Extending an Offer
Purchasing a home is one of the few transactions that involves heavy negotiations. A REALTOR is a valuable resource to have on your side as you determine the appropriate initial offer to extend. During this portion of the process, you'll want to consider the following:
As you come to the closing stage, you've entered the final stretch. At this point, you'll want to be sure to you cover a few things:
Moving Checklist
4 Weeks Prior to Move
The Purchase Agreement
A legally binding contract between the buyer and the seller of the property, the purchase agreement outlines all terms and features of the final transaction. This can include:
At Closing
The closer you get to the appointment, the more you will want to know what to expect at closing
Know What to Expect at Closing
Out of the entire home-buying process, closing costs are often the least understood. At SymbolicLending, we will take the time to address your concerns and answer your questions.
Closing Costs
Although they tend to vary from lender to lender, closing costs generally are considered any costs tied to the purchases of a new home. Today, these costs range from 2 and 7 percent of the home's purchase price and include three basic categories:
Prepaid Expenses
Prepaid expenses include homeowner's insurance, mortgage insurance and the costs to set up an escrow account. An escrow account is when a lender will pay the annual insurance premiums and various taxes on the borrower's behalf. The amount that goes into this account is based on the first year's premiums; an additional amount also is included to pay for future premiums. Because they vary based on the type of property and the time of the closing, prepaid expenses are difficult to determine.
Mortgage Points
A mortgage point is equal to 1 percent of the mortgage loan amount and actually helps reduce the loan's interest rate. For example, depending on prevailing rates, a $100,000 mortgage might be obtained at 7.75 percent with 2 points, or at 8.25 percent with no points. Obtaining the lower interest rate would cut the mortgage payment by about $35 a month, but would require $2,000 -- or 2 points -- up front at closing.
Out-Of-Pocket Expenses
Fees for appraisals, attorneys, credit reports, deed recording, tax services and other miscellaneous expenses make up the out-of-pocket expenses. Usually performed by a third party, these fees for services are directly charged to the borrower. The majority of out-of-pocket fees are necessary and legitimate; however, if the borrower encounters a fee that causes confusion, he or she should ask the mortgage professional about it.
Purchasing a home is one of the largest financials investments you can make. It's vital that you understand it fully and completely so that you avoid unwelcome surprises and are confident in every step you take towards your new home.
Contact Us
Purchasing a home is one of the few transactions that involves heavy negotiations. A REALTOR is a valuable resource to have on your side as you determine the appropriate initial offer to extend. During this portion of the process, you'll want to consider the following:
- To demonstrate the strong financial backing and genuineness of your offer, you'll want to have the preapproval letter from your SymbolicLending Loan Officer ready. An offer with financial security obviously is preferred by sellers.
- Facilitate all your negotiations in writing. This will provide a record of deals and decisions made as well as help clarify any misunderstandings.
- To demonstrate the seriousness of your offer, you'll want to have money ready to use as an earnest money (or “good faith”) deposit. While the amount varies depending on your location, all of it will be placed into an escrow account until the purchase transaction is complete.
As you come to the closing stage, you've entered the final stretch. At this point, you'll want to be sure to you cover a few things:
- Go over the loan commitment with your SymbolicLending Loan Officer and be sure you understand your loan's rate terms and the additionally established requirements and details.
- Obtain homeowners' insurance and, if required flood insurance.
- Using your loan commitment and purchase agreement as guides, set a closing date and time.
- Verify with the closing agent or attorney that a property survey was ordered.
- Prepare to move
Moving Checklist
4 Weeks Prior to Move
- Make a "Move" file folder to keep track of documentation and records of the moving process.
- Set up a calendar for your move to mark deadlines and reminders.
- Hold a garage sale to rid yourself of furniture, clothes and other items you'd prefer not to move.
- Contact a local charity to donate any unneeded furniture and items not sold in the garage sale.
- Collect boxes, tape, rope, wrapping/padding material and other moving supplies.
- Line up a moving company (or make reservations to rent a moving truck if you plan to move yourself).
- Gather doctors, dentists, other medical and school records.
- Put together (and keep accessible) all financial, tax, and employment documentation that may be needed during your loan process.
- Contact your insurance company to transfer your policies (life, auto, homeowners).
- Set a cutoff date with your current utility providers (this can include telephone, gas, electric, water, garage, and cable).
- Establish a start date for utility services at your new home.
- Let friends and relatives know of your upcoming move.
- Donate canned goods and other non-perishable food items to a local charity to save the expense of moving them.
- Verify your Voter Registration information and make any necessary changes in light of your move.
- Register your new address with your subscriptions to newspapers, magazines, and association memberships.
- Complete a change of address card with your local post office.
- Research and keep record of tax deductions on moving expenses.
- Transfer stocks, bonds, bank accounts, and contents of safety deposit boxes to a trusted financial institution near your new home.
- Organize the clothes you will be moving; separate them into suitcases, keeping those you need readily available.
- Review the moving checklist so far, making sure you are still on track for the move.
- Drain outdoor equipment: water from hoses, propane tanks from barbecue grills, and gas and oil from lawn mowers.
- Discard any aerosol, paint, oils, and all flammable and/or toxic chemicals.
- Label items you need to easily access and place them in a separate room or closet.
- Schedule a pest control company to service your home before moving -- especially on new construction.
- Clean your refrigerator and let it air out at least 24 hours before moving.
- RELAX
- Load items and boxes that you'll need first last. (Those items packed last will be unloaded first.)
- Conduct a final walk through of your home once everything is out of the house; check cupboards, closets, behind doors, attics, stairwells, overhead in the garage, outside the home, and any storage sheds.
- Prepare your new home before the moving trucks arrive; have it clean and be prepared to instruct where you'd like items placed.
- Take some time, sit back, and enjoy your new home!
- Do a final inspection of the home you are about to purchase.
- Confirm that you have met all the guidelines and conditions in the purchase agreement established by the seller.
- Bring the total you owe in closing costs in the form of a certified or cashiers' check to your closing appointment. Typically, personal checks and/or cash are not accepted.
The Purchase Agreement
A legally binding contract between the buyer and the seller of the property, the purchase agreement outlines all terms and features of the final transaction. This can include:
- The property address and legal description
- The sales price, the loan amount, the down payment and deposit
- The names of all parties involved including the buyer, the seller, the buyer's agent, the seller's agent, the mortgage broker/banker and any attorneys
- Time limits that might apply to the transaction
- Any contingencies that must be addressed prior to the deal being complete and finalized (such as the sale of the buyer's present home, issues from the home inspection that might need to be repaired, etc…)
At Closing
The closer you get to the appointment, the more you will want to know what to expect at closing
Know What to Expect at Closing
Out of the entire home-buying process, closing costs are often the least understood. At SymbolicLending, we will take the time to address your concerns and answer your questions.
Closing Costs
Although they tend to vary from lender to lender, closing costs generally are considered any costs tied to the purchases of a new home. Today, these costs range from 2 and 7 percent of the home's purchase price and include three basic categories:
Prepaid Expenses
Prepaid expenses include homeowner's insurance, mortgage insurance and the costs to set up an escrow account. An escrow account is when a lender will pay the annual insurance premiums and various taxes on the borrower's behalf. The amount that goes into this account is based on the first year's premiums; an additional amount also is included to pay for future premiums. Because they vary based on the type of property and the time of the closing, prepaid expenses are difficult to determine.
Mortgage Points
A mortgage point is equal to 1 percent of the mortgage loan amount and actually helps reduce the loan's interest rate. For example, depending on prevailing rates, a $100,000 mortgage might be obtained at 7.75 percent with 2 points, or at 8.25 percent with no points. Obtaining the lower interest rate would cut the mortgage payment by about $35 a month, but would require $2,000 -- or 2 points -- up front at closing.
Out-Of-Pocket Expenses
Fees for appraisals, attorneys, credit reports, deed recording, tax services and other miscellaneous expenses make up the out-of-pocket expenses. Usually performed by a third party, these fees for services are directly charged to the borrower. The majority of out-of-pocket fees are necessary and legitimate; however, if the borrower encounters a fee that causes confusion, he or she should ask the mortgage professional about it.
Purchasing a home is one of the largest financials investments you can make. It's vital that you understand it fully and completely so that you avoid unwelcome surprises and are confident in every step you take towards your new home.
Contact Us