ArticleDetailSimple

It’s the big day.The day you go to the title or escrow company, sign your name on the dotted line, hand over a check and prepare to take ownership of your new home.It’s also the day that you and the seller will pay “closing” or settlement costs, an accumulation of separate charges paid to different entities for the professional services associated with the buying and selling of real property.It’s too often a day filled with uncertainty and stress.To help you better understand this confusing subject, the Land Title Association has answered some of the questions most commonly asked about title, closing and closing costs.<h3>What services will I be paying for when I pay closing costs?</h3>You will usually be paying for such things as real estate commissions, appraisal fees, loan fees, escrow charges, advance payments such as property taxes and homeowner’s insurance, title insurance premiums, pest inspections and the like.<h3>How much should I expect to pay in closing costs?</h3>The amount you pay for closing costs will vary; however, when buying your home and obtaining a new loan, an estimate of your closing costs will be provided to you pursuant to the Real Estate Settlement Procedures Act after you submit your loan application. This disclosure provides you with a good faith estimate of what your closing costs will be in the real estate process. An itemized list of charges will be prepared when you close your transaction and take title to your new property.<h3>Can I pay for my closing costs in installments?</h3>No, and it is easy to understand why. Many different parties will have fulfilled their responsibilities and be awaiting payment upon closing. The title or escrow company will disburse money to those parties, pursuant to the escrow instructions, when funds are available.<h3>Will I be allowed to write a personal check to cover my closing cost?</h3>Your closing funds should be in the form of a cashier’s check, issued by an institution from the state of your purchase, made payable to the title company or escrow office in the amount requested. A personal check may delay the closing or may be unacceptable to the title or escrow company. An out-of-state check could also cause a delay in your closing due to possible delays in clearing the check.<h3>How much can I expect to pay for Title Insurance?</h3>This point is often misunderstood. Although the title company or escrow office usually serves as a meeting ground for closing the sale, only a small percentage of total closing fees are actually for title insurance protection.Your title insurance premium may actually amount to less than one percent of the purchase price of your home, and less than ten percent of your total closing costs. The title policy is good for as long as you and your heirs own the property with the payment of only one premium.<h3>Why are separate owner’s and lender’s title insurance policies issued?</h3>Both you and your lender will want the security offered by title insurance.Your home is an important purchase, and you will want to be certain your home is yours, all yours. Title insurance companies insure your rights and interests in order to protect you against claims.Your lender is looking to insure the enforceability of their lien on your property and marketability. What is meant by “marketability”? Local lenders will originate a loan here, and, often, sell it to an out-of-state investor. This investor, who may never see the property, needs to know that he has a valid and enforceable lien. Title insurance is the way of making certain. Without a current title policy, the loan is essentially unmarketable.<h3>What does my Title dollar pay for?</h3>Title insurers, unlike property or casualty insurance companies, operate under the theory of risk elimination.Risk elimination can only be accomplished after an intensive period of risk identification.Title companies spend a high percentage of their operating revenue each year collecting, storing, maintaining and analyzing official records for information that affects title to real property. The issuance of a title insurance policy is highly labor-intensive. It is based upon the maintenance of a title “plant” or library of title records, in many cases dating back over a hundred years. Each day, recorded documents affecting real property are posted to these plants so that when a title search on a particular parcel is requested, the information is already organized for rapid and accurate retrieval.Trained title experts are able, with the aid of their extensive title plants, to identify the rights others may have in your property, such as recorded liens, legal actions, disputed interests, rights of way or other encumbrances on your title. Before closing your transaction, you can seek to clear those encumbrances which you do not wish to assume.The goal of title companies is to conduct such a thorough search and evaluation of public records that no claims will ever arise. Of course, this is impossible--we live in an imperfect world, where human error and changing legal interpretations make 100 percent risk elimination impossible. When claims do arise, title insurance companies have professional claims personnel to make sure that your property rights are protected pursuant to the terms of your policy.To conclude, when you pay for your title insurance policy, you are paying for a team of professionals who have worked together to deliver you a title insurance policy which represents protection for your ownership of real property.<h3>Who can I look for straight answers on Title, Closing, and closing costs?</h3>Title or escrow company personnel are available to review and explain your title policy and your closing statement.Article by CLTA

Closing and Title Costs

If you know exactly why you are selling then it is easier for you to follow the right plan of action for getting what you want.If you are a seller who needs to close a sale as quickly as possible, then you should know that getting the highest price possible is not one of your priorities. It does not mean that you won’t or cannot get the highest price, but it means that the price is not the deciding factor. A buyer who can give you a quick closing time will appeal much more to you than a buyer who can offer you more money but the negotiation and closing time drag on.It’s always good to know how low you will go in terms of selling price. This will help to eliminate some of the offers that you find simply offensive or ridiculous. Even though you should consider all offers seriously and take into consideration the terms of each offer, sometimes, if you know the bottom line and are strict about it, you can save yourself time.Once you know what your limits and reasons are, discuss them with your agent so that they can help you set your goals realistically. If you decide to list your home on your own, make sure you do research on the current market, and you get the proper advice you need in terms of legal issues, etc. The key is to be realistic and to know what your goals are so they can be met.

Know Why You are Selling

FSBO (pronounced fizz-bo), or For Sale By Owner, is a way of selling your home without the use of a professional real estate agent or broker. The idea behind FSBO is that by selling your home yourself, you save the approximate 6% that would be the agents’ commission.6% may not sound like a lot, but it can add up, especially on more expensive homes. But before you run off and decide to sell your home FSBO, you must remember that to get a savings like that, there must be a cost. So what’s the catch? Selling FSBO is hard. A lot harder.Only about 10% of sellers that decide to do FSBO are successful at it. And not all of them end up saving themselves money. FSBO sellers often end up accepting a lower price for their home than they would with an agent.There are of course other issues as well. Can you afford to make selling your home your full-time job? Because for a lot of FSBO sellers, that’s exactly what it is. Do you have the time and capital to spend on the marketing, advertising, inspections, paperwork, phone calls, showings, and problems that come up when any home is sold?Selling with a professional agent also has other advantages. An agent can get your home listed on the MLS (Multiple Listing Service) and other popular websites where not only homebuyers but also other agents can easily find it. Professional real estate agents also have an extensive network that allows them to more easily find a buyer.So before you decide to sell your home yourself, thoughtfully consider just how much time and effort you can spare for selling your home, as well as how important it is that your home sell sooner rather than later.

For Sale By Owner - A Good Idea?

With the housing bubble burst and the subprime mortgage crisis, millions of homeowners found themselves unable to make their mortgage payments. Many found themselves owing more on the house than the home was worth. Many just walked away from their homes. As a result of these complicated issues, millions of homes were foreclosed.While this isn’t the only reason for which homes are foreclosed, it has been a widespread one. With all the foreclosed properties, there has also been extensive interest in buying these properties at a bargain price.It is true that foreclosed properties can be priced at a significant discount, but they are also a much riskier investment. Before making an offer on a foreclosed property, do your due diligence.Things you must do before buying a foreclosure:<ul><li>Do a title search - make sure that when you purchase a foreclosure that you are the only person who has any ownership claim</li><li>Check for liens - find out if there are any liens against the property because you will be responsible for paying them</li><li>Check for a second mortgage - you don’t want to be surprised by an extra mortgage that you will need to pay</li><li>Know how good of a “bargain” you’re getting - foreclosures are sold “as is” and in many cases you will not be able to do a proper inspection. You may end up paying thousands of dollars repairing the property before it is fit to be lived in.</li></ul>It is also important to consider that there are different types of foreclosure properties and each type comes with its own advantages and disadvantages. The different types of foreclosure purchases are:<ol><li>Pre-foreclosure</li><li>Auction</li><li>Real Estate Owned (REO), also called “bank owned”</li></ol><h2>Pre-Foreclosure</h2>A pre-foreclosure is when you buy the home directly from the homeowner, before the bank officially forecloses. This type of purchase does not require as much capital as other foreclosures. Also, since you are purchasing straight from the homeowner, you will be able to gather all of the necessary information, such as inspection reports, title information, etc. that may not be available with other foreclosure properties. Once you take over the mortgage, you will be responsible for all future payments as well as any overdue back payments.<h2>Auction</h2>A foreclosure property will usually end up at an auction. Real estate auction practices vary by state but common practice is for the auction to be held on courthouse steps, in front of the foreclosed home, or at the county clerk’s office.Real estate auctions offer the best chance for a great deal but also hold the greatest risk. Auction properties are sold as is, with no opportunity for potential buyers to perform inspections. When buying a home at auction, the buyer must pay cash, usually a cashier’s check. It is also possible that there may still be tenants living in the home. In such a case, you would be responsible for the often costly eviction process.<h2>REO</h2>Once a foreclosure has gone to auction and failed to sell, it becomes a Real Estate Owned, or bank owned, property. Most homes do not sell at auction, most fail to even get any bids.An REO property is the least likely of the foreclosure properties to represent a bargain, but it is also the least risky. The property can be fully inspected, any title issues can be found and dealt with, and the sale can be subject to a mortgage. REO properties also tend to be in better condition than other foreclosure properties.Another thing to keep in mind when purchasing a foreclosure is that some states have a redemption period that allows the original owner to buy back the property by paying the remaining balance owed. You may be able to have this redemption period waived, so check the state laws on this topic before purchasing.Still interested in buying a foreclosure property? If so, always do your research before purchasing!

Thinking About Buying a Foreclosure?

It used to be that buyers could go house shopping and when they have found their dream home, then they go to get pre-approved. However, in today’s market, that has proven to be one of the least effective methods in landing the dream home.Most lenders can pre-qualify you for a mortgage over the phone. Based on general questions about your income, debt, assets, and credit history, lenders can estimate how much mortgage you qualify for. However, being pre-qualified and pre-approved are different things. Pre-approval means that you have applied for a mortgage; you have filled out the mortgage application, received your credit report, and verified your employment, assets, etc. When you are pre-approved, you know exactly what the maximum loan amount will be.A pre-qualified letter is not verified and in essence, does not count for much if you are competing with other buyers who are pre-approved. When you are pre-approved, you and the seller know exactly how much house you can afford. It gives you credibility as an interested buyer and lets the seller know immediately that you will qualify for a loan to buy their property.In addition to being pre-approved, it’s important to be pre-approved with a legitimate lender. Legitimate lenders include: banks, mortgage bankers, credit unions, savings and loan associations, mortgage brokers, and online lenders.Some lenders to avoid: those who lose a form or misplace a file, those who gather information from you in an unorganized manner, those who are not informed about interest rates, points or costs, and those who cannot provide you with the right information.

Getting a Legitimate Lender and Getting Pre-Approved

As a buyer, you are entitled to know exactly what you are getting. Don’t take anything for granted, not even what you see or what the seller or listing agent tell you. A professional home inspection is something you MUST do, whether you are buying an existing home or a new one. An inspection is an opportunity to have an expert look closely at the property you are considering purchasing and getting both an oral and written opinion as to its condition.Beforehand, make sure the report will be done by a professional organization, such as a local trade organization or a national trade organization such as ASHI (American Society of Home Inspection). Not only should you never skip an inspection, but also you should be present with the inspector during the inspection. This gives you a chance to ask questions about the property and get answers that are not biased. In addition, the oral comments are typically more revealing and detailed than what you will find on the written report. Once the inspection is complete, review the inspection report carefully.You have to demand an inspection when you present your offer. It must be written in as a contingency. If you do not approve the inspection report, then do not buy the home. Most real estate contracts automatically provide an inspection contingency.

Importance of Inspection

With the burst of the housing bubble, credit crisis, and millions of foreclosures across the country, you may wonder if buying a home is such a good idea after all. However, it’s important to consider all of the facts. The important message to take away from these events is not that buying a home is a bad idea, but that you must be smart about buying your home.The housing market, like every type of market, unavoidably has its ups and downs. That doesn’t mean buying a home is a bad investment. As a long-term investment, homeownership is still one of the best investments for individual households. Historically, real estate has consistently increased in value, despite shorter periods of depreciation due to local markets and/or national economic conditions. The data shows that homes generally appreciate about 5% per year.<h2>Savings &amp; Investment</h2>Five percent may not seem like a great return on investment, but you have to think about it in the context of the situation. For example, let’s say you put 10% down on a $200,000 house. That’s a $20,000 down payment, or initial investment. At a 5% annual appreciation rate, your $200,000 home would gain $10,000 in value during the first year. Earning $10,000 on an investment of $20,000 is a whopping 50% return.For further perspective, let’s say instead of spending that $20,000 on a down payment, you invested it in the stock market. With a 5% return, you would gain only $1,000 in profit.<h2>Tax Benefits</h2>So now you’re saying that a home may have a higher return, but that’s before you consider all of the costs of home ownership, such as taxes, etc. Well, think of it this way: your property taxes as well as the interest on your mortgage are both tax deductible. You can deduct those costs from your income, thus reducing your overall taxable income. In other words, the government is subsidizing your home.<h2>Other Benefits</h2>It’s easy to get carried away with all of the economic reasons for home ownership, but it’s important to remember that not every reason is financial. Have you ever wanted to paint the walls of your apartment? Well when you’re renting, you can’t. Has anything in your apartment ever needed updating, but the landlord refused to do it? When you own a home, you can make the space yours in almost any way you want. And you benefit when you do home improvements, both financially and psychologically. Homes generally have more space, for storage, living, etc. than other living arrangements. Not to mention that you have space outdoors for barbecuing, pets, and kids. Owning your home carries with it a sense of pride, accomplishment, and even an elevated social status.So when you’re considering buying a home, consider the broad range of benefits that owning a home can have. And always make sure you have an experienced real estate agent and loan officer to help make sure you’re getting a home that is right for you, both financially and psychologically.

Is Buying a Home Still a Smart Plan

<a href="https://1ps94.edit.ihouseelite.com/-/listing/300673223/1501-Ocean-Bay-Drive-Key-Largo-FL-33037">MLS#579779</a>I would like to take you on a trip to the Islands and the experience of the Keys Life as I personally see it. This unit is a spacious 4 bedroom 3 bath townhouse located within minutes of world renowned diving and fishing. This property is conveniently located within the first Key in the of the fabulous&nbsp;<a href="http://www.florida-keys-experience.com/the-florida-keys.html">Florida Keys Chain of Islands</a>. The benefit to this location is you are minutes away to the mainland of Miami/Homestead and the&nbsp;<a href="http://www.miami-airport.com/">Miami International Airport</a>.Although close to the hustle and bustle of Miami the minute you enter the Gates of this 21 unit complex you begin to feel the serenity pour over you.&nbsp;Beautiful sunrises, Pelicans gracefully souring over the harbor, seagull and cormorant drying their wing on the pier pilings are all common scenes from the balconies over looking the harbor and ocean views from this unit.&nbsp;Imagine this.&nbsp;Getting on your boat located in one of your three deeded slips and heading out for a day of snorkeling at&nbsp;<a href="https://floridakeys.noaa.gov/zones/spas/molasses.html">Molasses Reef</a>&nbsp;or&nbsp;<a href="http://pennekamppark.com/">John Pennekamp Park</a>.&nbsp;All within minutes of your back door. Then&nbsp;returning perfectly toasted by the sun and salt of the days experience.&nbsp; What could possibly finish this fantastic day off but a dip in the cool fresh water pool with an inviting cabana and bar area to host your boating friends and family!&nbsp; Oh and don’t forget you have access to the out door living space located just outside your ground level “man cave” for hosting a Keys style gathering. It is unusual to find a Townhouse with so much outdoors space in addition to the ground level waterfront patio. Every bedroom has access to a balcony, This allows you to experience the full effect of Island living. I hope you have enjoyed seeing this property described through my eyes. If you would like to see it for yourself, please give me a call.&nbsp;I would be happy to show it to you, it’s always a pleasure to visit this well appointed property.1501 Ocean Bay Drive Unit 7, Key Largo, Fl 33037Key Largo Yacht Club

1501 Ocean Bay Dr. Unit 7, Key Largo Yacht Club

75615 Overseas Hwy. Islamorada Fl 33036 MLS# 582264 2,499,000Islamorada! Yes the Purple Island, has so much to offer but first let me tell you about&nbsp;this spectacular home! Entering the private gated property you will see the attention to&nbsp;detail that went into creating this masterpiece. Sunrises from every room! What a way&nbsp;to start your day! There is a Yoga Platform overlooking the ocean. A party area with a huge custom bar overlooking the waterfall pool, beach and ocean. Guests? Invite them&nbsp;all. There are three Ensuite Bedroom/Baths for complete privacy. And did I mention all&nbsp;with amazing ocean-views! If you are looking for a property and only the best will do, this home is awaiting you!Cook your favorite meal in the Chefs Kitchen that overlooks the ocean providing panoramic views. Have&nbsp;morning coffee on the beautiful spacious balcony overlooking the private beach. This&nbsp;house has been meticulously designed to mirror the curvature of the ocean's&nbsp;edge&nbsp;allowing for maximum views. Do you see the common thread running through all of these descriptions? Yes, it’s the view!! And Island living at its best.&nbsp;Let me tell you about the area.&nbsp;This magnificent home is located in&nbsp;Islamorada, also&nbsp;referred to as the Purple Island, and&nbsp;home to some of the&nbsp;<a href="https://www.tripadvisor.com/Restaurants-g34346-Islamorada_Florida_Keys_Florida.html">best&nbsp;restaurants</a>. We have Chefs from around the world right here on this beautiful island.&nbsp;This home is just minutes away from most of these restaurants for convenience and&nbsp;entertaining events. Watersports include boating, fishing, diving and so much more. One of my favorite&nbsp;dive sites is directly behind this property at&nbsp;<a href="https://www.tripadvisor.com/Attraction_Review-g34346-d8541639-Reviews-Alligator_Reef_Light_House-Islamorada_Florida_Keys_Florida.html">Alligator Reef Lighthouse</a>. It is&nbsp;considered one of the best diving and snorkeling locations in all the Florida Keys. For boating take a trip to the&nbsp;famous&nbsp;<a href="https://www.youtube.com/watch?v=f48rPmJPXU8">Sand bar</a>, it's is just north by water of this location.Islamorada is one of the most sought after zip codes in the Keys. Celebrities and&nbsp;Presidents a like make Islamorada their relaxing home away from home, which makes&nbsp;this property a perfect investment property. The demand for&nbsp;<a href="http://www.islamoradachamber.com/">Vacation rentals</a>&nbsp;and luxury living are high making the possibilities endless. There are not many properties&nbsp;that can offer 100 ft of private beach exposure and a deep water mooring directly behind the property.This home has so much to offer it truly is a must see. The fact that it's an ICF poured&nbsp;concrete structure with a concrete roof designed to exceed a Category 5 windstorm,&nbsp;well beyond all required building codes, makes&nbsp;the insurance rates more affordable&nbsp;than most ocean front homes in the area. If I have peaked your interest and you would like to take a closer look at this property please give me a call. It would be my pleasure to share this jewel of a home with you.

75615 Overseas Hwy, Key Largo, Fl 33037

Have you ever considered moving to beautiful Key Largo, Florida? &nbsp;Key Largo is a desirable community &amp; great location. &nbsp;Key Largo, Florida&nbsp;boasts a variety of local landmarks, excellent schools, parks and much much more. &nbsp;Take a look at some of the most popular searches in Key Largo, Florida&nbsp;and the surrounding areas.See:&nbsp;<a href="https://www.floridakeysrealestatelistings.com/map-search">Homes for Sale in Key Largo, Florida</a>Not quite the location that you are looking for? &nbsp;That is okay. &nbsp;Through my website you can search for the exact home you are looking for in the exact city, county or community you are looking for. &nbsp;Search for your perfect home, in the perfect location by taking advantage of my&nbsp;<a href="https://www.floridakeysrealestatelistings.com/advanced-search">Advanced Search</a>&nbsp;tool built directly into this website.

Have You Ever Considered Purchasing a Home in Key Largo, Florida

Please come see me this Saturday or Sunday where I will be performing in theAnnual Christmas Concert at Key Largo Babtist Church MM 106.5 Bayside

It's Christmas-A Concert December 15th & 16th Key Largo Babtist Church

When reading an offer, keep in mind that you are out to get the best price AND the best terms for you. If you focus solely on the price, you may overlook terms that could be favorable to you as a buyer.Some terms that may work in your favor:<ul><li>higher-than-market-interest in a second mortgage for your home</li><li>the buyer will pay for most or all of the closing costs</li><li>the buyer will take care of any repairs</li><li>quick close - the buyer is pre-approved and ready to close in a timeframe that best suits you</li><li>all-cash deal</li></ul>When reading through offers, remember to look at the whole package. Take the time that you need to assess what is being offered and if it meets your needs.

Considering Offers

?<span style="color: rgb(0, 0, 0); font-family: Merriweather, serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: left; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; display: inline !important; float: none;">How Much is your home worth in Key Largo, Florida? &nbsp;If you are planning on selling your home, that is a question you need answered. &nbsp;As your Local Key Largo&nbsp;Real Estate Expert, I can help you to learn the answer to that question. &nbsp;I will personally do the research on your behalf and provide you with a detailed Free Market Analysis. &nbsp;Please feel free to take a few moments to complete the basic information below and I will go straight to work for you. &nbsp;Or, if you prefer, please feel free to give me a call directly at 305-619-0240. ?

How Much Is My Home Worth in Key Largo, Florida

The Florida Keys are known for the Island atmosphere and laid back attitudes found most anywhere you go!I want to take you on a tour.....show you this house and its location as seen through my eyes, with the Island attitude and pizzazz&nbsp; it deserves! As you enter the (Key or City) of Tavernier you will notice some historically relevant&nbsp;buildings on the Overseas Highway. Some of these&nbsp;buildings date back to the railroad era.&nbsp;<a href="http://www.keyshistory.org/tavernier.html%C3%82%C2%A0">Tavernier</a>&nbsp;has a rich history and was actually named after the&nbsp;famous&nbsp;French Jeweler Jean Baptiste Tavernier {1605-1689}. Although this&nbsp;name&nbsp; was mispronounced until 1983. Up to that point&nbsp;it was referred to as&nbsp;Tabona.&nbsp;Today, this Key has charm and is one of the few locations where you have easy access to most everything you need within walking distance or a quick bike ride. The&nbsp;<a href="https://baptisthealth.net/en/facilities/mariners-hospital/pages/mariners.aspx">Mariners Hospital</a>&nbsp;Campus is within that same area, as is the&nbsp;Tassell Medical Arts Building and is home to a&nbsp;<a href="https://baptisthealth.net/en/facilities/mariners-hospital/wellness-center/pages/general-information.aspx">7000 sq. ft. gym and Wellness center</a>.This charming Key also features a Pier One Imports, Winn Dixie, Mc Donalds and the&nbsp;<a href="https://www.bbtheatres.com/location/tavernier-cinema-5">B&amp;B Movie Theater</a>. All with in that same bike ride. In other words Location! Location! Location! But honestly, the real location to be you'll find is sitting on the back porch of this beautiful home&nbsp;over looking the turquoise blue ocean. With a cool drink in your hand and the sea breeze blowing through your care free hair! Island Style! As you are relaxing there is plenty of room to have family and all of your snowbird friends over for a weekend stay. I'm sure they will enjoy the privacy and space this gem of a home offers. It has 2 private&nbsp;En-Suite guest rooms and an amazing&nbsp;downstairs family room/ bar area. Perfect for entertaining and hosting&nbsp;the best get together and parties. Best of all it has&nbsp;everything&nbsp;you need without making a trip up stairs. This room is literally steps from the pool and hot tub and don’t forget- that Ahhhh-mazing view just&nbsp;beyond the pool and beach area. From any of the balconies or from the third floor, you have views that will hypnotize you into that well known expression-Keys Disease. Oh! Let's not forget about the boat trips you'll be able to take from your own private 295 Foot T Dock. Just another&nbsp;very important aspect of this location as&nbsp;just south of the home&nbsp;is Tavernier Creek , You will find all of your boating dreams come true without taking the boat out of the water at&nbsp;<a href="https://www.facebook.com/Tavernier-Creek-Marina-159596220735483/">Tavernier Creek Marina</a>.This location is so convenient but is also the gateway to the Bay side, for&nbsp;those windy days when you don't want to go out on the ocean.&nbsp;The back country waits for you.&nbsp;<a href="https://www.nps.gov/ever/planyourvisit/index.htm">Everglades National Park</a>&nbsp;is also a quick day trip&nbsp;by boat!I hope I have described this beautiful property as eloquently as it actually is in person and have left you with a burning desire to come see it for yourself, through your own eyes! Please come and take a tour&nbsp; to see more of what this home&nbsp;has to offer as there is so much more that awaits you.Call me today for a private viewing of this amazing home. BJ Born 305-619-0240

224 Tarpon Street, Tavernier, Fl 33070

<div class="se-component se-image-container __se__float-none" contenteditable="false"><figure style="margin: 0px;"><img src="https://library-ihouseprd.b-cdn.net/blog/savings-for-down-payment.jpg" data-origin="100," alt="" data-proportion="true" data-size="588px,289px" data-align="none" data-index="0" data-file-name="savings-for-down-payment.jpg" data-file-size="0" style="width: 588px; height: 289px;"></figure></div><h2>Your First Step Toward Buying a Home</h2>When preparing to buy a home, the first thing many homebuyers do is look at the real estate ads in newspapers, magazines and listings on the Internet. Some potential buyers read how-to articles like this one. The next thing you should do - before you call on an ad, before you talk to a REALTOR®, before you shop for interest rates - is look at your savings.Why?Because determining how much money you have available for down payment and closing costs affects almost every aspect of buying a home - including how you write your purchase offer, the loan programs you qualify for, and shopping for interest rates.<h2>Mortgage Programs</h2>If you only have enough available for a minimum down payment, your choices of loan program will be limited to only a few types of mortgages. If someone is giving you a gift for all or part of the down payment, your options are also limited. If you have enough for the down payment, but need the lender or seller to cover all or part of your closing costs, this further limits your options. If you borrow all or a portion of the down payment from your 401K or retirement plan, different loan programs have different rules on how you qualify.Of course, if you have enough for a large down payment, then you have lots of choices.Your loan choices include such varied programs as conventional fixed rate loans, adjustable rate mortgages, buydowns, VA, FHA, graduated payment mortgages and all the varieties of each.<h2>Shopping for Rates</h2>A very important reason you need to have at least some idea of your down payment is for shopping for interest rates. Some loan programs charge a slightly higher interest rate for minimal down payments. Plus, the interest rates for different loan programs are not the same. For example, conventional, VA, and FHA all offer fixed rate loans. However, the rates vary from one program to another.If you shop lenders by phone, the loan officer will be able to tell you which programs fit and quote your rates accordingly. However, if you are shopping on the Internet, you have to develop some idea of your loan program on your own.<h2>Writing Your Offer</h2>Another reason you need to have a clue about your down payment is because it affects how you write your offer to purchase a home. Not only are you required to put your down payment information in the offer, but also different loan programs have different rules that also affect how you write your offer. This is especially important when dealing with FHA and VA loans.If you are asking the seller to pay all or part of your closing costs, you have to be certain your loan program allows what you are asking. For smaller down payments, lenders allow the seller to pay less closing costs than for larger down payments. Some loan programs will allow a seller to pay certain types of costs, but not others.Finally, your down payment also affects your ability to qualify for a loan. When you make a small down payment, lenders are fairly strict about having you conform to their underwriting guidelines. For larger down payments, they will tend to make allowances or exceptions to the rules.<h2>Conclusion</h2>As you can see, the down payment affects every choice you make when you buy a home. Although you should look at ads, familiarize yourself with neighborhoods, learn about prices, and read as much as you can - when you get ready to take action - the first thing you should do is figure out how much money you have available for the purchase.

Your Savings and Down Payment

<div class="se-component se-image-container __se__float- __se__float-center" contenteditable="false"><figure style="margin: auto; width: 588px;"><img src="https://library-ihouseprd.b-cdn.net/blog/insurance-document.jpg" data-origin="100," alt="" data-proportion="true" data-size="588px,270px" data-align="center" data-index="0" data-file-name="insurance-document.jpg" data-file-size="0" style="width: 588px; height: 270px;"></figure></div>Title Insurance.It’s a term we hear and see frequently - we see reference to it in the Sunday real estate section, in advertisements and in conversations with real estate brokers. If you’ve purchased a home before, you’re probably familiar with the benefits and procedures of title insurance. But if this is your first home, you may wonder, “Why do I need another insurance policy? It’s just one more bill to pay.”The answer is simple: The purchase of a home is most likely one of the most expensive and important purchases you will ever make. You, and your mortgage lender, want to make sure that the property is indeed yours - lock, stock and barrel - and that no individual or government entity has any right, lien, claim to your property.Title insurance companies are in business to make sure your rights and interests to the property are clear, that transfer of title takes place efficiently and correctly and that your interests as a homebuyer are protected to the maximum degree.Title insurance companies provide services to buyers, sellers, real estate developers, builders, mortgage lenders and others who have an interest in a real estate transfer. Title companies routinely issue two types of policies - “owner’s”, which cover you, the homebuyer; and “lender’s”, which covers the bank, savings and loan or other lending institution over the life of the loan. Both are issued at the time of purchase for a modest, one-time premium.Before issuing a policy, however, the title company performs an extensive search of relevant public records to determine if anyone other than you has an interest in the property. The search may be performed by title company personnel using either public records or more likely, information gathered, reorganized and indexed in the company’s title plant.With such a thorough examination of records, any title problems usually can be found and cleared up prior to your purchase of the property. Once a title policy is issued, if for some reason any claim which is covered under your title policy is ever filed against your property, the title company will pay the legal fee involved in defense of your rights, as well as any covered loss arising from a valid claim. That protection, which is in effect as long as you or your heirs own the property, is yours for a one-time premium paid at the time of purchase.The fact that title companies work to eliminate risks before they develop makes the title insurance decidedly different from other types of insurance you may have purchased. Most forms of insurance assume risks by providing financial protection through a pooling of risks for losses arising from an unforeseen event, say a fire, theft or accident. The purpose of title insurance, on the other hand, is to eliminate risks and prevent losses caused by defects in title that happened in the past. Risks are examined and mitigated before property changes hands.This risk elimination has benefits to both you, the homebuyer, and the title company: it minimizes the chances adverse claims might be raised, and by so doing reduces the number of claims that have to be defended or satisfied. This keeps costs down for the title company and your title premiums low.Buying a home is a big step emotionally and financially. With title insurance you are assured that any valid claim against your property will be borne by the title company, and that the odds of a claim being filed are slim indeed.Isn’t sleeping well at night, knowing your home is yours, reason enough for title insurance?Article by CLTA

Why Do You Need Title Insurance?

<div class="se-component se-image-container __se__float-center" contenteditable="false"><figure style="margin: auto; width: 588px;"><img src="https://library-ihouseprd.b-cdn.net/blog/short-sale.jpg" data-origin="100," alt="" data-proportion="true" data-size="588px,377px" data-align="center" data-index="0" data-file-name="short-sale.jpg" data-file-size="0" style="width: 588px; height: 377px;"></figure></div>An increase in foreclosure rates will inevitably bring with it an increase in short sales. But what is a short sale?A short sale happens when you sell your house for less than your remaining mortgage balance, the proceeds of which go to the lender and in return the lender forgives the remaining balance. Selling your home as a short sale is one way to avoid foreclosure.As a general rule, lenders lose money when they foreclose on a property. Consequently, they would rather not have to foreclose if it can be avoided. A short sale represents an opportunity to cut their losses because a short sale usually allows them to recoup more of the cost of the loan than a foreclosure process would.However, don’t think that a short sale is an easy thing to accomplish. In order to get permission for a short sale, you must provide documentation showing a genuine financial hardship. And don’t think that the decision for accepting a short sale is solely in the hands of the lender. Sure the lender must first agree, but this is not the final word. If there is mortgage insurance involved, this company also gets input on the decision. If there is an investor backing the mortgage, they also get input as to whether to accept a short sale.The transaction process for a short sale can be rather cumbersome as well, whether you’re on the buying or selling side. Many short sales fail due to additional demands by the lender, such as requiring the broker to reduce his or her commission and/or that the seller signs a document requiring him or her to pay back the shortfall.If you’re on the selling side of a short sale, consider having your agent or other experienced professional negotiate with your lender for a better deal. And remember, if the lender does accept a short sale and forgives part of your debt, that is considered taxable income and you must declare it as such to the IRS.

What is a Short Sale Anyway?

Welcome to my new and improved real estate website. I invite you to look around and see what is available. As your Key Largo, Florida real estate expert I can provide you will all of the information to accomplish your real estate goals.<ul><li>Looking for a new home for yourself or your family:&nbsp;<a href="https://www.floridakeysrealestatelistings.com/quick-search">Quick Search</a></li><li>Know exactly what you are looking for in your new home:&nbsp;<a href="https://www.floridakeysrealestatelistings.com/advanced-search">Advanced Search</a></li><li>You want me to find your dream home for you so you do not have to do the searching yourself?:&nbsp;<a href="https://www.floridakeysrealestatelistings.com/dream-home-finder">Dream Home Finder</a></li><li>Thinking of selling your home? Let me go to work for you and find out your home's exact value:&nbsp;<a href="https://www.floridakeysrealestatelistings.com/free-market-analysis">FREE Market Analysis</a></li></ul>Save your search! Saving your search is an important step if&nbsp;if you would like to be able to quickly refer back to your search at a future date. &nbsp;More importantly I will be able to quickly notify you directly of any new listings that come available on the market that match your search criteria. &nbsp;The beautiful thing is that you can make as many of these saved searches as you would like.First, you must be registered on our website. This is easy. It only requires your first and last name, an email address and a password.&nbsp;<a href="https://www.floridakeysrealestatelistings.com/Web/AR974275/WebUser/register/">Register Here</a>. To save any search, simply perform a search using the Quick Search or Advanced Search, click on the “search” button, and then click “save search”, which is located in the top right hand corner just above the search results. This will prompt you to title your saved search and provide you with the option of being notified by email. &nbsp;Check the box to be notified by email of new listings that match your search.To look at or edit your saved searches, you must be logged in. On the homepage, top right hand corner is where you can view your saved searches. Click this link and you will then see all the searches you saved, you can delete them, edit the email notifications and more.If you would like any assistance, please do not hesitate to Contact Me or call me directly at 305-619-0240<div class="se-component se-image-container __se__float-" contenteditable="false"><figure style="margin: 0px; width: 100px;"><img alt="" src="https://idx-acnt-ihouseprd.b-cdn.net/AR974275/file_manager/featurette-contact-me.png?width=165&amp;height=165&amp;aspect_ratio=165%3A165" data-origin="100,165" data-proportion="true" data-size="100px,165px" data-align="" data-index="0" data-file-name="featurette-contact-me.png?width=165&amp;height=165&amp;aspect_ratio=165%3A165" data-file-size="0" style="width: 100px; height: 165px;"></figure></div>

Welcome to my new website

<div class="se-component se-image-container __se__float- __se__float-center" contenteditable="false"><figure style="margin: auto; width: 588px;"><img src="https://library-ihouseprd.b-cdn.net/blog/foreclosure-for-sale.jpg" data-origin="100,930" alt="" data-proportion="true" data-size="588px,489px" data-align="center" data-index="0" data-file-name="foreclosure-for-sale.jpg" data-file-size="0" style="width: 588px; height: 489px;"></figure></div>It is an unfortunate commentary, but when economic activity declines and housing activity decreases, more real property enters the foreclosure process. High interest rates and creative financing arrangements are also contributing factors.When prices are rapidly accelerating during a real estate “bonanza”, many people go to any lengths available to get into the market through investments in vacation homes, rental housing and trading up to more expensive properties. In some cases, this results in the taking on of high interest rate payments and second, third and even fourth deeds of trust. Many buyers anticipate that interest rates will drop and home prices will continue to escalate. It is possible that neither will occur and borrowers may be faced with large balloon payments becoming due. When payments cannot be met, the foreclosure process looms on the horizon.In the foreclosure process, one thing should be kept in mind: as a general rule, a lender would rather receive payments than receive a home due to a foreclosure. Lenders are not in the business of selling real estate and will often try to accommodate property owners who are having payment problems. The best plan is to contact the lender before payment problems arise. If monthly payments are too hefty, it may be that a lender will be able to make some alternative payment arrangements until the owner’s financial situation improves.Let’s say, however, that a property owner has missed payments and has not made any alternate arrangements with the lender. In this case, the lender may decide to begin the foreclosure process. Under such circumstances, the lender, whether a bank, savings and loan or private party, will request that the trustee, often a title company, file a notice of default with the county recorder’s office. A copy of the notice is mailed to the property owner.If the default is due to a balloon payment not being made when due, the lender can require full payment on the entire outstanding loan as the only way to cure the default. If the default is not cured, the lender may direct the trustee to sell the property at a public sale.In cases of a public sale, a notice of sale must be published in a local newspaper and posted in a public place, usually the courthouse, for three consecutive weeks. Once the notice of sale has been recorded, the property owner has until 5 days prior to the published sale date to bring the loan current. If the owner cures the default by making up the payments, the deed of trust will be reinstated and regular monthly payments will continue as before.After this time, it may still be possible for the property owner to work out a postponement on the sale with the lender. However, if no postponement is reached, the property goes on the block. At the sale, buyers must pay the amount of their bid in cash, cashier’s check or other instrument acceptable to the trustee. A lender may “credit bid” up to the amount of the obligation being foreclosed upon.With the recent attention given to foreclosure, there also has been corresponding interest in buying foreclosed properties. However, caveat emptor: buyer beware. Foreclosed properties are very likely to be burdened with overdue taxes, liens and clouded titles. A buyer should do his homework and ask a local title company for information concerning these outstanding liens and encumbrances. Title insurance may or may not be available following a foreclosure sale and various exceptions may be included in any title insurance policy issued to a buyer of a foreclosed property.Your local title company will be happy to provide additional information.

Understanding Foreclosures

<div class="se-component se-image-container __se__float- __se__float-center" contenteditable="false"><figure style="margin: auto; width: 588px;"><img src="https://library-ihouseprd.b-cdn.net/blog/foreclosure-for-sale.jpg" data-origin="100,930" alt="" data-proportion="true" data-size="588px,565px" data-align="center" data-index="0" data-file-name="foreclosure-for-sale.jpg" data-file-size="0" style="width: 588px; height: 565px;"></figure></div>With the housing bubble burst and the subprime mortgage crisis, millions of homeowners found themselves unable to make their mortgage payments. Many found themselves owing more on the house than the home was worth. Many just walked away from their homes. As a result of these complicated issues, millions of homes were foreclosed.While this isn’t the only reason for which homes are foreclosed, it has been a widespread one. With all the foreclosed properties, there has also been extensive interest in buying these properties at a bargain price.It is true that foreclosed properties can be priced at a significant discount, but they are also a much riskier investment. Before making an offer on a foreclosed property, do your due diligence.Things you must do before buying a foreclosure:<ul><li style="font-size: 14px;">Do a title search - make sure that when you purchase a foreclosure that you are the only person who has any ownership claim</li><li style="font-size: 14px;">Check for liens - find out if there are any liens against the property because you will be responsible for paying them</li><li style="font-size: 14px;">Check for a second mortgage - you don’t want to be surprised by an extra mortgage that you will need to pay</li><li style="font-size: 14px;">Know how good of a “bargain” you’re getting - foreclosures are sold “as is” and in many cases you will not be able to do a proper inspection. You may end up paying thousands of dollars repairing the property before it is fit to be lived in.</li></ul>It is also important to consider that there are different types of foreclosure properties and each type comes with its own advantages and disadvantages. The different types of foreclosure purchases are:<ol><li style="font-size: 14px;">Pre-foreclosure</li><li style="font-size: 14px;">Auction</li><li style="font-size: 14px;">Real Estate Owned (REO), also called “bank owned”</li></ol><h2>Pre-Foreclosure</h2>A pre-foreclosure is when you buy the home directly from the homeowner, before the bank officially forecloses. This type of purchase does not require as much capital as other foreclosures. Also, since you are purchasing straight from the homeowner, you will be able to gather all of the necessary information, such as inspection reports, title information, etc. that may not be available with other foreclosure properties. Once you take over the mortgage, you will be responsible for all future payments as well as any overdue back payments.<h2>Auction</h2>A foreclosure property will usually end up at an auction. Real estate auction practices vary by state but common practice is for the auction to be held on courthouse steps, in front of the foreclosed home, or at the county clerk’s office.Real estate auctions offer the best chance for a great deal but also hold the greatest risk. Auction properties are sold as is, with no opportunity for potential buyers to perform inspections. When buying a home at auction, the buyer must pay cash, usually a cashier’s check. It is also possible that there may still be tenants living in the home. In such a case, you would be responsible for the often costly eviction process.<h2>REO</h2>Once a foreclosure has gone to auction and failed to sell, it becomes a Real Estate Owned, or bank owned, property. Most homes do not sell at auction, most fail to even get any bids.An REO property is the least likely of the foreclosure properties to represent a bargain, but it is also the least risky. The property can be fully inspected, any title issues can be found and dealt with, and the sale can be subject to a mortgage. REO properties also tend to be in better condition than other foreclosure properties.Another thing to keep in mind when purchasing a foreclosure is that some states have a redemption period that allows the original owner to buy back the property by paying the remaining balance owed. You may be able to have this redemption period waived, so check the state laws on this topic before purchasing.Still interested in buying a foreclosure property? If so, always do your research before purchasing!

<div class="se-component se-image-container __se__float- __se__float-center" contenteditable="false"><figure style="margin: auto; width: 588px;"><img src="https://library-ihouseprd.b-cdn.net/blog/getting-keys.jpg" data-origin="100," alt="" data-proportion="true" data-size="588px,370px" data-align="center" data-index="0" data-file-name="getting-keys.jpg" data-file-size="0" style="width: 588px; height: 370px;"></figure></div>Buying or selling a home (or other piece of real property) usually involves the transfer of large sums of money. It is imperative that the transfer of these funds and related documents from one party to another be handled in a neutral, secure and knowledgeable manner. For the protection of buyer, seller and lender, the escrow process was developed.As a buyer or seller, you want to be certain all conditions of sale have been met before property and money change hands. The technical definition of an escrow is a transaction where one party engaged in the sale, transfer or lease of real or personal property with another person delivers a written instrument, money or other items of value to a neutral third person, called an escrow agent or escrow holder. This third person holds the money or items for disbursement upon the happening of a specified event or the performance of a specified condition.Simply stated, the escrow holder impartially carries out the written instructions given by the principals. This includes receiving funds and documents necessary to comply with those instructions, completing or obtaining required forms and handling final delivery of all items to the proper parties upon the successful completion of the escrow.The escrow must be provided with the necessary information to close the transaction. This may include loan documents, tax statements, fire and other insurance policies, title insurance policies, terms of sale and any seller-assisted financing, and requests for payment for various services to be paid out of escrow funds.If the transaction is dependent on arranging new financing, it is the buyer’s or the buyer’s agent’s responsibility to make the necessary arrangements. Documentation of the new loan agreement must be in the hands of the escrow holder before the transfer of property can take place. A real estate agent can help identify appropriate lending institutions.When all the instructions in the escrow have been carried out, the closing can take place. At this time, all outstanding funds are collected and fees- such as title insurance premiums, real estate commissions, termite inspection charges- are paid. Title to the property is then transferred under the terms of the escrow instructions and appropriate title insurance is issued.Payment of funds at the close of escrow should be in the form acceptable to the escrow, since out-of-town and personal checks can cause days of delay in processing the transaction.The following items represent a typical list of what an escrow holder does and does not do:THE ESCROW HOLDER:<ul><li style="font-size: 14px;">serves as the neutral “stakeholder” and the communications link to all parties in the transaction;</li><li style="font-size: 14px;">prepares escrow instructions;</li><li style="font-size: 14px;">requests a preliminary title search to determine the present condition of title to the property;</li><li style="font-size: 14px;">requests a beneficiary’s statement if debt or obligation is to be taken over by the buyer;</li><li style="font-size: 14px;">complies with lender’s requirements, specified in the escrow agreement;</li><li style="font-size: 14px;">receives purchase funds from the buyer;</li><li style="font-size: 14px;">prepares or secures the deed or other documents related to escrow;</li><li style="font-size: 14px;">prorates taxes, interest, insurance and rents according to instructions;</li><li style="font-size: 14px;">secures releases of all contingencies or other conditions as imposed on any particular escrow;</li><li style="font-size: 14px;">records deeds and any other documents as instructed;</li><li style="font-size: 14px;">requests issuance of the title insurance policy;</li><li style="font-size: 14px;">closes escrow when all the instructions of buyer and seller have been carried out;</li><li style="font-size: 14px;">disburses funds as authorized by instructions, including charges for title insurance, recording fees, real estate commissions and loan payoffs;</li><li style="font-size: 14px;">prepares final statements for the parties accounting for the disposition of all funds deposited in escrow (these are useful in the preparation of tax returns).</li></ul>THE ESCROW HOLDER DOES NOT:<ul><li style="font-size: 14px;">offer legal advice;</li><li style="font-size: 14px;">negotiate the transaction;</li><li style="font-size: 14px;">offer investment advice.</li></ul>Your local title company should be happy to provide additional information.Article by CLTA

The Functions of an Escrow

<div class="se-component se-image-container __se__float-center" contenteditable="false"><figure style="margin: auto; width: 588px;"><img src="https://library-ihouseprd.b-cdn.net/blog/calculating-assets.jpg" data-origin="100," alt="" data-proportion="true" data-size="588px,329px" data-align="center" data-index="0" data-file-name="calculating-assets.jpg" data-file-size="0" style="width: 588px; height: 329px;"></figure></div>Sellers of real property will have certain information regarding the sale reported to the Internal Revenue Service.This required reporting is a consequence of the Tax Reform Act of 1986; it is intended to encourage taxpayer compliance and aid in audit and enforcement efforts by the I.R.S.To help you better understand this subject, the Land Title Association has answered some of the questions most commonly asked about Required Reporting to the I.R.S.<h3>Who is required to report to the I.R.S.?</h3>Sellers of real property, under guidelines established by the I.R.S., are required to have their gross proceeds from the sale reported on a Form 1099S. When a settlement agent is used, the I.R.S. makes this agent responsible for the delivery of the information on the Form 1099S.The settlement agent generally will be the escrow agent or title company; however, it may be an attorney, real estate broker or other person providing settlement services.<h3>What is an I.R.S. Form 1099S, and what will be reported?</h3>The Form 1099S is the reporting form adopted by the I.R.S. for submitting the information required by law.The information will be transferred onto magnetic media by the settlement agent who will store the information and make the required report to the I.R.S. The settlement agent is also responsible for keeping a master copy of all transactions reported.In general, information required by the I.R.S. falls into the following categories:<ol><li style="font-size: 14px;">The name, address and taxpayer ID number (social security or tax identification number) of the seller(s)</li><li style="font-size: 14px;">A general description of the property (in most cases an address)</li><li style="font-size: 14px;">The closing date of the transaction</li><li style="font-size: 14px;">The gross proceeds of the transaction (even though gross proceeds do not correspond to taxable income)</li><li style="font-size: 14px;">Any property involved as part of the transaction other than cash or cash equivalent</li><li style="font-size: 14px;">The name, address and taxpayer identification number of the settlement agent.</li><li style="font-size: 14px;">Real estate tax paid in advance that is allocable to the buyer.</li></ol><h3>On what type of transactions is a Form 1099S required?</h3>Currently, typical homeowner transactions covered include sales and exchanges of 1-4 family residential properties such as houses, townhouses, and condominiums. Also reportable are sales or exchanges of improved or unimproved land, commercial or industrial buildings, condominiums, stock in a cooperative housing corporation and mobile homes (manufactured homes) affixed to real property.Specifically excluded from reporting are foreclosures and abandonment of real property and financing or refinancing of properties.<h3>What happens if the seller(s) refuses to provide the taxpayer identification number for the Form 1099S?</h3>The settlement agent is required to request the transferor’s taxpayer identification number(s) (TIN(s)) before the time of closing. You may request a TIN on Form W-9 or use an alternative written request. The IRS has included sample wording of an alternative written request in the instructions for preparation of Form 1099S.Should the seller fail to provide the identification number and certify its correctness, the settlement agent may choose to:<ol><li style="font-size: 14px;">Delay the closing of the transactions until the information is furnished, or</li><li style="font-size: 14px;">Complete the transaction and report to the I.R.S. that an attempt was made to obtain the information from the seller.</li></ol><h3>How is the sale reported when there is more than one seller involved or when multiple sellers do not own equal interests in the property?</h3>Multiple sellers may allocate the gross proceeds among themselves for purposes of reporting. If there is no allocation, an incomplete allocation or conflicting allocations, then the entire gross proceeds will be reported for each seller.<h3>Where can I go for further information on taxation of real property?</h3>The I.R.S. provides free publications that explain the tax aspects of real estate transactions. You may wish to order:<ul><li style="font-size: 14px;">Publication #523 “Tax Information on Selling Your Home”</li><li style="font-size: 14px;">Publication #530 “Tax Information for Home Owners”</li><li style="font-size: 14px;">Publication #544 “Sales and Other Dispositions of Assets”</li><li>Publication #551 “Basis of Assets”&nbsp;</li></ul>To place your order, phone toll-free (800) 829-3676. Article by CLTA

Required Reporting to the I.R.S.

<div class="se-component se-image-container __se__float-center" contenteditable="false"><figure style="margin: auto; width: 588px;"><img src="https://library-ihouseprd.b-cdn.net/blog/items-you-need-for-loan.jpg" data-origin="100,398.875" alt="" data-proportion="true" data-size="588px,398.875px" data-align="center" data-index="0" data-file-name="items-you-need-for-loan.jpg" data-file-size="0" style="width: 588px; height: 398.875px;"></figure></div>Have These Items Ready When You Apply For a LoanIt used to be that lenders mailed out verifications to employers, banks, mortgage companies, and so on, in order to verify the data supplied by borrowers. Nowadays, the interest is often in speed and getting answers quickly so alternate documentation has become more widely used. Alternate documentation means that underwriting answers can be obtained with information supplied directly from the borrower instead of waiting around for verifications to come back in the mail.The following is required for most standardized loans as part of alternate documentation processing. Items may differ according to whether your loan is a conforming (Fannie Mae or Freddie Mac), non-conforming (jumbo) loan, government loan, or a portfolio loan.Verifications are still mailed out, but usually as part of quality control procedures.These are the things you need to supply to your lender to get a quick approval using alternate documentation<h2>Income Items</h2><ul><li style="font-size: 14px;">W2 forms for the last two years</li><li style="font-size: 14px;">Pay stubs covering a 30 day period</li><li>Federal tax returns (1040s) for the last two years, if:<ul><li style="font-size: 14px;">you are self-employed</li><li style="font-size: 14px;">earn more than 25% of your income from commissions or bonuses</li><li style="font-size: 14px;">own rental property</li><li style="font-size: 14px;">or are in a career where you are likely to take non-reimbursed business expenses</li></ul></li><li style="font-size: 14px;">Year-to-Date Profit and Loss Statement (for self employed)</li><li style="font-size: 14px;">Corporate or partnership tax returns (if applicable)</li><li style="font-size: 14px;">Pension Award letter (for retired individuals)</li><li style="font-size: 14px;">Social Security Award letters (for those on Social Security)</li></ul><h2>Asset Items</h2><ul><li style="font-size: 14px;">Bank statements for previous two months (sometimes three) on all accounts. All pages.</li><li style="font-size: 14px;">Statements for two months on all stocks, mutual funds, bonds, etc.</li><li style="font-size: 14px;">Copy of most recent 401K statement (or other retirement assets)</li><li style="font-size: 14px;">Explanations for any large deposits and source of those funds</li><li style="font-size: 14px;">Copy of HUD1 Settlement Statement on recent sales of homes</li><li style="font-size: 14px;">Copy of Estimated HUD1 Settlement Statement if a previous home is for sale, but not yet closed</li><li style="font-size: 14px;">Gift letter (if some of the funds come as a gift from a family member)</li><li>Gifts can also require:<ul><li style="font-size: 14px;">Verification of donor’s ability to make the gift (bank statement)</li><li style="font-size: 14px;">Copy of the check used to make the gift</li><li style="font-size: 14px;">Copy of the deposit receipt showing the funds deposited into bank account or escrow</li></ul></li></ul><h2>Credit Items</h2><ul><li style="font-size: 14px;">Landlord’s name, address, and phone number (for verification of rental)</li><li>Explanations for any of the following items that may appear on your credit report:<ul><li style="font-size: 14px;">Late payments</li><li style="font-size: 14px;">Credit inquiries in the last 90 days</li><li style="font-size: 14px;">Charge-offs</li><li style="font-size: 14px;">Collections</li><li style="font-size: 14px;">Judgments</li><li style="font-size: 14px;">Liens</li></ul></li><li style="font-size: 14px;">Copy of bankruptcy papers if you have filed bankruptcy within the last seven years</li></ul><h2>Other</h2><ul><li style="font-size: 14px;">Copy of purchase agreement (if you have already made an offer)</li><li>To document receipt of child support (if you desire to show it as income)<ul><li style="font-size: 14px;">Copy of Divorce Settlement (to show the amount)</li><li style="font-size: 14px;">Copies of twelve months canceled checks to document actual receipt of fund</li></ul></li></ul><h2>FHA Loans</h2><ul><li style="font-size: 14px;">Copy of Social Security Card (or other documentation of social security number)</li><li style="font-size: 14px;">Copy of Driver’s license</li></ul><h2>VA Loans</h2><ul><li style="font-size: 14px;">Copy of DD214</li></ul><h2>Refinances</h2><ul><li style="font-size: 14px;">Copy of Note on existing loan</li><li style="font-size: 14px;">Copy of HUD1 Settlement Statement on existing loan</li><li style="font-size: 14px;">Name, address, phone number, loan number of existing loan/lender</li></ul>

Items You Need When Applying For a Loan

<div class="se-component se-image-container __se__float-center" contenteditable="false"><figure style="margin: auto; width: 588px;"><img src="https://library-ihouseprd.b-cdn.net/blog/time-and-money.jpg" data-origin="100," alt="" data-proportion="true" data-size="588px,335px" data-align="center" data-index="0" data-file-name="time-and-money.jpg" data-file-size="0" style="width: 588px; height: 335px;"></figure></div>In order to get the highest price in the shortest time, you need to know how to market your home. The better you market your home, the more offers you will get. And the more offers you get, the more choices you have to get the price and terms you want.The most important factor of marketing your home is pricing it right. Your price should be adjusted to reflect the market and your property’s worth. The key is to get as many people as possible checking out your fairly priced property. If your property is not priced fairly, there will be no buyers because your price is set too high.Another important factor is the condition of your home. Make sure that your home looks ready to be sold. Fix any defects (peeling or faded paint, cracks, stains, etc.) Condition alone can sometimes prompt fast buying decisions. Not only should you fix any defects, but consider upgrading your home by making major repairs and cosmetic improvements before selling. A nice looking home triggers the emotional response that can lead to a financial response.Learn how to negotiate the best terms for all parties involved. Terms are another factor that may be adjusted to attract buyers. If you insist on getting your asking price, think of what you can offer to the buyers. For example, improvements you’ve made or even offering seller financing at a lower than market interest rate on a portion of the sale price. Convince them why they should be paying the price you have set.Lastly, get the buzz out about your home. List your house with a hot agent that ensures your house is listed on the MLS and on the Internet. On your own, get the word out. It should always be visible to passersby that your house is for sale, whether it is through signs, local advertisements or you telling friends, family, and acquaintances.

Getting the Highest Price in the Shortest Time

<div class="se-component se-image-container __se__float-center" contenteditable="false"><figure style="margin: auto; width: 588px;"><img src="https://library-ihouseprd.b-cdn.net/blog/getting-pre-approved.jpg" data-origin="100," alt="" data-proportion="true" data-size="588px,329px" data-align="center" data-index="0" data-file-name="getting-pre-approved.jpg" data-file-size="0" style="width: 588px; height: 329px;"></figure></div>It used to be that buyers could go house shopping and when they have found their dream home, then they go to get pre-approved. However, in today’s market, that has proven to be one of the least effective methods in landing the dream home.Most lenders can pre-qualify you for a mortgage over the phone. Based on general questions about your income, debt, assets, and credit history, lenders can estimate how much mortgage you qualify for. However, being pre-qualified and pre-approved are different things. Pre-approval means that you have applied for a mortgage; you have filled out the mortgage application, received your credit report, and verified your employment, assets, etc. When you are pre-approved, you know exactly what the maximum loan amount will be.A pre-qualified letter is not verified and in essence, does not count for much if you are competing with other buyers who are pre-approved. When you are pre-approved, you and the seller know exactly how much house you can afford. It gives you credibility as an interested buyer and lets the seller know immediately that you will qualify for a loan to buy their property.In addition to being pre-approved, it’s important to be pre-approved with a legitimate lender. Legitimate lenders include: banks, mortgage bankers, credit unions, savings and loan associations, mortgage brokers, and online lenders.Some lenders to avoid: those who lose a form or misplace a file, those who gather information from you in an unorganized manner, those who are not informed about interest rates, points or costs, and those who cannot provide you with the right information.

<h2>What is a FICO® Score?</h2>FICO® stands for Fair Isaac &amp; Company and is the name for the most well known credit scoring system, used by Experian. The credit bureau’s computer evaluates a complete credit profile and assigns a score, which is used to estimate credit worthiness. Each of the three bureaus (Experian, Trans Union, Equifax) employs its own scoring system, so a given person will usually have 3 separate scores. Someone with a higher score will be viewed as a better risk than someone with a lower score. Typically, scores will range from about 600 to 700 or above, although some cases will be outside this range.<h2>What Kind of Score Do I Need for a Home Loan?</h2>There are as many answers to this question as there are loan programs available. Most lenders will take the average of all 3 scores to evaluate an application. Niche loans, such as Easy Qualifier and low down payment loans will have higher FICO® requirements.<h2>How is My Score Determined?</h2>The FICO® model has 5 main elements:<ol><li>Past payment history (about 35% of score) The fewer the late payments the better. Recent late payments will have a much greater impact than a very old Bankruptcy with perfect credit since. Myth - paying off cards with recent late payments will fix things. Payoffs do not affect payment history.</li><li>Credit use (about 30% of score) Low balances across several cards is better than the same balance concentrated on a few cards used closer to maximums. Too many cards can bring down the score, but closing accounts can often do more harm than good if the entire profile is not considered. BE CAREFUL WHEN CLOSING ACCOUNTS!</li><li>Length of credit history (15% of score) The longer accounts have been open the better for the score. Opening new accounts and closing seasoned accounts can bring down a score a great deal.</li><li>Types of credit used (10% of score) Finance company accounts score lower than bank or department store accounts.</li><li>Inquiries (10% of score) Multiple inquiries can be a risk if several cards are applied for or other accounts are close to maxed out. Multiple mortgage or car inquiries within a 14 day period are counted as one inquiry.</li></ol><h2>How Can I Raise My Score</h2>Your score can only be changed by the way that item is reported directly to the credit bureaus (Experian, TU, Equifax). Written confirmation from the creditor is required. It is best to make these corrections before you try to purchase a home, because you can never be sure the exact impact a change will have on your score.<h2>What Does This Mean to Me?</h2>You should have your credit reviewed BEFORE you look for a home, and work with a PROFESSIONAL loan officer to make sure your loan is based on the most accurate information.

WHAT'S A FICO®?

<div class="se-component se-image-container __se__float- __se__float-center" contenteditable="false"><figure style="margin: auto; width: 587px;"><img src="https://library-ihouseprd.b-cdn.net/blog/credit-report.jpg" data-origin="100,930" alt="" data-proportion="true" data-size="587px,522px" data-align="center" data-index="0" data-file-name="credit-report.jpg" data-file-size="0" style="width: 587px; height: 522px;"></figure></div>Years ago, credit scoring had little to do with mortgage lending. When reviewing the credit worthiness of a borrower, an underwriter would make a subjective decision based on past payment history.Then things changed.Lenders studied the relationship between credit scores and mortgage delinquencies. There was a definite relationship. Almost half of those borrowers with FICO® scores below 550 became ninety days delinquent at least once during their mortgage. On the other hand, only two out of every 10,000 borrowers with FICO® scores above eight hundred became delinquent.So lenders began to take a closer look at FICO® scores and this is what they found out. The chart below shows the likelihood of a ninety day delinquency for specific FICO® scores.<table><tbody><tr><th><div>FICO® Score</div></th><th><div>Odds of a Delinquent Account</div></th></tr><tr><td><div>595</div></td><td><div>2 to 1</div></td></tr><tr><td><div>600</div></td><td><div>4 to 1</div></td></tr><tr><td><div>615</div></td><td><div>9 to 1</div></td></tr><tr><td><div>630</div></td><td><div>18 to 1</div></td></tr><tr><td><div>645</div></td><td><div>36 to 1</div></td></tr><tr><td><div>660</div></td><td><div>72 to 1</div></td></tr><tr><td><div>680</div></td><td><div>144 to 1</div></td></tr><tr><td><div>780</div></td><td><div>576 to 1</div></td></tr></tbody></table>If you were lending a couple hundred thousand dollars, who would you want to lend it to?<h3>FICO® Scores, What Affects Them, How Lenders Look At Them</h3>Imagine a busy lending office and a loan officer has just ordered a credit report. He hears the whir of the laser printer and he knows the pages of the credit report are going to start spitting out in just a second. There is a moment of tension in the air. He watches the pages stack up in the collection tray, but he waits to pick them up until all of the pages are finished printing. He waits because FICO® scores are located at the end of the report. Previously, he would have probably picked them up as they came off. A FICO® above 700 will evoke a smile, then a grin, perhaps a shout and a “victory” style arm pump in the air. A score below 600 will definitely result in a frown, a furrowed brow, and concern.FICO® stands for Fair Isaac &amp; Company, and credit scores are reported by each of the three major credit bureaus: TRW (Experian), Equifax, and Trans-Union. The score does not come up exactly the same on each bureau because each bureau places a slightly different emphasis on different items. Scores range from 365 to 840.<h3>Some of the things that affect your FICO® scores:</h3><ul><li style="font-size: 14px;">Delinquencies</li><li style="font-size: 14px;">Too many accounts opened within the last twelve months</li><li style="font-size: 14px;">Short credit history</li><li style="font-size: 14px;">Balances on revolving credit are near the maximum limits</li><li style="font-size: 14px;">Public records, such as tax liens, judgments, or bankruptcies</li><li style="font-size: 14px;">No recent credit card balances</li><li style="font-size: 14px;">Too many recent credit inquiries</li><li style="font-size: 14px;">Too few revolving accounts</li><li style="font-size: 14px;">Too many revolving accounts</li></ul><h3>Sounds confusing, doesn’t it?</h3>The credit score is actually calculated using a scorecard where you receive points for certain things. Creditors and lenders who view your credit report do not get to see the scorecard, so they do not know exactly how your score was calculated. They just see the final scores.Basic guidelines on how to view the FICO® scores vary a little from lender to lender. Usually, a score above 680 will require a very basic review of the entire loan package. Scores between 640 and 680 require more thorough underwriting. Once a score gets below 640, an underwriter will look at a loan application with a more cautious approach. Many lenders will not even consider a loan with a FICO® score below 600, some as high as 620.<h3>FICO® Scores and Interest Rates</h3>Credit scores can affect more than whether your loan gets approved or not. They can also affect how much you pay for your loan, too. Some lenders establish a base price and will reduce the points on a loan if the credit score is above a certain level. For example, one major national lender reduces the cost of a loan by a quarter point if the FICO® score is greater than 725. If it is between 700 and 724, they will reduce the cost by one-eighth of a point. A point is equal to one percent of the loan amount.There are other lenders who do it in reverse. They establish their base price, but instead of reducing the cost for good FICO® scores, they add on costs for lower FICO® scores. The results from either method would work out to be approximately the same interest rate. It is just that the second way looks better when you are quoting interest rates on a rate sheet or in an advertisement.<h2>FICO® Scores and Mortgage Underwriting Decisions</h2><h3>FICO® Scores as Guidelines</h3>FICO® scores are only guidelines and factors other than FICO® scores also affect underwriting decisions. Some examples of compensating factors that will make an underwriter more lenient toward lower FICO® scores can be a larger down payment, low debt-to-income ratios, an excellent history of saving money, and others. There also may be a reasonable explanation for items on the credit history report that negatively impact your credit score.<h3>They Don’t Always Make Sense</h3>Even so, sometimes credit scores do not seem to make any sense at all. One borrower with a completely flawless credit history can have a FICO® score below 600. One borrower with a foreclosure on her credit report can have a FICO® above 780.<h3>Portfolio &amp; Sub-Prime Lenders</h3>Finally, there are a few portfolio lenders who do not even look at credit scoring, at least on their portfolio loans. A portfolio lender is usually a savings &amp; loan institution that originates some adjustable rate mortgages that they intend to keep in their own portfolio rather than selling them in the secondary mortgage market. These lenders may look at home loans differently. Some concentrate on the value of the home. Some may concentrate more on the savings history of the borrower. There are also sub-prime lenders, or “B &amp; C paper” lenders, who will provide a home loan, but at a higher interest rate and cost.<h3>Running Credit Reports</h3>One thing to remember when you are shopping for a home loan is that you should not let numerous mortgage lenders run credit reports on you. Wait until you have a reasonable expectation that they are the lender you are going to use to obtain your home loan. Not only will you have to explain any credit inquiries in the last ninety days, but also numerous inquiries will lower your FICO® score by a small amount. This may not matter if your FICO® is 780, but it would matter if it is 642.<h3>Don’t Buy A Car Just Before Looking for a Home!</h3>A word of advice not directly related to FICO® scores. When people begin to think about the possibility of buying a home, they often think about buying other big-ticket items, such as cars. Quite often when someone asks a lender to pre-qualify them for a home loan there is a brand new car payment on the credit report. Often, they would have qualified in their anticipated price range except that the new car payment has raised their debt-to-income ratio, lowering their maximum purchase price. Sometimes they have bought the car so recently that the new loan doesn’t even show up on the credit report yet, but with six to eight credit inquiries from car dealers and automobile finance companies it is kind of obvious. Almost every time you sit down in a car dealership, it generates two inquiries into your credit.<h3>Credit History is Important</h3>Nowadays, credit scores are important if you want to get the best interest rate available. Protect your FICO® score. Do not open new revolving accounts needlessly. Do not fill out credit applications needlessly. Do not keep your credit cards nearly maxed out. Make sure you do use your credit occasionally. Always make sure every creditor has their payment in their office no later than 29 days past due.And never ever be more than thirty days late on your mortgage. Ever.

FICO® Scores and Your Mortgage

Don’t go on a spending spree using credit if you are thinking about buying a home, or in the process of buying a new home. Your mortgage pre-approval is subject to a final evaluation of your financial situation.Every $100 you pay per month on a credit payment could cost you about $10,000 in home eligibility. For example, a car payment of $300/month could mean that you qualify for $30,000 less in a mortgage.Even if you have accumulated enough savings, you should consider not making any large purchases until after closing. The last thing you want is to know that you could have purchased a new home had you curbed the urge to spend.

Why You Should Not Make Any Major Credit Purchases

<div class="se-component se-image-container __se__float- __se__float-center" contenteditable="false"><figure style="margin: auto; width: 588px;"><img src="https://library-ihouseprd.b-cdn.net/blog/credit-report.jpg" data-origin="100,930" alt="" data-proportion="true" data-size="588px,539px" data-align="center" data-index="0" data-file-name="credit-report.jpg" data-file-size="0" style="width: 588px; height: 539px;"></figure></div>When you apply for a mortgage loan, you expect your lender to pull a credit report and look at whether you’ve made your payments on time. What you may not expect is that they seem to be more interested in your FICO® score.“What’s a FICO® score?” is a common reaction.Each time your credit report is pulled, it is run through a computer program with a built-in scorecard. Points are awarded or deducted based on certain items such as how long you have had credit cards, whether you make your payments on time, if your credit balances are near maximum, and assorted other variables. When the credit report prints in your lender’s office, the total score is displayed. Your score can be anywhere between the high 300’s and the low 850’s.Lenders wanted to determine if there was any relationship between these credit scores and whether borrowers made their payments on time, so they did a study. The study showed that borrowers with scores above 680 almost always made their payments on time. Borrowers with scores below 600 seemed fairly certain to develop problems.As a result, credit scoring became a more important factor in approving mortgage loans. Credit scores also made it easier to develop artificial intelligence computer programs that could make a “yes” decision for loans that should obviously be approved. Nowadays, a computer and not a person may have actually approved your mortgage.In short, lower credit scores require a more thorough review than higher scores. Often, mortgage lenders will not even consider a score below 600.Some of the things that affect your FICO score are:<ul><li style="font-size: 14px;">Delinquencies</li><li style="font-size: 14px;">Too many accounts opened within the last twelve months</li><li style="font-size: 14px;">Short credit history</li><li style="font-size: 14px;">Balances on revolving credit are near the maximum limits</li><li style="font-size: 14px;">Public records, such as tax liens, judgments, or bankruptcies</li><li style="font-size: 14px;">No recent credit card balances</li><li style="font-size: 14px;">Too many recent credit inquiries</li><li style="font-size: 14px;">Too few revolving accounts</li><li style="font-size: 14px;">Too many revolving accounts</li></ul>FICO® actually stands for Fair Isaac and Company, which is the company used by the Experian (formerly TRW) credit bureau to calculate credit scores. Trans-Union and Equifax are two other credit bureaus who also provide credit scores.

FICO® Score - a Brief Explanation

<div class="se-component se-image-container __se__float- __se__float-center" contenteditable="false"><figure style="margin: auto; width: 588px;"><img src="https://library-ihouseprd.b-cdn.net/blog/financial-documents.jpg" data-origin="100,930" alt="" data-proportion="true" data-size="588px,433px" data-align="center" data-index="0" data-file-name="financial-documents.jpg" data-file-size="0" style="width: 588px; height: 433px;"></figure></div>When buying a home, it is not enough to just come up with the money. With the exception of no asset verification loans, lenders want to verify where the money for your new home will be coming from. If you can document that the funds are coming from your personal savings, the lender is more confident of your strength as a borrower.In addition, if you can verify that you have additional assets that are not needed for the down payment, it is important to document those, too. Additional assets are reserves you can draw upon during times of trouble, such as unemployment, medical emergencies, and similar occurrences. Additional assets can also help to document that you have a history of saving money, which makes you a more dependable borrower.It is extremely important to completely document the paper trail of any funds you use for down payment and closing costs. The sections below provide guidance on both verifying assets and documenting them as a source of your down payment.<h2>Checking, Savings, &amp; Money Market Accounts</h2>The quickest and easiest way to document funds in your bank account is to provide your lender with copies of your most recent bank statements. Most lenders request two months of bank statements, but some still ask for three. Some lenders still send a Verification of Deposit to your bank in order to determine your current bank balances and average balance for the last two months. However, that is the old way of doing business and most lenders nowadays prefer to have bank statements.If the money you are using for the down payment and closing costs has been in the bank for the entire period covered by the bank statements, you’re fine. These are known as “seasoned funds.” However, if your statements show any large or unusual deposits, the lender will ask you to explain them and document their source.<h2>Stocks, Bonds, Mutual Funds, etc.</h2>Most of those who own stocks get a monthly or quarterly statement from their brokerage. You will need to supply statements for the most recent sixty or ninety days in order to document these assets.Though it is rare nowadays, some people actually have stock certificates instead of having a brokerage account. When this is the situation, make copies of the certificates and provide those copies to your lender. You might also want to supply tax records to indicate you have owned these stocks for some time.If part of your down payment will come from the sale of stocks and investments, you will need to keep all documentation that applies to the sale. Provide these copies to your lender as well.<h2>Gifts</h2>Especially when buying a first home, some borrowers need help coming up with the down payment. This help should come in the form of a gift from a close family member. Lenders will require the donors to sign a special form called a gift letter. The gift letter states the relationship between the parties, the address of the purchased property, the amount of the gift, and sometimes the source of the funds used to make the gift. The gift letter also clearly states that the funds are a gift and not required to be repaid.With most lenders, the donor will have to also provide evidence that they have the ability to make the gift. This can be in the form of a bank or stock statement to show they have the funds available. You should also make a copy of the check used to make the gift and keep a copy of the deposit receipt when you deposit the gift funds into your bank account or escrow.<h2>401K or Retirement Accounts</h2>It is important to provide documentation about your retirement accounts or 401K programs because this is another asset you could draw upon as reserves in case of a problem. It is also another way to show you have a savings history. Just provide a copy of your most recent statement to your lender.Many people use these accounts as a source of funds for their down payment, too. Some employers allow you to cash out a portion of the 401K and some allow you to borrow against it. Be sure to keep copies of all paperwork involving the transaction. If they cut you a check, be sure to make a photocopy of that, too, including any receipt for deposit into your personal bank account.If you are borrowing against your 401K, some lenders will count this as an additional debt to go along with car payments, credit cards and other obligations. This may seem kind of silly because you are borrowing your own money, but from the lender’s viewpoint it is still a monthly obligation that you must come up with and should be taken into account. If you are tight on your debt-to-income ratios in qualifying for a home loan, this could be an important consideration. It may affect whether you choose to cash out the account and pay any tax penalty, or simply borrow against it.<h2>Employers</h2>Some companies provide down payment assistance for their employees. They may feel that Homeowners are more stable and reliable employees, or that providing down payment assistance fosters an environment of higher morale and loyalty to the firm. Just make copies of all the paperwork, including a copy of the check and the receipt when you deposit the funds into your personal bank account. It is important that these funds do not require repayment.<h2>Savings Bonds</h2>If you have Savings Bonds, remember that they are also financial assets. Since you hold the actual bonds in your possession, the easiest and best way to verify them for your mortgage lender is to make photocopies of them. If you choose to cash them in for down payment or closing costs, you should do this at your local bank. Be sure to keep copies of the paperwork the bank provides because that will establish the current value of the bonds and show that you received their cash value.<h2>Personal Property - Cars, Antiques, etc.</h2>Personal property includes automobiles, vehicles, boats, furniture, collections, heirlooms, antiques, art, clothing, and practically everything you own except for real estate. The mortgage application asks you to estimate the value of these items.The larger the loan amount, the more important it is for you to provide details on your personal property. This is because larger loans usually indicate larger incomes, and lenders check to see if your personal property matches your income. If it does not, this sends a red flag to the underwriter and they take a closer look at your application.You are not required to document the value of personal property unless you intend to sell them to come up with your down payment.<h2>Selling Personal Property</h2>For those Homebuyers who do sell personal property in order to come up with their down payment, the verification process can be arduous. Lenders are much stricter about documenting this method of coming up with your source of funds.Selling a car is perhaps the easiest to document. First, you need to photocopy the registration that shows you actually own the vehicle. You will have to provide a copy of the page in the “Blue Book” that shows your model and its value. Then you need to photocopy the bill of sale showing the transfer to another individual and a copy of the check used to purchase the vehicle. Do not get paid in cash because that makes it impossible to show you actually received the funds. Make a copy of the receipt when you deposit the funds into the bank.Other types of personal property are more difficult because you have to show that you actually own the property and that it actually has the value that you sold it for. This is a little harder to do for most assets than it is for automobiles.Records showing you purchased the property would be helpful. You could also provide an old inventory that documents ownership. To determine value, you may have to contract with an independent appraiser or a specialist who has the knowledge for that particular type of property.If you cannot document the item’s value, the lender will not view the sale as an acceptable source of funds. Just like selling a car, you have to prove you own the item, make a copy of the bill of sale, copy the check used to purchase the item, and make a copy of your receipt when you deposit the funds into your bank.

Documenting Your Assets - Verifying Your Down Payment

January 12, 2019<h4>It's PARTY TIME people! Come join us as we celebrate the FABULOUS sounds of MOTOWN. We have a great evening planned for you featuring the talented 7 piece live CK Band and special performances (all the way from Las Vegas and New York City) from "Stevie Wonder" and "Michael Jackson". This event will take place on Saturday, January 12, 2019 from 6 pm to 11 pm at the beautiful Playa Largo Resort &amp; Spa in Key Largo. Come join us for amazing food, lots of dancing and GREAT entertainment. General admission tickets are $150 pp. VIP admission is $200 pp.&nbsp; Tables of 10 are available for purchase.&nbsp; The Upper Keys Community Foundation, Inc., a newly formed 501(c)3 organized exclusively for the purpose of carrying out and supporting charitable and educational projects in partnership with the Key Largo Chamber of Commerce, is hosting this event.&nbsp; UKCF is recognized as a tax-exempt public charity under Section 501(c) (3) of the internal Revenue Code. Contributions are tax deductible to the extent allowed by law.&nbsp; The net proceeds from this event will help fund business grants, scholarships and community beautification projects in the Upper Keys. THIS EVENT WILL SELL OUT. DON'T WAIT.&nbsp; Buy/reserve your table of 10 now! For ticket purchases and sponsorship opportunities, please call Marlen Weeks, Director and Event Chair of the UKCF, Inc. at 305-394-1680 or</h4>

Magic Of Motown Key Largo, Florida January 12, 2019

<div class="se-component se-image-container __se__float-center" contenteditable="false"><figure style="margin: auto; width: 588px;"><img src="https://library-ihouseprd.b-cdn.net/blog/getting-keys.jpg" data-origin="100," alt="" data-proportion="true" data-size="588px,370px" data-align="center" data-index="0" data-file-name="getting-keys.jpg" data-file-size="0" style="width: 588px; height: 370px;"></figure></div>How Should I Take Ownership of the Property I am Buying?Real property can be incredibly valuable and the question of how parties can take ownership of their property is important. The form of ownership taken -- the vesting of title -- will determine who may sign various documents involving the property and future rights of the parties to the transaction. These rights involve such matters as: real property taxes, income taxes, inheritance and gift taxes, transferability of title and exposure to creditor’s claims. Also, how title is vested can have significant probate implications in the event of death.The Land Title Association (LTA) advises those purchasing real property to give careful consideration to the manner in which title will be held. Buyers may wish to consult legal counsel to determine the most advantageous form of ownership for their particular situation, especially in cases of multiple owners of a single property.The LTA has provided the following definitions of common vesting as an informational overview. Consumers should not rely on these as legal definitions. The Association urges real property purchasers to carefully consider their titling decision prior to closing, and to seek counsel should they be unfamiliar with the most suitable ownership choice for their particular situation.Common Methods of Holding Title<h3>SOLE OWNERSHIP</h3>Sole ownership may be described as ownership by an individual or other entity capable of acquiring title. Examples of common vesting in cases of sole ownership are:<ol><li>A Single Man/Woman:A man or woman who has not been legally married. For example: Bruce Buyer, a single man.</li><li>An Unmarried Man/Woman:A man or woman who was previously married and is now legally divorced. For example: Sally Seller, an unmarried woman.</li><li>A Married Man/Woman as His/Her Sole and Separate Property:A married man or woman who wishes to acquire title in his or her name alone.The title company insuring title will require the spouse of the married man or woman acquiring title to specifically disclaim or relinquish his or her right, title and interest to the property. This establishes that it is the desire of both spouses that title to the property be granted to one spouse as that spouse’s sole and separate property. For example: Bruce Buyer, a married man, as his sole and separate property.</li></ol><h3>CO-OWNERSHIP</h3>Title to property owned by two or more persons may be vested in the following forms:<ol><li>Community Property:A form of vesting title to property owned by husband and wife during their marriage, which they intend to own together. Community property is distinguished from separate property, which is property acquired before marriage, by separate gift or bequest, after legal separation, or which is agreed to be owned only by one spouse.Real property conveyed to a married man or woman is presumed to be community property, unless otherwise stated. Since all such property is owned equally, husband and wife must sign all agreements and documents of transfer. Under community property, either spouse has the right to dispose of one half of the community property, including transfers by will. For example: Bruce Buyer and Barbara Buyer, husband and wife as community property.</li><li>Joint TenancyA form of vesting title to property owned by two or more persons, who may or may not be married, in equal interest, subject to the right of survivorship in the surviving joint tenant(s). Title must have been acquired at the same time, by the same conveyance, and the document must expressly declare the intention to create a joint tenancy estate. When a joint tenant dies, title to the property is automatically conveyed by operation of law to the surviving joint tenant(s). Therefore, joint tenancy property is not subject to disposition by will. For example: Bruce Buyer and Barbara Buyer, husband and wife as joint tenants.</li><li>Tenancy in Common:A form of vesting title to property owned by any two or more individuals in undivided fractional interests. These fractional interests may be unequal in quantity or duration and may arise at different times. Each tenant in common owns a share of the property, is entitled to a comparable portion of the income from the property and must bear an equivalent share of expenses. Each co-tenant may sell, lease or will to his/her heir that share of the property belonging to him/her. For example: Bruce Buyer, a single man, as to an undivided 3/4 interest and Penny Purchaser, a single woman, as to an undivided 1/4 interest, as tenants in common.</li></ol>Other ways of vesting title include:<ol><li>A Corporation*:A corporation is a legal entity, created under state law, consisting of one or more shareholders but regarded under law as having an existence and personality separate from such shareholders.</li><li>A Partnership*:A partnership is an association of two or more persons who can carry on business for profit as co-owners, as governed by the Uniform Partnership Act. A partnership may hold title to real property in the name of the partnership.</li><li>As Trustees of A Trust*:A trust is an arrangement whereby legal title to a property is transferred by the grantor to a person called a trustee, to be held and managed by that person for the benefit of the people specified in the trust agreement, called the beneficiaries.</li><li>Limited Liability Companies (L.L.C.)This form of ownership is a legal entity and is similar to both the corporation and the partnership. The operating agreement will determine how the L.L.C. functions and is taxed. Like the corporation its existence is separate from its owners.</li></ol>*In cases of corporate, partnership, L.L.C. or trust ownership - required documents may include corporate articles and bylaws, partnership agreements, L.L.C. operating agreement and trust agreements and/or certificates.Remember:How title is vested has important legal consequences. You may wish to consult an attorney to determine the most advantageous form of ownership for your particular situation.

Common Ways of Holding Title

ArticleSliderSimple

<h2>Related Articles</h2>Keep reading other bits of knowledge from our team.

<h2>Get Started</h2>Please fill out the form below and one of our qualified agents will be in contact to help you get started on your home search.

FormSimple

<h3>Request Info</h3>Have a question about this article or want to learn more?

<h4>Sign Up Now</h4>Kombucha tacos lo-fi vinyl shabby chic.

Articles Detail

The Children's Christmas Musical is Sunday,December 9, 2018 | Born to Sell the Keys

The Annual Children's Christmas Musical&nbsp;is being held this Sunday.&nbsp;&nbsp;The holidays can be hectic I know. Remember to take time out with family and friends to remember what's important. Enjoy the&nbsp;holidays!This wonderful performance put on by KLBC's Kidz Choir. They will be performing two shows you won't want to miss.&nbsp;&nbsp;Location:&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Key Largo Babtist ChurchAddress:&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;835 Largo Road, Key Largo, FL 33037 MM 106.5 BaysideShowtimes:&nbsp; &nbsp;&nbsp;8:45 am and&nbsp;10 am

The Children's Christmas Musical is Sunday,December 9, 2018

Published 05/24/2022 | Posted by BJ Born

Related Articles

Request Info

About

Properties

Account