How Do I Set The Price On My House?

 

While this video simplifies things to help you remember: your aim is to get the best price AND terms in your market during the period you’re selling.

Market conditions interest rates and competition all matter.

The price you want, and the price a buyer will pay are framed by those complex conditions So pricing isn’t completely predictable.

Other factors include:

  • How your home compares to other homes for the same buyers
  • The inventory of homes and the level of buyer demand

Your needs also affect negotiations – for example, if you must sell quickly – but the final price will be determined by the market not by your needs.

Buyers look at the same comparables and market conditions and they want to pay as little as possible while meeting their needs.

Remember that the price isn’t the entire deal – repairs, closing, points, appliances and other factors can all change the value you finally receive. Listen to your broker, stay informed, be patient if you can and make your best reasonable, unemotional decisions.

Suncoast One Title has locations in Punta Gorda, Port Charlotte and North Port Florida

What Responsibilities Do I Have During The Lending Process?

 

To ensure you won’t fall victim to loan fraud, as you’ll see in this video, be sure to follow all of these steps as you apply for a loan:

  • Be sure to read and understand everything before you sign.
  • Refuse to sign any blank documents.
  • Do not buy property for someone else.
  • Do not overstate your income.
  • Do not overstate how long you have been employed.
  • Do not overstate your assets.
  • Accurately report your debts.
  • Do not change your income tax returns for any reason.
  • Tell the whole truth about gifts.
  • Do not list fake co-borrowers on your loan application.
  • Be truthful about your credit problems, past and present.
  • Be honest about your intention to occupy the house

And do not provide false supporting documents.

Suncoast One Title has locations in Punta Gorda, Port Charlotte and North Port Florida

What Do Lenders Have To Tell You About Your Real Estate Loan?

 

Federal “disclosure” forms define the information that creditor businesses MUST provide to consumers applying for real estate loans.

As of Oct 1, 2015 lenders must provide TWO New “TRID” disclosure forms. for the most common kinds of real estate loans First, the Loan Estimate, which covers the key features, costs and risks of a mortgage loan.

For an approved loan this must be returned to the consumer within 3 business days of loan application. If the loan goes forward, the Closing Disclosure form, covering key transaction costs, must be delivered at least 3 business days before loan consummation.

Suncoast One Title has offices in Punta Gorda, Port Charlotte and North Port

How Are Pre-Qualifying And Pre-Approval Different?

 

Watch this video and it’ll make sense.

Pre-qualification is an informal way to see how much you maybe able to borrow. You can be ‘pre-qualified’ over the phone with no paperwork by telling a lender your income, your long-term debts and how large a down payment you can afford. Without any obligation, this helps you arrive at a ballpark figure of the amount you may have available to spend on a house.

Pre-approval is a lender’s actual commitment to lend to you. It involves assembling financial records and going through a preliminary approval process. Pre-approval gives you a definite idea of what you can afford and shows sellers that you are serious about buying.

Suncoast One Title has offices in Punta Gorda, Port Charlotte and North Port

How Do Lenders Decide The Maximum Loan Amount That Buyers Can Afford?

 

As you’ll see in the video, the lenders consider your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses.

Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support.

According to the FHA, monthly mortgage payments should be no more than 29% of gross income, while the mortgage payment, combined with non-housing expenses, should total no more than 41% of income.
Lenders also consider cash available for down payment and closing costs credit history and the rest of your financial picture when determining your maximum loan amount.

Suncoast One Title has offices in Punta Gorda, Port Charlotte and North Port

How Does Purchasing A Home Compare With Renting?

 

Like the guy in the video says, the two don’t really compare at all.

The one advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to build equity take advantage of tax benefits and protect yourself against rent increases.Also, you may be at the mercy of the landlord for housing.

Owning a home has many benefits. When you make a mortgage payment, you are building equity increasing YOUR net worth.
Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities like insurance, real estate taxes, and upkeep which can be substantial. But given the freedom, stability, and security of owning your own home they are worth it.

Suncoast One Title has offices in Punta Gorda, Port Charlotte and North Port Florida

How Do I Begin The Process Of Buying A Home?

 

Remember these pointers from the video: start by thinking about your situation.

  • Are you ready to buy a home?
  • How much can you afford in a monthly mortgage payment?
  • How much space do you need?
  • What areas of town do you like?

After you answer these questions, make a “To Do” list and start doing casual research. Talk to friends and family, drive through neighborhoods, and look in the “Homes” section of the newspaper, or online.

Suncoast One Title has offices in Punta Gorda, Port Charlotte and North Port Florida

What Disclosures Are Used For Loans Not Covered By TRID?

 

Creditors must continue to use the Good Faith Estimate, Truth-In-Lending Disclosure and the HUD-1 form for reverse mortgages, HELOCs, mobile home or other non-attached dwelling loans and others NOT covered by TRID.

Housing assistance loans for low- and moderate-income consumers are partially exempt from TRID disclosures, and have specific rules.

Creditors are not required to provide Loan Estimate and Closing Disclosure forms and related booklets and statements for these loans.

Suncoast One Title has offices in Punta Gorda, Port Charlotte and North Port Florida

Can Creditors Revise TRID Loan Estimates?

 

Creditors are generally bound by the initial Loan Estimate. They are permitted to provide a revised Loan Estimate only under certain changed circumstances. These include circumstances that:

a) increase settlement charges beyond the legal tolerance limits

b) affect YOUR eligibility or change the value of the loan security.

Also,

c) if the interest rate was NOT locked and the new rate changes points or lender credits

d) for settlement delay on new construction loans within the stated revision window – typically 60 days, or

e) if YOU indicate an intent to proceed more than 10 business days after the Estimate or request loan term revisions.

Changed circumstances are extraordinary events beyond the control of you or the lending parties, OR changes or inaccuracies revealed in the information the lender used in preparing the Loan Estimate, OR new information on you or the transaction that the creditor did not use in the Loan Estimate.

Suncoast Title One has offices in Punta Gorda, Port Charlotte and Punta Gorda Florida

What’s Refunded If My Loan Is Higher Than My Estimate?

 

If the amount you pay at closing exceeds the amounts disclosed on the Loan Estimate – beyond tolerance limits for each category – the creditor must REFUND the excess to you no later than 60 calendar days after loan consummation.

For charges subject to a 10% cumulative tolerance fees greater than 10% of the Loan Estimate for the same charges must be refunded.

For fees paid for 3rd party services which the creditor did NOT permit you to shop the FULL amount over the estimate must be refunded.

For charges subject to ZERO tolerance including fees paid to the creditor mortgage broker or their affiliates any amount beyond the Loan Estimate must be refunded.

Suncoast Title One has offices in Punta Gorda, Port Charlotte and Punta Gorda Florida