How to Read a Good Faith Estimate or HUD-1
June 22, 2008 by Katie Wethman · Leave a Comment
It can be difficult to compare apples-to-apples when looking at closing cost estimates from lenders. There are lots of tricks that a lender can pull to make themselves look better, and there are so many expenses that’s it’s difficult to know which ones are “junk fees.”
Let’s review terminology first. When you [...]
Foreclosure Risks: Property Condition & Inspections
March 19, 2008 by Katie Wethman · 1 Comment
One of the most common scenarios in a bank owned (or REO) sale is that the property is “as is.” But most people don’t understand exactly what this means, or how to protect themselves from buying a home that may need tens of thousands in repairs.
Let’s back up a moment, and put “as is” [...]
Buyer FAQ: Do I need to hire an attorney?
March 17, 2008 by Katie Wethman · Leave a Comment
In Virginia, buyers have the right to choose their own settlement attorney. The settlement attorney represents neither the buyer nor the seller though. So buyers often ask me if they need to hire their own attorney as well. Marcus Simon of Ekko Title, a well respected settlement attorney in the area, has written [...]
Foreclosure Risks: Unpredictable Transaction Timing–Don’t Pack Those Boxes Yet!
March 15, 2008 by Katie Wethman · Leave a Comment
I’m often asked about the risks involved with buying a foreclosure. This is the second post in a series of as-yet-undetermined size. (Have a question on the risks? Contact me.) The first post on REO Bank Addendums covered the all encompassing risk—the risk that the bank can basically do whatever they [...]
FAQ: Buyer’s Closing Costs
January 17, 2008 by Katie Wethman · Leave a Comment
Many buyers are aware that they have fees related to the purchase of a new home—a rough guide is 2.5%-3% of the transaction value–but what are these fees, and are there ways to minimize them?
First, a few clarifications. Both buyers and sellers have closing costs in a transaction; the sellers’ are typically much higher [...]
FAQ: Seller Subsidies/Contributions to Closing Costs
December 29, 2007 by Katie Wethman · 2 Comments
I’m often asked how seller subsidies, (also known as “seller contributions” or “closing cost assistance,” work. When a buyer purchases a property, he can expect closing costs of about 3% of the transaction price. (This varies widely by jurisdiction—consult a local REALTOR for more details.) The closing costs are a combination of [...]
Tax Tips for Home Buyers
December 1, 2007 by Katie Wethman · Leave a Comment
Buying a home can bring a number of changes into your life, including financial ones. But for first time home buyers, those financial changes can be good news, especially at tax time. Most people know that there are significant tax benefits to buying a home, but often aren’t clear on exactly what’s deductible. [...]
Negotiating a December or January Settlement?
November 19, 2007 by Katie Wethman · 2 Comments
Then this post will tell you how to potentially save a few thousand dollars in closing costs. Beginning January 1, 2008, the grantor’s tax (charged to the seller) will increase from $1 to $5 per $1000 in value (so on a $500,000 home, the seller will pay $2500 to the state, rather than $500.
The [...]
First Time Buyers in the District – $5000 Rebate Through Year End!
November 12, 2007 by Katie Wethman · Leave a Comment
Here’s one more reason to buy now, at least in the District: For first time buyers that settle on a purchase in DC before December 31, you may get a $5000 credit (not a deduction–an actual dollar for dollar offset on money owed!) on your Federal Taxes. That’s the same as Uncle Sam giving [...]
What Happens at Settlement?
July 31, 2007 by Katie Wethman · 2 Comments
Honestly, very little. Mainly you sign your life away to the bank that gave you the purchase money. But having a good settlement attorney can certainly make your life–and your home purchase–a lot easier. Here’s a good article from the Post.
Buyers have the right to choose the transaction’s settlement attorney, who [...]
