1. Which Type of Loan is Best?

If we hadn’t already done this for you, this article gives you some tips on finding a good mortgage
broker. Remember that a reputable lender will find out more about you before throwing out loan options. You wouldn’t expect a doctor to suggest surgery before she assessed your medical situation, would you? Choose a lender who gathers enough information from you before she suggests a certain type of loan and make sure you tell them the truth. Don’t be afraid to ask a lender to explain the pros and cons about:

• Fixed-rate loans.
• Adjustable-rate loans.
• Interest-only loans.
• Negative-amortization loans.

2. What is the Interest Rate & Annual Percentage Rate

On most loan documents you are going to see the letters APR, it is derived by a complex calculation that includes the interest rate and all the other related lender fees divided by the loan’s term. However, bear in mind that:

• Many lenders do not compute APR correctly.
• There is no way to accurately compute an APR rate for an adjustable loan.
• It does not account for early payoffs.

If you are considering an adjustable loan, ask your mortgage broker

• Adjustment frequency( monthly, quarterly, yearly, every 3 years)
• Maximum annual adjustment
• Highest rate (Cap)
• Index
• Margin

3. What are the Discount Points and Origination Fees?

Points are equal to 1 percent of the loan amount. Therefore, 2 points on a $100,000 loan cost $2,000, pretty easy right. And they need to be discussed and will be with a good mortgage broker in the very beginning of discussing different loans that are available to you.

4. What Are All the Costs?

Federal law makes it mandatory that a lender provide for you a GFE(more below) It will include the costs of a loan include not only fees that go into the lender’s pocket but also related third-party vendor fees such as:

• Appraisal
• Credit report
• Lender’s title policy
• Pest inspection reports
• Escrow (where applicable)
• Recording fees
• Taxes

An estimate of these fees constitutes the Good Faith Estimate or GFE, which the lender is required by federal law to give to you.

5. Will the Lender Guarantee the GFE?

According to the Real Estate Settlement and Procedures Act (RESPA), lenders have three days after you’ve applied for a loan to give you the Good Faith Estimate, containing all the costs of your loan. They call this a GFE and it had better be almost exactly the same as the actual HUD statement that they produce for the loan closing, if it isn’t there are some questions that need to be asked and answered and your good mortgage broker will handle them for you.(Go to resources and select mortgage broker)

6. Do You Offer Loan Rate Locks?

All interest rates can fluctuate and change daily. If you have reason to believe that interest rates are moving up, you might want to lock your loan. Lenders typically charge zero to one point to lock a loan rate and points. A good mortgage broker will let you know if you are in jeopardy of losing a good rate and may suggest tying it up.

7. Is There a Prepayment Penalty?

In some states, prepayment penalties are no longer allowed or legal. Typically, prepayment penalties let the lender collect an additional six months or more of “unearned interest” if you pay the loan off early through a refinance of sale of the property.

8. Are You Equipped to Approve Loans In-House?(Most mortgage brokers aren’t)

Underwriters review loans and issue conditions before approving or rejecting a loan.

9. How Much Time Do You Need to Fund?

Most loan processing time periods fall between 21 and 45 days. To properly write a purchase contract, you will need to include a closing date, and that date should be coordinated with your lender.

10. What is the Yield Spread Premium?

If your mortgage broker is receiving a yield spread premium (YSP), a commission paid directly by the lender to your representative, this fee will be disclosed on your settlement statement at closing. YSPs are a controversial matter because it is a little known fact that they even exist.

Fixed rate or variable, which is right for you

Evaluating offers

Getting the House Ready to Sell

Don’t be home for showings

Make sure that your Boca Raton house is always available for showings, even though it may occasionally be inconvenient for you. Let your listing agent put a lock box on the outside, so that if they have a hot prospect and you aren’t there, they can get in.

Your Boca Raton Realtor will always call and give you at least a couple of hours notice before showing your Boca Raton residence.

Try Not to be Home

A person who is consider buying your Boca Raton home is going to feel like an intruder if you are home when they visit, and they might not be as receptive toward viewing your home. If you don’t like the idea of leaving your home, then go outside and let the Realtor do their thing.  Do not volunteer any information, but answer any questions the agent may ask.

Lighting

When you know someone is coming by to tour your home, turn on all the inside and outside lights – even during the day. In the evening, a lit house gives a “homey” impression when viewed from the street. During the daytime, turning on the lights prevents harsh shadows from sunlight and it brightens up any dim areas.

Fragrances

We have already talked about scented candles and I happen to like them, some don’t, if you want to have a pleasant aroma in your house, have a potpourri pot or something natural. Another trick is to put a drop of vanilla extract on a burner and turn it on briefly.   One of my all time favorites is get the bread at the grocery store that you just pop in the oven and bake it just before the showing.  Two bennies, one your home smells wonderful to everyone and you’ve got fresh baked bread for dinner.

Fixed rate or variable, which is right for you

Evaluating offers

Getting the House Ready to Sell

Finding A Good Mortgage Broker

Windows & Doors

Make sure to check all of your windows to make sure they open and close easily. If they don’t a little WD40 often helps. Make sure there are no cracked or broken window panes. If there are, replace them before you begin showing your home.

Do the same things with the doors including the sliders – make sure they open and close properly, without creaking. If they do, a shot of WD40 on the hinges usually makes the creak go away. Check door knobs to be sure the doorknobs turn easily, and that they are cleaned and polished to look sharp.

Odor Control

If you are a smoker, you might want to minimize smoking indoors while trying to sell your home. Actually, it is best to move smoking outside.  You could also purchase an ozone spray that helps to remove odors and creating a masking odor.  Or try scented candles, they are cheap and hide odors very effectively.

Apologies to pet owners, I am a pet owner, but pets come with odors.  You may have become used to them, but they are immediately noticeable to those with more finely tuned olfactory senses, especially if you have cats who have had accidents.  If your cat has urinated on your carpet, the bad news is you are simply have to replace the carpet & pad.  No service on the planet is going to remove the smell period.

For those with cats, be sure to empty your kitty litter boxes daily and use plenty of baking soda.  For dog owners, keep your dog much as possible, even those adorable lovable little dogs. Sprinkling carpet freshener on the carpet on a periodic basis and especially before a showing is a good idea.

And I hope you all know that you must make sure that your animals are not present at showings ever.

Fixed rate or variable, which is right for you

Evaluating offers

Don’t be home for showings

Finding A Good Mortgage Broker

OK you have done any necessary repairs, cleaning, and completing many other activities. As a Boca Raton home owner wishing to sell their house you reach the stage where they receive an offer and that is the idea right? The fortunate may find themselves entertaining more than one at a time, or with an ideal offer dropped in their lap. Knowing how to judge and deal with these offers is necessary and sometimes difficult.

You’re selling you Boca Raton home and as a seller you need to remember that what you paid for a property probably has little to do with what someone will offer you.  While appreciating a good property is wise, home sellers should allow their real estate agents to guide them to a better understanding of the area and current market in order to determine what a fair price for your Boca Raton house is.

The things that determine a fair price are mainly what Boca Raton properties have sold in the past 90 days in your area that are similar to your home.  Another consideration that appraisers will consider is what other Boca Raton homes are you competing against. Remember that if the bank has a REO like yours at a huge discount, that it will affect the amount someone will pay for your Boca Raton property.

Once you have an offer naturally the price is the key factor, but not the only one. For example, a prospective buyer who offers a great price but couldn’t borrow $.10 without a gun may not be able to follow through and get a mortgage. MSN Real Estate notes such cases can and do waste a significant amount of seller time and effort. If a buyer’s financial situation is unclear but the sellers are interested, this is a perfect time to say “No problem” I’ll have my mortgage broker contact you to let you know exactly what types of loans you would be eligible for.

Two Tips

TIP #1   Make sure that you have in your contract that the buyer must apply and receive approval for the loan within a short period of time, say 7 days. This lets you know quickly whether or not you have a real buyer or not so you can entertain other offers.

TIP #2   Accept back-up offers during the time while you are determining whether your initial offer is going to be able to qualify and close.  In order to do this it should be included in the contract that you and the initial buyer sign.  This does a couple of things, it lets the first buyer know they better get their act together quickly or they could lose the Boca Raton dream home they are hoping to buy.  Secondly, it allows you to have a back up offer in the wings if the first offer falls apart.

Fixed rate or variable, which is right for you

Getting the House Ready to Sell

Don’t be home for showings

Finding A Good Mortgage Broker