|
MyBuyer's Book
 Why MyREALTY.com™? I built MyREALTY.com to assist the consumer in
understanding and making real estate transactions. Our main
objectives are to: 1) Simplify the real estate transaction process, 2) Save you time, and 3) Save you money. At MyREALTY.com, you or your real estate
agent can list properties for free on the Global Listing Service™ (GLS), purchase marketing
products used by real estate professionals, as well as, search for
properties and locate real estate agents, lenders, and other service
providers. This is your FREE and informative MyBuyer’s Book. We
want all homeowners to be able to experience “MyMoment”; that place in
the sun, that time away from it all, where MyREALTY.com wants to take you.
Whether it's with a cold drink on your new patio or cuddling by
the fireplace of your mountain getaway, MyREALTY.com will help guide you
there.
As a former Realtor, Commercial and
Investment Specialist, and owner of more than 10 homes, 50+ properties
(including two subdivisions) and several commercial buildings, I am a
big believer that all real estate is not necessarily an investment –
especially when it comes to home ownership.
If you want to purchase a house to
convert into your own palace, please take the time to create a list of
pros and cons and include time and money variables. Many folks
simply want a home with a fenced yard for the kids and dog. The
bottom line is that purchasing a home is ultimately more of an
emotional decision than an investment decision. If home ownership
is what you are after, then MyREALTY.com is here to help!
Thanks for visiting MyREALTY.com!
Todd Murphy
CEO and Founder, MyREALTY.com
What are you mising out on?
A new home. Money. The right real estate. Entertainment. The news. Buyers. Sellers. Brokers. Closing tools. If you’re missing any of these things, you’re missing MyREALTY.com. MyREALTY.com is simple. MyREALTY.com is fast. MyREALTY.com is secure. MyREALTY.com is valuable. Best of all, MyREALTY.com puts you where you need to be. Where you are in charge. Get the home you want, the price you are asking, the services you are looking for and the assistance you need to make it happen. Your dreams become reality in one, convenient location. You pick the place – In your living room, on a lawn chair in your backyard or while waking up with a cup of coffee. You’ll learn, you’ll make money--you will experience the moment – and you’ll make your next move your best move. MyTransaction: Easier than
you might think.
One of the things about which we
most want to educate you is the transaction process, something which
seems daunting to many people, especially first-time home buyers.
The process is not that complex, but the stacks of forms required
by real estate agents, lenders, title insurance companies, and
escrow/closing companies or attorneys often make transactions appear
overwhelming.
To simplify a real estate sale and
purchase process, let's break it down into ten easy-to-follow
components:
Step 1.) Decision
to Buy
Ask yourself, “Do I really want or
need to own?” It might be bad for business that a massive real
estate web portal would bring this up, but before you go head over
heels for a house, remember: when you
rent, you can call the landlord to fix your leaky roof or running
toilet. Yes, there are tax benefits to
owning your own home, but closing costs, taxes and maintenance can
quickly negate any tax deductions. If you still feel you're ready
to become a homeowner, then please proceed to the next question…
What can you afford? Before
you apply for a loan, we suggest that you understand what you can and
can't afford. How much do you have for a down payment? How much can you afford to pay for a monthly payment?
See the free
MyREALTY mortgage calculator here.
Renting
vs. Owning
Renting Advantages:
- Your costs are fixed for entirety
of lease.
- Less
liability. If someone sprains an ankle on the grounds, you're not
responsible.
- No
chance of losing equity or cash on investment.
- More
mobile, not tied to mortgage
- Low
maintenance. When the toilet leaks, someone else is supposed to
fix it.
- No
large down payments and closing costs (title insurance,
- mortgage
fees, homeowner's insurance, county taxes)
Renting Disadvantages:
- You
aren't gaining any equity.
- You
are less able to customize your living space (or knock down a wall and
see what your landlord thinks.)
- No tax
breaks. (Essentially, you're paying your landlord's mortgage for
him.)
Buying Advantages:
- As you
pay your monthly mortgage and the value of your property increases, so
does your equity.
- For
many, owning a home is a large part of their retirement.
- Ability
to remodel and decorate.
- Tax
advantages such as writing off real estate taxes and interest paid on
mortgage.
- You
have your own space without strangers living just a wall away.
- Patios,
porches, backyards and shade trees (finally, experience MyMoment).
Buying Disadvantages:
- Your
costs vary greatly.
- Up
front costs are much more substantial than renting.
- Ability
to remodel and redecorate (it’s easy to get over your head).
- You
own the maintenance.
Step 2.)
MyLoan/MyMortgage
To be clear, a mortgage is not a
loan. A mortgage is a conditional pledge of the property to a
lender as security for performance on the repayment of a debt/loan.
We recommend obtaining a pre-approval letter before you search for a new property. There
is a big difference between being pre-qualified and pre-approved.
Pre-qualification simply states that you are “qualified” to purchase
a home in a certain price range.
Unlike pre-qualification, a pre-approval letter shows a mortgage lender’s commitment to lend a
certain amount of money at a locked interest
rate. It is
best when buyers apply for a mortgage pre-approval before putting a bid
on a home, in order to prove to the seller (and listing agent) that you
are serious and capable of purchasing a home of that value.
Having a pre-approval letter may be
advantageous over other potential homeowners, as well as, those with
pre-qualification letters, as it is written proof that the mortgage
lender guarantees a certain loan amount. A mortgage pre-approval can
also motivate real estate agents to be more diligent in finding
potential buyers a home, as they often appear to be more serious
than those who have not completed the pre-approval process.
Another advantage of applying for a
mortgage pre-approval is that it facilitates the purchase transaction
and shortens closing time, as the loan has already been applied and
approved. Once the potential homeowner's offer is accepted, the only
things remaining are an appraisal and title search on the property.
 What your credit score means to you If you are currently saddled with debt, you should do everything you can to alleviate that liability. There are three credit reporting companies in the United States: Equifax, Experian, and TransUnion. By law, these companies are required to give you a FREE credit report every year. Your credit score is a three-digit number designed to help creditors predict your ability to pay them back. If you have a great score, maybe somewhere above 600, you'll be inundated with low-interest credit card offers. If you have a low score then it is difficult to obtain any kind of credit. One missed payment can severely damage your score and cost you thousands of dollars in higher interest rates. If your application for credit is denied, the lender is bound by federal law to tell you specifically why you were rejected. However, to save you time and heartache, MyREALTY.com knows that not enough income and too much debt are two of the most common issues to negatively affect your chance at a home mortgage. MORTGAGE
BASICS
Once you're ready, shop around for
the best mortgage broker. This could be your bank or a lending
institution that specializes in home mortgages. Initially you'll have
the option to lock your home financing into the current rates and
points. You can also choose to let the interest rate "float" from
thirty days to six months, but waiting could mean the rates go up.
After reviewing disclosures and
paying any required processing fees, you'll order an appraisal to
determine the fair market value of the home (some mortgage and loan
programs don't require appraisal, but most lenders will select the
appraiser).
After signing additional disclosures
and the appraisal, credit reports are received, and a loan officer
prepares your loan. Your loan officer will then direct paperwork to
your escrow agent (often a title/closing company or an attorney).
The property's ownership will then transfer from the seller or
the seller's lender to your lender.
The best advice we can provide is,
“Don't get in over your head.” Give yourself some margin every
month, so you can save for retirement, rainy days, and an annual
vacation. Put 20% down at an absolute minimum. We are
advocates of being debt free, whenever possible, so put a lot of money
down to maximize your equity up front, and go for a 15-year
amortization (length of loan or years to pay off). Lenders
typically amortize loans for 15, 20, 25, 30, and even 40 years.
Beware of closing costs. Closing costs come in the form of real estate
commissions, title insurance, homeowners insurance, appraisals, home
inspections, loan fees and closing costs, liens against the property,
the closing itself, paying real estate taxes, filing fees, and the cost
of the actual closing itself (by an attorney or title company).
If your closing is coordinated through an escrow company, you will
receive a form (HUD-1
form), which lists all of the costs
associated with the transaction.
Assuming a $200,000 home
transaction, average fees run between 5 and 10%: Agent commission of 3
to 7% (when selling another home), loan fees of 2%,
appraisal/inspection/closing fees of 0.5%, title and homeowner’s
insurance of another 1%, carpet/carpenter/repair of another 1 to 5%,
etc. And this
doesn't include the costs associated with your move. See following table for estimates:
 15-year
mortgage versus 30-year mortgage
With MyREALTY mortgage, you'll have literally
thousands of options to finance your home. Why does the term of
your mortgage matter? Here's an example of a $200,000 home with a
$160,000 note. This means you've put 20% or $40,000 down, and the
balance of the mortgage is the $160,000.
 As you can see, if you can afford
the higher monthly payment, you not only pay off your home in half the
time, but overall you save over $150,000!
Your
Right to Rescind
From the time you sign the credit
contract (mortgage) up until midnight of the third business day, you
have the right to cancel the credit transaction. Here's all that must
happen to begin your three-day right to rescind:
You sign the contract for credit.
You have received and reviewed the
Truth in Lending disclosure that offers important information such as
the annual percentage rate, the amount of your financing and
corresponding finance charges, as well as the payment schedule.
Received copies of a “Truth in
Lending” notice explaining exactly what you're reading about here
— your right to rescind.
The 'three day' period is business
days only, including Saturdays but not Sundays or legal holidays.
Any contract cancellation must be delivered in writing before
midnight of the third business day. Also, during the three-day
waiting period no business related to the contract can take place.
The money promised by the contract cannot be transferred and no
contractor can start building.
What happens if you renege on a loan after the three-day period? There do not seem to be any precedents that favor the borrower when exiting home loans. A 2005 U.S. District Court decision in O'Brien v. Aames Funding found that O'Brien, who sued to get out of a refinance loan three years after she agreed to it, could not renege and was obligated to the contract with Aames. What can you do if you must get out of your financial obligation? — Sell the property — Use a quitclaim deed to transfer or "quit" any of your interest in the property — If you want out because you don't prefer the terms of the specific mortgage or lending company then you can refinance. BEWARE: Check for any prepayment penalties! If you decide to get a new mortgage (refinance) with another lender you may have to pay the existing lender, say, 5% of the all the money you still owe them. — If you've signed a mortgage jointly and you want out (often the case in divorce), you can sign the property over to the co-owner. This can be accomplished by using a quitclaim deed or by having the other party refinance without you. Types of Mortgages
Fixed Rate Mortgage
A
fixed rate mortgage has an interest rate and monthly payments that
never change. These mortgages afford borrowers stability because
they are unaffected by the ups and downs of fluctuating rates.
Both short and long term fixed loans are available.
Adjustable Rate Mortgage
Adjustable Rate Mortgages (ARMs)
feature an interest rate that adjusts up or down at specified intervals
of the mortgage term. The initial interest rates for ARMs are lower
than those of fixed rate mortgages.
ARMs are typically easier to qualify
for than fixed rate loans because the starting rate, as well as the
payments, is lower. But BEWARE…because the rate is adjustable and
not fixed, it can and often will rise with the fluctuating economy.
Described by “3/1,” “5/1” and “7/1,”
these ARMs featuring initial fixed rate periods of three, five, and
seven years. Following the initial period, rates will then adjust
annually for the life of the loan.
Conventional
Mortgage
Administered by government regulated
private companies Fannie Mae and Freddie Mac--the conventional loan
limit for single families is $417,000 in the continental United States.
Jumbo Loan
Going bigger than $417,000?
These loans are funded by private investment banks and are very
common today.
FHA Loan
Loans actually insured by the
Federal Housing Authority and designed for lower to middle income and
first-time home buyers. The criteria to get an FHA loan are less
than a conventional home loan.
VA Loan
Insured by the Veterans
Administration these loans offer less stringent down payment and qualification standards.
No Documentation Loan
If you don't wish to share your
income, or perhaps you are self-employed, a No-Doc loan
lets you skip income verification. That
convenience comes at a price, usually in a higher interest rate.
Negative Amortization Mortgage
Don't have a regular, steady income?
With a negative amortization mortgage your monthly payment can be
less than the accruing interest on the balance of your loan.
You're not building any equity but your payments are much less
than with a conventional loan with principal and interest payments.
Reverse Mortgage
If you are at least 62-years-old and
have some equity in your home, you can qualify for this mortgage.
A reverse mortgage is, essentially, a loan against your home
where, as long as you live there, you do not have to pay it back. You
can borrow up to 65% of the home's appraised value.
Go here for more important mortgage tips and an easy
way to get started on your dream.
Other considerations when looking for a mortgage - Many of the fees in a real estate
transaction are negotiable.
- Talk to family, friends and co-workers before choosing your mortgage broker. A little Internet research helps as well. Selling mortgages is a competitive field, so don't go with the first mortgage company you meet. - Beware of the interest-only loan. It's not always a bad idea, especially on an investment “fix n' flip” property, but with real estate appreciation slowing you don't want to get an interest-only loan just so you can afford a bigger home. If your home's value stagnates and you're only paying interest, then you may end up owing the lender more than your house is worth. - Before you refinance, make sure your current lender doesn't enforce a prepayment penalty. - Don't get caught up solely on the interest rate. Other components, such as closing costs and fees, may vary greatly from lender to lender. - Renting isn't always a bad thing. Buy a home when you're ready, not because someone says you're throwing away money. MyDown
Payment
The money you put 'down' on a home
can save you thousands of dollars. The more you are able to put down, the more lenders will want to work
with you and the better your interest rate will be. If you're able to put twenty percent down
on the price of a property, you'll be able to avoid private mortgage
insurance (PMI), another expense many people don't foresee. Banks
and other lenders use your down payment to create a Loan-to-Value (LTV)
ratio.
You'll hear a lot about
loan-to-value. It's typically expressed in percentage and it
carries a lot of weight in what you'll have to pay for your mortgage.
A loan-to-value scenario might be that on a $100,000 home, you
have an 80% LTV. That means that you've put twenty percent, or
$20,000, on the $100,000 property. If you put nothing down you
have zero loan-to-value and the lender is liable for the entire loan-in
addition, higher interest rates (PMI) will most likely ensue.
- Members
of your family, including domestic partners, can give a once-a-year
'gift' of $11,000 without tax implications.
- If
you're a first-time homebuyer you can, without penalty, use money from
your IRA.
- Although
an FHA loan allows you to purchase a home with very little down (2-3%,)
they do require much higher mortgage insurance and steeper interest
rates than your average conventional loan. But if it gets you
into a home, down the road you can always refinance.
- Zero
money down is an option with some loans, but it can be a risky venture
going into a home with no equity. Keep in mind if you sell too
soon, you might very well lose money.
- Seller
financing brings many options to the table. The best might be
having the seller carry the entire mortgage. The buyer simply
works out the terms of the loan with the seller. This can
alleviate closing costs, bank fees and unreasonable interest rates.
Sellers can also partially finance a home with a bank or other
lender, picking up the remainder of the tab (this means you'll have two
payments, one to the seller and another to the bank or lender.)
- You
can also get what is called a piggyback loan. You may have heard of a
loan program called an 80-10-10. This is when you put down
10 percent of the price of the home, borrow 80 percent of the rest, and
get a second mortgage to put down the remaining ten per cent.
Then you have your 20 percent down. The second mortgage
will almost always come at a higher interest rate than the first.
- Last
resort only! If you happen to have a 401k, you can actually use
it to give yourself a loan. The most recent borrowing limit is up
to $50,000, or 50 percent, whichever is larger. However, within
five years you must pay back this 'loan' through payroll deductions. If
you quit or lose your job you must pay the loan back within 60 days or
face severe penalties from the IRS.
Women paying more for typical home loan Are you a woman earning double the area’s median income? You’re still fifty percent more likely to end up with a loan less prime than men with similar earnings. The Consumer Federation of America found that “in 2005, about a third of women took out mortgages with interest rates over 7.66 percent (well above the average prime mortgage rate of 5.87 percent) compared with about a quarter of men.” The examination of 4.4 million mortgage originations where borrowers were identified by their gender also discovered: -
Women with high incomes were 46.4 percent more likely than men with
comparable incomes to have the more expensive mortgages.
- Women with median incomes are 8 percent more likely than their male counterparts to end up with sub-prime loans. Step 3.) MySearch
Over the last five years the number
of homebuyers who used the Internet to find their next home has
doubled. According to the Pew Internet of American Life Project,
51% of people ages 18-29 searched online housing information, as did
43%of Internet users 30-49 years old. You can start your search
with the Global Listing Service, or enlist extra help with a buyer's
agent.
Todd Murphy, the CEO and founder of MyREALTY.com, helps you with some of the
dos and don'ts of finding the right real estate agent in this online
bonus - Murphy’s
Laws .
As a buyer, you likely already know
what you are looking for. Have you decided on a resale in a
certain neighborhood? Are you looking for a new speculation
(spec) home built by an investor / developer / new homebuilder? Or
maybe you have decided to buy a lot and build your own customer home -
or place a modular home at your dream site. Or maybe you are
simply looking for a second home or recreational property.
Whatever it is you are seeking, MyREALTY.com can help with this convenient checklist.
The National Association of
Realtors™ recently found that 87% of the time, a woman is responsible
for making the final decision about a home. According to what
we've read, that's a good thing. Women are the more savvy of the
sexes when it comes to safety, practicality and overall design. So what do women want in their home?
 Step 4.) MyContract
– Negotiating a buy-sell agreement
Once you have decided to write an
offer, the price should clearly be something you can afford (ensured by
pre-approval letter from MyREALTYmortgage.com), and one that won't burden
you with regrets. The market will help you determine whether or
not you can make an offer below asking price, pay full price, or even
offer a premium to ensure that you get the home.
Some savvy buyers offer full price
in order to get an acceptance, and negotiate down after a home
inspection to fix items that require repair.
The best way for a seller to ensure
that this doesn’t happen is to make sure that their repair list is
complete.
When you put in an offer, the seller
will want to know if you earnestly intend to purchase the property.
Therefore, you are required to include a deposit, or earnest
money, with your requested purchase price. Typically the
“earnest” money is around 1% of the purchase price of the home.
If the market is hot, however, some people will include more
earnest money than normal to display how interested they are in buying.
Earnest money is placed in a trust
and belongs jointly to the buyer and the seller. If the deal goes
awry, any cancellation fees will come from that money. If the
deal goes through, the earnest money is typically applied to the down
payment on the property.
Here’s a sample earnest money
promissory note you can download to get you started: MyREALTY.com has links
to a full library of legal documents and resources to help you find the
right home.
Who can write a sales contract?
Anyone. A real estate sales contract simply does the following:
- Identifies
the property being sold
- Names the buyer and seller - States the amount of money the buyer will pay (consideration) - The date when title to the property will be exchanged for the money. And now some smart additions to any
real estate sales contract:
- A deposit explanation that declares how much the deposit
will be and who will hold the deposit money.
- When and where the closing will take place - If and when the property must be inspected or if it is to be sold “as is.” - If any warranties are included with the property. - Whose insurance will cover the property until the closing date. - Notice of any disclosures on the property (lead paint is the big one, but anything, ANYTHING notable that could adversely affect the value of the property should be identified). - When will the buyers take possession? - Who will pay for pest, well, septic and other inspections, buyer or seller? - What is included and excluded with the property? Refrigerator? Washer/Dryer? - Any provisions for arbitration and disputes. - Any other contingency you can think of. Who will pay if there's termite damage? If the roof is old, will the sellers replace it? - Clear the title. Does the buyer own the property outright? A real estate contract must also say something to the effect that "This is a legally binding contract, so if you do not understand it, please get legal advice before signing."  Step 5.) MyDue
Diligence
MyInspection - Before you get sucked in by a home's oak floors
or wrapped up in the kitchen's granite counters, your inspection should
go from the ground up, literally. Here's a handy inspection list of what to look for.
Hiring a qualified home inspector - We highly recommend finding a seasoned
inspector, who will provide a complete written report - with pictures.
You should attend the inspection, and ask that the owner not be
present - in the event he wants to interfere with the process.
Property
- We highly recommend a MyREALTY.com property report. It
provides a thorough background
of the property's history.
Title Report Review - This is prepared prior to closing. It lets
you know how the title is currently held and what kind of
exceptions are included such as easements, liens and encumbrances. The
title report will also list any exclusion, like mineral rights for
example, on the property. As a buyer it is important to review
the title report thoroughly because you might find something the seller
needs to clear up before any transaction takes place, or you can
back out of the deal.
Boundary
Line Survey - This is important when
buying land or a home on a lot that's not part of a formal subdivision.
Boundary line surveys are vital on heavily treed lots
where borders may not be so easy to spot and trees cross into other's
property. You'll also discover any encroachments from neighbors.
Did someone build a barn and part of it is on your land?
You might be able to negotiate free pony rides.
Neighbor Introductions and
Interviews - Besides being a great way
to break the ice, talking to potential neighbors is probably the best
way to get the real lowdown on a property. Without prying too
much you can get some great answers with these good questions.
Here are some ideas to take with you:
- Zone, Covenants, HOA - Discover what they are and find if they work for you.
Zoning, Covenants and HOA's vary greatly from one neighborhood to
another. Before you jump on that investment condo in the
mountains find out how much you'll be shelling out in monthly HOA
(Homeowner's Association) fees.
- The House History - You can play detective to find more about any
home. Try and find out:
- What
types of materials were used? Are the walls plaster or drywall?
What woods are used in the floor, mantle,
and banister? What kind of bricks? - Look under lid of toilet tank; they are usually stamped by year. - Talk to your neighbors. - Visit your local or county courthouse to look at the deed registry. The registry is usually found in the assessor's office. Review
the history of the purchase and selling price.
- Check building permits which list type of structure, dates of construction, details, and owner. - If possible, track down previous owners to find out what improvements were made. - You can sometimes locate surveyor maps to see if anything had been added or demolished. Have you found a nice lot or the
perfect chunk of land? Here's a MyREALTY.com Land/Lot checklist to help with the inspection
process, and help make sure you don’t wind up making a major investment
you regret.
MyNegotiation
It’s a buyers market! Do not
be afraid to negotiate, but be aware of the current market conditions
and market value of the property that you want to purchase. Remember
though, in order for any seller to take you seriously, you should be
pre-approved for financing. MyREALTY.com can provide your free
pre-approval letter!
When you're looking at a home listed
for $300,000 and you know the most you'd ever pay is $275,000, then
here's some quick steps to get the seller to meet your price:
If you offer $275,000, the sellers
are not likely to accept it, especially if the listing is new on the
market. One option would be to wait a few weeks before making an
offer. The seller might then be more receptive to a lower price.
If you just can't wait to start the
negotiating, then here’s what to do:
- Offer less than your top price at the outset. So,
you go $250,000. The seller comes back with $285,000.
- Let
the seller know you are serious about the house with a leap up in
price, say to $270,000.
- The
seller, if they are serious about selling, (and more and more are
today), will want to meet you somewhere between their
285 and your 270. That should be right about at your 275! Again, consider who is paying the
closing costs or additional expenses during the sale. These can
be used as leverage to obtain the best deal possible.
Step 6.)
MyRenegotiation
If you've found issues with defects
in the house (from disclosure statement, home inspection report),
clouds on the title (from title commitment or your own due diligence),
you need to negotiate any remedies prior to the date specified in your
buy-sell contract. We recommend that you have major items
repaired by the seller, as opposed to taking a reduction in price, as
the actual cost may turn out to be more than the estimated price -
especially when it comes to new roofing, foundation repairs, or
mitigation of mold/mildew, radon, termites, etc.
Step 7.)
MyHomeowner's Insurance
Homeowner's insurance rates vary
widely based upon location, credit report, claims history, deductible,
and age and construction of home. Regardless, if you do some
research, you'll find a difference in overall coverage and the premium
you pay for it. Get quotes from three different providers.
- Ask
your insurance agent or even the seller if any claims have been
made against the property.
- Claims
in the past five years could make your insurance more expensive.
- Get
adequate coverage. Instead of opting for the standard industry
policy of “Limited Replacement Cost,” request an additional
percentage that will ensure the total cost of rebuilding is
recovered. To do this, find out how much it costs to build in
your area. A real estate agent or a general contractor should be
able to tell you the price to build per square foot. Multiply
that number by the square footage of your home, compare that number to
your current policy coverage, and you’ll know if your insurance policy
will afford a complete rebuild.
- Taking
a larger or smaller deductible will affect the price of your annual
premium. Ask your insurance agent how you can have a smaller
annual payment with a larger one-time damage deductible.
 Step 8.) MyClosing Typically, the closing is
coordinated by an escrow agent from a title company, although an
attorney is required in Alabama, Massachusetts, Delaware, Georgia and
North Carolina. If you've selected a good closing entity (title
company or attorney), the closing should go off without a hitch.
You should have received your
settlement/closing statement (HUD-1
form) at least three days before closing. It is at
the closing when you must bring a cashier’s check with the balance of
your down payment.
Money-saving
tips for closing
- You
can negotiate closing costs with the seller, but make sure that
whatever agreement you come to, it is put in writing in the sales
contract. Be specific on escrow costs vs. loan costs.
- MyREALTY mortgage.com has mortgages that
reduce closing costs and
programs that wrap closing costs into the mortgage.
Shop around for not only the best
homeowner's insurance rates, but also the best policy/coverage. The
same holds true for attorneys, if your state requires an attorney for
closing.
- A
lender's good faith estimate should match the final contract. If
not, find out why there are new fees and expenditures.
- By law, you are allowed a list of all costs related to the closing. - Mondays are bad for closings. If your lender puts your mortgage money in escrow on Friday, you'll end up paying for an entire weekend of gained interest. What
is escrow?
Escrow is an account handled by a
neutral third party. It holds documents and money in a
real-estate transaction until all conditions of a sale are met. Also,
when you pay your mortgage, you can allot an amount to go to escrow for
property taxes and insurance (typical); most lenders require taxes and
insurance to be paid from escrow.
MyServiceProviders
Agents, lenders, interior designers,
landscapers and lawn mowing, painters, electricians, plumbers, etc…
You can find them on the Local Businesses page at MyREALTY.com. We highly recommend
hiring the right professionals: real estate agents, attorneys,
and tax accountants, to guide you through your transaction and tax
needs.
Step 9.) MyMove
Moving your household - go it alone
or hire a professional moving company. Find movers and storage
providers at MyREALTY.com.
Even before you pack anything you
should:
- Go to
the post office and fill out a change of address form or pay a small
fee and do in online through their website.
- Change address with IRS, banks and credit card companies (think of the things you don't want showing up at the wrong house.) - Find a new bank in your new city. It's a good idea to set up a checking account. - Contact
all utilities, business contacts and subscriptions and switch your
address.
- Ask
your current dentists and doctors for referrals. You might need a
new pharmacy too.
- What
church or civic organization will you be a part of in your new town?
Your present memberships will need a notice of your departure as
well.
- Rental
trucks and movers need advanced reservations so give them a call now.
If you need any travel arrangements get
those organized. - What
about pets? You'll want to plan how they'll get to your new home.
- Taking
down serial numbers and creating an inventory of your belongings is a
good idea. Insurance companies also
recommend video taping your belongs. You'll also want to make copies of important documents. - Get
more boxes than you ever imagined you'd ever need. You'll need
them.
- Color
code boxes for different rooms or mark them clearly. Give yourself time to be organized. Check closets, basement
and any nooks and outbuildings for your belongings. - Eat
your inventory. Dine-in more and clean out your cupboards. Get
ready to buy some pizzas to tempt friends to help you
move. - Contact
the Division of Motor Vehicles for driver's license, auto registration
and tags.
- Find
the hospitals, police stations, veterinarian and fire stations near
your home.
Step 10.) MyPalace,
MyConversion
This section covers small
improvements, appliances, and furniture to convert “MyHome” into
“MyPalace!”
We only have one life to live, and a
lot of our time is spent in our homes, so we highly encourage you to
make every improvement you can, as early as you can - even before you
move in. We also recommend that you create a budget and spend
within your means. You may also want to talk to your lender about
wrapping major improvements into your loan. Improvements may include:
- Finishing the basement to add more rooms - Home theater - New
paint or flooring
- Replacing
old light fixtures
- Granite
countertops
- Spa,
Sauna, or Steam room
- Stereo
system with built-in speakers in the dining area, deck, front porch, entertainment room, etc.
- Barbecue
area in the back yard - with natural gas piped to the grill
- Wet bar
- Entertainment room - Workout
room
- The
new deck, front porch, or covered patio
The key to enjoying your
improvements is convenience! We encourage you to place all new
toys and improvements near the master bedroom or on the main floor,
whenever possible.
In Conclusion
Thank you for sharing your time with
MyREALTY.com. There are a lot of
viable online real estate
companies but we sincerely believe that our desire to educate (rather
than just sell) homebuyers creates a better real estate experience for
everyone involved in the transaction. Buying a home is indeed a
big deal, but with the necessary due diligence and research it is the
best investment you can make. MyREALTY.com simply wants to get to
you the information and tools you need to make the right decisions
about the right home.
If you're reading this then we're
guessing you've already retained a lot of information. Now you
can surf our millions of homes listed on the Global
Listing Service, post a
question on
MyCommunity Forum, a comment on the MyREALTY.com blog,
or if you don't find everything you need to buy your
home-and yes we even have the money at MyREALTY mortgage –
then please let us know what we can do to help.
All content Copyright 2007, MyREALTY.com Inc. |
 |