My wife and I just purchased a house and are filing an amended return to get our stimulus payment of $8,000 now rather than waiting until next year. Our question is do we need to send in any of the house closing documents with our amended return to show proof that we purchased a house?
How to Get House Closing Documents from Title Company?
My title company is not providing me post house closing documents. Should I get a house closing lawyer involved?
I sold my house and the title company closed well over a month ago. I’m still waiting for final copies of the paperwork from the Title company. What I want are copies which were signed by both parties. I believe it is my right to have copies of these documents in my possession. I have tried calling the Title company. The person who processed my closing does not return my calls. I also left messages with the Title Operations Manager, and he is not returning my calls either. My Realtor’s office has also been calling on my behalf and they say the Title company is not returning their calls either. I’ve since moved out-of-state so walking in the front door and getting in someone’s face is not an option. Should I get an attorney at this point or should I wait a little longer?
First Time Home Buyer?
Often, people have heard of THDA and are confused, thinking that THDA is a certain loan type. In fact, it’s lending agency. All THDA mortgages must be insured by private mortgage insurance, FHA, VA or RECD And as these loans are intended for low to moderate income families or individuals, there is a income limit and acquisition cost limit. Also, you must be a first time homebuyer unless your home is in a targeted area.
Why is THDA so fantastic for a first time homebuyer? Well, it comes down to money. THDA offers a below market rate and will allow up to 100% financing. Have you been reading the papers lately? It’s not so easy to find 100% financing these days. Unless, that is, you’re a first time homebuyer. It also has programs that allow for down payment assistance via grants from certain approved agencies (if your loan type requires a down payment). If you have satisfactory credit and the home you wish to buy meets THDA’s standards, then you’re in business.
All THDA mortgages are 30 year fixed rate loans, so you needn’t worry about finding yourself with an ARM loan (adjustable rate mortgage) and a new payment you can’t afford in 3 years. And THDA allows lenders to only charge customers a standard 1% origination and .25% discount fee. It also closely monitors fees associated with the loan. THDA really looks out for the best interest of the first time homebuyer. If you are eligible for a THDA loan, you can feel pretty certain that an unscrupulous lender can’t take advantage of you because THDA won’t let them. For so many people, buying a home is pretty intimidating. THDA takes away the uncertainties a buyer faces with its guidelines and lending practices.
If you do apply for a THDA loan, be prepared to document your credit worthiness. THDA loans require slightly more documentation than your average loans because of the uniqueness of its product. In order to offer more, THDA asks for more – ensuring you qualify for its pretty awesome program. Sounds like a fair trade, if you ask me.
What are the disadvantages of a THDA loan? Not many. They do have a federal recapture tax if you sell your home within the first nine years of owning it. But it sounds scarier than it really is. I’ve heard that only about 1% of THDA customers actually pay this tax. That’s because a bunch of really great things have to happen to you in order for it to actually apply to you. And if those great things happen to you, paying the recapture tax won’t matter much to you anyway. I’ve been in the business for 16 years and have only heard of one person actually having to pay one. He graduated from medical school and his income when through the roof. His property was sold above market value than for the area because it was adjacent to some property that a huge retailer wanted to purchase. Again, good things have to happen to pay the recapture tax. So, you shouldn’t be afraid of it.
More people need to hear about and take advantage of the THDA loan programs. It’s such a great product and really helps the community and the housing industry. If you’re a first time homebuyer or think you’re in a targeted area, make sure you ask about THDA to see if you would qualify for a loan. You won’t regret it!
Real estate closing and negotiating – Home closing tips
Real estate closing and negotiating – Home closing tips If you’re in the market to buy a home, you’re in luck – prices are down. But you can still pay too much, including unanticipated house closing costs. Gerri Willis, author of Home Rich and CNN personal finance editor, has tips to help you avoid paying more than you have to. Keywords: real estate negotiating real estate closing house closing closing mortgage home closing
Your House Appraisal at Your House Closing
A good house appraisal is the best reassurance that the lender won’t lose its pants on the transaction. If the borrower defaults, the lender still has a marketable property that can be sold to recoup its losses. All of which makes it understandable why lenders are so picky about appraisals. And with recent changes in the industry, the focus by lenders to obtain good appraisals is at the forefront.
House appraisals typically cost anywhere from $350 to $400. However, if the house is gigantic, multi-unit or in the boondocks, it could run more. The cost varies on property type, location and square footage.
The most common type of house appraisal is the Uniform Residential Appraisal Report (URAR). It consists of interior and exterior photos and sometimes (depending on the age of the home), a complete cost breakdown of the property and comps (comparison sales of homes nearby that meet the proper criteria). These comps help determine the “market” approach. Each comp sale is adjusted in value when stacked against the home being evaluated (the one you’re buying or refinancing). Usually you will see a comp below the value of your home, in line with the value of your home, and a third above the value of your home. Kind of like the three bears. But if the valuation gets tricky, you can see fourth, fifth and sixth comps. The net value of the comps is estimated based upon the approaches used to come up with the appraised value of your property (meaning the appraiser performs some type of calculation that’s kind of like an average, but not necessarily a true average. Confused yet?)
URARs also, typically but not always, reflect a cost approach, which determines what the value would be based upon what is estimated it would cost to rebuild the home, less depreciation. The final estimated value of the home is then determined by using a melding of the market approach described above and cost approach (if applicable).
Lori Babb, Staff Appraiser for Mortgage Investors Group of Knoxville, TN, further explains comparables. “The best comparables are those similar in size, style (ranch, basement rancher, 2 story, etc.), age, and are close in proximity to the dwelling being appraised,” she explains. “Unique properties will typically require more adjustments than the average properties.”
So, say you’re Bill Gates and want to secure a mortgage on a $200,000 home (I know, it’s ridiculous, but I’m trying to make a point). He’s got the best credit profile a lender could imagine, yet the house appraises for $175,000. Deal or no deal? You better believe it’s no deal. The sales price will have to be lowered, or Mr. Gates will just have to pay cash for his new home (you think he can afford it?). The point is, your average Joe won’t go ahead with the deal without a price adjustment, and he will be obligated to pay for the appraisal regardless of the outcome of value.
Dan Tyrell, principal of Knoxville area’s Tyrell Appraisal Service, Inc., has this comment about value, “When determining value of a single family house, beauty is more than ‘skin deep’. Fresh paint, new carpet, new appliances, and nice landscaping all enhance the marketability of a house. Not so obvious items also impact the appraised value of a house. For instance older houses that have replaced plumbing/electrical systems, updated HVAC systems, newer roofs, replacement windows, etc. lower the effective age of the property which in turn increases the appraised value.”
There are other types of appraisals that are not as common, like an Automated Valuation Model (or AVM). In this case, different factors combine to ensure the value of the home (it’s worth $200K, but your loan amount is only $100K) and your unbelievable credit worthiness (800 credit score!), allowing you to skip purchasing a typical appraisal. You may also only be required to get a “drive by” appraisal, where the appraiser just inspects the exterior of the subject for size, looks at the lot and makes you wonder who that person standing by your mailbox is.
Most lenders control what appraiser is used to determine the value of your home. After all, it’s their money on the line. The appraisal is such an important factor to the mortgage transaction – make sure you’re satisfied with the results. Your lender will make sure it is satisfied!
Affordable House Closing Costs with an FHA Loan
Many people want to buy a home but between the down payment and the house closing costs many people just cannot afford to buy a home. It is something that has plagued the home loan industry for years, but when you have an FHA loan you will find that you can pay very little to get into your dream home. With a loan that is insured by the Federal Housing Administration you have several things on your side that make the process of getting into a new home more affordable. When you look into this type of loan you may find that you can spend as little as a month or two of rent to get into your new home, or less!
Step into Your New Home Affordably with an FHA Loan
With an FHA loan you will find that you don’t have to pay as much in house closing costs as you would if you were closing with a conventional loan. Why is this? It’s simple, actually. With an FHA loan there are restrictions and limits on what sort of costs can be added into the house closing costs. What this means is that the lender, the broker, and the realtor do not have carte blanch to charge you for anything and everything that they can think of so they can make more money off of your purchase. Instead, they have to keep things honest and legit and the restrictions and limitations ensure that you are only paying what you are obligated to pay, and nothing more. These limitations can help you reduce house closing costs from the tens of thousands of dollars to just two or three thousand dollars!
In addition to the limitations on house closing costs, the FHA also allows for the seller to contribute as much as six percent to the borrowers house closing costs. What this means is that if you are working with a seller who really wants to sell their home and they want to make it as quick and painless as possible, they can kick in some of their profits and help you pay for the house closing costs. So, if you had house closing costs of $6,500 and the seller wanted to contribute six percent of the costs on a $100,000 home they would be paying $6,000 of your house closing costs so you would only need to pay $500 in house closing costs. Many buyers will not contribute this much but they will offer four or four and a half percent or something like that.
What is different about this is that when you are working with a conventional loan the seller is limited to contributing 3% to the borrowers house closing costs. You would be surprised how many sellers are willing to contribute more than the 3% to the buyer when they are able because they just want to get the home sold and they want to be done with the whole process of selling their home. Being able to accept these contributions of more than 3% from the seller can help to make the purchase of a new home much more affordable for the average home buyer. The difference between the three and six percent is $3,000 and at the end of the day that is a lot of money when you are trying to keep the costs of your FHA loan to a minimum.
Reduce Your House Closing Costs
Many first-time home buyers are dismayed at the sudden appearance of house closing costs that seem to come from every conceivable avenue. They also can be beset by fees that seem to have no real explanation and cost them hundreds of dollars. Many people accept this as part of closing a real estate deal, but if you want to save as much money as possible, you will want to carefully evaluate each fee and find out which ones can be waived or eliminated.
Attitude and knowledge are your biggest weapons when dealing with lenders. Be polite at all times, but pretend that this is the 50th home you’re going to buy and you’re just doing it because you’re bored. You don’t need this home or this lender. You bought 10 homes last week. You just sold a dozen. Let the lender know by your attitude that you’re not so heavily invested in this home that you can’t walk away if your questions aren’t answered or your needs not met. Be prepared to do just that; many lenders have been used to buyers who will spend several thousand dollars more than they have to in order to buy a home. If you can find one lender, you can find another and it’s better to wait than to go with a lender who is not going to treat you properly.
There are a number of fees that can be reduced or completely waived for the savvy home buyer. Among them can hide “junk” or “garbage” fees, which are tacked on to the overall costs merely to make money for the lender. Things like “settlement fees” “underwriting fees” “messenger fees” are examples of fees that are soley there to provide profit for the lender. Learn the more common terms and ask for these fees to be waived.
Third party fees, such as appraisal, attorney fees, credit report, title insurance and title search are generally non-negotiable, as the lender has nothing to do with how much the third party charges. However, when searching for a lender, keep a record of how much is charged for each service and ask why if there is a drastic difference between one lender’s charge for a service and another’s.
Remember that you can walk away from your mortgage at any time. Even if it would cost you to do so, take this attitude in your dealings with your lender. If a fee is unexplained or too high, call them on it. You don’t have to be rude or hold it over their head like a guillotene, just don’t be so desperate to buy that you end up giving more money than you need to.
House Closing Costs
When it comes time for you to purchase a new home or refinance the one you are living in, you cannot forget about the house closing costs.
Closing costs consist of no more than 5% of the total amount of the loan, so when you are sitting down to figure out your financial situation to get a grasp on what you can afford and what percentage you can put down, don’t forget to factor in the house closing costs.
The house closing costs you will pay are a one time fee that in no way can be avoided, so be prepared to pay them.
Closing costs consist of loan origination fees’, escrow fees’, home owner’s insurance, title insurance, property tax, property inspection, the appraisal fee, etc.
As you can see, you will be responsible for paying quite a pretty penny before you even step foot in your new home or even refinance your existing one.
For the sake of those refinancing, the house closing costs are usually taken out of the equity in the home. Of course the choice is yours and you are made well aware of this up front.
Closing costs are sometimes misunderstood by the consumer. It is important to understand that not all of the fee’s are being collected by the lender. Generally the application fee and the loan origination fee go to the lender while the other costs are distributed to the appropriate institutions.
Unfortunately for the consumer, nobody works for free. So there is no way of getting around these fees. So be prepared to factor the closing cost’s into the scenario while you are determining your spending power.
House Closing Documents – Original, Certified and Copied
After closing the deal on purchasing new home, what documents should I have in original/certified/or only photocopies?
Currently I have only photocopies of everything, and the signatures were not even completed.
Should I be worred and start collecting all certified copies of Owner policy, Deeds, affidavits, house title etc?
Please help list documents that I MUST have in original/certified copy that will be needed in the future.
How Does Power of Attorney Work with a House Closing Lawyer?
My husband, too, can not attend the closing. My Realtor said we could get power of attorney. I will talk to her later about it, but how does that work? Thanks!
Oh, and we are the buyers. Thanks!