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The following components of the new Real Estate Settlement Procedures Act (RESPA) Rule went in effect on Friday, January 1, 2010: - Good Faith Estimate: The new three page GFE, including disclosure of yield spread premiums and the tolerance restrictions, must be used.
- HUD-1: The new HUD-1 Settlement Statement has been expanded to three pages. It has been redesigned to look like GFE with additional cross references and a "cross-walk" chart comparing charges in the GFE with the final charges.
- 30-Day Cure Period: Loan originators will have 30 days from the date of settlement to reimburse the borrower for tolerance violations.
- Tolerance limitations on settlement charges: Certain services packaged by lenders will be granted a 10% change tolerance.
- Application Process: Lenders will have a one-stage application process with greater flexibility on selecting underwriting criteria.
The Special Information Booklet which mortgage brokers and/or lenders must give borrowers when applying for a mortgage loan has also been updated. This booklet contains consumer information regarding various real estate settlement services, and is required for purchase transactions only. For more information, please see HUD's website.
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How much can I afford to spend? Experts say you will typically spend about a third of your income on financing your home. Before you start to look for your dream house, figure out just how much of that dream you can afford. Mortgage lenders look at your ability to repay the mortgage loan by reviewing: - Your credit history
- Your monthly gross income
- How much cash you can accumulate for a down payment, which is usually 10 percent to 20 percent of the sale price.
What is the best time to buy? Because many buyers prefer to move in the spring or summer, the market starts to heat up as early as February. Families with children are anxious to buy so they can move during summer vacation, before the new school year begins. The market slows down in late summer before picking up again briefly in the fall. November and December have traditionally been slow months, although some astute buyers look for bargains during this period. How long does it take to buy a house? Buying a house can take from a few days to a few years. In most cases, the process will take several months of diligent effort. How long should I look before buying a home? You should look until you find the home that is right for you. This could take a week or a year depending on your personal needs and the state of the real estate market. Ideally, you would like to find a home after you have looked long enough to know what you like and what you do not like. You need time to educate yourself about the housing inventory. How many times should I look at a house before I make an offer? You will no doubt want to take a second or third look at a house that interests you. Your agent can arrange this; you should not call the sellers directly for access. But you should drive or walk by the house to get a better feel for the neighborhood. Return several times, at least once during rush hour, to see if the street is busy or congested. Drive a few blocks away from the house to see if the neighborhood holds up to your expectations. A map is a handy house-hunting aid. How do you find a good agent? Like me, a good agent typically works full-time and has several years of experience at minimum. Buyers don't usually pay for your agent's services (in the form of a commission, or percentage of the sales price of the home). The seller usually pays all agents in a transaction from the sales proceeds. In many states, this means that your agent legally is acting as a subagent of the seller. But in some states, it's legal for an agent to represent the buyers exclusively in the transaction and be paid a commission by the sellers. You also can hire and pay for your own agent, known as buyer's brokers, whose legal obligation is exclusively to you.
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When selling your home, it's important to know which repairs and home improvement projects will increase the value of your home and help you get the most interest from homebuyers. Use this checklist to get your house ready for the market. Carpet & Flooring Improvements: - If you have pets hire a professional to deodorize carpets
- If needed, replace any worn carpet
- If needed, steam clean carpet thoroughly
- If needed, install new neutral-colored carpet with a thick padding so prospective buyers feel comfortable as they walk on your floors
- Make sure carpets are secure. Stretch and tack down any loose or curling carpet
- Make sure the carpets are vacuumed, free of pet hair and combed
- If you decide to replace a linoleum floor, choose a neutral color that will have wide appeal
- If your home has hardwood floors with room-size rugs, get the hardwood into its best condition with fresh non-slip floor polish or other coating to make it shimmer
- Mop and vacuum floors
- Replace worn out vent covers
- Thoroughly clean linoleum floors in kitchen and bathroom
Clean & De-Clutter Improvements: - Appliances should be cleaned - inside and out
- Clean all curtains, drapes and blinds
- Clean or purchase new front door accessories
- Clean the entryway carefully; it creates the buyers first interior impression of your home
- Clean the inside of all kitchen and bathroom cabinets and neatly organize items on shelves
- Clean windowsills
- Doors should be oiled and squeak-free
- Dry clean your drapes
- Empty trash cans, recycling bins and ash trays
- Ensure all doors, cabinets and drawers can open completely without any blockage
- Exterminate any insect problems
- Get rid of odors (pet, food)
- Have a garage sale before the home is listed
- Hire a professional cleaning service, once every few weeks while the house is on the market
- If needed, remove clutter by renting off-site storage space
- Keep baseboards clean and dusted
- Keep bookshelves, entertainment units organized neatly
- Keep clothing hung neatly, shoes organized
- Keep screens clean and vacuumed
- Keep shower curtains fresh and free from mildew
- Keep stairways and corridors clear
- Make bathrooms sparkle; sinks, toilets and tubs should be immaculate
- Make stairwells and corridors clutter-free
- Mop and sweep all floors
- Organize closets
- Polish all interior woodwork
- Remove appliances from kitchen counters to give a look of spaciousness
- Remove oil spots from garage
Exterior Painting Improvements: - Paint door and doorframe
- Paint exterior fixtures
- Paint mailbox
- Paint or clean front door and garage door
- Paint or re-stain fence if it is peeling or dirty
- Paint over any rust spots or streaks on downspouts
- Paint shutters, make sure they are hung straight
- Paint window ledges
- Polish door handles and knockers
- Remove rust from railing
- Repair any damage to chimney
- Repair holes in gutters and repair any separations from eaves
- Repair or replace shingles or tiles missing from the roof
- Sand and repaint areas with blistering or peeling paint
- Seal cracks on porch and remove any standing water if concrete. If wood, secure railings and seal or paint as necessary
- Straighten and clean antenna
Interior Painting Improvements: - Add new wallpaper if the current wallpaper is torn or withered. Make sure it adheres to the wall
- All woodwork like stairwell railings and doors should be repainted and/or stained
- Have leaks repaired & watermarks covered
- If needed, repaint faded, worn or stained interior walls
- Make sure that cracks in ceiling/walls are repaired
- The windows should be washed and stain free. The window frames should be painted if necessary and the hinges should not squeak
- Tone down bright room colors by painting them white or a neutral color
Kitchen & Bathroom Improvements: - If the appliances are included with the sale of your home, make sure they are operating and have proper documentation such as warranties and repair information
- If there are missing or damaged tiles, have them replaced
- Re-touch or repaint kitchens and bathrooms if the color is dated or the paint quality is poor
- Make sure sinks are clean and stain-free
- Repair damaged countertops, sinks or tubs
- Make sure that there are no leaky faucets
- Re-caulk damaged caulk on shower, sinks, tub or toilet
- Clean tile grout and make stain-free
- Paint, touch-up or refinish kitchen cabinetry
- Tighten or replace loose doorknobs or cabinet pulls, sticking doors and drawers and wobbly hinges
- Replace toilet seat
- If appliances are dated or not functioning, consider replacing
Lighting Improvements: - Repair sticky windows which do not open
- At night, turn on porch light and outdoor lighting
- Clean all switch plates
- Clean all windows, inside and out
- Clean existing shutters, blinds or drapes
- Clean skylight for leaves and other debris
- Increase the wattage of bulbs to maximum possible wattage
- Install dimming switches in common rooms such as dining rooms and living rooms to allow you to create lighting for different occasions
- Install new window treatments if those you have are damaged or dated
- Keep curtains open and use natural light as much as possible
- Make sure all outdoor lighting works
- Prune outside trees to allow natural light inside
- Turn on lights so home is well lit during showing
- Wipe all light fixtures with a rag and cleaning solution
Plumbing & Electrical Improvements: - All drains should be clean and free flowing
- All toilets should be in good working order
- Clean up, paint or replace old plumbing fixtures in all bathrooms
- Have your well or septic inspected or repaired
- If needed, hire a plumber to replace badly rusted and corroded plumbing pipes
- Inspect, clean and change filter of furnace
- Make sure that all bathroom and kitchen faucets are in good working order
- Make sure that all smoke and burglar alarms are functional
- Remove mildew stains and repair any loose, crumbling caulk or grout around tile and tub areas
- Repair broken doorbell
- Service sprinkler system
Staging Improvements: - Clean fireplace and prepare with logs for display
- Clean out the entry closet and put only a few hangers so that the buyer can visualize winter coats
- Consider lighting up the fireplace during the colder months
- Hang artwork on the walls
- Hang extra clean towels in the bathroom for your guests
- Have a fresh vase of flowers on the kitchen table to add appeal
- Have beds made
- If needed, put large furniture in storage
- Lock pets up away from home during showings
- Open drapes to allow light in
- Place fresh flowers, potpourri and other decorations around house (even in bathrooms)
- Play music during open houses
- Put cedar chips inside the closets
- Remove all unnecessary articles in basement or attic
- Remove magnets and notes from refrigerator
- Remove personal possession, like photos, trophies and mementos
- Set the dining room table for a dinner party
- Stage garage - clean up oily floors, straighten tools and other equipment
- Tag or remove items not included in sale (i.e. water conditioner, chandeliers, plants, drapes)
Yard Improvements: - Add colorful plants or flowers near front door and porch area
- Consider re-painting or re-staining a deck if the wood is worn out
- Repair damaged, rusty or bent fence; paint or stain if necessary
- If you have an awning for the patio, make sure that it is also free of debris and that there are no signs of tear or worn material. Replace if necessary
- Keep the firewood neatly stacked
- Keep trash area clean and organized
- Keep walks, steps and driveway obstacle-free
- Mow, trim, fertilize and water lawn
- Power wash deck
- Prune trees and bushes
- Rake fallen leaves
- Remove unnecessary items such as gardening equipment
- Remove debris and personal items on deck and porch
- Remove signs such as Beware of Dog
- Remove weeds and dead or dying plants or flowers
- Replace welcome mat at the doorway
- Re-sod bare spots on lawn
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Extending the Credit — Almost ThereThe extension and expansion of the homebuyer tax credit is the pending business in the Senate. After a long week of negotiation on the credit, an agreement on the scope of both expansion and extension has been reached. The extension is part of a larger bill that has not yet gone to a vote, however. A Senate vote on the underlying bill will occur in the Senate during the week of November 1. The package will then go back to the House. The House is expected to accept the Senate amendments, vote on the package and send it to the President for signature. The underlying bill is an extension of unemployment benefits. Other provisions in the bill include expansion of the net operating loss carryback rules, new requirements for some tax return preparers and noncontroversial provisions that "pay for" these changes. The agreement on the extension and expansion of the credit is as follows: - Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
- Credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser.
- New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
- Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
- New anti-fraud limitations are imposed.
The White House has indicated that President Obama will sign the legislation.
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Time is running out to take advantage of the $8,000 tax credit for first time homebuyers! Now is the perfect time to jump in the real estate market. If you are a first-time homebuyer (which means anyone who has not owned a home in the last 3 years) can take advantage of the tax credit. Many new buyers don't realize that in many cases, this credit can be used toward closing costs in order to purchase the home which may actually lower the amount of money that you need to come to the table. It's no secret that the housing market has been in a slump with the state of the economy, but the light is definitely being seen at the end of the tunnel and many economists predict (and I agree) that housing prices are about to rise. So if you haven't taken the plunge, what are you waiting for? Call me today so I can help you find that home of your dreams!
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Spacious, Well-Maintained Home for YOU
• 1,980 sq. ft., 3 bath, 4 bdrm 2 story
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$1,995 USD
Monthly
Tulip Grove, Bowie
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Excellent condition inside and out! 2-car garage,& too many upgrades to mention. Shows like new and on HUGE, historic lot. New windows, vinyl siding,carpeting and more. Provide strong lender letter and financial info sheet. Located near Belair Mansion on lot that formed part of the promenade to Mansion, with 200+ year trees. 15 minutes from Annapolis, 20 min. to Baltimore, 30 min. to D.C.
Property information
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