Michelle Burgos, CDPE~Short Sale Expert Miramar,Pembroke Pines,Broward REALTOR®

Creative Financing

Financial Issues

Closing Costs

There are certain standard costs associated with closing the sale of a house. These fees are split between the buyer and the seller, as spelled out in the sales contract.

As I negotiate the sales contract for you, I will not only work to get the sales price you want, I will also work to limit the number of closing costs for which you will be responsible.

I will walk you through the closing costs, answering any questions you may have explaining which costs are decreed by law to be yours and which are negotiable.

Good Faith Estimate

Buyers will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer's past experience and may not include all the closing costs. I will be glad to review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates I believe to be low.

Real Estate Wish Team ~ RE/MAX PowerPro 4301 Flamingo RD Suite 101 Davie, FL 33330
Cell: (305) 970-9933 Fax: (954) 874-2520 E-mail: Info@MiramarPembrokePinesShortSales.com

Selling One, Buying Another

In a perfect world, you sell your old home and buy the new one on the same day. Given that things rarely turn out perfectly, here are some things to keep in mind as you negotiate the sale of one house with the purchase of another.

Time it right

Fall and spring are the best times for homes to move and you want to consider the season of the year when buying and selling. And if the closing dates aren't going to coincide, a gap - rather than two mortgages - is the better. It's easier and usually cheaper to find temporary housing than juggle two mortgages.

Selling First

• Selling your home before buying a new one minimizes financial hazards. Even if you have to find temporary housing, it's generally cheaper than two mortgages.
• Get an appraisal first thing off the bat. That way you'll have a good idea how the sale of your home will effect your purchasing power on the new one. This will help keep you from over extending your mortgage abilities.
• Get pre-approved on a loan for the new home.
• Until most of your contingencies have been met, wait to put an offer on a new house. You don't want to be left holding the bag, or in this case, the house.
• If you're ready to accept an offer on your home, but haven't found the right new home, negotiate a long escrow or a sale/lease back. This will give you more time to look for the new home. Otherwise, look for temporary housing.

Buying First
It happens. You're only thinking of buying, and suddenly the right home shows up. Now you have to sell your old home quickly. Here are some tips on making things work in your favor:

• Negotiating a long escrow on this side of the sale works, too. You can also make the purchase contingent on your house selling. This will work better in a slow market, but it's worth a try in any market. You never know what may also work best for the seller of your new home.
• Try and schedule the closing date of your current home prior to the closing on your new home. Temporary housing is generally a better situation than two mortgages.
• Take a close look at what price you're going to ask for your home. Make sure it's realistic in the current market.
• When you get an acceptable offer, check the buyer's credit history. You don't want any surprises that are going to delay things. If you've closed on the new home, but haven't sold the old one, consider renting it out, or taking it off the market until the next season (or until the market improves).

Same Market or Across Country

Generally, if you're buying and selling in the same market, you can negotiate closing dates to work for you. But when you're dealing with a cross country move, it's a lot harder. A real estate professional really comes in handy at this point. Legal documents can be faxed or sent via overnight courier and your focus won't be stretched to the limit. You may end up renting one home or the other, or have to consider a bridge loan. But with someone local in the market on your side, it will hopefully be less stressful.

Show Me the Money

Make sure you have a tight hold on, and a clear understanding of, your financial situation. Cash reserves are always helpful, but never more so than during the purchase of a home. Two to three months is the recommended reserve, but if you don't have it, this is where the bridge loan comes in handy. Some lenders are more inclined to make a loan if it's for the purchase of a home. If you're a smart shopper/seller, you'll accept an offer from someone who's flexible about move-in dates. It can save you money in the long run. Too many moves with storage costs can quickly eat up any profit you may have made in the transaction.

Real Estate Wish Team ~ RE/MAX PowerPro 4301 Flamingo RD Suite 101 Davie, FL 33330
Cell: (305) 970-9933 Fax: (954) 874-2520 E-mail: Info@MiramarPembrokePinesShortSales.com

ABANDONMENT
herein a property owner has given up ownership rights without coercion, and does not want to retrieve those rights, or pass them to somebody else. A situation involving an unused property does not guarantee abandonment.

ACCELERATION CLAUSE
A provision in a mortgage that gives the lender the right to demand immediate payment of the outstanding loan balance under certain circumstances. Usually when the borrower defaults on the loan.

CHATTEL
Any personal property which is not attached to or an integral part of a property. Chattel is not commonly taken into consideration when appraising the value of real property.

CLOSING COSTS
All appropriate costs generated by the sale of property which the parties must pay to complete the transaction. Costs may include appraisal fees, origination fees, title insurance, taxes and any points negotiated in the deal.

DEED-IN-LIEU (OF FORECLOSURE)
A document given by a borrower to a lender, transferring title of the property. Often used to avoid credit-damaging foreclosure procedures.

FEDERAL HOUSING ADMINISTRATION (FHA)
A sub-agency of the U.S. Department of Housing and Urban Development created in the 1930's to facilitate the purchase of homes by low-income, first-time home buyers. It currently provides federally-subsidized mortgage insurance for private lenders.

FEDERAL NATIONAL MORTGAGE ASSOCIATION
Also known as FNMA, or Fannie Mae, this federal agency oversees conventional residential mortgages, and will buy out loans that follow its rules. Some foreclosure investments require direct communication with this agency.

HUD-1 STATEMENT
A standardized, itemized list, published by the U.S. Department of Housing and Urban Development (HUD), of all anticipated CLOSING COSTS connected with a particular property purchase.

SHORT SALE
Property sale priced at or below market value, and lower than the amount of a mortgage on the same property. Truth-in-Lending Act: A law requiring the lender to provide the borrower with a fully written explanation of the mortgage's terms.

Copyright © 2008 Real Estate Wish Team ~ RE/MAX PowerPro
Portions Copyright © 2008 a la mode, inc.

HOW TO GET BOUNDARY MAPS FOR SChOOLS IN BROWARD COUNTY

1.) GO TO http://www.browardschools.com/

2.) ON THE FAR LEFT SIDE CHOOSE "DEPARTMENTS"

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4.) CHOOSE ‘"SCHOOL BOUNDARIES MAPS"

5.) THEN YOU MUST CHOOSE "ELELMENTARY, MIDDLE, OR SR. HIGH SCHOOL"

6.) THEN YOU CAN DOWN LOAD AND PRINT THE MAP THAT YOU WANT

OR

1) CHOOSE "SCHOOL INFO"

2) THEN CHOOSE "ELEMENTARY, MIDDLE, OR SR. HIGH SCHOOL"

3) CLICK ON THE NAME OF THE SCHOOL THAT YOU ARE INQUIRING ON ITSELF

4) SCROLL DOWN AND ON THE RIGHT HAND SIDE YOU CAN CHOOSE "SCHOOL MAP"

5) DOWN LOAD AND PRINT

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