Danielle Groeneweg

It is a very common questions I get from buyers, ” What are the closing costs?”. I thought it would be a good idea to include a very generic list of some items that may be included in your closing costs, an estimate as to what they will be and also what that money is going towards. I do want to stress the cost is different for every transaction and will depend on the home you are purchasing among other factors.

I ran across this awesome list on Zillow.com. The full list can be found here. **I didn’t include everything on the list that Zillow has on their website.**

• Appraisal (up to $450) – This is paid to the appraisal company to confirm the fair market value of the home.
• Credit Report (up to $30) – A Tri-merge credit report is pulled to get your credit history and score.  You cannot supply your consumer pulled report and the scores pulled form the internet from any place other than myfico.com are not real scores nor are they accurate.
• Closing Fee or Escrow Fee (generally calculated a $2.00 per thousand of purchase price plus $250) – This is paid to the title company, escrow company or attorney for conducting the closing. The title company or escrow oversees the closing as an independent party in your home purchase. Some states require a real estate attorney be present at every closing
• Title Company Title Search or Exam Fee (varies greatly) – This fee is paid to the title company for doing a thorough search of the property’s records. The title company researches the deed to your new home, ensuring that no one else has a claim to the property.
• Survey Fee (up to $400) – This fee goes to a survey company to verify all property lines and things like shared fences on the property.  This is not required in all states.
• Flood Determination or Life of Loan Coverage (up to $20) – This is paid to a third party to determine if the property is located in a flood zone. If the property is found to be located within a flood zone, you will need to buy flood insurance. The insurance, of course, is paid separately.
• Lender’s Policy Title Insurance (Calculated from the purchase price off a rate table. Varies by company) – This is insurance to assure the lender that you own the home and the lender’s mortgage is a valid lien. Similar to the title search, but sometimes a separate line item.
• Owner’s Policy Title Insurance (Calculated from the purchase price off a rate table. Varies by company) – This is an insurance policy protecting you in the event someone challenges your ownership of the home.
• Homeowners’ Insurance ($300 and up) – This covers possible damages to your home. Your first year’s insurance is often paid at closing.
• Escrow Deposit for Property Taxes & Mortgage Insurance (varies widely) – Often you are asked to put down two months of property tax and mortgage insurance payments at closing.
• Transfer Taxes (varies widely by state & municipality) – This is the tax paid when the title passes from seller to buyer.
• Recording Fees (varies widely depending on municipality) – A fee charged by your local recording office, usually city or county, for the recording of public land records.
• Processing Fee (up to $1,000) – This goes to your lender. It reimburses the cost to process the information on your loan application.
• Underwriting Fee (up to $795) – This also goes to your lender, covering the cost of researching whether or not to approve you for the loan.
• Loan Discount Points (often zero to two percent of loan amount) – “Points” are prepaid interest. One point is one percent of your loan amount. This is a lump sum payment that lowers your monthly payment for the life of your loan.
• Pre-Paid Interest (varies depending on loan amount, interest rate and time of month you close on your loan) – This is money you pay at closing in order to get the interest paid up through the first of the month.
• Property Tax (usually 6 months of county property tax)
• Wood Destroying Pest Inspection and Allocation of Costs – If required by the lender or buyer, the inspection generally runs up to $125.00.  Repairs can get expensive if evidence of termites, dry rot or other wood damage is found.  example: Fumigation of a typical 1500 square foot house could run around $2,000.
• Home Owners Association Transfer Fees – The Seller will pay for this transfer which will show that the dues are paid current, what the dues are, a copy of the association financial statements, minutes and notices.  The buyer should review these documents to determine if the Association has enough reserves in place to avert future special assessments, check to see if there are special assessments, legal action, or any other items that might be of concern.  Also included will be Association by-laws, rules and regulations and CC & Rs.  The fee for the transfer varies per association ,but generally around $200-$300.

Again, I want to remind you that the costs will be different in every transaction and this list is just to give you a better idea of what might be included at closing. Please call me if you have any questions about closing costs.

Thanks for reading.

I just wanted to share quick update from my end. I have recently become more active on Zillow. I know many of you are familiar with Zillow when looking at homes to buy, there famous Zestimates and etc. If you are on there already, I would love for you to take the time and check out my profile here.  On my profile you can learn more about me, check out my past sales and read some honest reviews of clients I have worked with in the past. Let me know what you think!

Thanks for reading,

Danielle.

Have you convinced yourself of a million reasons why you can’t buy a home or it just isn’t the correct time to do so? I ran across this great article on realtor.com titled, ” Top 6 Reasons to Not Buy a Home-Debunked” written by Margert Heidenry. Heidenry does a great addressing a lot of common fears and concerns as to why someone feels they can’t purchase a home. Although all 6 reasons are good and should be an area of concern when considering purchasing a home they are often times NOT true.

Please read the article below and see if any of these reasons sound familiar to you. Full article can be found here.

“You? Buy a home? If that prospect sounds as unlikely as your becoming the next U.S. president—well, this campaign season has shown us that anything can happen.

Sure, amassing the funds and slogging through the necessary paperwork for your own piece of the real estate pie can be daunting, especially if you’re a less-than-stellar loan candidate. Still, if you just assume there’s no way you could buy a home, without doing any research, you could be missing out.

Here are some oft-cited reasons people don’t buy a home, and the reality checks showing why they shouldn’t give up hope.

Reason No. 1: ‘I don’t have enough money for a down payment’

This is probably the most common justification for not making the leap into homeownership. After all, few people have a huge chunk of cash lying around—and you need 20% down to buy a home, right? Wrong.

AJ Smith, a personal finance expert at SmartAsset, points out that with a loan backed by the Federal Housing Administration or Department of Veterans Affairs, you can usually get by with a down payment of 3% to 5%.

In addition, “grants are an excellent way for young buyers with good credit and stable employment to subsidize their down payment,” says Realtor® Mike Murray of the Murray Home Team at Coldwell Banker in Annapolis, MD. “These can typically be obtained by taking homeownership courses or purchasing in designated community development areas.”

However, if you do put down less, keep in mind you’ll need private mortgage insurance until you pay down the loan to the 20% threshold.

Reason No. 2: ‘I can’t afford a mortgage payment’

“Some people don’t realize the amount they pay in rent is more than if they had a mortgage,” says Realtor Kenneth Cagan of the Cagan Team in Coral Springs, FL. “Landlords are trying to recoup their taxes, insurance, maintenance fees and still make a profit. When you buy, you’re investing in yourself.”

To find out if renting or buying makes more sense in your neighborhood, try realtor.com‘s Rent vs. Buy Calculator.

For first-time buyers with low to moderate incomes, organizations such as Neighborhood Housing Services of Richmond have plenty of experience in helping.

“Laniesha, a young mother of two, gave us every excuse in the book as to why she couldn’t purchase a home, from ‘I don’t make enough money’ to ‘I am not married,’” says Samuel Robinson, NHSR’s marketing and public relations officer. “After explaining that none of these issues could stop her, we worked with Laniesha to pay off her debts and raise her credit score. She’ll be purchasing her new home in 2016.”

Reason No. 3: ‘I don’t have good enough credit history to get a mortgage’

So you’ve made some late payments, or have other skeletons in your past that have dinged your credit score. That doesn’t put a mortgage out of reach.

“If you’ve paid down your credit cards and kept a steady job, your application may be approved,” says SmartAsset’s Smith. “Potential home buyers with bad credit can also explore options like lease-to-buy programs, financing through the seller, and loans from private lenders.”

Get this: Some private mortgage insurance programs allow for credit scores as low as 620, Smith says.

Meanwhile, you can slowly improve your credit score by paying your bills on time and keeping your balances and inquiries low, says Murray. A licensed loan officer should be able to set up a one-year outline to get your credit on track.

But there’s one substantial caveat: Typically, mortgages for people with a lower credit score do come with a higher mortgage rate. And a very low score may require a higher down payment.

Reason No. 4: ‘I don’t have any credit history at all’

Even without a credit card, there are ways to build credit history, says Anne Postic of Mortgages.com.

“If you’re a renter, ask your landlord about reporting your payments to establish a history. Experian makes it easy for your landlord to report your payments, or for you to do it yourself.”

Reason No. 5: ‘I haven’t been at my job long enough’

“Work history is important,” says Jeremy David Schachter with Pinnacle Capital Mortgage in Phoenix AZ. “But even if you recently changed jobs and have only been there for a month, you can get qualified depending on your income and field.” A letter from your boss or place of employment will go a long way, so be sure to ask if you fear your relatively brief employment history might be an issue.

Reason No. 6: ‘I can’t find a home I like in my price range’

“People often think they have to buy their last home first,” says Fort Myers, FL, Realtor Angeline Sackett. But making a dream home a reality takes time. After all, they call first homes “starters” for a reason, right?”

If you have been debating starting to look for a home or looking into getting financed, please give me a call or email. I would love to go over your questions and concerns and see what type of options are out there for you.

Thanks for reading,

Danielle

The “R” is a symbol most people recognize and for good reason. The National Association of Realtor is an amazing organization that was founded in 1908. I just wanted to take the time and point out that not all Real Estate Agents are Realtors.

Realtors are held to a higher standard ethically and professionally. I got this info below directly from the National Association of Realtors website. I thought it was a great read to give  you a few more facts about the NAR. For more info click here.
“NAR at a Glance

What: The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members, including NAR’s institutes, societies and councils, involved in all aspects of the residential and commercial real estate industries.

Who: Our membership is composed of residential and commercial REALTORS®, who are brokers, salespeople, property managers, appraisers, counselors and others engaged in all aspects of the real estate industry. Members belong to one or more of some 1,400 local associations/boards and 54 state and territory associations of REALTORS®, or to one of 81 cooperating associations in nearly 60 countries. They are pledged to a strict Code of Ethics and Standards of Practice.

Why: Working for America’s property owners, the National Association provides a facility for professional development, research and exchange of information among its members and to the public and government for the purpose of preserving the free enterprise system and the right to own real property.
The Term REALTOR®

The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.”

Next time you are out shopping for a broker I highly suggest making sure they are also a Realtor. I am a Realtor and I also have the privilege to serve on the local Whatcom County Association of Realtors board.

Thanks for reading

I ran across this article on Realtor.com that I think is an excellent read. It gives you six reasons why you should use a Realtor. Buying a home is a huge task that you might do 2-3 times in your lifetime. Why don’t you use the knowledge and expertise of someone who goes through the home buying process everyday? Yes, you can do it on your own but why should you? Below is the article which is written by Rachel Stults and taken from here.

It’s a slow Sunday morning. You’ve just brewed your Nespresso and popped open your laptop to check out the latest home listings before you hit the road for a day of open houses.

You’re DIYing this real estate thing, and you think you’re doing pretty well—after all, any info you might need is at your fingertips online, right? That and your own sterling judgment.

Oh, dear home buyer (or seller!)—we know you can do it on your own. But you really, really shouldn’t. This is likely the biggest financial decision of your entire life, and you need a Realtor® if you want to do it right. Here’s why.

1. They have loads of expertise

Want to check the MLS for a 4B/2B with EIK and a W/D? Real estate has its own language, full of acronyms and semi-arcane jargon, and your Realtor is trained to speak that language fluently.Plus, buying or selling a home usually requires dozens of forms, reports, disclosures, and other technical documents. Realtors have the expertise to help you prepare a killer deal—while avoiding delays or costly mistakes that can seriously mess you up.

2. They have turbocharged searching power

The Internet is awesome. You can find almost anything—anything! And with online real estate listing sites such as yours truly, you can find up-to-date home listings on your own, any time you want. But guess what? Realtors have access to even more listings. Sometimes properties are available but not actively advertised. A Realtor can help you find those hidden gems. Plus, a good local Realtor is going to know the search area way better than you ever could. Have your eye on a particular neighborhood, but it’s just out of your price range? Your Realtor is equipped to know the ins and outs of every neighborhood, so she can direct you toward a home in your price range that you may have overlooked.

3. They have bullish negotiating chops

Any time you buy or sell a home, you’re going to encounter negotiations—and as today’s housing market heats up, those negotiations are more likely than ever to get a little heated.

You can expect lots of competition, cutthroat tactics, all-cash offers, and bidding wars. Don’t you want a savvy and professional negotiator on your side to seal the best deal for you?

And it’s not just about how much money you end up spending or netting. A Realtor will help draw up a purchase agreement that allows enough time for inspections, contingencies, and anything else that’s crucial to your particular needs.

4. They’re connected to everyone

Realtors might not know everything, but they make it their mission to know just about everyone who can possibly help in the process of buying or selling a home. Mortgage brokers, real estate attorneys, home inspectors, home stagers, interior designers—the list goes on—and they’re all in your Realtor’s network. Use them.

5. They adhere to a strict code of ethics

Not every real estate agent is a Realtor, who is a licensed real estate salesperson who belongs to the National Association of Realtors®, the largest trade group in the country.

What difference does it make? Realtors are held to a higher ethical standard than licensed agents and must adhere to a Code of Ethics.

6. They’re your sage parent/data analyst/therapist—all rolled into one

The thing about Realtors: They wear a lot of different hats. Sure, they’re salespeople, but they actually do a whole heck of a lot to earn their commission. They’re constantly driving around, checking out listings for you. They spend their own money on marketing your home (if you’re selling). They’re researching comps to make sure you’re getting the best deal.

And, of course, they’re working for you at nearly all hours of the day and night—whether you need more info on a home or just someone to talk to in order to feel at ease with the offer you just put in. This is the biggest financial (and possibly emotional) decision of your life, and guiding you through it isn’t a responsibility Realtors take lightly.

If you have been trying to do this process on your own, please let me help you! The home buying process should be exciting and not stressful for you. Let me take that burden off your shoulders and help you through the entire purchase from start to finish.

Thanks for reading.

There are a lot of costs involved when trying to sell your home. Below, I have included a page from my sellers packet titled, “Sample Net Proceeds”. This is the costs based on a home that sold for $250,000. This is just an example, every home is different but this will give an idea of what some of the costs included might be.

If you are curious about what the cost would be to sell your home please give me a call. I have a formula all set up on my computer that will help me calculate an estimate of what your net proceeds would be. Just need a few minor details. (No strings attached ☺)

Thanks for reading,

Danielle

Since November is here and it is a month to be thankful, I wanted to share a couple recent reviews (with their permission of course) clients have given me. I just want to say how grateful I am for the amazing people I get to work with everyday.

All of these reviews are taken from my Redfin Page here: If you aren’t familiar with Redfin make sure to check out my page. You can also read more reviews and learn more about me and the services I provide for my clients.