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Wednesday, July 31, 2019
by Cindy Grey
The Magic of Earnest Money
Once you have found a house you like and you are ready to submit an offer you must provide Earnest Money along with the contract.
Where Did My Earnest Money Disappear To And When Will I See It Again?
It is hard to understand why earnest money is required and how it works with your real estate transaction. This can make you feel anxious because you’re thinking “Gosh, I need that money so that I can pay my closing costs and make a down payment on my loan.”
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Here are 6 facts about Earnest Money to help you understand what it is and how it works:
- Earnest money is a specific form of security deposit made in real estate dealings to show you are serious and willing to demonstrate an earnest of good faith about completing the transaction.
- Earnest money provides compensation to the seller if you decide to back out of the deal and are in violation of your purchase agreement.
- Earnest money will be held in escrow during the contract period by a title company, lawyer, bank, or broker – whatever is specified in the contract. It does reappear!
- The amount of the earnest money payment is set by the seller and their listing agent and can be a flat amount or a percentage of the purchase price.
- Earnest money does not typically show up on your initial loan document known as the Loan Estimate because the lender has to verify that it has cleared your bank account in order to show it as a credit there.
- Earnest money you paid gets released from escrow at the time of closing and is used to help pay your closing costs and/or your down payment. All or a portion of it is often times refunded to you at closing if it is not needed.
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Because I understand a lot of the TRICKS OF THE TRADE I can answer your questions before you worry about where your money has disappeared to!
KNOWLEDGE IS CONFIDENCE
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I want to be your guide and a valuable resource to you!!
If you or someone you know is thinking about buying or building a home please have them contact me.
Judy Ingels
(719) 229-7999
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Wednesday, July 31, 2019
by Cindy Grey
The Final Hurdle
Once you have found a house you like, made an offer, and been pre-approved for a mortgage by your loan officer you might think you are home free.
STOP, you still have an important hurdle to clear.
You now must get through the loan underwriting process. This can be frustrating and cause you to feel anxious because you have agreed to close on a certain contract date.
Underwriters are like detectives. It’s their job to make sure you have represented yourself and your finances truthfully, and that you haven’t made any false or misleading claims on your loan application.
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Here are 4 main things an underwriter looks at:
The stability of your income as it relates to paying off debt
More debt or lack of a sufficient income can increase your perceived risk.
Your credit history
Your credit report gathers past and present debt from the three major
credit bureaus: Experian, Equifax, and Transunion
Assets needed for the loan closing
What sources did the money come from and will you have money left over after
you close?
The home appraisal
The value of your prospective home must fit the size of the loan you are seeking .
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Because you want to cross the finish line of the loan process with minimal if any questions and requests for additional paperwork
please add me to your team!
I can help you to make sure your paperwork is complete. I will help you cross every “T” and dot every “I” and NAVIGATE THE HOME LOAN PROCESS WITH CONFIDENCE.
KNOWLEDGE IS CONFIDENCE
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I want to be your guide and a valuable resource to you!! If you or someone you know is thinking about buying or building a home please have them contact me.
Judy Ingels
(719) 229-7999
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Wednesday, July 31, 2019
by Cindy Grey
Compare Some Key Benefits of Buying vs Renting
When considering whether to buy or rent a home there is a lot to think about. It is puzzling to try and fit all of the pieces together to complete your PICTURE!
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KNOWLEDGE IS CONFIDENCE
5 questions to ask yourself before deciding on buying or renting
- Will you be raising children, and if so, does an apartment or condo renting make sense?
- How much can you can afford, and can you really afford to buy?
- How much other debt do you have? Do you have student loans? Credit card debt?
- What else could you invest in right now with your down payment money?
- Are you buying simply because your friends are doing it?
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Buying
- Creates possible long term wealth accumulation
- Has tax advantages
- There is the possibility of rental investment income
- Generates a greater feeling of security and stability
- With interest rates still low it may be cheaper to buy than pay high monthly rental rates
- Real estate as an asset has performed better than any other asset type in the last 30 years
Renting
- No downpayment is required
- No worry about mortgage commitments
- You do not need to worry about the cost of house and property maintenance
- Many buildings and condo complexes have fitness centers and swimming pools
- No worry of a real estate market collapse
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Once you have thought it through and are confident about your choice, feel good about what you’re doing. Being positive is a must for anyone!
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Let me be your guide if you or someone you know needs help with making this decision to buy vs rent!
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“To stay on course, we need a compass whether a person, guidepost, or sign" Judy Ingels
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