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WHAT ARE
THE GENERAL CLOSING COSTS?
WHAT ARE
THE BASIC STEPS FROM CONTRACT TO CLOSING
HOW DO
I KNOW IF IT'S BETTER TO BUY VS. RENT?
MORTGAGE CALCULATOR
WHAT IS THE S.M.A.R.T. MARKETING SYSTEM
FOR SALE BY OWNER: FACTS AND FICTION
WHAT ARE THE GENERAL CLOSING COSTS?
There are other costs beside your down payment associated with purchasing a home. First- time homebuyers have to take into consideration closing costs such as:
- Fees charged for obtaining a mortgage.
- Inspection fees.
- Homeowner's insurance (must be prepaid for one year at closing).
- Transfer taxes if there are any (although the seller may pay these or they may be shared 50-50 between buyer and seller).
Other fees may include points, lender's fees, title charges, escrows for your property taxes. Many loan programs allow the seller to contribute up to 6% of the sales price to the buyer's closing costs.
The most expensive closing cost a buyer pays is often the loan origination fee charged
by lenders. One point is equal to 1% of the loan amount. A $250,000 loan with a one-point fee will add $2,500 to your closing cost bill. You can eliminate this charge
by taking a no-point loan with a higher interest rate and keep the cash.
WHAT ARE THE BASIC STEPS FROM CONTRACT TO CLOSING
- Buyer: signs real estate contract and gives broker earnest money check;
- Seller: signs reat estate contract making it binding upon both parties;
- Broker: gives one signed copy of contract to seller and one to buyer;
- Seller: gives his attorney or the broker his last paid tax bill, survey, Torrens Certificate or owner's title policy;
- Buyer: makes application for mortgage loan;
- Buyer: increases earnest money as specified in contract;
- Buyer/Seller: make sure mortgage contingency is met as called for in sales contract;
- Seller: make sure his attorney sends the title policy to buyer's lender;
- Lender: prepares mortgage or trust deed and note and advises buyer that they are ready for his signature;
- Buyer: signs mortgage documents immediately;
- Buyer: obtains homeowners'insurance (evidence must be provided at closing);
- Lender: orders title, or a tax search if property is in Torrens System;
- Seller: makes sure attorney has obtained title report from buyer's lender and signs the deed, bill of sale, and affidavit of title, and gets payoff letter from his lender;
- Seller/Buyer: make sure appointment is set for closing;
- Buyer: obtains dollar amount required to close and then obtains a certified or cashier's check for this amount made payable to the buyer;
- Seller/Buyer: meet for closing - money and documents change hands;
- Seller/Buyer: possession granted in accord with contract. Make sure all utility companies have been notified and meters read.
HOW DO
I KNOW IF IT'S BETTER TO BUY VS. RENT?
Check this table. See how much you can save
over 1, 3, 6, 12 and 30 years. Any questions? Give us a call at 773.862.3886 or email us at thecondoexperts@yahoo.com.
MORTGAGE CALCULATOR
Click here.
WHAT IS THE S.M.A.R.T. MARKETING SYSTEM
S.M.A.R.T. stands for Save Money And Real Time. A new way to package and market your property in less time
for top dollar. For more information see the brochure online.
ARE TOU
A FOR-SALE-BY-OWNER? If yes, here are some facts YOU
need to know!
1.Sellers
have been employing Realtors for over 200 years.
2. 72% of the properties in Chicago are sold through
the broker network. Open houses and advertising are
meaningless.
3. Realtors can sell your house FASTER and for MORE
MONEY.
4. If you believe that you can save a considerable
amount of money by selling on your own, just remember
that, in order to join the ranks of the successful
10% of American homeowners currently handling their
own sales, you need to know exactly what's involved
in order to sell quickly at the highest price
5. Most For-Sale-By-Owners ask too much and can't
sell, or not enough and loose money. They forget that
what determines the fair market value of their property
is not what they want but what an informed buyer is
willing to pay.
6. Most For-Sale-By-Owners become overwhelmed when
• Creating and paying for their own advertising which
can run up your budget to hundreds of dollars.
• Determining whether or not a buyer is qualified
which can cost you a closing and more expenses to
put the property back on the market. 40% of the deals
fail through at the time of the closing.
• Scheduling showings. Your property is really on
the market when you're home. You never know when a
mistake may cost you the money you're trying to save.
• Open houses. Can you trust the stranger who comes
to your open house? Don’t put your family in danger.
Agents always pre-screen their buyers.
• Familiarizing yourself with enough basic real estate
regulations to avoid any costly lawsuits.
• Understanding (and possibly even preparing) a real
estate contract.
• Being ready to negotiate. Whether in writing, face-to-face,
or by phone -- negotiation is one of the great skills
you should be looking for in an agent.
• Coordinating the details of a closing.
7. A successful sale is based on factors such
as price, terms, condition, location, and exposure.
What do you do when you can’t control them all?
8. Location and price are critical in real estate. What
if a property does not sell within a reasonable period
of time? What are the negative effects of a price reduction?
A property, priced too high to begin with, usually ends
up selling for less.
9. When you have a legal problem you hire a lawyer even
if you know one or two things about law. Same applies
to real estate. According to industry estimates, over
90% of homes are sold with the help of a real estate
agent. Trying home remedy for selling real estate could
be a waste of time and have devastating consequences,
unless you have significant home selling experience
and current knowledge of applicable laws, regulations
and market conditions.
10. 90% of Sellers don’t know how to prequalify a buyer
in order to eliminate troublesome situations. Sellers
have reason to be concerned that they are not unnecessarily
tied up and end up falling out of escrow. A good agent
is experienced and concerned with prequalifying the
buyer and eliminating potential problems at closing
before allowing his client to be involved with a buyer.
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