Sunday, August 28, 2011

Escrow - What is it?

An escrow is a deposit of funds or deed by one party for the delivery to another party upon completion of a particular condition or even, such as closing on your home.

No matter which side of the purchase you are on, you want the assurance that no funds or property will change hands until all instructions in the transaction have been followed completely and accurately. The escrow holder has the obligation to safeguard the funds/documents while in their possession, and to disburse them only when all provisions of the escrow have been complied with.

There are four mail principals to the escrow - the buyer, the seller, the lender and the borrower. These principals cause the escrow instructions to be created, signed and delivered to the escrow officer. It a broker is being used, he/she will normally provide the escrow officer with the necessary information, instructions and documents. The escrow officer processes the escrow in accordance with the instructions provided. Once all conditions of the escrow have been met, the escrow can be considered closed.

The duties of the escrow holder include:

  • Following the instructions of the principals
  • Handling the funds/documents in accordance with instructions
  • Paying all bills as authorized
  • Responding to authorized requests from the principals
  • Closing the escrow when all terms and conditions have been met
For more information on an escrow, contact me today!

Sunday, August 21, 2011

First Time Home Buyer Tips

So you're ready to buy your first home! Check out some of these first-time home buyer tips before you get started!

1. Check the selling prices of similar homes in the area you'd like to purchase. Finding out what surround homes are worth will give you a good idea of the price range you'll be looking at.

2. Use a mortgage calculator to see what you can afford and what your payments would be.

3. You home costs should add up to about 1/3 of your total income each month. Do the numbers to see what your total monthly housing cost would be, to ensure you look for a home you can afford.

4. Find out what the upfront costs are for the home you want to purchase. Closing costs can add up, so plan ahead

5. Speak to a reputable real-estate agent, like me, Deena Landsman! I can help you learn more about the currently real estate climate and help you find what you're looking for!

6. Consider unexpected costs such as new appliances, roof repairs, plumbing issue, etc. Remember, when you are a home owner, you can't run to your landlord to have these things fixed. You are now responsible for taking care of them yourself.

Remember, you don't have to go it alone! Give me a call and I'll be right by your side!

Sunday, August 14, 2011

Real Estate Vocabulary - D

Here are some more important real estate key words to help you in your home search or sale!

Debt-To-Equity Ratio - The relationship of the loan and equity components which, for example if the debt is $80,000 and the equity is $20,000, there would be a debt ratio of 4:1 or the equivalent to an 80% loan to value ratio.

Declaration of Homestead- A recorded document that protects a homeowner from foreclosure by certain judgment creditors.

Delinquent Mortgage - A mortgage that involves a borrower who is behind on payments. If the borrower cannot bring the payments up to date within a specified number of days, the lender may begin foreclosure proceedings.

Down Payment - The upfront cash commitment paid by the buyer. It makes up the difference between the sales price of a property and the loan amount obtainable.

Dual Agent - An agent who represents both parties in a transaction.

Due Diligence - The making of every reasonable effort to perform one's contractual obligations. Example - A prospective home-buyer signed a sales contract contingent on the sale of her present residence.

Due-On-Sale Clause - Provision in a mortgage or deed of trust calling for the total payoff of the loan balance within the event of a sale or transfer of title to the secured real property. A contract provision which authorizes the lender at its option to declare immediately due and payable sums secured by the lender's security instrument upon a sale of transfer of all or any part of the real property securing the loan without the lender's prior written consent.

Dwelling - A place where people live such as apartments, hotels, mobile homes, nursing homes, and single-family houses.

For more information, visit my website!

Source: RealEstateWords

Sunday, August 7, 2011

Real Estate Vocabulary - C

The Real Estate vocabulary continues!

Called Loan - A loan that is due and payable at the demand of the lender usually as a result of an acceleration or alienation clause becoming effective.

Cancellation Clause - A provision in a contract that gives a party the right to terminate his or her obligations upon the occurrence of specified conditions or events.

Capital Appreciation - The appreciation accruing to the benefit of the capital improvement to real estate.

Certificate of Occupancy - (COO) A document issued by a local government to a developer or in some cases others which permits a structure to be occupied by the general public and generally indicates that the building is in compliance with public health and building codes.

Certified General Appraiser -Generally any professional who has met the local or state requirements and passed the appropriate certification exam and is capable of appraising any type of property.

Class of Property - A subjective division of buildings as to their desirability to tenants and investors which is based on age location construction quality attractiveness of style level of maintenance etc.

Closing Costs - The miscellaneous expenses buyers and sellers normally incur at settlement in the transfer of ownership of real property over and above the cost of the property such as recording fees attorney fees title insurance premium etc. Closing costs which may consist of title insurance costs lender attorney fees appraisal fees and more can add thousands of dollars to your borrowing costs.

For more information, visit my website!

Source: RealEstateWords

Tuesday, August 2, 2011

Real Estate Vocabulary - B

Here are some more Real Estate terms that will help you in your home search!

Balloon Mortgage - An installment payment on a promissory note usually the final one for discharging the debt which is significantly larger than the other installment payments provided under the terms of the promissory note.

Bankruptcy - The inability of a debtor to pay one’s financial debts when due and where relief has been sought and has been granted through a special court action that makes it possible to resolve or eliminate the debtor’s debts.

Bid - The amount a party offers to pay on the home.

Bilateral Contract - A contract under which two parties exchange promises for the performance of certain acts. For example - Mr. A promises to buy Mr. B’s house and Mr. B promises to transfer its title to Mr. A.

Blanket Mortgage Or Trust Deed - A loan that covers two or more properties and often an entire subdivision where those properties are pledged or conveyed as security for the debt and which permits the borrower to obtain a partial re-conveyance when a parcel is sold.

Bleeding A Project - 1. In new construction overstating expenses and fees so as to divert a larger than normal amount of the project costs to the developer’s profit. 2. In managing existing real estate so as to obtain the highest possible current income from it.

Blighted Area -A district affected by detrimental influences of such an extent that real property values have seriously declined as a result of adverse land use and/or destructive economic forces. An area with rapidly depreciating buildings and no recognizable prospect.

Book Value - The current value for accounting purposes of an asset expressed as original cost plus capital additions and less accumulated depreciation.

Breach Of Contract - The violation of any terms or conditions in a contract without having a legal excuse such as the failure to make a loan payment when due.

Broker - A natural or legal person employed by another for a fee to carry on any legally-identified broker activity.

Budget - An itemized list of expected income and expenses prepared on a weekly monthly or annual basis.

Building Inspection - A physical review of property as construction progresses to insure that each major component – foundation plumbing electrical wiring roofing materials meets the building codes.

Build-To-Suit - A contract whereby an owner of land offers to construct a building on his or her land as specified by a potential tenant and then to lease land and building to that party.

Do you have questions about any of these terms? Give me a call!

Source: RealEstateWords