the total loan-related expenses that you'll be asked to pay at the settlement table. But if your application is turned down, then they do not need to disclose such closing cost information.
Thursday, January 17, 2008
Order a Home Inspection Before You Sign Anything
It's important that you do a thorough inspection of the house you're intending to buy before signing a single binding document. Even when the house is sold on an "as is" basis, the results of the inspection can provide you with arguments for a better deal.
Even if a house looks perfect from the outside it may have serious defects inside that can be detected only by a trained professional inspector.
Many banks and mortgage institutions demand you conduct a radon and termite test as well since correcting such problems can be very costly in the long run. Banks mandate such an inspection before they loan any money in case they'd need to foreclose the property. Properties with structural problems cannot be re-sold easily on the market.
Have a Licensed Professional Engineer (P.E.) report on the condition of a house's foundation and walls, sewage system, electrical system, plumbing, heating, cooling, roofing, insulation, the floors, etc. Does, for example, the existing roof need to be removed completely before re-roofing it? If so, that would be a high cost item which can be revealed during the inspection.
Signs of any prior structural alterations and water damage should also be on your inspection report. Such an inspection would be worth every penny you spend even if it reveals nothing wrong about the house.
It's better to be safe than sorry.
Even if a house looks perfect from the outside it may have serious defects inside that can be detected only by a trained professional inspector.
Many banks and mortgage institutions demand you conduct a radon and termite test as well since correcting such problems can be very costly in the long run. Banks mandate such an inspection before they loan any money in case they'd need to foreclose the property. Properties with structural problems cannot be re-sold easily on the market.
Have a Licensed Professional Engineer (P.E.) report on the condition of a house's foundation and walls, sewage system, electrical system, plumbing, heating, cooling, roofing, insulation, the floors, etc. Does, for example, the existing roof need to be removed completely before re-roofing it? If so, that would be a high cost item which can be revealed during the inspection.
Signs of any prior structural alterations and water damage should also be on your inspection report. Such an inspection would be worth every penny you spend even if it reveals nothing wrong about the house.
It's better to be safe than sorry.
Tuesday, January 15, 2008
Credit Card Accounts - Should You Close Them or Not?
Many of the people that I talk to about improving their credit often confide in me that they've just spent the last year or more paying off some old credit cards. Now that the account is fully paid they proudly announce that they've just closed the account so that they won't be tempted to use the credit card again and rack up a bunch of bills that they can't afford.
Then they ask, "This is should really help my credit, right?"
In fact, they are both right and wrong.
When examining your credit, lenders are looking to see if you are using credit wisely. Paying off your debts is great.
If you are paying the minimum amount that you've agreed to pay on time, lenders would be very satisfied with that.
They also would like to see that you have the capacity or the ability to use credit responsibly. They can easily understand that if you have open credit cards with little or no balances on them.
CAUTION -- closing an old credit card account that was paid and is now in good standing will actually hurt your credit in the short-term since you would no longer have the ability to use credit with that account.
So, after you've paid down or paid off an old outstanding balance on a credit card, the best thing to do is to put your card away and store it in a safe place but do NOT close the account. This will demonstrate that you are wisely using your open line of credit.
Then they ask, "This is should really help my credit, right?"
In fact, they are both right and wrong.
When examining your credit, lenders are looking to see if you are using credit wisely. Paying off your debts is great.
If you are paying the minimum amount that you've agreed to pay on time, lenders would be very satisfied with that.
They also would like to see that you have the capacity or the ability to use credit responsibly. They can easily understand that if you have open credit cards with little or no balances on them.
CAUTION -- closing an old credit card account that was paid and is now in good standing will actually hurt your credit in the short-term since you would no longer have the ability to use credit with that account.
So, after you've paid down or paid off an old outstanding balance on a credit card, the best thing to do is to put your card away and store it in a safe place but do NOT close the account. This will demonstrate that you are wisely using your open line of credit.
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