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Once You Close, Important Documents You Should Keep
On closing day, expect to sign a lot of documents and walk away with a big stack of papers. Here’s a list of the most important documents you should file away for future reference.
1. HUD-1 setlement statement. Itemizes all the costs-commissions, loan fees, points, and hazard insurance-associated with the closing. You will need it for income tax purposes if you paid points.
2. Truth in Lending Statement. Summarizes the terms of your mortgage loan, including the annual percentage rate and recision period.
3. Mortgage and Note. Spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.
4. Deed. Transfers ownerships to you.
5. Afffidavits. Binding statements by either party. For example, the sellers will often sign an affidavit stating that they have not incurred any liens.
6. Riders. Amendments to the sales contract that affect your rights. Example: The sellers won’t move out until two weeks after closing but will pay rent to the buyers during the period.
7. Insurance Policies. Provide a record and a proof of your coverage.
8 Reasons Why You Should Work With A Realtor
Not all real estate practitioners are REALTORS. The term REALTOR is a register trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS and subscribes to its strict Code of Ethics. Here’s why it pays to work with a REALTOR.
1. Navigate a complicated process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multipage settlement statements. A knowledgeabe expert will help you prepare the best deal, and avoid delays or costly mistakes.
2. Information and Opinions. REATORS can provide local community information on utilities, zoning, schools, and more. They will also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the enviroment I want for a home or investment? Second: will the property have resale value when I am ready to sell?
3. Help finding the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your REALTOR to find all available properties.
4. Negotiating skills. There a many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete purchase. Your agent can advise you as to which investigations and inspections are recommended or required.
5. Property marketing power. Real estate does not sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner’s contract through previous clients, referrals, friends and family. When a property is marketed with the help of a REALTOR, you do not have to allow strangers in your home. Your REALTOR will generally prescreen and accompany qualified prospects through your property.
6. Someone who speaks the language. If you do not know a CMA from PUD, you can understand why it is important to work with a professional who is immersed in the industry and knows the real estate language.
7. Experience. Most people buy and sell only a few home in a lifetime, usually with quite a few years in between each purchase. Even if you have done it before, laws and regulations change. REALTORS, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.
8. Objective voice. A home ofton symbolizes famly, rest, and security- it is not just four walls and a roof. Because of this, homebuying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they will make. Having a concerned, but objective, third party helps you stay focus on both the emotional and financial issues most important to you.
The Value of Home Warranties: Protect Your Wallet
RISMEDIA, June 30, 2011—Even with home sales and prices continuing to fall nationwide, millions of Americans will still navigate the process of buying and selling homes this summer, and for many, the sheer volume of details and decisions can be overwhelming. With so much to consider when buying or selling a home, it can be challenging to investigate even routine aspects of the process, such as the value of home warranties.
Lelia Chapman, vice president of field sales for one of the nation’s oldest and largest home warranty providers, American Home Shield, says that a reliable home warranty can help provide an important measure of confidence for the buyer and help set a seller’s home apart from the competition.
Still, even with advantages to both parties, many buyers and sellers remain uninformed about the purpose and benefits of home warranties, which cover the repair or replacement of many home-system components and appliances. Home warranties—which are available for single-family homes, condominiums, townhouses, vacation homes and multi-unit properties—address key consumer needs, typically covering the cost of replacing or repairing such things as heating and air conditioning components, dishwashers, water heaters, ovens, garbage disposals, and more.
Such items are not usually covered by homeowners insurance and can be very costly to repair or replace if not covered by a home warranty. Replacing the dishwasher alone can be more costly than an annual home warranty payment; the cost for a one-year home warranty from American Home Shield begins around $300.
“When a system or appliance breaks down unexpectedly, it can be very inconvenient and stressful to homeowners—not to mention potentially devastating to a household budget,” says Chapman.
While many of the home’s system components and appliances are covered as part of a standard home warranty, if home buyers wish for more household items to be covered, they should determine whether their home warranty provider offers an add-on package. American Home Shield offers plans allowing consumers to customize their home warranty to cover specific components and appliances, including ceiling fans, garage door openers, swimming pools and more.
Advantages for both buyers and sellers
Whether the home warranty is provided by the seller of the home or purchased by the buyer after the sale, there are numerous advantages to both parties.
“Home warranties are appealing to buyers because they cover appliances and system components that a new homeowner has no familiarity with,” says Chapman. Sellers benefit from offering a home warranty because it sets the home apart from the rest of the competition in today’s saturated market, often leading to faster sales at better prices.”
Get the plan that’s right for you
While home warranties are a popular addition to the home buying and selling process, they may be purchased at any time. Chapman encourages consumers to do their research before choosing a plan or provider, as costs, coverage levels, customer service and other factors vary. American Home Shield’s website offers homeowners an interactive experience where they can review a range of options and custom-design plans based on the cost and coverage level that is right for them.
“In today’s economy, home warranties make sense more than ever,” says Chapman. “Not only are they a great tool to help you sell your home, but they’re something you definitely want to insist on when buying one.”
July Buying Advice
Before you shop, line up a loan and while you are at it, make sure you understand the difference between prequalified and preapproved.
The thought of shopping for a home loan can be daunting, especially when news stories talk about how tight credit is and how perfect your FICO score must be for lenders to even consider you.
In this month’s buying advice, we will look at how you should seek approval for a loan and what documents the banks likely need to give your funding the green light.
We will also check in with lastest market information; look at what’s happening with the spooky, so called “Shadow inventory”; and consider what you should do when that property you have made an offer on hits appraisal problems.
Before you start looking at houses, it’s a good idea to know how much you can afford. To get a rough idea, you can a lender prequalification, a quick process that can tell you roughly how much home you can afford. This does not, however, mean you have secured financing, and it in no way obligates you to use that lender.
Preapproval is the next step and is generally more involved, requiring documentation of your income and assests. This tells you how much a lender is willing to lend you and what rate, which you must know when you are ready to make offers.
Here is what you should count on getting together for this process, according to Erin Lantz, director of Zillow’s Mortgage Marketplace:
Two months of pay stubs
Two months of bank statements: That means checking, savings, brokerage and retirement accounts. Be sure to include all pages, not just the summary page.
Two years of W-2′s if you are salaried employee
Two years of tax return if you are self employed
Rental history for the last two years if applicable
Be prepared to show any other sources of income, such as child support, rental income or commission, and bonuses for a period of two years, Lantz says. You might even bring along a copy of your divorce decree if it helps show you and ex’s money or expenses parted ways.
The lender wants to a sense of your full financial picture,”Lantz says.
Century 21 Realtor Experiences Proven Success With Pro Step Marketing’s Website and SEO Strategy
RISMEDIA, June 23, 2011—
Pro Step Marketing’s all-in-one web strategy has brought exceptionally proven results to Linda Hall of South Carolina.
The Linda Hall Team, long time practicing REALTOR® in the Fort Mill, S.C. real estate market continues to bring buyers and sellers cutting edge marketing tools and advertising practices that help get homes sold. Linda Hall comments, “My website brings me leads!!! I have over 1500 buyer leads in drip campaigns and 40 sellers. When I go on a listing presentation I am able to share with sellers about how their home gets found on the web and gets instant exposure to my pool of buyers. So far this year we have closed 30 percent of our buyer side sales from the Internet.”
From her marketing efforts Linda has experienced exceptional results. Linda continues, “I hired Pro Step marketing in 2002 to handle all of my Internet needs to include my brand and website. Frankly, I have never looked back. They designed and built my custom site and over the years it has gone through many changes as things have evolved over the internet. They have advised me every step of the way and have always been right on target.”
Tricia Andreassen, CEO/Founder of Pro Step Marketing says Linda Hall’s results are exceptional because she understands that there are core elements to the overall web marketing plan. “Linda is a true example of understanding the value of web strategy and that you must have a strong foundation to grow your business. It’s a combination of planning, website design, IDX integration, and search engine optimization that power the exposure and lead generation. Her site has information on the towns, and on active market conditions and quick searches for listings. This is what people want.” says Andreassen.
Hall also feels that the Pro Step Marketing website strategy is a critical key to online success. “In my opinion,” comments Hall, “in order to remain viable, web sites should be updated on a frequent basis. With the Pro Step Marketing platform it is straight forward and easy. The edit capabilities are outstanding.”
“Recently Linda contributed as a panelist, sharing her best practices to inspire other real estate brokers and agents to take their business to the next level.” comments Andreassen. “Those who attended want to hear what active REALTORS® are doing in the market to close business.”
Andreassen says Hall’s results are exceptional because she sees the big picture. “It’s also about having a consistent presentation and brand strategy. Linda understands the importance of branding and we have helped them develop a brand that allows her to stand out from competitors in the market,” says Andreassen.
“My website is one of the Hallmark pieces of Brand and Marketing campaign,” says Hall. “If you ask my buyer specialists, they would tell you that their internet leads are the heart of their business now for new leads and past clients.”
Tricia Andreassen is a nationally-recognized leader in the real estate industry as a web strategy expert and marketing visionary, empowering thousands of REALTORS® to practice Interfusion Marketing™ and spread a targeted message through all areas of web marketing, search engine strategies, media, including social media tools and video integration. Additionally, Andreassen is recognized as a top national speaker for web marketing strategy and business strategy with the Broker Agent Speakers Bureau. She actively speaks at many national conventions and holds many invitation-only web strategy workshops for top producing REALTORS®. Andreassen is also a regular contributing columnist and writer for RISMedia magazine and a contributing educator for the NAR Learning Library, Online Ed and more.
For more information on Pro Step Marketing’s turn-key web system visit www.ProStepMarketing.com.
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