Tim Bradford - AMMCorp.net

Christopher Shearer

A. Specific Settlement Costs

This part of the Booklet discusses the settlement services which you may be required to get and pay for and which are itemized in Section L of the HUD-1 Settlement Statement. You also will find a sample of the HUD-1 form to help you to understand the settlement transaction.

When shopping for settlement services, you can use this section as a guide, noting on it the possible services required by various lenders and the different fees quoted by service providers. Settlement costs can increase the cost of your loan, so compare carefully.

700. Sales/Broker's Commission: This is the total dollar amount of the real estate broker's sales commission, which is usually paid by the seller. This commission is typically a percentage of the selling price of the home.

L. SETTLEMENT CHARGES
700. TOTAL SALES/BROKER'S COMMISSION based on price $ @ %=	PAID FROM BORROWER'S FUNDS AT SETTLEMENT	PAID FROM SELLER'S FUNDS AT SETTLEMENT
Division of Commission (line 700) as follows:
701. $ to
702. $ to
703. Commission paid at Settlement
704.

800. Items Payable in Connection with Loan: These are the fees that lenders charge to process, approve and make the mortgage loan:

801. Loan Origination: This fee is usually known as a loan origination fee but sometimes is called a "point" or "points." It covers the lender's administrative costs in processing the loan. Often expressed as a percentage of the loan, the fee will vary among lenders. Generally, the buyer pays the fee, unless otherwise negotiated.

802. Loan Discount: Also often called "points" or "discount points," a loan discount is a one-time charge imposed by the lender or broker to lower the rate at which the lender or broker would otherwise offer the loan to you. Each "point" is equal to one percent of the mortgage amount. For example, if a lender charges two points on a $80,000 loan this amounts to a charge of $1,600.

803. Appraisal Fee: This charge pays for an appraisal report made by an appraiser.

804. Credit Report Fee: This fee covers the cost of a credit report, which shows your credit history. The lender uses the information in a credit report to help decide whether or not to approve your loan and how much money to lend you.

805. Lender's Inspection Fee: This charge covers inspections, often of newly constructed housing, made by employees of your lender or by an outside inspector. (Pest or other inspections made by companies other than the lender are discussed in line 1302.)

806. Mortgage Insurance Application Fee: This fee covers the processing of an application for mortgage insurance.

807. Assumption Fee: This is a fee which is charged when a buyer "assumes" or takes over the duty to pay the seller's existing mortgage loan.

808. Mortgage Broker Fee: Fees paid to mortgage brokers would be listed here. A CLO fee would also be listed here.

 

800. ITEMS PAYABLE IN CONNECTION WITH LOAN
801. Loan Origination Fee %
802. Loan Discount %
803. Appraisal Fee to
804. Credit Report to
805. Lender's Inspection Fee
806. Mortgage Insurance Application Fee to
807. Assumption Fee
808. Mortgage Broker Fee
809.
810.
811.

 

900. Items Required by Lender to Be Paid in Advance: You may be required to prepay certain items at the time of settlement, such as accrued interest, mortgage insurance premiums and hazard insurance premiums.

901. Interest: Lenders usually require borrowers to pay the interest that accrues from the date of settlement to the first monthly payment.

902. Mortgage Insurance Premium: The lender may require you to pay your first year's mortgage insurance premium or a lump sum premium that covers the life of the loan, in advance, at the settlement.

903. Hazard Insurance Premium: Hazard insurance protects you and the lender against loss due to fire, windstorm, and natural hazards. Lenders often require the borrower to bring to the settlement a paid-up first year's policy or to pay for the first year's premium at settlement.

904. Flood Insurance: If the lender requires flood insurance, it is usually listed here.

 

900. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE

901. Interest from to @$ /day
902. Mortgage Insurance Premium for months to
903. Hazard Insurance Premium for years to
904. years to
905.

 

1000 - 1008. Escrow Account Deposits: These lines identify the payment of taxes and/or insurance and other items that must be made at settlement to set up an escrow account. The lender is not allowed to collect more than a certain amount. The individual item deposits may overstate the amount that can be collected. The aggregate adjustment makes the correction in the amount on line 1008. It will be zero or a negative amount.

 

1000. RESERVES DEPOSITED WITH LENDER
1001. Hazard Insurance months @ $ per month
1002. Mortgage insurance months @ $ per month
1003. City property taxes months @ $ per month
1004. County property taxes months @ $ per month
1005. Annual assessments months @ $ per month
1006. months @ $ per month
1007. months @ $ per month
1008. Aggregate Adjustment

 

1100. Title Charges: Title charges may cover a variety of services performed by title companies and others. Your particular settlement may not include all of the items below or may include others not listed.

1101. Settlement or Closing Fee: This fee is paid to the settlement agent or escrow holder. Responsibility for payment of this fee should be negotiated between the seller and the buyer.

1102-1104. Abstract of Title Search, Title Examination, Title Insurance Binder: The charges on these lines cover the costs of the title search and examination.

1105. Document Preparation: This is a separate fee that some lenders or title companies charge to cover their costs of preparation of final legal papers, such as a mortgage, deed of trust, note or deed.

1106. Notary Fee: This fee is charged for the cost of having a person who is licensed as a notary public swear to the fact that the persons named in the documents did, in fact, sign them.

1107. Attorney's Fees: You may be required to pay for legal services provided to the lender, such as an examination of the title binder. Occasionally, the seller will agree in the agreement of sale to pay part of this fee. The cost of your attorney and/or the seller's attorney may also appear here. If an attorney's involvement is required by the lender, the fee will appear on this part of the form, or on lines 1111, 1112 or 1113.

1108. Title Insurance: The total cost of owner's and lender's title insurance is shown here.

1109. Lender's Title Insurance: The cost of the lender's policy is shown here.

1110. Owner's (Buyer's) Title Insurance: The cost of the owner's policy is shown here.

 

1100. TITLE CHARGES
1101. Settlement or closing fee to
1102. Abstract or title search to
1103. Title examination to
1104. Title insurance binder to
1105. Document preparation to
1106. Notary fees to
1107. Attorney's fees to
(includes above items numbers; )
1108. Title Insurance to
(includes above items numbers; )
1109. Lender's coverage $
1110. Owner's coverage $
1111.
1112.
1113.

 

1200. Government Recording and Transfer Charges: These fees may be paid by you or by the seller, depending upon your agreement of sale with the seller. The buyer usually pays the fees for legally recording the new deed and mortgage (line 1201). Transfer taxes, which in some localities are collected whenever property changes hands or a mortgage loan is made, can be quite large and are set by state and/or local governments. City, county and/or state tax stamps may have to be purchased as well (lines 1202 and 1203).

 

1200. GOVERNMENT RECORDING AND TRANSFER CHARGES
1201. Recording fees: Deed $ ; Mortgage $ ; Releases $
1202. City/county tax/stamps: Deed $ ; Mortgage $
1203. State tax/stamps: Deed $ ; Mortgage $
1204.
1205.

 

1300. Additional Settlement Charges:

1301. Survey: The lender may require that a surveyor conduct a property survey. This is a protection to the buyer as well. Usually the buyer pays the surveyor's fee, but sometimes this may be paid by the seller.

1302. Pest and Other Inspections: This fee is to cover inspections for termites or other pest infestation of your home.

1303-1305. Lead-Based Paint Inspections: This fee is to cover inspections or evaluations for lead-based paint hazard risk assessments and may be on any blank line in the 1300 series.

 

1300. ADDITIONAL SETTLEMENT CHARGES
1301. Survey to
1302. Pest inspection to
1303.
1304.
1305.

 

1400. Total Settlement Charges: The sum of all fees in the borrower's column entitled "Paid from Borrower's Funds at Settlement" is placed here. This figure is then transferred to line 103 of Section J, "Settlement charges to borrower" in the Summary of Borrower's Transaction on page 1 of the HUD-1 Settlement Statement and added to the purchase price. The sum of all of the settlement fees paid by the seller are transferred to line 502 of Section K, Summary of Seller's Transaction on page 1 of the HUD-1 Settlement Statement.

 

1400. TOTAL SETTLEMENT CHARGES (enter on lines 103, Section J and 502, Section K)

 

Paid Outside Of Closing ("POC"): Some fees may be listed on the HUD-1 to the left of the borrower's column and marked "P.O.C." Fees such as those for credit reports and appraisals are usually paid by the borrower before closing/settlement. They are additional costs to you. Other fees such as those paid by the lender to a mortgage broker or other settlement service providers may be paid after closing/settlement. These fees are usually included in the interest rate or other settlement charge. They are not an additional cost to you. These types of fees will not be added into the total on Line 1400.

 

Christopher Shearer

 

We have offices nationwide and cover all South Florida cities such as: * Aventura * Belle Glade * Boca Del Mar * Boca Raton * Boynton Beach * Brownsville * Coconut Creek * Cooper City * Coral Gables * Coral Terrace * Country Club * Country Walk * Cutler Bay * Dania Beach * Davie * Deerfield Beach * Delray Beach * Doral * Fountainbleau * Glenvar Heights * Greenacres * Hallandale Beach * Hamptons at Boca Raton * Hialeah Gardens * Homestead * Ives Estates * Jupiter * Kendale Lakes * Kendall West * Kendall * Key Biscayne * Kings Point * Lake Worth Corridor * Lake Worth * Lauderdale Lakes * Lauderhill * Leisure City * Lighthouse Point * Margate * Miami Beach * Miami Lakes * Miami Shores * Miami Springs * Miramar * North Lauderdale * North Miami Beach * North Miami * North Palm Beach * Oakland Park * Ojus * Olympia Heights * Opa-Locka * Palm Beach Gardens * Palm Beach * Palm Springs * Palmetto Bay * Palmetto Estates * Parkland * Pinecrest * Pinewood * Plantation * Princeton * Richmond West * Riviera Beach * Royal Palm Beach * Sandalfoot Cove * South Miami Heights * South Miami * Sunny Isles Beach * Sunrise * Sunset * Sweetwater * Tamarac * Tamiami * The Crossings * The Hammocks * Wellington * West Little River * West Park * Westchester * Weston * Westwood Lakes * Wilton Manors * Atlantis * Bal Harbour * Bay Harbor Islands * Belle Glade Camp * Biscayne Park * Boca Pointe * Boulevard Gardens * Briny Breezes * Broadview Park * Canal Point * Century Village * Cypress Lake * Dunes Road * El Portal * Fisher Island * Florida City * Franklin Park * Fremd Village-Padgett Island * Gladeview * Glen Ridge * Godfrey Road * Golden Beach * Golden Lakes * Golf * Goulds * Gulf Stream * Gun Club Estates * Haverhill * High Point * Highland Beach * Hillsboro Beach * Hillsboro Pines * Hillsboro Ranches * Homestead Base * Hypoluxo * Indian Creek * Islandia * Juno Beach * Juno Ridge * Jupiter Inlet Colony * Lake Belvedere Estates * Lake Clarke Shores * Lake Harbor * Lake Park * Lakes by the Bay * Lakeside Green * Lantana * Lauderdale-by-the-Sea * Lazy Lake * Limestone Creek * Manalapan * Mangonia Park * Medley * Mission Bay * Naranja * North Bay Village * Ocean Ridge * Pahokee * Palm Beach Shores * Palm Springs North * Pembroke Park * Plantation Mobile Home Park * Pompano Estates * Richmond Heights * Roosevelt Gardens * Royal Palm Estates * Schall Circle * Sea Ranch Lakes * Seminole Manor * South Bay * South Palm Beach * Southwest Ranches * Stacey Street * Sunshine Acres * Surfside * Tequesta * Three Lakes * University Park * Villages of Oriole * Virginia Gardens * Washington Park * West Miami * West Perrine * Westview * Whisper Walk

As well as the Colorado communities of Aspen  * Vail  *  Glenwood Springs * Boulder * Grand Junction * Steamboat Springs

 

 

Alabama (licensing exempt) * Alaska (licensing exempt) * Arizona (license 905747) * California (license 01317220) * Colorado (license LMB 100008577) * Florida (license CL0701012) * Hawaii (license pending) * Idaho (license MBL-2522) * Illinois (license MB 6759265) * Indiana (licensing exempt) * Iowa (license 2008-0031) * Kentucky (license MB20033) * Louisiana (license 2078) * Maryland (license 11213) * Massachusetts (license MB5206) * Michigan (license 0010583/0010767) * Minnesota (license 20421059) * Missouri (licensing exempt) * Nebraska (license 1970) * Nevada (license 526) * New Mexico (license 1901) * Oregon (license ML-2241) * Tennessee (license 2574) * Texas (license 75692) * Utah (license 558353) * Washington (license 510-MB-18948) * Wisconsin (license 39432)

 

 

Imagine a legal team working on your behalf to improve your credit For over 15 years our law firm has been helping people correct their credit reports and improve their credit standing. Discover how credit repair solutions from Lexington can change lives, and how it might change yours, too.

If you are relocating to Solon, Ohio, rest assured, there is plenty of shopping in and around the area. You will be able to keep up with the latest fashions and the local dining is sure to please even the most finicky of palates. The grocery shopping caters to all types of diets as well.

Solon offers grocery shopping at Giant Eagle in Solar Shopping Center, and Mustard Seed Market and Café. Giant Eagle is a traditional grocery store while Mustard Seed is more known for natural and organic foods. Mustard Seed also offers prepared meals and has an eat-in restaurant inside.

Solon offers some unique stores as well. Paper Palaceis a specialty store for scrapbookers.

Located next to Mustard Seed in Uptown Shopping Center, Play Matters is a specialty toy store with personalized service. This is a great place to get a birthday gift or just take the kids to play.

Alesci's Place is an Italian specialty store with great carry out, catering, bakery, and more!

A few other places to highlight are: Sunny Asian Food & Spices, located in Sears Center and Stein Mart, a popular discount clothing retailer.

Nearby Market Place shopping center,located just outside the Solon city limits on Aurora Road, is also a convenient location to shop at some of your favorite places such as  Home Depot, Pet Smart, Target, Walmart, Kohl's, Michaels, Dick's Sporting Goods, Babies "R"Us, Marshalls, Linens-n-Things, The Flower Vendor, and many other stores. 

Aurora Farms Premium Outlets provides a great opportunity to get name brand items as a huge discount.

  

Within minutes of Solon are some of the best shopping destinations in the  Cleveland Metropolitan area, and perhaps the entire state of Ohio.

Beachwood Place  has long been considered northeast Ohio's premier fashion destination for the best in shopping, entertainment and dining. Beachwood Place has anchor stores of Saks Fifth Avenue, Nordstrom, and Dillards, along with name brand stores, a food court, and restaurants for fine dining.

Legacy Village is a lifestyle center located just outside Beachwood in Lyndhurst that was built within the last 5 years. Legacy Village offers  a wide assortment of shops, restaurants and scheduled events that offers fun for everyone. Legacy Village has it all. Popular stores here are Dick's Sporting Goods, Nordstrom Rack, Arhaus furniture, Joseph-Beth Booksellers, Cheesecake Factory, California Pizza Kitchen, and Starbucks Coffee. 

 

We realize that people relocating to Solon are leaving their familiar surroundings and starting all over in a new city. Keep an open mind and you will be pleasantly surprised with the abundance of shopping and dining that you will find here. Within no time, you will have your favorite restaurants and stores and will be happy to call Solon home.

*************************************************************************************** 

About The Authors:

Dan and Amy Schuman reside in Solon, Ohio and are relocation specialists. They use their home staging expertise to sell listings quicker and for more money. The average home in the Cleveland area sold in over 100 days in 2008 and the Schuman Team's listings sold in less than 60 days. They also work extensively with buyers and sellers who are relocating in or out of the area.

The Schuman Team also specializes in luxury homes and are members of the Luxury Home Consultants of Keller Williams Realty Greater Cleveland and of the prestigious Institute for Luxury Home Marketing,the premier independent authority in training and certification for real estate agents working in the luxury home market.

If you are looking to buy or sell a home in Bainbridge,Beachwood, Moreland Hills, Orange, Pepper Pike, Solon or the surrounding Eastern suburbs of Cleveland, please contact the Schuman Team as they would be happy to show you why people love working with them.

To see all homes currently on the market in the Cleveland Ohio area, click here. For a personal consultation or to speak directly to The Schuman Team, call 216-346-3235.

Check out the award-winning website, www.schumanteam.com .

 or CLICK HERE to visit the Schuman Team blog and then save it as one of your favorites.

All content is the property of The Schuman Team and may not be duplicated or used without their written consent. ©2009

 

What an exciting time to be a 1^st Time home buyer.  Everything is on sale and your rich Uncle Sam is going to give you a tax credit of $8000 dollars as an incentive to stop renting and go out and buy your dream home.. However, before you rush off to take advantage of that credit take a second to review the tips and advice here.

Do Your Homework

When you are looking through homes they all look great just ask anyone who has done a home search,   Often after you close and move in things still look pretty good and then you start to notice the "little" things. You start to question how you could have totally over looked this and that.   There may be things that you knew to be on the lookout for but somehow were missed each time you walked through. This is why it is so important to have your Central Ohio home thoroughly inspected by a professional home inspector.

Avoid Last Minute Surprises

Issues with Title can not only cause you heartburn on closing day they can totally derail the transaction and cause you to be without a home.  I was recently made aware of a situation where a couple sold their home and had to move out so that the new owners could move in.  The couple had title issues with their new home and was forced to find somewhere else to live until the title issues were resolved.  Title is not the sexiest part of the home buying and selling process to think or talk about but it is a vital part and by working with your agent you can find a reputable title company that can help you avoid any last minute surprise during the home closing process.

Don't be a Victim of Rookie Mistakes

Outside of the typical problems that will likely be uncovered by a good home inspection there are a few typical first time buyer mistakes that you will want to avoid, a few of which include:

•·         Underestimating the cost of fixing up an older home.

•·         Failing to negotiate better terms and conditions.

•·         The full impact of a long commute and how to decide how far is too far.

You want your home buying experience to be exhilarating, fun and exciting and it will be providing you work with professionals that can help you avoid costly mistakes.

Whether you need a recommendation for a professional lender, home inspector or contractor for your Central Ohio property, I can help.  Call me at (614)273-6406 or email me at Vanessa.simmons@realliving.com

LINKS:

$8000 Stimulus Plan:  http://centralohiorealestateinformation.blogspot.com/2009/03/how-stimulus-bill-can-help-you-get-your.html

Professional home inspector:  http://www.ashi.org/

Home closing process:  http://homebuying.about.com/od/buyingahome/qt/101107_homclose.htm

First time buyer mistakes: http://www.realtor.org/rmosales_and_marketing/handoutsforcustomers/handouts/buyer12

  Are you thinking about refinancing?  One of the most important things that it takes to get a new mortgage loan is getting your home appraised.  Now before you say that your neighborhood has not experienced a decline in value and you just put $20,000 into upgrades of your home, you must first understand how the 'value' of your home is determined for your transaction.  How a Bank perceives the 'value' of your home is SIGNIFICANTLY different than how you perceive the 'value' of your home.

  There are 3 approaches which an appraiser can use to determine your property value (I am sure the appraisers on Active Rain can add more specifics to these approaches, but these are the basic, eeeeeeeasy to follow ones):

1)  The cost approach -- how much does it cost to re-build or replace the house?  This is where your fancy windows, countertops and other indulgences will help you out.  Unfortunately, Fannie Mae does not use this approach when determining value, so throw this one out the window.

2)  The income approach -- This approach is used to determine the value of a home using market rent and some other fancy schmancy words.  Again, Fannie Mae does not use this approach (so do not waste your time telling me that this would be a great "income" property).  Toss this one out the window.

3)  THE SALES COMPARISON APPROACH -- ding ding ding.  This is the approach used by Fannie Mae to determine the 'value' of the home. 

The guts of the Sales Comparison Approach are these 4 key factors.  Here is my disclaimer -- there are definitely other factors involved also, but these are the most important, blah blah blah.

a)  Comparables 'should' be within 20% of the square footage of your home

b)  Comparables 'should' be the same style as your home

c)  Comparables 'should' be within a reasonable distance of your home relative to where you live (urban, suburban, rural)

d)  Comparables 'should' have SOLD within the last 90 days even though it is possible to use sales from 6-12 months back.  Due to the sharp decline in home values, sales from 90-180 days ago are not considered accurate sales relative to today's 'values'.

  Notice that I keep using the words "should".  There are no absolutes and every single person can always find an exception to the rule.  As for 99% of America, those are the 4 main criteria to help an appraiser determine your property "value".  On refinances, everything pretty much rides on the appraisal.  Understanding the basics of appraising can help you better understand the refinancing process. 

  If you have questions or are wondering how home improvements help the 'value' of your home, feel free to call me anytime at 1-440-838-5291!

Many myths and prejudices surround the topic of Reverse Mortgages.  While it is true that these types of loans are not for every senior, in some instances they can provide well-needed benefits to some.  With the consultation that is required for seniors thinking of utilizing this form of lending, seniors and their caregivers should be well-versed and educated about the benefits and drawbacks associated with their loan by the time a decision is to be made. 

Following is a short synopsis and outline of many of the features of these loans.  If you or a loved one of yours is of this age and you wish to plan for the future, please take the time to read and consider the information contained.  The next step is to contact a qualified mortgage banker for clarification of any questions you have and additional information you require.  Special certification is required to provide this type of loan, so make sure that you are working with someone that has the necessary education and certification demanded.   

If you are 62 years of age or older, own your own home and reside within that home more than one-half  of the year, you may be eligible for a Reverse Mortgage. 

• Reverse Mortgages eliminate & payoff monthly payments or debt
• Reverse Mortgages never include monthly payments
• Reverse Mortgages are for those 62 yrs. & older
• Reverse Mortgage-holders retain title/ownership of home
• Reverse Mortgage-holders can receive a monthly, lump sum, or combination payment 
• Reverse Mortgages DO NOT interfere with inheritances
• Reverse Mortgage consultation is FREE                    

Reverse Mortgages turn the value of a home into cash without making a move from the owner's  home necessary.   No income is needed from an applicant in order to qualify for a Reverse Mortgage. No monthly repayment of the loan is scheduled or needed.  Cash proceeds received from a Reverse Mortgage can be paid out in several ways to a senior home owner.  A one-time lump sum cash disbursement can be made. 

A monthly "payment" advance or an account with a "creditline" are also options from which to choose and offer flexibility of timing and dollar disbursement amounts.  A combination of payment methods is possible and an option for consideration.  Typically, Reverse Mortgages are repayable upon death, the sale of the home, or permanently moving from the home.              

Many older Americans are concerned about their relatives/caregivers migration to distant locales, increasing personal health issues, rising health care costs, financial legacy and estate taxation.  Reverse Mortgages can provide alternatives and solid solutions  to address many of these important concerns.  For older children involved in the care and management of aging parents or relatives, the utilization of a Reverse Mortgage option can provide welcome financial and personal assistance to a family and budget stressed by health and monetary concerns.  It can also make it possible to keep a loved one within their familiar and well-loved family home when it would be impossible to do so otherwise. 

For seniors with health concerns, the flexibility, benefits and peace-of-mind reaped by securing this type of loan can be enormous.  The usage of Reverse Mortgage proceeds can become a key component to estate planning.    Seniors, or their caregivers, considering a Reverse Mortgage should consult with a qualified tax advisor, financial planner and their professional mortgage banker to discover their best individual and   personal financial options and benefits. 

                            "Mortgage Update & News"  -  Gene Mundt, Chicago Bancorp        www.genemundt.com