Mortgage Guys Top Tips for a Smooth Move

Now that you’ve sold, or bought, and of course we hope you’ve worked with The Mortgage Guys on your mortgage, it’s time to think about organizing your move. Whether you’re going around the block or around the world, taking just the clothes on your back or a tractor trailer full of possessions, you’ve got to be organized in order to make the transition a smooth one. The Mortgage Guys have gathered our Ten Top Tips for a smooth and stress-free move:

1-      Plan Ahead – doesn’t matter if you’re move date is in a week or six weeks – planning can take the edge off for you and your family. Create a moving notebook and devote a page to each week (or each day) from now until the move and decide what you’ll accomplish, listing the tasks on each page of the book.

2-      Room Sweep – go room to room in your current place and decide what you’re taking and what you’re selling, donating, or throwing away. These decisions will help you decide whether you’ll need a rental truck or a moving company.  If you’re planning a yard sale, set aside items to sell as you go through the house.

3-      List Resources – make a list of the phone numbers, websites and addresses of the companies you’ll need to help you move (moving companies, rental companies, shipping companies, storage companies, cleaning companies). List out the phone numbers of utilities, schools and other services in your old and new locations.

4-      Gather the Goods – head to the store to gather up what you’ll need for packing (boxes, plastic bags, bubble wrap or other wrapping material, a thick marker pen, color coding stickers, packing tape). You can be creative with packing materials and save money too. Use household items like sheets, towels, grocery bags, and newspaper to pad boxes.

5-      Friendly Folders – create folders or files for all your moving-related expenses and receipts, family records (such as children’s medical and school records), and account information with national companies (cell phones, satellite TV, insurance company, bank etc).

6-      Spread the Word – start a “change-of-address notification” list. Include everyone you do business with, from service people to health care providers as well as your neighbors and friends. Don’t forget to file a “change of address” form with the U.S. Postal Service.

7-      Prepare the Family – if you’re moving more than 10-15 miles from your current home, take children on a farewell visit to some of the places that hold happy memories or hold a going-away party for them and their friends, and for the adults, maybe hold a pot-luck dinner or barbeque.  Make arrangements with a friend or neighbor to watch kids and pets on moving day. This will ease their stress and yours as the truck is loaded.

8-      Go Treasure Hunting – If you’ve hidden any valuables around the house, be sure to dig them up (check the attic and crawl spaces too). Also remember to pick up any dry cleaning, shoe or jewelry repairs, and return library books, movie rentals, etc. Be prepared to carry valuables such as jewelry, collectibles, and medicines with you instead of packing them to go with the movers.

9-      Touch Up – check each room of the home for things you need to repair and or clean. Fix major nail holes, replace burned out light bulbs, clean carpet and floors, and wash down spills in refrigerator. Or, if time is tight, hire a cleaning company to come in and do a quick clean after the movers leave to make sure that everything is clean and ready for the new owners.

10-   Final Sweep – after the truck is loaded with all of your furniture and boxes, do a last check of:

–  Water shut off?

–  Furnace shut off?

–  Light switches turned off?

–  All utilities set for disconnection?

–  All windows and doors are closed and locked?

–  All spare house keys and garage door openers left for the new owners?

–  Mailbox empty of your mail?

–  Have you left anything at all inside, or out?

 

 

 

 

 

 

 

 

 

 

 

 

Moving is less of a chore when you get organized and check off tasks as you complete them. Once you arrive at your new home, your planning will make the relocation easier, but be sure to start into a routine as soon as you can – this is especially important for kids. We also found this a great Infographic to help you remember to de-stress and move smooth!


George Beylouny is a licensed loan originator and the Branch Manager for Silverton Mortgage Vinings.  He can be reached at 678-428-6514, George@mgatl.com or  www.mortgageguysatlanta.com

 

 

Get your Atlanta Home Ready to Sell FAST – Home Staging Basics

Photo credit: http://wickerandstitch.blogspot.com

When you start thinking about putting your Atlanta home up for sale there are many considerations, from where you’re moving, to who’s listing your property, to who’s handling your mortgage. Before you take the next big step and actually list your home it’s important to get it ready to sell, especially as the Atlanta real estate market begins to change.

The Mortgage Guys have listed 10 basic tips for getting your home in tip-top shape for sale. Here’s how to create a “move-in ready” home that will sell faster and for more money:

  1. DECLUTTER!
    Remove furniture – makes the house look bigger! Whatever you can live without send to a local storage unit with a month to month rental. A de-cluttered home says there’s plenty of storage space available. Remove knick-knacks – especially personal items, photos, religious items. Buyers want to see themselves in a house, so making your home more generic will help them achieve that feeling. And clean out your closets, bathroom drawers and kitchen cabinets because every buyer considers available storage space.
  2. OUT WITH THE OLD!
    If your furnishings are old, outdated and worn, it might be worth the trouble and expense to replace them with new or gently used furnishings in light, neutral colors and updated styles. Consider visiting a local consignment shop for replacement items from sofas to bedding, accessories to art. This may include updating appliances in your kitchen to stainless steel, which are much in demand.
  3. CREATE PURPOSE!
    Rooms look bigger if you bring furniture in from the walls and create conversation groupings of chairs and sofas, giving furnishings a purpose. And while you’re at it, make sure that every room has a purpose and adds overall value to the home and is easy for the buyer to recognize the purpose of the space.
  4. FIX IT!
    Make cosmetic repairs to woodwork, trim, walls and doors. Ensure carpets are clean and wood floors are finished and without scuffs, scratches and dents. Finish unfinished projects and put tools and ladders out in the garage or shed.
  5. PAINT!
    Enlarge the look of rooms by painting adjoining rooms with the same color, creating one larger space. Choose lighter more neutral colors appropriate to each space- bold colors have been known to reduce sales price offers. However, some rooms, like bedrooms can benefit from deeper tones that make the space feel warm, romantic or intimate.
  6. LIGHT IT UP!
    Check to ensure all fixtures have the maximum wattage bulbs in them so that when the Realtor shows your home, they can truly show off the warmth and functionality of the house. Be sure that you have task lighting in the kitchen, ambient lighting in the bedroom, and some accent lighting throughout.
  7. ODD IS IN!
    Interior designers recommend accessorizing with odd numbers, especially three. Arrange your odd counts asymmetrically (in a triangle rather than a row). Choose groupings of varied heights and widths, but select items to group based on a common theme (color, texture…).
  8. FRESHEN UP!
    Bring in freshly cut flowers, stems or greenery from your garden and make them a focal point in your kitchen, dining room, even the bathrooms.
  9. CLEAN IS GREEN!
    A clean home will demand a higher price. Hire a professional cleaning service if you need the help, but be sure to get floors, windows, counters and other surfaces spotless before showing your home. Pet areas need extra attention to prevent unfriendly odors from scaring potential buyers away from your property. Neutralize odors (including the litter box), and add homey scents by baking cookies just before potential buyers come through. The best bet is to make your dough ahead, shape into balls, and freeze. Then just pop a dozen in the oven an hour or so before the appointment.
  10. DON’T NEGLECT THE CURB APPEAL!
    Outside your home requires attention as well. Clean debris from plant beds, mow the lawn and trim bushes and shrubs. Plant brightly colored annuals along walkways or in pots near the entrance. Nothing says “move in ready” like freshly mulched beds. Fertilize the lawn to green it up, same with plants. If you have a porch, add a rocker or two with plush pillows and a book or magazine. You only get once chance at that first impression!

The extra time you spend preparing your home for sale in the Atlanta real estate market can certainly help your house stand-out from other available properties. Staged homes sell faster and for more than their counterparts, so get moving!


George Beylouny is a licensed loan originator and the Branch Manager for Silverton Mortgage Vinings.  He can be reached at 678-428-6514, George@mgatl.com or  www.mortgageguysatlanta.com

 

What Exactly IS a Streamline Refinance

While qualifying for a mortgage refinance is generally a lot harder than it has been in the past, there are some options available. One such option is the Streamline Refinance…

While guidelines and rules vary by lender, here’s a basic list of features:

  • Your current mortgage must be current on all payments
  • You must be receiving a clear benefit from the refinance
  • You may not take cash-out on the loan
  • Often there are minimal credit requirements and less paperwork meaning the process is faster and less expensive

Current mortgage – up to date and current is the number one requirement, meaning this path is not one for anyone who’s behind or in any danger of foreclosure. Clear benefit means your rate has to drop enough to cover all related fees, or convert from an adjustable to a fixed-rate loan.

What type of mortgages can be streamlined?

FHA – makes it easy to refinance your current FHA mortgage in good standing to a lower rate. FHA has permitted streamline refinances on insured mortgages since the early 1980s. What makes this process streamlined? There is no appraisal, so you can be underwater in your home by a little or a lot, and still be able to refinance your home. Keep in mind that you have to be either lowering your monthly payment or converting from an ARM to fixed rate loan, and you cannot take any cash out on the loan when you do an FHA streamline-refinance. Record low mortgage rates make this option very attractive to borrowers.

VA – also has streamline refinance option for current VA borrowers called the Interest Rate Reduction Refinancing Loan or IRRRL. With the VA’s options, as with the FHA loan, you must be paying less each month or going from an adjustable to fixed rate loan, and again, don’t expect cash back. The VA streamline refinance doesn’t require an appraisal or much credit work and with this loan, you can refinance at no cost as the option to roll the costs of the new loan into the new mortgage. Since VA borrowers have already taken care of their Certificate of Eligibility, the process is much easier and faster than an initial VA mortgage loan.

HARP – is a new mortgage program for homeowners who owe more on their home than the home is worth (also known as underwater). HARP (Home Affordable Refinance Program) and HARP 2.0 offer refinance options for Fannie Mae and Freddie Mac loans older than June 1, 2009, with the loan to value ratio of 80% or more. You must be current on payments of your existing loan. This loan carries limited fees and closing costs. It is possible to have a loan servicer (the financial institution that collects your monthly mortgage payments and has responsibility for the management and accounting of your loan) to be different than the owner of your mortgage.  To see if your loan is owned by Fannie Mae or Freddie Mac, visit their websites – Fannie Mae   Freddie Mac

Easy = Best?

While a streamline refinance may be the easiest option, it may not be the best option for you and you should shop different options other than your current lender or loan type to find the best rate/cost of the loan especially if you’re not underwater, not in a credit situation, and working at the same job for 2 or more years. Savings on a lower rate may offset the additional time and paperwork required for a more conventional approach to refinancing your home. Call The Mortgage Guys to discuss your options for refinancing your Atlanta home!

 


George Beylouny is a licensed loan originator and the Branch Manager for Silverton Mortgage Vinings.  He can be reached at 678-428-6514, George@mgatl.com or  www.mortgageguysatlanta.com

Is NOW a Good Time to Refinance my Home?

When I listen to the radio or turn on the television these days, there are many commercials touting historically low interest rates are and that it is a great time to refinance my mortgage.  Well the truth to the matter is “Rates are great!”   Rates are at historic lows and refinancing today could make a big difference in the amount of interest you will pay over the life of your mortgage.  But the real question should be, is it right for me?  And then the answer is, it all depends.

There are several factors that need to be explored such as the cost, the reduction in interest rate, the reduction in the term of the loan, will the new loan require mortgage insurance and most of all, can I even refinance my home today based on the current market value of my home (appraised value).

There is a formula called the break even analysis where you divide in the closing costs by the amount you will save each month and this will tell you in months the amount of time it will take to recapture your closing costs.  So let’s say the closing costs to refinance your home is $3,200 and you are saving $180 per month.  Your break-even would be approximately $3,200/$180 or 17.78 months.  This will give you an idea if it makes sense to go forward.  The next crucial question is how long do you think you will own the home.  If you think you will own it for at least another 18 months, then it makes senses to look further.

One of the most challenging obstacles to refinancing your home today is the appraisal process.  Unfortunately, the values of homes have dropped considerably in the past 5 years.  According to Trulia, real estate prices covering all properties in the Atlanta area have depreciated 20.1% over the past five years.  Since real estate trends are very localized, some area have been depreciated far more.  In order to refinance you home using standard loan products, you will have to have a minimum of 5% equity in your home.  So if your house appraises for $200,000, the maximum loan you could get would be $190,000. The good news is that there are several programs available for homeowners with little or no equity left in their homes.  So depending on the type of mortgage you currently have, you might be in luck.

If you currently have a FHA or USDA mortgage, there is a streamline refinance that does not require an appraisal which is a great option.  Depending on when you current FHA mortgage was endorsed by FHA can make it a fantastic option or just a pretty good option.   If your loan was purchased by either Fannie Mae or Freddie Mac and you closed on the loan prior to May 31, 2009, you may be eligible for a HARP (Home Affordable Refinance Program) refinance.  The main feature of a HARP refinance is that it allows you to refinance you home even if you are upside down on your mortgage.  To see if your loan was purchased by either, go to http://www.knowyouroptions.com/loanlookup for Fannie Mae properties and https://ww3.freddiemac.com/corporate/ for Freddie Mac properties.  There are many rules governing these programs, so it is best to speak with a mortgage professional regarding your options.

 

George Beylouny is a licensed loan originator and the Branch Manager for Silverton Mortgage Vinings.  He can be reached at 678-428-6514, George@mgatl.com or  www.mortgageguysatlanta.com

Do I Need To Sell My Home Before I Can Qualify For A New Mortgage On Another Property?

Although every situation is unique, it is not uncommon for homebuyers to qualify for a mortgage on a new home while still living in their primary residence.

Perhaps you are outgrowing your current house, or have been forced to relocate due to a job transfer?  Regardless of the motivation for keeping one property while purchasing another, let’s address this question with the mortgage approval in mind:

So, Do I Have To Sell?

Yes. No. Maybe. It depends.

Welcome to the wonderful world of mortgage lending. Only in this industry can one simple question elicit four answers…and all of them may be right.

If you are in a financial position where you qualify to afford both your current residence and the proposed payment on your new house, then the simple answer is Yes!

Qualifying based on your Debt-to-Income Ratio is one thing, but remember to budget for the additional expenses of maintaining multiple properties. Everything from mortgage payments, increased property taxes and hazard insurance to unexpected repairs should be factored into your final decision.

What If I Rent My Current Property?

This scenario presents the “maybe” and the “it depends” answers to the question.

If you’re not quite qualified to carry both mortgages, you may have to rent the other property in order to offset the mortgage payment.

In that scenario, the lender will typically only count 75% of the monthly rent you are proposing to receive.

So if you are going to receive $1000 a month in rent and your current payment is $1500, the lender is going to factor in an additional $750 of monthly liabilities in your overall Debt-to-Income Ratios.

Another detail that can present a huge hurdle is the reserve requirement and equity ratio most lenders have. In some cases, if you are going to rent out your current home, you will need to have at least 25% equity in order to offset your payment with the proposed rent you will receive.

Without that hefty amount of equity, you will have to qualify to afford BOTH mortgage payments. You will also need some significant cash in the bank.

Generally, lenders will require six months reserve on the old property, as well as six month reserves on the new property.

For example, if you have a $1500 payment on your old house and are buying a home with a $2000 monthly payment, you will need over $21,000 in the bank.

Keep in mind, this reserve requirement is incremental to your down payment on the new property.

What If I Can’t Qualify Based On Both Mortgage Payments?

This answer is pretty straightforward, and doesn’t require a financial calculator to figure out.

If you are in this situation, then you will have to sell your current home before buying a new one.

If you aren’t sure of the value of the home or how your local market is performing, give us a ring and we’ll happily refer you to a great real estate agent that is in tune with property values in your neighborhood.

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As you can tell, purchasing one home while living in another can be a very complicated transaction.  Please feel free to contact us anytime so we can review your specific situation and suggest the proper action plan.

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Related Articles – Mortgage Approval Process:

How Much Can I Afford?

How much mortgage money can I qualify to borrow?

This is typically the number one question mortgage professionals are asked by new clients.

Of critical importance when considering mortgage financing: There is sometimes a difference between what a client ***can*** borrow and what they ***should*** borrow.

In other words, what makes for a comfortable long-term mortgage payment?

The Quick Answer:

If we’re simply considering the financial math, lenders will calculate your Debt-to-Income Ratio and generally allow for 28-31% of your gross income to be used for the new house payment with up to 43% of your gross income to be used for all consumer related debts combined.

Sample Mortgage Scenario:

Let’s use a gross monthly income of $3000 and a qualifying factor of 30% Debt-to-Income Ratio:

$3000 multiplied by .3 (30%) = $900 max monthly mortgage payment

This means that your mortgage payment (Principal, Interest, Taxes, Hazard Insurance) cannot exceed $900 a month.

“Ballparking” a Qualifying Loan Amount:

Simple step:  We use a safe average of $7 per month in payment for every $1000 in purchase price so…

Step 1)  $900 a month divided by $7 = $128.50

Step 2) $128.50 multiplied by 1000 = $128,500 loan amount.

Remember, these are average ratios and guidelines set by most lenders for common mortgage programs.

Keep in mind, while most consumer debts are listed on a credit report, there are some additional monthly liabilities that may contribute to the overall qualifying percentages as well.

Regardless of how your personal income and credit scenarios factor in, it is important to consider your overall budget when trying to determine how much of a mortgage you should qualify for.

Other items to consider in your monthly budget:

1. Confirm all debts are taken into account
2. Any private notes or family loans
3. Short-term expenses – medical, auto repairs, travel, emergencies
4. Plan on additional expenses for the home such as water, electric, maintenance, etc…
5. Keep a cushion for savings and financial planning

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8 Questions Your Lender Should Answer About Mortgage Rates

Simply checking online for today’s posted rate may not lead to your expected outcome due to the many factors that can cause each individual rate and closing cost scenario to fluctuate.

We can preach communication, service and education all day long, but it’s our ultimate goal to earn your trust so that you can be confident in our ability to successfully lead you through this complex mortgage process.

Since mortgage rates can change several times a day, the following questions will help determine whether or not your lender truly knows what to look for so that they can provide you with the best rate once you’re in a position of locking in your loan:

Who determines mortgage rates, and what are they tied to?

Mortgage interest rates are determined by the pricing of Mortgage Backed Securities or Mortgage Bonds. The media often implies mortgage rates are based off the 10-year Treasury Note, which is incorrect.

While the 10-year Treasury Note has been known to trend in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions.

How often do mortgage rates change?

Mortgage rates may change throughout the day, however they only change on days when the Bond markets are trading securities since mortgage rates are based on Mortgage Bond prices.

Think of a Mortgage Bond’s sales price similar to that of a Stock that trades up and down during the course of a day.

For example – let’s assume the FNMA 30-Year 4.50% coupon is selling for $100.50. The price is 50 basis points lower from the previous day’s closing price of $101.00.

In simple terms, the borrower would have to pay an additional .50% of their loan amount to have the same rate today that they could have locked in the previous day.

What causes mortgage rates to change?

Mortgage Bonds are largely affected by various market forces that influence the changing demand for bonds within the market.  Some of the key economic factors that have the greatest impact are unemployment percentages, inflationary fears, economic strength and the overall movement of money in and out of the markets.

Like stocks, most fluctuation is caused by consumer and investor emotions.

What do you use to monitor mortgage rates?

There are several great subscription based services available to monitor Mortgage Bond pricing.

The key is to make sure the lender is aware they should be monitoring Mortgage Bond pricing, such as the Fannie Mae 30-Year 4.50% coupon… and not the 10-Year Treasury Note or the news media.

When the Fed changes rates, why do mortgage rates move in the opposite direction?

It is a common misconception that when the Federal Reserve implements a rate cut it is immediately correlated to a reduction in mortgage rates.

The Federal Reserve policy influences short term rates known as the Fed Funds Rate (“FFR”). Lowering the FFR helps to stimulate the economy and increasing the FFR helps to slow the economy down. Effectively, cutting interest rates (FFR specifically) will cause the stock market to rally, driving money out of bonds and creating potential for inflation.

Mortgage Bond holders need to obtain a higher rate of return on their money if inflation is increasing, thus driving up mortgage rates. With the Federal Reserve Board meeting every six weeks, this is an important question to ask. If your lender does not have a firm understanding of this relationship, they may leave your rate unprotected costing you thousands of dollars over the life of your mortgage.

Do different programs have different interest rates?

Conventional, FHA and VA loans can all carry different rates on a 30-Year fixed mortgage. FHA and VA loans are insured by the Federal Government in the event of defaults. Conventional mortgages are insured by private mortgage insurance companies, if insurance is required.

Typically, FHA and VA loans carry a lower rate because the investor views the government backing as less of a risk. While rates are usually different for each program, it may be more important to compare the monthly and overall cost during the life of the loan to determine which program best suits your needs.

Why is an Adjustable Rate Mortgage (ARM) rate lower than a fixed rate mortgage?

An Adjustable Rate Mortgage (ARM) is usually fixed for a specific period of time. The period is typically 6 months, 1 year, 3 years, 5 years or 7 years. The shorter time period the rate is fixed, the lower the interest rate tends to be initially.

This is due to the borrower taking the future risk of increasing interest rates. The only instance where this would not be true is when there is an inverted yield curve where short-term rates are higher than long-term rates.

Why are rates higher for different property residence types?

Mortgage interest rates are based on risk-based pricing. Risk-based pricing allows adjustments to par pricing for risk factors such as; FICO scores, Loan-to-Value percentages, property type (SFR, Condo, 2-4 Units), occupancy (Primary, Vacation or Investment) and mortgage type (Interest Only, Adjustable Rate etc).

This allows the investors who lend their money for mortgages to receive additional compensation for taking additional risk.

If the borrower encounters a financial hardship, are they more likely to make the payment on the home they live in or the one they rent out?

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Related Mortgage Rate Video:

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What Do Appraisers Look For When Determining A Property's Value?

Most people are surprised to learn what appraisers actually look at when determining the value of a real estate property.

A common misconception homeowners generally have is that the value of their home is determined after the appraiser has completed their physical property inspection.

However, the appraiser actually already has a good idea of the property’s value by the time they have scheduled an appointment to stop by the property.

The good news is that you don’t have to worry so much about pushing back an appointment a few days just to “clean things up” in order to help influence the value of your property.

While a clean house will certainly make it easier for the appraiser to notice improvements, the only time you should be concerned about “clutter” is if it is damaging to the dwelling.

The Key Components Addressed In An Appraisal

The Site:

Location, view, topography, lot size, utilities, zoning, external factors, highest and best use, landscaping features…

Design:

Quality of construction, finish work, fixed appliances and any defining features

Condition:

Age, deterioration, renovations, upgrades, added features

Health & Safety:

Structural integrity, code compliance

Size:

Above grade and below grade improvements

Neighborhood:

Is the property conforming to the neighborhood?

Functional Utility:

Is the property functional as built – style and use?

Parking:

Garages, Carports, Shops, etc..

Other:

Curb appeal, lot size, & conforming to the neighborhood are obvious to the appraiser when they drive down into the neighborhood pull up in front of your home.

When entering your home, they are going to look at the overall design, condition, finish work, upgrades, any defining features, functional utility, square footage, number of rooms and health and safety items.

Be sure to have all carbon monoxide and smoke detectors in working condition.

Since the appraisal provides half the weight in any credit decision involving the security of real estate, the appraisal should be done by a qualified, licensed appraiser whom is familiar with your neighborhood, and the type of home you are buying, selling or refinancing.

If you’re interested in what specifically appraisers are looking for, here is a copy of the blank 1040 URAR form that is used by every appraiser in the country.

Related Update on HVCC:

Appraisers hired for a mortgage transaction on a conforming loan are chosen from a pool of qualified appraisers at random. Neither you nor your lender has the flexibility of deciding which appraiser will inspect your home.

This recent change was brought on with the Home Valuation Code of Conduct HVCC, and is effective with conventional loans originated on or after May 1, 2009.

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Where Does My Earnest Money Go?

Hey, I gave my real estate agent a $5000 Earnest Money Deposit check… Where does that money go?

A basic and very obvious question that most First-Time home Buyers ask once their purchase contract gets accepted.

According to Wikipedia:

Earnest Money – an earnest payment (sometimes called earnest money or simply earnest, or alternatively a good-faith deposit) is a deposit towards the purchase of real estate or publicly tendered government contract made by a buyer or registered contractor to demonstrate that he/she is serious (earnest) about wanting to complete the purchase.

When a buyer makes an offer to buy residential real estate, he/she generally signs a contract and pays a sum acceptable to the seller by way of earnest money. The amount varies enormously, depending upon local custom and the state of the local market at the time of contract negotiations.

An Earnest Money Deposit (EMD) is simply held by a third-party escrow company according to the terms of the executed purchase contract.

For example, there may be a contingency period for appraisal, loan approval, property inspection or approval of HOA documents.

In most cases, the Earnest Money held by the escrow company is credited towards the home buyer’s down payment and/or closing costs.

*It’s important to keep in mind that the EMD may actually be cashed at the time escrow is opened, so make sure your funds are from the proper sources.

The Process:

  1. Earnest Money is submitted to an escrow company with the accepted purchase contract
  2. At the close of escrow, the EMD is credited towards the down payment and / or closing costs
  3. If there are no closing costs or down payment, the EMD is refunded back to the buyer

Who Doesn’t Get Your Earnest Money:

  • Selling Real Estate Agent – A conflict of interest
  • Sellers – Too risky
  • Buying Agent – They shouldn’t have your money in their account

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What Does Title Insurance Protect Me From?

By including title insurance when purchasing property, your title insurer takes on accountability for legal expenses to defend your property title, should it ever be challenged.

Many different occurrences can come into play to warrant the need for title insurance.

The title company responsible will then take on the legal expenses to defend the property for as long as you are in possession of an interest in the property under the title.

If the defense is not successful, you will be reimbursed for any loss of value of the property.

Common Things Title Insurance Covers:

1. UNDISCLOSED HEIRS, FORGED DEEDS, MORTGAGE, WILLS, RELEASES AND OTHER DOCUMENTS

2. FALSE IMPRISONMENT OF THE TRUE LAND OWNER

3. DEEDS BY MINORS

4. DOCUMENTS EXECUTED BY A REVOKED OR EXPIRED POWER OF ATTORNEY

5. PROBATE MATTERS

6. FRAUD

7. DEEDS AND WILLS BY PERSON OF UNSOUND MIND

8. CONVEYANCES BY UNDISCLOSED DIVORCED SPOUSES

9. RIGHTS OF DIVORCED PARTIES

10. ADVERSE POSSESSION

11. DEFECTIVE ACKNOWLEDGEMENTS DUE TO IMPROPER OR EXPIRED NOTARIZATION

12. FORFEITURES OF REAL PROPERTY DUE TO CRIMINAL ACTS

13. MISTAKES AND OMISSIONS RESULTING IN IMPROPER ABSTRACTING

14. ERRORS IN TAX RECORDS

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