Archive for June, 2006
Why do you need a real estate agent?
Purchasing or selling a real estate is very complex and too risky to invest money. Because of this, it is cleverly to seek for a trustworthy and knowledgeable real estate agent to prevent regrets in the future. There are many reasons why a real estate agent is needed in buying or selling a real estate.
If you don’t have any idea of the procedures in buying a real estate, a real estate agent is the person who can help you. License brokers or real estate agents have a thorough knowledge that can help you ensure the legality of papers and real estate procedures.
If you’re new to the area, do a simple research of properties in the neighborhood. Try to ask some people living their about the amenities and hints about the community. Finding a knowledgeable real estate agent is the best idea. Real estate sales agents have a vast knowledge regarding real estate market in their area. They know the laws and guidelines regarding real estate matters. They also can recommend what is the best for you and your budget.
If you urgently need to buy or sell a real estate, an expert real estate agent can help you. A professional real estate agent has many friends, associate and contacts that can speed up the process if you urgently need to buy and sell a real estate. These will help you save time and effort and can possibly sell you’re real estate property immediately or aid you in finding your target house.
If your too busy working or doing something very important and don’t have the time in dealing with real estate transactions, A real estate agent will serve as your personal representative in buying or selling a real estate. Also, if you don’t have the abilities of a sales person, the agent serves as your spoke person to deal with your business clients.
Raymond M. Crisostomo
Homes for Sale and Real Estate Listings
Closing Costs - Understanding Mortgage Lender Fees
When you purchase or refinance your home, you will have to pay settlements fees. A portion of these fees will be paid to your mortgage company (a.k.a. broker, bank, lender). These fees are broken down into two types of fees; closing costs, or fees associated with the loan, pre-paid items which include interim interest and tax and insurance escrows.
The fees charged by your lender are just a portion of the total closing costs, but if you don’t watch out they can add up quickly. Let take a look at which lender fees are considered standard, which are not standard, and which are “negotiable”.
First, are standard fees, or fees that appear on almost every loan:
Appraisal Fee ($250-$400+): Nine times out of ten the underwriter will require an appraisal to determine the value of a home. With the increased “intelligence” of automated underwriting and automated valuations, we see more transactions where appraisals are not required and I think this is the growing trend with the increased relevance of electronic property databases. The price depends on the type of appraisal required and the value of the home (higher home value = larger house = more work = higher priced appraisal).
Underwriting fees ($250-$595): As it implies this is the fee allocated to having your loan reviewed by an underwriter. Some banks call this a commitment fee, which is traditionally the name given to a “junk” fee.
Credit Report ($10-$35): You should expect a charge for your credit report. Often the charge for a couple is twice the cost of a single individual, and for obvious reasons.
Flood Certification ($15-$30): This is the cost of the automated service that tells the lender if the subject property is located in a flood plain or not. If it is, it may require flood insurance.
Tax service fee ($75-$90): This is a fee that covers that cost of the lender monitoring the payment of your property taxes.
Processing Fee ($250-$595): Similar to the underwriting fee, this is the cost of processing your loan.
Next we have Non-Standard Fees, which are charged in conjunction with some types of loans, or shouldn’t be charged at all.
I want to address a term that you might hear and that is “junk fees”. These usually refer to fees charged by lenders that are frivolous, or pure profit. The challenge in trying to explain this to the layperson is that we do not want to indict a lender just because of a term that they use, but we just want to make you aware of all of the different types of fees out there. The key is you should not see a fee listed in EVERY blank of the lenders fees on the Good Faith Estimate, as this would indicate an abundance of fees. With that, here are some additional fees you might see on your Good Faith Estimate:
Origination Fee (1% of loan amount): This is a charge normally associated with sub-prime mortgage. These loans traditionally require more work than a standard (good credit) loan and this is a fee to compensate for this. Lenders will be upset if we say this is negotiable, but the reality is that almost everything is negotiable. If you can find someone to do your loan and not charge this, there is a good chance your rate will be higher so they can make the money else where (the bank pays higher commissions when loans are sold at higher rates). The down side is that if you negotiate this fee away, you may take the incentive away from your loan officer to get the job done and you may not end up getting your mortgage.
Commitment Fee ($200 – 1% +): This is often a junk fee, especially if a processing fee and a underwriting fee are charged. I know of one reputable lender that uses this word synonymously with the underwriting fee. You should always ask what the fee covers; if your loan officer doesn’t know immediately, or has to “check with someone”, that is a sign that you may want to move on either because the fee is bogus, or the loan officer doesn’t know his or her job. Bottom line here is two points:
1. If you are paying a commitment fee along with an underwriting fee AND a processing fee, this is most likely pure profit to the company and can be negotiated out.
2. The higher the commitment fee is, the more it should cover. For example if a company charges a 1% commitment fee, I would not expect to see many other lender fees.
Application fees ($300-$595): Application fees often cover items such as appraisal costs, and may be charged up front so the lender does not get stuck with the cost of an appraisal (should you cancel your transaction). Application fees may also be charged in conjunction with sub prime loans when additional services (such as credit repair assistance) are needed. Some companies charge an up front application fee to ensure that the borrower doesn’t go elsewhere and this is a legitimate business practice. In a case where all other fees are charged (appraisal, processing, and underwriting), this fee can be negotiated out.
Discount points (1% of loan amount): A Discount Point should be used to reduce the interest rate. The bank either makes its money up front in fees or on the rate charged.
Loan Lock Fees ($any): This is a pretty bogus fee. There is not need to pay a fee to lock your loan other than an application fee.
Broker Fee ($any): Broker Fees are often charged by brokers to arrange for mortgage financing. The idea is that if you are using a broker, they should be looking out for your best interest and would charge you fees up front to find you a “less than market rate”. If a broker fee is charged, an origination fee would normally not need to be charged
Some Fees are Paid Up Front, but beware of how much money you spend with your lender in advance. It is common for a lender to collect some or part of the following fees up front:
· Application Fee
· Appraisal Fee
· Credit Report Fee
Now that you are armed with this information, you will be a more educated mortgage customer and should not overpay for your next mortgage.
If you would like a personal consultation from me or a member of my staff, please feel free to contact me at 1-800-757-9704 or info@atozlender.com
Until next time,
Anthony
www.anthonykirlew.com
www.consumersadvantagemortgage.com
Finding The Best Real Estate Agent
Finding the appropriate time to leave behind the unforgettable moments that you experienced in your home is sometimes stressful, but it’s always the time to move forward to get a new investment. Statistics in Las Vegas real estate show that the average family is ready to jump into a new home almost every 5 years, so how you interview the best candidate is going to help you to sell your most valuable asset and move to the next step of finding your next “dream home.” Here is some advice for you:
Find an agent with a marketing plan that is designed to incorporate all the resources, tools, and systems accomplishing your goals and needs as the seller of a real state property.
Look for somebody who is going to get you the most amount of money in the least amount of time and the least amount of inconvenience.
Sometimes looking around and interviewing so many candidates can make you confused because everyone uses different strategies to get you sold. It is important that you get focused and express all your concerns and necesities to the candidates that you interview.
Pay attention to the different marketing plans they offer to you. Ask questions all the time about the different steps that happen through the transaction process. Make sure you understand everything they say and take notes. This way, in the end of your process to find a Las Vegas Realtor®, you have specific notes about the agent you are going to hire and all the promises and commitments this person is going to do for you to get you through the process of selling your home or buying a new one.
Select the agent that looks professional, acts professional, and most importantly, shows you that he or she knows what they are doing. This is why it is important to see if the agent uses current technologies, advertising, and all other marketing strategies available to get your home exposed everywhere in the real estate market.
Ask for the seller service pledge. What this includes, is all the strategies and services that this agent is willing to provide for you. Especially, it is important your agent provides excellent customer service for you and the possible buyers interested in your home. Ask to review all the offers and aquire feedback from all the Las Vegas Realtors® and buyers that visit your home. This way, you will get different opinions from people referring to your home, which will help you to get the right price or maybe fix a couple things that will improve your home’s appeal to the next possible buyers.
The most important suggestion is not to base your decision on who gives you the best price for their services, but to find the agent that is most qualified based on their qualities, abilities, and array of services. Sometimes when you spend less, will cost you more in the end, because your agent matters.
And remember, don’t be nervous to leave the beautiful moments that you have in your own home, because changes always bring the best.
A real estate agent? Register at Oz Free Real Estate and feel the difference.
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This article was posted at iReprint.info on 2003-12-20. Webmasters and publishers are free to reprint this article as long as the resource box and all the links remain intact.