Video Summary

Should I sign an exclusive buyer representation agreement?

Exclusive buyer representation agreements are usually executed if you have an unusual request as a buyer, certainly in commercial transactions where they have to search to find a particular piece of property.  If you are in need of finding a piece of property which needs to fit your particular needs, I would think that you would want to sign an exclusive buyer arrangement because they will have to do a lot of work to try and locate and find a particular property and they have a certain real estate commission.

If, however, you are simply in the market to buy a home and you are looking at the various listings, I would hesitate to sign an exclusive buyer arrangement, since you can look at any number of properties on your own or if other properties come up from other agents then you are certainly in a position to switch.

The other problem with exclusive buyer representation is if you become disenchanted with your agent, who is your exclusive agent, you have a difficult time in getting rid of them or having to pay them, particularly if there is a particular piece of property.  I would suggest that if you do not have any particular needs or specific type of property that is going to take great deal of research, you may not need to sign a buyer representation agreement.

If you have any questions give me a call at 727-847-2288.

Video Summary

Who pays for title insurance?  Well, title insurance is issued in conjunction with the sale of real property.  The sale of real property is governed by a contract between the buyer and the seller.  The provisions in the real estate contract indicate who is to pay for the title insurance premium and the closing cost as well as the other closing costs such as the documentary stamps.  It is controlled by contract.

The Pasco County or Tampa Bay Area it is customary for the seller to pay for title insurance.

If it is a cash transaction the only closing costs the buyer would have would be a home inspection, a survey, termite inspection, and the recording of a deed.  That is the custom in this area, although it is controlled by contract and if you are selling your home you can show that the buyer is to pay for the closing costs and pay for the title insurance.

The title insurance cost is usually shifted to the buyer if you are buying a new home from a developer; they usually shift that cost to you, to a buyer.

Hopefully I have answered your questions about who pays for title insurance and if you are selling your home and would like for me to prepare the contract please give me a call at 727-847-2288.

Video Summary

Does a FHA mortgage have more cost and requirements than a conventional loan?  There are no additional costs involved, as far as an FHA loan that a seller must bear as far as the closing is concerned.  In some instances they may require them to pay a $79.00 tax service fee, but other than that, there are no particular additional costs that must be borne by the seller if he sells to someone who’s getting an FHA loan.

FHA loans however do have a contingency that if the property does not appraise for the amount necessary to obtain the loan, then the deposit must be fully refunded.  So whenever you see that a buyer’s getting an FHA loan you really need to be concerned about the appraisal and the deposit needs to be fully refunded.

As far as the buyer is concerned they have to, of course, be credit worthy and they will have the additional cost since it’s a high cost loan so they charge for the insurance or the cost of the high priced loan in that you can get a 97% and possibly even higher percentage loan. That’s the primary increase in the closing cost, is the mortgage insurance if you will or what is charged by FHA for the high percentage loan to value which you may have to pay, continue to pay or there may be a lump sum amount in your monthly payments or there may be a lump sum amount in the front end of an FHA loan. But as far as the seller is concerned there are no additional costs. However, if there are any, it’s nominal; the same thing with the VA loan. I may have that confused at the $97.00 or $76.00 for a tax service fee, something that a seller has to pay.

So the biggest thing is whether or not the people will qualify money-wise and whether the property will appraise for the amount necessary to get a FHA loan.  So if you like to sell your house or need some help with financing or closing the transaction, well give me a call at 727-847-2288.

Video Summary

Why is my mortgage lender asking if my checking account and bank accounts have been seasoned?  This is all as result of the crash and the Dodd-Frank bill and that there’s any number of requirements now, the lenders to make sure there’s no fraud involved.  They want to make sure that this is your money and they want to know the source of it, so that someone just doesn’t lend you the money temporarily and you put it in your account a day or two before the closing to show that you have sufficient funds.  It’s getting more difficult to get a loan, and sometimes a gift of equity or a gift of the deposit, is something that’s going to be scrutinized by your lender.

So that is the reason for the lender to ask if your account has been seasoned.  They are checking on everything as a result of the oversight and the underwriting requirements after the real estate crash and all the problems involved and it’s to try and avoid any kind of fraud involved.  So going through and obtaining a mortgage now from a conventional lender is very time consuming and tedious mainly because of the additional regulations that have been imposed on the lenders in this particular market.

So if you have any questions about your loan and the closing process, well give me a call at 727-847-2288.