What Are Discount Points?

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Discount points allow you to lower your interest rate. While this video simplifies things to help you remember, “points” are essentially prepaid interest with each point equaling 1% of the total loan amount.

Generally, for each point paid on a 30-year mortgage the interest rate is reduced by 1/8 (or.125) of a percentage point.

When shopping for loans, ask lenders for an interest rate with 0 points and then see how much the rate decreases with each point paid.

Discount points are smart if you plan to stay in a home for some time since they can lower the monthly loan payment.

Points are tax deductible when you purchase a home and you may be able to negotiate for the seller to pay for some of them.

Please call us if we can answer any of your questions about your closing!  Seaview Title Company, LLC

Could My Loan Costs Exceed The Loan Estimate?

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Yes, within defined limits.

Service charges for which YOU shop and select a provider may change; the creditor is NOT responsible for providers who are NOT on their written list.

In addition, prepaid interest, property insurance premiums and escrow or reserve deposits may change without legal tolerance limits.

Charges for recording services, and 3rd-party services ON the creditor list, grouped together may not exceed the Loan Estimate total for the same charges by more than 10%.

Transfer taxes, fees paid to the creditor, mortgage broker or an affiliate of either and fees paid to a 3rd party for services the creditor does NOT permit you to shop are ZERO tolerance and must match the Loan Estimate.

Seaview Title … “Closings Made Easy!”

What Factors Affect Mortgage Payments?

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Well, as this story shows, the amount of the down payment, the amount of the mortgage loan, and the interest rate, along with the length of the repayment term, and payment schedule all will affect the size of your mortgage payment.

Your loan officer can assist you in determining what mortgage payment you can afford based on these factors.

At Seaview Title, we believe an informed client is a happy client!

Call upon us anytime you have questions!

How Can I Find Out Information About My Credit History?

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Watch this video and take a few notes! There are three major credit reporting companies:

  • Equifax – www.equifax.com 1-800-685-1111
  • Experian – www.experian.com 1-888-397-3742
  • Trans Union – www.transunion.com 1-800-916-8800

Obtaining your credit history is as easy as calling and requesting one. Once you receive the report, it’s important to verify its accuracy.

At Seaview Title, we make closings easy!

What Is Equity?

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Equity is the value YOU own in property such as a house. It’s the difference between what’s OWED and what the property is WORTH in the current market.

The example this video shows – you have a house worth $300,000 today and you owe the bank $200,000.  Your equity would be $100,000.

If the house is valued at $500,000 in five years, and you still owe $150,000 your equity will be $350,000.

Equity grows if the property value goes up or if the amount owed goes down.  The key thing to remember, simple as it sounds, is that you “own” increases in value. The bank’s loan doesn’t go up if the home’s value goes up.

Equity in a home can be used as collateral for loans but a house is not a piggy bank. Home equity can become a key financial asset over time; treat it wisely.

Seaview Title … smooth sailing all the way home!

What Does The Closing Process Involve When I Sell?

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This article is for sellers to help them prepare to sell their home. Aside from curb appeal, and nice home features, and cosmetic items which create an emotional response and lure to prospective buyers, probably the key aspect of selling a home is the condition of the property. Does the roof leak? Are there items which require repair?

As this video explains, a signed sales contract doesn’t mean your house is sold … YET!

There are still financial, contractual and legal steps for both sides.

The buyer has to get financing to meet the contract terms – which includes credit checks.

And most importantly for the seller, the property is inspected and appraised.

There may be inspection items, painting, repairs and replacements which the buyer will request, and this can take time to negotiate.

Your attorney and Realtor can walk you through your legal obligations, and assist you with the process of negotiating these items.

It’s most important to remember that the law prohibits fraudulent concealment of known defects to property. The disclosure requirements will vary, and some sellers insist on selling property in “As Is” condition, thus minimizing repairs. Still. honesty is always the best policy when selling your home.

Seaview Title … Closings Made Easy!

How Should I Prepare The Inside For An Open House?

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For many homes and markets, professional help from someone in “staging” makes good financial sense.  Like this video say, check your staging options first.
If you are doing it yourself, here are 5 key tips.

One – Depersonalize.

You want the buyer to envision this house being their home?

Remove the things that make it YOUR home – photos, awards, collections, and STUFF.

Two – MOVE the stuff.

It’s tempting to shove things in closets and attics but your prospective buyer will see a much smaller house if those spaces are full.

Move it to a storage space or a friend’s garage.

Three – Warm it up.

Baking bread or cookies

adding fresh flowers

and colorful pillows and throws

are touches used by professional stagers to make a place warm without your stuff.

Four – Light it up!

Light sells homes.

Clean windows, inside and out.

Light bulbs all working and curtains open or even gone.

Five – Go Away.

Don’t hover – leave.

Pack for a day trip and have your realtor tell you when to return

Buyers won’t envision themselves buying if you’re around.

Depersonalize and move stuff out;

Warm it up and light it up.

Then leave and let your realtor do their job.

Allow your prospective purchaser to envision making your property their home!

Seaview Title … Closings Made Easy!

What Is An Appraisal?

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In order to extend credit, lenders need to know what your home is worth.

The mortgage company you select will order an appraisal to determine the value of your proposed purchase.

Every house is unique; appraisers are trained and licensed for expertise in putting a value on properties. Appraisers don’t work for the buyer or the seller;  their primary mission is actually to protect the lender who’s risking money against the home’s value.

Appraisers have to weigh factors about the property and location – including size, condition and comparable properties – to appraise its current value.

They know how to focus on conditions that affect value; dishes in the sink don’t; damage and neglect do.

Appraisals lower than the proposed purchase price can affect transaction details. The seller might have to lower the price or the buyer might have to increase down payment or fund additional escrow.

Appraisal seems a lot like inspection, but they’re not the same.

You can think of it this way:

Appraisers report on value to the lender.

Inspectors report on condition of the house and major components to the buyer.

So, you can expect both appraisal & inspection in your transaction, and it’s good to keep the functions of each in mind. Remember, you are entitled to a copy of your appraisal, as well.

At Seaview Title, we help to educate our customers to take the worry out of one of the most important transactions they will face. We are here, from beginning to end, offering smooth sailing, all the way home!

What Happens After I’ve Applied For My Loan?

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Once you’ve supplied the 6 required pieces of information and included any other information the lender deemed necessary, you’ll receive a Loan Estimate within 3 business days.

Once all the information has been verified IF the loan is approved the lender will provide a Closing Disclosure to you three business days before loan consummation.

They’ll usually set a date for loan consummation – which may also be at your closing meeting.

Closing is basically transferring ownership of the property; consummation is committing to the loan itself.

Once both are completed, you should be planning your move-in.

Check out our video for more great information! Seaview Title … “Closings Made Easy!”

What Are The Advantages Of 15- And 30-Year Fixed-Rate Mortgages?

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This video will explain some of the advantages of the two basic mortgages available in today’s market.

With A 30-Year Term: In the first 23 years of the loan more interest is paid off than principal meaning larger tax deductions. As inflation and costs of living increase mortgage payments become a smaller part of overall expenses.

With A 15-year Term: Loan is usually made at a lower interest rate. Equity is built faster because early payments pay more principal. And the loan is paid off earlier.

Compare payments, principal and interest totals to make a decision.

If you have questions, we can help!  Seaview Title Company, LLC.