How To Be Prepared at Closing Time

A stack of paperwork can certainly be intimidating, writer Erik J. Martin from Richmond Times-Dispatch gives advice on how to be prepared.

HOW TO BE PREPARED AT THE TABLE

Knowing what to expect from the pile of closing paperwork – and how to be prepared – can make the process go a lot smoother.

 

For starters, plan to have all of your financial ducks in a row well in advance of your closing date, said Jeremy Gulish, a realtor with Keller Williams Towne Square Realty, Morristown, N.J.

 

“With the extensive scrutiny that is now part of mortgage underwriting, I recommend that my clients have everything available to show the underwriter, short of their blood work and urinalysis,” Guilish said.

 

Depending on state and lender requirements, count on bringing the following forms and documents to the closing:

• A driver’s license or state-issued picture ID
• Recent tax returns and pay stubs
• W-2 forms
• The two most recent monthly bank statements of all of your financial accounts
• Proof of additional income (alimony, Social Security, rental income, etc.)
• The purchase and sale agreement and addenda
• A cashier’s check or other “good funds” check for the balance due (the total of which you’ll be notified a day or two prior to closing).

At closing, you’ll be represented by a closer for the lender who will ask you to sign a set of standard federally regulated documents, which you should receive three business days prior to your scheduled closing review with your attorney.

 

You’ll also receive a settlement statement showing details of all charges for completing the purchase. Items like property address, loan and payment amounts, dates and names will need to be reviewed carefully. Plan for a long sit-down; most closings last approximately one hour or longer.

 

“Be prepared to explain any major debits, credit inquiries and financial changes that are reflected in bank accounts,” Gulish said. “It’s also critical that buyers don’t have a career change or major financial debits incurred during the closing process, as their lender may not approve their loan if their financial situation changes.”

Article originally appears in RTD Homes Saturday, September 9, 2017 issue.

A PDF version of this article can be downloaded at Homefields.net

Is 20% Down the Right Move?

There seems to be hesitation these days in answering the question whether or not a homebuyer needs a large chunk of money in order to buy a home.  There are many avenues and products available to the home purchaser, many of which do not require such a hefty downpayment.  Often times, in today's market, that's simply not available for many first-time home purchasers.  From the Richmond Times Dispatch, comes advice from their expert broker.  

Ask the Broker

By Peter G. Miller

20% DOWN?

Question: We’re interested in buying a home and can purchase with 20 percent down.  Would it make more sense to buy with less money up-front?

Answer:  There’s no rule that says you have to buy with 20 percent down if you have it, but it’s a choice that lenders love.  The logic is: If a home is purchased with 80/20 financing, the lender has a big cushion if something goes wrong.  Example: You buy a home for $300,000 with 20 percent down, lose your job, the house is foreclosed and the property sells at auction for $260,000.  That’s a loss of $40,000 but to the lender there is no loss.  The property sold for $260,000, but the property was financed with a $240,000 mortgage (80 percent of $300,000).  The $260,000 from the foreclosure sale allows the lender to be completely paid back.

    Buying with 20 percent also has advantages for purchasers.  You’ll owe less, so the monthly mortgage payment is smaller.  With 20 percent down there’s no requirement for private mortgage insurance, a big savings.  If you have some credit dings, a big down payment is likely to be seen as a compensating factor that will make your mortgage application more attractive.

    But while lenders like financing with 20 percent down, you may not.  It takes a long time to save so much money, a tough job for many.  According to a 2016 survey by GoBankingRates.com, most of us— almost 70 percent — have less than $1,000 in savings.

    In today’s world buying with 20 percent down is a luxury for most purchasers.  According to the National Association of Realtors, in 2016 first-time buyers typically bought with 6 percent down, and repeat purchasers were able to pay 14 percent up-front.

    As an alternative to 20 percent down you can readily finance with the FHA and 3.5 percent up-front.  VA-qualified borrowers can purchase with nothing down.  There are also new conforming loans with just 3 percent down.

    Why would you want to purchase with less down if that means higher monthly costs and some form of mortgage insurance?

    You might have a better use for the down-payment money such as starting a business or paying off education debt.  You might be more comfortable with cash in the bank.  Having cash on hand can be important in the event of emergencies.  And, while you may be able to buy with 20 percent down, will you then have enough funds for closing, moving and repairs?

VALUE PROPOSITION

Percentage of single-family homes in the U.S. that currently are worth more than they were before the Great Recession.

PDF available for download on our website Homefields.net

Article originally appears in RTD Homes Saturday, September 9, 2017 issue. 

Inaugural Modern Richmond Week!

We are very excited this week about the inaugural Modern Richmond Week homes tour!  We have attended MR events in the past and find it is something that truly fascinates us and that's why we have volunteered to be a part of this great event! There are so many other wonderful tours happening this week and we are lucky to be a part of the Highland Hills Neighborhood Tour - a sold-out event - BUT you can still get a chance to see it by volunteering!

Monday 9/18: ChildSavers
Tuesday 9/19: VCU/ICA Panel (Tickets Required)
Wednesday 9/20: Varina Library Film
Thursday 9/21: Handcraft
Saturday 9/23: Highland Hills Neighborhood Tour (SOLD OUT - Please volunteer to help)
Saturday Evening 9/23: Art Style Design Hosted by Mobelux Reception
Sunday 9/24: Art Style Design Hosted by Mobelux Exhibition
Sunday Evening 9/24: Wrap Party at Flora

Welcoming Autumn and the changes it brings!

Not a bad view of RVA's skyline from Old Manchester

With Labor Day behind us, Richmond is now ushering in one of our most beloved times of year, Autumn. The changing of the seasons always brings excitement and anticipation.  Whether or not you have kids in school, it brings up an eagerness to gather, nest, and ready for winter.  Our lazy summer days will soon be over and with the cooler weather comes time for action - at least that’s how we feel!

One of the things we love most about our Real Estate business is that it’s never dull.  As we write this, Randy and I are taking a new step in our journey.  As our children have their children and build a nest of their own, we are embarking upon a new adventure for ourselves!  Our home is currently on the market (see back cover) and we are in the process of building a duplex in the Old Manchester district of south Richmond.  We have been looking for our own opportunities in real estate investment, and once we explored this area more closely, realized we would love to be a part of its progress.  If you aren’t familiar with Old Manchester, it is a vibrant, up-and-coming neighborhood with well known RVA staples like Plant Zero and Legend Brewing Co. being joined in the ranks by small business newcomers that see opportunity in this thriving new destination.

I think it’s healthy for a Realtor to have to buy and/or sell every few years to remember what it’s like to be a client!  As a seller, you open your doors to strangers coming in and critiquing this home that you have loved.  As an owner/agent, you are especially aware of the things about your home that you cannot change.  As a buyer, you understand how everyone is looking for something specific to fit their lifestyle; downsizing, upgrading, or multi-family - there are lots of goals one can reach through homeownership.  

Real Estate is both an art and science.  There is a science to Comparative Market Analysis, pricing your property to sell and understanding the market.  But there is also an art - it’s a very human transaction with highs, lows and many emotions in-between.  Randy and I will continue to share our experiences and adventures in hopes that it will make us even better Realtors for you!