Things Your Mother Never Told You: Closing Costs
Buying or selling a home can be one of the most life changing decisions a consumer makes.
Being educated about the real estate process and investigating things you don't understand is essential.
Working with trustworthy and communicative real estate professionals is important.
A lot of money is on the line when purchasing or selling a home, so be sure to ask questions when you need to about charges, fees or other issues.You Gotta Have Faith!Three days after an initial application has been submitted the lender must provide a Good Faith Estimate of settlement costs (GFE).
The GFE is a list of closing charges and the HUD settlement statement you receive at closing is the confirmation of these charges.
Carefully review the GFE costs and question anything you do not understand.
When you receive the HUD statement the charges and fees should be familiar to you and reflect the GFE.
There shouldn't be any closing cost surprises.
If the GFE and HUD costs do not match these issues should be addressed immediately.
Discuss the cost discrepancies with your REALTOR and a lender representative.
Any costs not disclosed on the GFE can be argued against and removed from the HUD.
Closing Costs 101The first page of a HUD shows the buyer what matters most, the exact amount due at closing.
Charges associated with a loan are broken down into sections. Lender costs include fees for origination, discounts, appraisal, credit reports, underwriting and processing.
Closing and title costs cover charges from the third party closing agent and for the title search, insurance and recording.
Taxes will be listed and fees associated with the deed.
The buyer may also create an escrow account holding prepaid funds so taxes and insurance payments are made on time by the lender each month.
The REALTOR commission will also be listed, along with survey fees, if necessary.Financial Responsibilities of the Seller
At closing, the seller also has financial responsibilities.
The seller pays sales taxes and lawyer, titling and commission fees.
If necessary the seller is held accountable for outstanding Home Owners Association fees, termite and moisture inspection charges and well water and septic testing.
Repairs that need to be done to the property will be taken out of the seller's proceeds.
Liens owed by the seller must also be paid, including tax liens.
The seller must insure the home until the deed to the property is recorded a few days after closing. The buyer must have insurance activated on the closing date. Invest and Save MoneyMost homebuyers know that a down payment helps save money because it lowers the loan amount and mortgage insurance.
This reduces the monthly payments.
It also qualifies you for mortgage programs with better rates.
Another savings tip is to pay your closing costs up front with the down payment.
Avoid rolling the closing costs into the loan itself or the loan and interest increase.
Without funds to cover the down payment and closing costs you will want to refinance later.
Another important investment homebuyers should make is to work with a mortgage broker.
A mortgage broker will shop for the best loan and interest rate.
The knowledge a mortgage broker has can equal savings of up to $50,000 in interest charges.
If you have credit issues or just want the inside scoop a mortgage broker is your best choice.Completing the TransactionThe closing is an exciting day for both the buyer and the seller.
The buyer should bring the GFE for reference during the meeting and request to review the HUD 24 hours in advance.
This means you are prepared and comfortable with the completion of the real estate purchase.
A third party closing agent and the REALTOR will be present.
The loan officer or mortgage broker can also be present to answer any questions regarding the loan.
Some companies, like Breakwater Mortgage in Virginia, require their brokers to attend.
Companies like this can be better to work with since they are willing to be more involved.
Now that all questions have been answered and the sale has been completed you can look forward to your new home and focus on the future!.
Elaine VonCannon is a REALTOR with RE/Max Capital in Williamsburg, Virginia, and she manages investment property.Elaine is also an Accredited Buyer's Representative as well as a Senior Real Estate Specialist.
She has helped numerous clients invest in and make money on property in Southeastern Virginia.
She can be reached at www.voncannonrealestate.com.vonmor1@cox.net
Tips for an easy card processing
By Soli Katir
www.credit-card-magazine.com
Most businesses conduct their transactions with the help of credit cards. Moreover, personal transactions could also be carried out through the use of credit cards. Credit card has become very essential for shoppers since it eliminates the need to carry a large amount of cash. It gives convenience both to the customer and the seller because transactions can be done any time you want it. It helps in managing your money easier and can be especially used during emergencies.
Using credit cards on online transactions boost your business profit against your competitor.
Here are the three key elements needed for credit card processing:
1.
Payment gateway - combination of secure software and hardware that transmits payment information from customer to merchant, provides interface, credit card processing, billing, reporting and operational services.
2. Internet...
Hedge funds > Tips for an easy card processing
Faber, Coe & Gregg Selects Trintech?s ReconNET to Increase Efficiency, Reduce Costs and Improve Financial Controls
Trintech (NASDAQ: TTPA; Prime Standard: TTP), a leading provider of transaction reconciliation and payment infrastructure solutions, today announced that Faber, Coe & Gregg, a retailer of sundries, periodicals and paperbacks, has selected ReconNET to automate the verification and reconciliation of bank deposits for its 70 locations. The installation of ReconNET will enable the company to perform daily deposit verification and reconciliation to reduce costs and gain greater reporting and financial controls.Faber, Coe & Gregg, founded in 1848, operates shops offering news, gifts, books, and caf?s in airports, train stations, hotels, office buildings and highway rest stops. Faber specialty shops can be found from Chicago to Miami Beach.
"With ReconNET, we'll have daily verification of our deposits. We won't have to wait until the end of the month to reconcile our accounts," said Burt Friedman, CFO at Faber.
"This tightening of cash controls will reduce our exposure to theft...
Faber, Coe & Gregg Selects Trintech?s ReconNET to Increase Efficiency, Reduce Costs and Improve Financial Controls
Hedge funds > Faber, Coe & Gregg Selects Trintech?s ReconNET to Increase Efficiency, Reduce Costs and Improve Financial Controls
Glide into Tax Season with Solid Financial Planning
(ARA) - With good planning, you can start the year off right by making sure you and your family are financially fit and ready for the new year, and possibly reduce your tax bill.
Here is a financial checklist to consider:Tap into the Power of Tax-DeferralIf you are thinking of investing in mutual funds for long-term or retirement savings, purchase a variable annuity.
You've got the 1099 forms for 2000 already from any mutual funds you own.
If you have a tax bill this year, you'll likely wait until April 15 to pay it, to give the money extra time to work for you.
What if you had the option to wait 10 or 20 years to pay?
That's tax-deferral.
You control when you pay taxes on your money so you can get the maximum mileage out of your investment earnings.Variable annuities provide tax-deferred investments -- you pay no taxes on the earnings until you actually withdraw the money, and you receive no tax assessment during the accumulation...
Glide into Tax Season with Solid Financial Planning
Hedge funds > Glide into Tax Season with Solid Financial Planning
SMART NEW FINANCING TOOL FOR THE SMALL BUSINESS OWNER
Pressed for cash, many people will take money out of their individual retirement account (IRA) as a means to get quick access to capital. They do this even though they have to pay taxes and generally if they are younger than 59 ?, also pay a 10% penalty on the money they withdraw.Only as a last resort should one touch their retirement savings for anything other than retirement expenses. But, in those cases when you need to tap into your retirement savings, a way to get money out of your retirement account without paying the penalty and deferringthe tax was just made available beginning in 2002, as a result of a tax law change.Under the new law, those with a small business and no employees or only a spouse as an employee can establish Solo-Owner 401(k) plans and take a loan from those plans. The loan from the Solo-Owner 401(k) is not treated as a withdrawal. As such it is not subject to tax and the 10% penalty for early withdrawal as long as you repay the loan on time.You can roll over...
SMART NEW FINANCING TOOL FOR THE SMALL BUSINESS OWNER
Hedge funds > SMART NEW FINANCING TOOL FOR THE SMALL BUSINESS OWNER
Things Your Mother Never Told You: Closing Costs
Buying or selling a home can be one of the most life changing decisions a consumer makes.
Being educated about the real estate process and investigating things you don't understand is essential.
Working with trustworthy and communicative real estate professionals is important.
A lot of money is on the line when purchasing or selling a home, so be sure to ask questions when you need to about charges, fees or other issues.You Gotta Have Faith!Three days after an initial application has been submitted the lender must provide a Good Faith Estimate of settlement costs (GFE).
The GFE is a list of closing charges and the HUD settlement statement you receive at closing is the confirmation of these charges.
Carefully review the GFE costs and question anything you do not understand.
When you receive the HUD statement the charges and fees should be familiar to you and reflect the GFE.
There shouldn't be any closing cost surprises.
...
Hedge funds > Things Your Mother Never Told You: Closing Costs
Lower Upset Amounts at Some New Jersey Sheriff Sales
(ContentDesk) March 26, 2006 -- In my recent travels I have been reviewing the results from past sales in a few different New Jersey counties. Two counties in particular showed that some properties are selling for less than the advertised judgment amount in the Public Notice.This is a very different story than what we were seeing just a few months ago. Now I am not talking about 20-30k less, but a few thousand is enough to notice a change in market conditions. Not to mention the recent proactive effort by most lending institutions. Did you know that most banks, for one of the first times in history, are calling up the homeowners and trying to make a deal with them before it gets too bad? In fact GMAC has just funded an entire organization to assist with homeowners in trouble.
It is called http://www.995hope.org/ . Press Releases say that GMAC contributed about 20 million in seed capital funds to get it going.What does all this mean? Well Im not actually sure at the moment, but...
Lower Upset Amounts at Some New Jersey Sheriff Sales
Hedge funds > Lower Upset Amounts at Some New Jersey Sheriff Sales