Welcome back readers! Here is the second installation in our two-part series on Closing Cost Terminology.
Recording Fees- charged by County Clerk to record documents in the public records.
Document Preparation- fee charged by attorney for preparing legal documents for transaction.
Survey- confirms lot size and any encroachments or restriction violations.
Inspections- an examination of property for various reasons such as termite inspections; inspection to see if required repairs were made before funds are received, etc.
Real Estate Fees- an amount paid of real estate agents as compensation for their services.
Private Mortgage Insurance- insurance against a loss by a lender in the event of default by a borrower (mortgagor).
Interest- always paid in arrears(debt).
Homeowner's Insurance- protects property and contents in case of loss; must be for at least loan amount or for 80% of the value of the improvements, whichever is greater.
Escrow Account- Funds held by lender for payment of taxes, maintenance and insurance when due.
Maintenance Fee- charged by home owners association as set out in subdivision restrictions.
Assumption Transfer Fee- fee assessed by lender to buyer to assume present loan.
Amortization Schedule- schedule showing principal and interest payments throughout the life of the loan.
Prepayment Penalty- charged by lender to premature payment of conventional loan balance.
We hope this two-part installment has been informative. Remember readers, Knowledge IS Power!
Thursday, January 26, 2012
Friday, January 20, 2012
Taking the Mystery out of Real Estate terminology (words!)
Many times, financial terms are thrown around in the world of Real Estate. I have a two-part "primer" to prepare you. If you have never heard these terms before, I guarantee you that it is going to happen sometime - not just to someone else, but to you! Heads up!
Appraised Value- an opinion of the value of a property at a given time, based on facts regarding the location, improvements, etc. of the property and surroundings.
Loan Application Fee- paid to lender at time of application; cost varies by lender
Credit Report- a report on the past ability of a loan applicant to pay installment payments
Point- 1% of loan amount
Origination Fee- fee buyer pays lender to originate new loan.
Loan Discount- points lender charges; may be paid by either buyer or seller on conventional loans; number of points fluctuates with mortgage money market.
Photos- charged by lender for photographing property.
Tax Certificate- certificates issued by taxing authorities showing the current years' taxes and the last year that taxes were paid.
Mortgagee's Title Policy- required by lender to ensure that lender has a valid lien; does not protect the buyer.
Owner's Title Policy- insures that buyer has title to property.
Escrow Fee- charged by the title company to service transaction and to escrow money and documents; amount varies with company; usually split between buyer and seller.
Restrictions- certified copy of deed restrictions required by lender.
Tax Proration- seller pays buyer taxes from January 1st to closing.
Make sure you visit my blog next week for part 2 of Definitions of Closing Costs.
Definition of Closing Costs
Appraised Value- an opinion of the value of a property at a given time, based on facts regarding the location, improvements, etc. of the property and surroundings.
Loan Application Fee- paid to lender at time of application; cost varies by lender
Credit Report- a report on the past ability of a loan applicant to pay installment payments
Point- 1% of loan amount
Origination Fee- fee buyer pays lender to originate new loan.
Loan Discount- points lender charges; may be paid by either buyer or seller on conventional loans; number of points fluctuates with mortgage money market.
Photos- charged by lender for photographing property.
Tax Certificate- certificates issued by taxing authorities showing the current years' taxes and the last year that taxes were paid.
Mortgagee's Title Policy- required by lender to ensure that lender has a valid lien; does not protect the buyer.
Owner's Title Policy- insures that buyer has title to property.
Escrow Fee- charged by the title company to service transaction and to escrow money and documents; amount varies with company; usually split between buyer and seller.
Restrictions- certified copy of deed restrictions required by lender.
Tax Proration- seller pays buyer taxes from January 1st to closing.
Make sure you visit my blog next week for part 2 of Definitions of Closing Costs.
Thursday, January 12, 2012
Real Estate Trivia
Are you smarter than.....a fifth grader...or a real estate agent (no smart remarks here!)? I picked these gems up from a fellow realtor named Marilyn Wier. The first one to correctly answer these questions earns the title: "I am smarter than a fifth grade real estate agent"!
Here goes:
Q: What are the characteristics of classic Queen Anne architecture?
A: Queen Anne homes are the most elaborate, romantic and feminine of all Victorian Homes.
Q: What kind of home construction is considered to be the safest in seismic areas?
A: Straw-bale homes in seismic zones have proven resilient enough to withstand the shock of earthquakes.
Q: Which estate has two pools- one on the east side for the morning sun and one on the west for afternoon enjoyment?
A: The former estate of John Lennon in Palm Beach has two pools plus guest quarters.
Q: What holds the title as the tallest reinforced concrete building hi the United States?
A: 311 South Wacker Drive in Chicago was completed in 1990 and is 65 stories high.
Q: What are three of the best indicators of real estate market trends?
A: Existing home sales, new home building and mortgage interest rates
Well, how did you go? Now, who is first to claim that title??
Here goes:
Q: What are the characteristics of classic Queen Anne architecture?
A: Queen Anne homes are the most elaborate, romantic and feminine of all Victorian Homes.
Q: What kind of home construction is considered to be the safest in seismic areas?
A: Straw-bale homes in seismic zones have proven resilient enough to withstand the shock of earthquakes.
Q: Which estate has two pools- one on the east side for the morning sun and one on the west for afternoon enjoyment?
A: The former estate of John Lennon in Palm Beach has two pools plus guest quarters.
Q: What holds the title as the tallest reinforced concrete building hi the United States?
A: 311 South Wacker Drive in Chicago was completed in 1990 and is 65 stories high.
Q: What are three of the best indicators of real estate market trends?
A: Existing home sales, new home building and mortgage interest rates
Well, how did you go? Now, who is first to claim that title??
Tuesday, January 3, 2012
Happy 2012!
Best wishes for the New Year! May 2012 be your best year ever – beyond your expectations!
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