Thursday, December 29, 2016 / by Jason Huerkamp
When purchasing a home, there are many costs for you to consider and although your lender and your real estate agent / Buyer Agent, will give you a good idea about what you need, this article should help you be more prepared.
Earnest Money Deposit
This is the payment you make on the home as a token of good faith to the Seller, an amount that the Seller would not need to refund should you withdraw from the sale or cancel the sale
The downpayment is the amount you pay as part payment for the home and a payment to the lender in support of your application for a home
Loan Origination Fee
These are the fees associated with processing your mortgage and are lender related. There are fees for the loan, processing and underwriting of your mortgage.
Your lender will require a credit report and that fee would form part of your lender fees
Upfront Mortgage Insurance
If you are using an FHA loan or similar where you do not have a full regular ...
Tuesday, December 20, 2016 / by Jason Huerkamp
FHA and Conventional Loans
When buying a home and requiring a mortgage, we often get asked about the option of getting an Federal Housing Administration (FHA) Loan and what the difference would be to you the buyer. Would there be any reason why a seller would choose another offer to purchase with a conventional loan in preference to an FHA loan offer from a buyer.
What is an FHA Loan?
An FHA loan is one that is applied for through a conventional home loan provider (one on the list of providers by the FHA and approved by them) and is insured by the FHA so that the lender is guaranteed their money should you default on your loan. There are two sets of criteria to be met in order to be able to use the the FHA option - The Lenders criteria and The Governments criteria. The buyer, depending on their credit score, will generally be able to put down a lower downpayment of 3.5%. It is important to know your credit score and how to remedy it before applying for a loan an ...
Friday, December 9, 2016 / by Jason Huerkamp
Defining Agency Relationships
Working with Real Estate Agents and understanding your relationship and expectations is often confusing and unclear. Lets define working with real estate agents.
A Real Estate Agent is
-a representative for a buyer or seller in a real estate property transaction
-someone with whom you chose to represent you in a real estate negotiation.
-someone who represents your best interests
-someone who executes special duties as part of their work for you when buying or selling a home, land or any type of real estate
Agents are divided into two different groups Buyers Agents and Sellers Agents.
The Buyer Agent is the person who represents the buyer in his negotiations to purchase a property. He is the person who looks after your personal information and is your trusted advocate and confidant.
His duties include
Securing a requirement brief regarding the type of property that the Buyer wishes to purchase
Thursday, November 17, 2016 / by Jason Huerkamp
When getting an offer on your home or making an offer on the home of your dreams, there is always the possibility that you will end up in a counter offer position. Its all about give and take until a happy medium is reached.
Here are a few things to consider should you find yourself in that situation.
Seller Counter Offer Consideration
The Purchase Price
Your agent will guide you on this point. If your home has been priced correctly in the beginning, you will have the right information to make your decision. If your home has had many showings and no offers then it may be an important point when considering the offer. However if your home has multiple offers, you can be a little more adventurous with your negotiations. Price is only one consideration in an agreement and sometimes the price will not be the deciding factor.
The Earnest Money Deposit
The earnest money deposit shows the buyers commitment to the transaction. Depending on the mortgage requirements, th ...