OF A HUDSON COUNTY MLS REAL ESTATE AGENT
Saving You Time,
Money and Adversity... Hudson County MLS Agents Add Value to a Real
Estate Transaction Working with a Hudson County MLS Agent can save
you time, money and adversity.
YOUR PLAN OF ATTACK
home may represent the largest single investment you will make
in your lifetime. It is one of life’s most exciting experiences
and one of the most challenging. As a result, there are many things
you need to know before signing on the dotted line. Whether you're
already a homeowner or a first-time buyer, preparation is the key.
A detailed plan will help ensure you complete all the necessary
steps in the complex process of buying a home. Plus, the more prepared
you are at the outset, less time will be spent on stress, panic
and uncertainty, and more on securing your piece of the American
Dream of Homeownership. This is your "wish list."
your wish list is complete, you and your Hudson County MLS Agent
should begin prioritizing the items. Which are most important and
which are less necessary, features are absolutely essential to you,
which are nice "extras" and which are completely undesirable? Some
items most buyers consider when making up your wish list:
for all family members
rate of neighborhood.
of homes in neighborhood and property values.
needs like large floor plans, play room for children, bedrooms
on same floor, etc.
to schools, employment, hospitals, shops, public transportation,
cultural activities, highways, airports, the shore, parks, stadiums,
With this information
readily available, your Hudson County MLS Agent will recommend properties
and neighborhoods that meet your wish list criteria.
STRENGTHEN YOUR CREDIT
your credit rating early on in your ‘plan of attack’ is a prudent
step, even if you think you have excellent credit. You may not
be aware of errors or disputed items that could be on your report
and it’s best that you correct these items before applying for
a home mortgage. If there are inaccuracies in your report, you
will need to write a letter to the appropriate credit bureau
explaining away the errors or disputes. Credit bureaus typically
help you straighten things out in under 30 days.
few tips about credit reports:
seven years (10 for bankruptcy) adverse credit information should
be removed from your credit report.
credit cards with higher credit limits may be looked upon as
cancel all used credit cards prior to your mortgage application
process (Speaking of credit cards... refrain from making any
big-ticket purchases during your home search and application
for a mortgage loan).
up your credit report, the next step is to determine the amount
of home you can afford. is important so you know your buying power.
Your buying power will provide you with a reasonable and realistic
expectation when it comes time to look for a home. There are two
terms you will hear in the mortgage application process that sound
alike but whose meanings are quite different: Pre-qualification
and Pre-approval. First, you and your Hudson County MLS Agent should
conduct the pre-qualification process before you start house-hunting.
The "pre-qualifying" process examines your income, assets and present
debt to provide you with an estimate as to what you may be able
to afford on a house purchase. The key words are "may be able to
afford." Be honest with your Hudson County MLS Agent and prepared
to provide a monthly accounting of all sources of income and expenses.
The mortgage "pre-approval" is similar to having money in the bank.
It's strength for you as a home buyer. Pre-approval is a written
commitment from your lender as to the amount of money that institution
will lend you to buy the home of your dreams. You can present this
commitment to the seller. The pre-approval spells out for the seller
exactly what you qualify for and at what rate, bring that seller
a peace of mind and giving you a leg-up on other potential buyers.
For you, as the buyer, the pre-approval is important for multiple
indicates the amount of your monthly mortgage payments
the amount you'll need for a down payment, and
the frustration of finding homes that you think are perfect but
are not in your price range. A cautionary note: Be certain you
want to buy a new home because a pre-approval does cost money;
money you could lose if you decide not to buy or choose to work
with another mortgage representative.
DO YOUR “HOME’WORK
you are pre-approved by a lender, it’s time to get ‘back to school’ and
conduct some home-work before you make the decision to buy. Surf
the Internet. Drive around neighborhoods that interest you. Look
at lawn signs. Go to "Open House" postings. Find homes that interest
you and choose from the ones your Hudson County MLS Agent provides.
First and foremost, try your best to keep your emotions in check
and remain objective. Refer to your “necessities” list and check
it against the home you are interested in. Overall, will this house
meet your needs as outlined on your list? You don’t have to worry
about the details right now; that’s what a professional home inspector
will do for you once the home is under contract.
snapshot of available homes include:
One home per lot—you own and are responsible for everything on
Homes: Buildings with up to four units, with the buyer intending
to occupy one of them and renting the other available units.
Similar to a single-family home, with condos you own the edifice
itself, the inside of the property and some of the common elements
like staircases, sidewalks and your roof. You’ll pay a homeowners
association to administer and take care of the exterior of the
Here, you purchase shares in a corporation that owns a building,
and you receive a lease to your own apartment. A board of directors
supervises management. Monthly charges include your share of
an overall mortgage on the building.
if you are an inspector yourself, you should hire a professional
home inspector to look at the house you’d like to buy. Plan on
being with the inspector during the inspection process. That way,
you can ask questions and get immediate answers. Plus, you can
review the inspector’s report and ask the inspector in person any
additional questions you may have. Once you found a home to purchase,
let your Hudson County MLS Agent know you want to make an offer.
Your Hudson County MLS Agent will contact the seller’s listing
agent and relate back to you items such as terms regarding the
sale, multiple offers, date for possession, etc. From there, you
and your Hudson County MLS Agent, based on the asking price and
surrounding market, determine a price you want to consider for
the home. Your offer will be presented in writing and will be accompanied
by a check for earnest money to show "good faith." Your Hudson
County MLS Agent will walk through every detail of the contract
with you and explain each of the terms and conditions. The offer
will include items such as the amount you would like to pay; the
inspection; the appraisal deadline; the loan approval date; the
closing and occupancy dates, and any contingencies, such as the
sale of your current residence.
seller may not accept your first proposal. Don’t worry. Negotiations
between the professionals will continue if you still desire the
home and the seller still wants to sell. Negotiations should result
in both parties agreeing on the terms of the transaction. Once
you and seller have agreed on the terms, the mortgage process gets
underway. Title insurance is ordered, inspections completed and
the sales contract finalized. The contract is then reviewed by
you and the seller, and signed by both parties. Just before closing
(either the day of or before), you and your Hudson County MLS Agent
(who will have already confirmed an appointment with the seller)
will take a final “walk-through” or inspection of the home. This
is your time to make sure agreed upon features, amenities and other
extras are there, and that repairs, if any, were made. That is,
ensure that contingencies, if any, were upheld.
The day has come. It’s closing time. The closing or settlement
is last step in the home buying process. The purpose of the closing
is to make sure the property is ready to be transferred to you
from the seller. At closing you will sign and sign and sign—all
sorts of papers and checks. Be sure to read each one carefully,
and ask questions. Your Hudson County MLS Agent, who should accompany
you to the closing, will be able to quickly and easily explain
any items that you are having difficulty understanding. Closings
will continue to conclusion unless something goes awry. At that
point, the problem is addressed and the closing continues. When
all the papers are signed, the seller hands over the keys and you
now know the house is yours.
closing, there are two categories of costs:
closing costs—items that are paid once and you never pay again.
closing costs—items you pay time and again over the course of
home ownership, such as property taxes and homeowner's insurance.
- Points, or your Loan Origination
Fee, is equal to one percent of the mortgage loan.
Discount Points - Any points in addition to the loan
origination fee are called "discount points." On a conventional loan,
discount points are usually lumped in with the loan origination fee.
Appraisal Fee -
Your property is your collateral for the mortgage, so lenders want to be
reasonably certain of the value and require an appraisal. Appraisal fees
Report - Required by your mortgage lender. Fees vary.
Inspection Fee - Required by your mortgage lender if you’re buying
a new home. Fees vary.
Mortgage Broker Fee - Applies only if you
work with a mortgage broker. Fees vary.
Fee - Required by your mortgage lender. Fees vary.
Flood Certification Fee - Required by your mortgage
lender. Fees vary. Flood Monitoring - Required by your mortgage lender.
Other Lender Fees - Required by your mortgage
lender. Fees generate income for the lenders and are used
to offset the fixed costs of loan origination. Costs vary.
Document Preparation - Required by your
mortgage lender. Fees vary.
Underwriting Fee - Required by your mortgage lender.
Administration Fee - Required by your mortgage lender.
Appraisal Review Fee - Sometimes required by your
mortgage lender. Fees vary.
Warehousing Fee - Rarely required by your mortgage
lender. Fees vary.
Items Required To Be Paid In Advance Pre-paid Interest -
Since mortgage loans are usually due on the first of each
month, this fee is based on the number of days the closing
takes place prior to the first of the following month.
Homeowner's Insurance - Typically, you will
pay the first year in advance. fees vary.
VA Funding Fee - The Veterans Administration sometimes
charges a fee for guaranteeing your loan. Fees are normally added to
the balance of the loan.
Up Front Mortgage Insurance Premium (UFMIP) -
This is charged on FHA purchases of single family residences
(SFR's) or Planned Unit Developments (PUDs) and is 2.25%
of the loan balance. Like the VA Funding Fee it is normally
added to the balance of the loan.
Mortgage Insurance or PMI - Most mortgage insurance
(if required) is paid monthly with your mortgage payment. PMI covers
the lender and a portion of the losses in cases where borrowers default
on their loans.
Reserves Deposited with Lender - The lender's goal
is to always have sufficient funds to pay your bills as they come due.
Here, if you make a minimum down payment, you may be required to deposit
funds into an impound account to make the payments on your homeowner's
insurance, property taxes, and mortgage insurance. Impound accounts
are sometimes referred to as escrow accounts.
Homeowners Insurance Impounds - Since a lender is
allowed to keep two months of reserves in your account, you will have
to deposit two months into the impound account to start it up.
Property Tax Impounds - Here, the amount
varies depending on when your closing takes place. Fees vary.
Mortgage Insurance Impounds - Most lenders ask that
you may put at least one, possibly, two months worth of mortgage insurance
as an initial deposit into your impound account. Non-Recurring Closing
Costs Not Associated With The Lender Closing/Escrow/Settlement Fee
- Methods and fees vary.
Title Insurance - Title Insurance costs
vary depending on whether you are purchasing a home or refinancing
a home. The title insurance exists to protect you from any
claims that could be brought against the property you’re
buying. The title insurance gives you a guarantee, that once
you have bought your home you own it, or else, the title
company must compensate you for damages.
Notary Fees - Loan documents have two or
three forms that must be notarized. Fees vary.
Recording Fees - Certain documents get recorded
with your local county recorder. Fees vary.
Pest Inspection or Termite Inspection -
Typically paid by the seller of the home. Home Inspection
- Optional item.
Home Warranty - Optional item.