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Riki Oppenheim 402 Highland Ave Cheshire, CT Office: 203-272-1633 x110 Cell: 203-910-8786
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Home Buyers Your Home Search Need help with real estate terminology and expressions? The Real Estate GlossaryAs your Realtor, I am your real estate guide. My job is to assist you in getting the most house, with the least aggravation and for the price you want to pay. Let me help you find a house and make it a home. When you are ready to begin looking for your new home, working with an experienced agent can make all the difference. Work together to develop a comfortable relationship and you will reap the benefits of a dedicated team focused on your objectives. Our Multiple Listing Service allows your agent to stay in contact with you; keeping you up to date with the newest listings in our area. A daily or weekly alert will provide you with timely property information as it becomes available and it's free of charge. Bear in mind that while the internet is a useful tool, it is not an experienced real estate professional. It cannot consult, counsel and advise you. Whether your preference is a single family home or luxury condominium located "in town" or on a country road. Location plays a primary role in determining what will work best for you. Consider the following factors and decide which features are more important than others::
Your MortgageBefore you begin your home search it is prudent to consider the mortgage program that suits your needs. The advantages of doing this are: A pre-qualification letter – Your Lender's pre-qualification provides a ballpark estimate of how large a mortgage you can afford. While it doesn’t obligate the lender to approve your loan, it’s a way to help ensure that you will apply for a mortgage loan within your price range. You will have a good idea of the maximum mortgage amount you can afford and will focus your house search on properties within your price range. You'll have more leverage in negotiations with the seller. The seller often prefers to negotiate with a pre-qualified or pre-approved buyer because the seller knows you are financially qualified to obtain the financing you need. A pre-approval letter is an especially favorable element in a multiple offer situation. You will feel more confident about making an offer with a your lender's support in hand and with the knowledge you will be able to obtain a mortgage. Home Inspectors and Contractors As a buyer or seller, you will want the peace of mind which comes from having a professional house inspector who has evaluated the structural and mechanical conditions of the property. The purpose of your home inspection is to find out about any hidden defects you would not typically observe. Water, well, septic, and radon tests are additional expenses frequently recommended. Below are just a few of the many well-qualified home inspectors and contractors in our area who can assist you.
Closing Costs Mortgage-related closing costs-- Depending on your situation, the following costs for getting a mortgage must be paid at or before the closing. These costs cover items which are part of the loan application process: Loan origination fee -- The loan origination fee covers the administrative costs of processing the loan. It may be expressed as a percentage associated with the loan amount (for example, one percent of the mortgage amount). Loan discount points -- Loan discount points are the dollar amount paid to a lender for making a loan. Each point equals 1 percent of the mortgage amount. For example, if you take out a $100,000 loan, one point equals $1,000. The more points you are willing and able to pay at closing, the lower your interest rate would be. Appraisal fee -- An appraisal is a professional opinion, usually written, of the market value of the home you are buying. The lender uses the appraisal to determine whether the value of the property is sufficient to secure the loan should a default occur. Credit report fee -- The credit report fee covers the cost of the credit report, which the lender uses to determine your creditworthiness. Prepaid interest and Principal -- You will probably have to pay the interest and principal on the mortgage from the date of closing to the beginning of the period covered by the first monthly mortgage payment. (For example, suppose you close on February 10th. At the closing you may be required to prepay the interest and principal for the period from February 10th to the end of the month. When your first monthly is due on April 1st, (mortgage interest and principal payments are made in arrears), the interest and principal will have accrued starting March 1st. Escrow accounts -- Escrow accounts (or reserves) will be required if your lender will be paying your homeowner’s insurance and property taxes. Your lender may set up the escrow account by adding the cost of the insurance policy and taxes to your monthly mortgage payments. This portion of your payment is kept in reserve until the bills are due. Each year, the property tax and insurance bills will be sent directly to your lender, who will make the payment for you. Local Property taxes -- Property taxes for the real estate you own must be paid annually to the local government. Property taxes are prorated between the buyer and seller. This process is called an "adjustment.” (Other typical adjustments include annual homeowners’ association or condominium fees and unpaid water or utility bills.). Your closing attorney will split the taxes you take responsibility for at closing. If the seller has already paid taxes, in advance beyond that date, you will reimburse the seller. In the towns of Meriden and Wallingford taxes are adjusted in arrears. In that case, the seller reimburses you for the expenses you will incur. Attorney's Fees-- The lender will require attorney representation at the closing. You may also want representation as the buyer during the sales process. Attorneys in my area work hand in hand with the client and the Realtor® and they perform an invaluable service for you. Your attorney will also arrange the title search and Title Insurance to protect you against title errors. It is best to call the attorney you plan to work with and discuss the fee arrangement. See your attorney. Home Owners Insurance—Your lender will require you to pay one year's premium in advance of the closing. Negotiating Plan your negotiation strategy in advance. Some people are born negotiators. However, many people feel uneasy. If you fall in the second category, think of the home purchase negotiation as a dialogue between you and the seller. It is a discussion for exchanging ideas with one another to see if you can come to mutually agreeable terms. There are many ways to negotiate a home sale. It is hard to generalize because each transaction is unique. In most cases, a successful negotiation involves give and take from both parties. A cooperative, rather than adversarial, stance usually produces the best results. In addition to the price you will be negotiating any number of items and contingencies. Many of the most common are: the closing date, deferred maintenance issues, personal property, financing contingencies such as a seller contribution to closing costs or the "contingency to sell your home". Develop a strategy that can break an impasse in with an "either/or" approach. With this strategy, you give the sellers two options. They can take their pick. During the negotiating process you should always consider the assistance of your attorney. Remember all elements of the purchase agreement are negotiable, not just the price. Buying a home is a big commitment!
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