Jane Dunlap - New England R. E. Center, Inc.



Posted by Jane Dunlap on 5/6/2018

Buying a home is the mark of an important milestone in your life. While you’re very excited, you need to be prepared for all of the costs that are associated with buying a home. There are a few different costs that go into buying a home that are often overlooked. Before you dive into the home buying process, you’ll want to be prepared.



The Closing Costs


Many homebuyers have gone smoothly through the process of buying a home until they get to the closing table. They suddenly realize that they need a bit more cash than they anticipated. You probably were more than prepared with your down payment, but there’s other costs that are associated with buying a home. Some costs that you should be prepared for include:


  • The home appraisal
  • Attorney’s fees
  • lender’s fees
  • Underwriting fee
  • Processing fees
  • Inspection fees



You’ll receive a disclosure up front to help you understand all of the charges and cash that you must present when your signing the final documents for the purchase of the house. Keep in mind that many of these fees can be negotiable. 


Decorating Your New Home


Once you move into a new home, you’re going to want to decorate the space. You may need a some new furniture. Perhaps you own no furniture and need to furnish the entire house. You’ll want to budget for this. The good news is that there are plenty of ways to fill up your home with items that won’t break the bank yet look good in the home. Places that you can shop include online sources like Craigslist or Facebook Marketplace. You can even check out local second hand stores for some great deals on furniture and decor that is in good condition. The important thing is that you understand how much you’ll need to buy as you move into the home.   



Escrow Accounts


The escrow account typically holds the insurance and taxes for the home. Funds are withdrawn as premiums and payments are due. Not every lender has these set up, but you should be prepared to have the money up front for the home insurance and even the taxes at the closing table.  


Improvements Around The Home


There will be plenty of things that you’ll want to do around your new home to spruce up the place and make it your own. From planting bushes in the front to flower gardens outside to fresh coats of paint, you’ll quickly discover how expensive it is to be a homeowner. 

     

If you’re preparing to buy a home, now you understand why saving is so important! Investigate all the costs that you’ll need to pay up front while you’re in the midst of buying a home to avoid any surprises.





Posted by Jane Dunlap on 4/15/2018

If you’re thinking about buying a home, you’ve probably heard a lot about closing costs. Closing costs can come at a hefty price- up to 5% of your home’s purchase price. When that amount must be paid up front, you need to make sure you have a sizable amount of cash on hand.  


There’s many different kinds of fees included in the closing costs. Your lender will give you an estimate of what your closing costs will be, but you may not know what any of the terms that are included actually mean.  


The Loan Origination Fee


This is the fee charged by your lender that covers the administrative costs that are associated with creating and processing a mortgage. This could also be called an underwriting fee.   


Title Search Fee


This is how much the title insurance company charges to perform research on the title of the home. In some cases, the title may have some issues associated with it, so this research is to protect you. There’s also title fees known as lender’s title insurance and owner’s title insurance. You need to have lender’s title insurance, but owner’s title insurance is completely optional.


Credit Report Fee


This covers the obtaining and review of your credit report. 


Application Fee


There’s also a fee when it comes to reviewing your mortgage loan application. 


Home Appraisal


This fee covers the appraiser who is chosen by your mortgage company in order to assess an accurate value of the home.  


Tax Monitoring Fee


This fee supports tax research on the home to determine if property taxes have been paid. 


Survey


The property survey covers all aspects of the property bounds including gas lines, roads, walls, easements, property improvements, and encroachments. 


Attorney Fees


The attorney fees will cover all of the document reviews, the agreements, and the escrow fees.


Insurance Payments


When you close on a home, your entire first year of home insurance payments must be made at the time of closing. If you have bought your home with an FHA loan, you’ll need to pay mortgage insurance premiums at closing as well. You’ll also need mortgage insurance payments if you put less than a 20% down payment on the home.  


Escrow Property Taxes


The lender requires that you pay your property taxes up front. This money will be held in escrow and the taxes paid from there.  


As you can see, there’s a lot that goes on during the closing of a home. Make sure you have some water handy, it’s going to be a long process! Understanding what will happen at closing when you buy a home can help you to avoid any surprise fees or financial burdens.





Posted by Jane Dunlap on 4/23/2017

If you’re buying a home, most likely, you’ll want to have a real estate attorney. The attorney will serve a couple of different purposes, namely, to protect you in the purchase of a home.


Real estate attorneys provide legal advice related to the purchase of a home. An attorney’s duties include:


  • Reviewing and revising the purchase and sale agreement (referred to as the P&S)
  • Negotiating the P&S with the seller’s attorney
  • Adding riders to protect your interests
  • Ensuring you meet contingency dates
  • Helping the buyer to understand zoning laws
  • Helping the buyer to understand ownership interests


If there’s a dispute during the sales process, you’ll be quite happy to have an attorney on your side. The attorney can provide advice based on your legal rights and legal obligations under any contracts that you have signed. 


The bottom line is that your attorney will have your best interests in mind. In everything from ownership issues to disputes and how they will impact your ownership in the property, your attorney will be there to give you the most pertinent advice. There are numerous situations that can come up when it comes to buying a home. It’s impossible to anticipate them all. You don’t want to end up owning problems that you didn’t create, or were unaware of.

Coordinating With Other Attorneys


As a buyer, your attorney will coordinate with other attorneys involved in the sales process. This includes the seller’s attorney and the attorney that will be responsible for the closing on the sale of the home. Your attorney will make sure that all other parties have followed through to resolve any issues that may arise in a timely manner. Your attorney can actually become the closing attorney under certain circumstances, but they will at least be present at the closing.  


The Closing Attorney


The closing attorney is the one who is responsible for many different tasks before and during the closing on the sale of the home. These tasks include:

  • Searching the title
  • Resolving title issues
  • Issuing the title insurance
  • Obtaining the payoff amounts for any outstanding mortgages or leins
  • Ensuring taxes and any other city or town related bills have been paid
  • Preparing closing fees on the settlement statement
  • Explaining documents that will be signed at closing by both the buyer and the seller

Buyers in different states have different rights as to who they can choose as their closing attorney. In a technical sense, the closing attorney represents the lender. It’s a good idea to have your own buyer’s representation at closing. 

Attorneys have a duty to keep their clients‘ information confidential and also to keep their best interests in mind. If an attorney is representing both the buyer and the lender, you will most likely receive a form of written consent, notifying you of this matter.

There’s a lot going on legally during the purchases of a home, so be sure you get recommendations and find the right attorney who will represent you as a buyer.




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