Things You Might Not Know About Title Insurance

1. Your mortgage lender is going to require it. Title insurance protects the lender and the secondary markets to which they sell the loans from defects in the title to your home and property. It ensures the validity and enforceability of the mortgage document. Title defects could include mistakes made in the local property office, forged documents and claims from unknown parties. The amount of the policy is equal to the amount of your mortgage at its inception. You pay a one-time fee as part of your closing costs. If you are purchasing a home, you should also purchase an owner’s policy which provides coverage up to the purchase price of the home you are buying. In some states it is customary for the seller to purchase the owner’s policy on your behalf.
2. You have the right to choose! And it’s now it’s easier than ever. You can shop around for a lower insurance premium rate by asking your lender or real estate professional for help in getting quotes.
3. It’s easy to save money on title insurance. Request quotes from a few companies and then reach out and speak to them. Ask about hidden fees and charges which could make one quote seem more attractive than another. Ask about discounts. There are often discounts available if you are refinancing and sometimes even when you are purchasing if the current policy issued to the seller on the property isn’t too old.
4. Even new construction needs coverage. Even though the home is new, the land isn’t. There may be claims to the land or liens placed during the construction which could negatively impact your home.

Source: ENTITLE DIRECT

If you’d like more information concerning the importance of title insurance, please call me at  678.986.9594 or visit my website: http://www.oliviasoldatlanta.com

Common Closing Costs for Buyers

You’ll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs. The title company or other entity conducting the closing will tell you the required amount for:

• Down payment
• Loan origination
• Points, or loan discount fees, which you pay to receive a lower interest rate
• Home inspection
• Appraisal
• Credit report
• Private mortgage insurance premium
• Insurance escrow for homeowner’s insurance, if being paid as part of the mortgage
• Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
• Deed recording
• Title insurance policy premiums
• Land survey
• Notary fees
• Prorations for your share of costs, such as utility bills and property taxes

A Note About Prorations: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first five days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.

Source:  Realtor Magazine

If you’d like more information about title companies/closing attorneys, please call me at 678.986.9594 or email me at olivia.hudson@metrobrokers.com.

 

 

10 Ways to Prepare for Homeownership

Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

Develop your home wish list. Then, prioritize the features on your list.  Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

Get pre-approved. Organize all the documentation a lender will need to pre-approve you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

Calculate the costs of home ownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

I have the proven record to guide you through the home ownership process from finding your home through closing — until you have those keys in your hand.  My goal:  At the end of our journey, you’ll not only be a satisfied home owner, but also an informed consumer.

Please contact me on my cell at 678.986.9594 or via email at olivia.hudson@metrobrokers.com.

Source:  Realtor Magazine

Revised by Olivia Hudson

What You Can Do to Improve Your Credit

Credit scores, along with your overall income and debt, are big factors in determining whether you’ll qualify for a loan and what your loan terms will be. So, keep your credit score high by doing the following:

1. Check for and correct any errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.

2. Pay down credit card bills. If possible, pay off the entire balance every month. Transferring credit card debt from one card to another could lower your score.

3. Don’t charge your credit cards to the maximum limit.

4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.

5. Don’t order items for your new home on credit — such as appliances and furniture — until after the loan is approved. The amounts will add to your debt.

6. Don’t open new credit card accounts before applying for a mortgage. Too much available credit can lower your score.

7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.

8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

Source: The Fannie Mae Foundation.

NOTE: As of April 15, 2014, credit scores for FHA loans were reduced from 620 to 580!

If you’re interested in buying a home or want additional information about improving your credit score, please call Olivia Hudson at 678.986.9594. You can email me at olivia.hudson@metrobrokers.com.

Lender Checklist: What You Need for a Mortgage

Last year, there were 70,000 to 80,000 homes for sale on any given day in Georgia. Last week, there were approximately 36,000 homes for sale. The reason: Many foreclosed homes are being withheld from the market. Reduced inventory and greater demand creates a market so competitive that buyers are commonly confronted with “multiple offer” situations. Multiple offers often result in another market condition which brings dread to the hearts of most buyers: “highest and best”. This means that on a specified date and time Sellers request buyers who 1) have submitted offers or 2) are interested in doing so, to submit their very highest and best offer for review!

You can expedite your loan process by having the following documents in hand when you apply for your mortgage loan. (Note: The documents required by lenders may vary.)

1. W-2 forms — or business tax return forms if you’re self-employed — for the last 2 or 3 years for each person signing the loan;

2. copies of at least one pay stub for each person signing the loan;

3. account numbers of all your credit cards and the amounts for any outstanding balances;

4. copies of two to four months of bank or credit union statements for both checking and savings
accounts;

5. lender name, loan number, and amount owed on other installment loans, such as student loans and car loans;

6. addresses where you’ve lived for the last five to seven years, with names of landlords if appropriate;

7. copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, such as a boat, RV, or stocks or bonds not held in a brokerage account;

8. copies of your most recent 401(k) or other retirement account statement;

9. documentation to verify additional income, such as child support or a pension; and

10. copies of personal tax forms for the last two to three years.

If want to learn more the home-buying process or need to speak with a loan officer, please call Olivia Hudson at 678.986.9594. You can email me at olivia.hudson@metrobrokers.com.

Source: Realtor Magazine

What is Appraised Value?

Appraisals provide an objective opinion of value, but it’s not an exact science so appraisals may differ.

For buying and selling purposes, appraisals are usually based on market value — what the property could probably be sold for. Other types of value include insurance value, replacement value, and assessed value for property tax purposes.

Appraised value is not a constant number. Changes in market conditions can dramatically alter appraised value.
Appraised value doesn’t take into account special considerations, like the need to sell rapidly.

Lenders usually use either the appraised value or the sale price, whichever is less, to determine the amount of the mortgage they will offer.

If you’re interested in selling your home or want to learn more about appraisals, please call Olivia Hudson at 678.986.9594. You can email me at olivia.hudson@metrobrokers.com.

Source: Kim Daugherty, Real Estate Checklists and Systems

In Honor of Our Veterans

I’d like to take this time to honor ALL of our Veterans everywhere (active or not) for their courage and dedication which has formed impenetrable barrier between our nation and those who would harm us!  I thought understanding the origin of our tributes to our Heroes would be helpful and interesting — I hope you do, too!

Armistice Day

To commemorate the ending of the “Great War” (World War I), an “unknown soldier” was buried in highest place of honor in both England and France ( (in England, Westminster Abbey; in France, the Arc de Triomphe). These ceremonies took place on November 11th, celebrating the end of World War I hostilities at 11 a.m. on November 11, 1918 (the 11th hour of the 11th day of the 11th month). This day became known internationally as “Armistice Day”.

In 1921, the United States of America followed France and England by laying to rest the remains of a World War I American soldier — his name “known but to God” — on a Virginia hillside overlooking the city of Washington DC and the Potomac River. This site became known as the “Tomb of the Unknown Soldier,” and today is called the “Tomb of the Unknowns.” Located in Arlington National Cemetery, the tomb symbolizes dignity and reverence for the American Veteran.

In America, November 11th officially became known as Armistice Day and became a national holiday 12 years later through an act of Congress in 1926.

Veterans Day

In 1947, Raymond Weeks, of Birmingham, AL, organized a “Veterans Day” parade on November 11th to honor all of America’s Veterans for their loyal and dedicated service. Shortly thereafter, Congressman Edward H. Rees (Kansas) introduced legislation to change the name of Armistice Day to Veterans Day in order to honor all Veterans who have served the United States in all wars.

In 1954, President Eisenhower signed a bill proclaiming November 11 as Veterans Day, and called upon Americans everywhere to rededicate themselves to the cause of peace. He issued a Presidential Order directing the head of the Veterans Administration (now called the Department of Veterans Affairs), to form a Veterans Day National Committee to organize and oversee the national observance of Veterans Day.

Congress passed legislation in 1968 to move Veterans Day to the fourth Monday in October. However as it became apparent that November 11th was historically significant to many Americans, in 1978, Congress reversed itself and returned the holiday to its traditional date.

Veterans Day National Ceremony

At exactly 11 a.m., each November 11th, a color guard, made up of members from each of the military branches, renders honors to America’s war dead during a heart-moving ceremony at the Tomb of the Unknowns in Arlington National Cemetery.

The President or his representative places a wreath at the Tomb and a bugler sounds Taps. The balance of the ceremony, including a “Parade of Flags” by numerous veterans service organizations, takes place inside the Memorial Amphitheater, adjacent to the Tomb.

 Memorial Day

On May 5, 1868, three years after the Civil War ended, the head of an organization of Union veterans — the Grand Army of the Republic (GAR) — established Decoration Day as a time for the nation to decorate the graves of the war dead with flowers. Maj. Gen. John A. Logan declared that Decoration Day should be observed on May 30. It is believed that date was chosen because flowers would be in bloom all over the country.  The first large observance was held that year at Arlington National Cemetery, across the Potomac River from Washington, D.C.

Source:  Office of Public and Governmental Affairs

Revised by:  Olivia Hudson