Some mortgage terms can be confusing, none more so than the similarities and differences between prequalification and preapproval. The two terms are often used interchangeably, but they mean very different things to lenders, real estate professionals and home sellers.
Prequalifying is a rough-idea process that tells you how much money you’ll likely be able to borrow to buy a home. You can prequalify yourself on any banking or real estate-related website simply by putting your salary, type of loan you want, down payment amount and a ballpark home price into a mortgage calculator. You can talk with a lender, who will also give you a ballpark amount without a credit check.
When you apply for a mortgage loan, you’ll share your income records, the source and amount of your down payment, and your social security number so the lender can pull your credit. This is the key difference between prequalification and preapproval – when the lender is able to review your application and verify your credit standing to make a lending decision.
The lender will get back to you within three days or less with a preapproval letter stating the maximum amount of money you’re approved to borrow.
Preapproval gives you the real numbers so you know exactly how much you can spend on a home. It lends you credibility with real estate professionals and with sellers who will take you seriously as a buyer.
Prequalification becomes preapproval once you have a purchase contract on a home. Then, the preapproval is real.
For this, or any other real estate questions, you can contact me any time! I am here to help you find your dream home!
Ready or not, we are fast approaching the season for holiday entertaining – but no matter how much you enjoy the season, it can come with a level of stress. To ease the burden, home economists advise you to do as much as you can in advance. Prep for cold weather:
- Ready the plumbing – Drain the water from outdoor faucets and garden hoses and minimize the prospect of frozen water pipes in the house by using heat tape on potentially problem pipes.
- Prep for warmth – Have the chimney inspected and cleaned, and have a professional check your home’s heating system. Replace the furnace filter and consider installing an energy-efficient thermostat.
- Seal off drafts –Install storm windows and doors now. Add or replace worn weather stripping around doors and windows and caulk any gaps.
- Do the heavy cleaning – Yes, you’ll need to keep up with basic chores, but deep cleaning now, like shampooing the carpets and vacuuming baseboards and crown molding, will pave the way for easier management later.
- Check the linen supply – Be ready for overnight guests. Check your supply of bedding and towels and add new ones if needed.
- Create a stockpile of candles – Whether for the dining room table, or any place in the house, nothing adds warmth and coziness like candles. Lay in a supply now of pillar candles, tapers and candles in pretty containers.
- Stock the pantry – You won’t get caught without a side dish or a last-minute dessert if you stock up now on canned and frozen staples and baking supplies.
- Check bed and bath essentials – Put together an assortment of toilet paper, tissues and hand towels along with basic toiletries like soaps and cotton balls so you don’t get caught short when company comes. Tucking a few nice things in a basket in the guest room will make any guest feel welcome.
- Print out your Wi-Fi info– Help holiday guests connect to your wireless network by printing out a few cards to make the info readily available. Put a few of the cards in a small basket in the front hallway or in the guest room.
Contact me with any questions that you have about any of your real estate needs. My number is (618) 978-2384 or email me at Sandie@SandieLaMantia.com.
Today, Americans can shop for anything and everything online. Need groceries delivered? Order them online. Want dog food, a new wardrobe, new car, or even a mattress for your bed? If you have a computer, you can have anything you want with just a few clicks. If you’re looking for a new home, resources like Zillow, Trulia, and others offer resources for anyone wanting to move or list their homes, searching zip codes, neighborhoods, and price ranges. Since there are so many resources online you may ask yourself, “are real estate agents still important”?
Because of today’s technology, home-seekers are able to be better informed during their new home search because of the internet, but that doesn’t mean a qualified Realtor® isn’t important. Agents do more than simply unlock the door to potential, future homes and serve donuts at an open house. It’s true that the role of the traditional Realtor® of yesteryear has been transformed, but the initial home search is really only a small portion of the overall home buying process.
Before internet home-searching became available, consumers needed information on the homes exclusively from the Realtors®. Today, that information still needs to be analyzed by the real estate agents and the process of negotiation is more multifaceted than it has ever been. In today’s market, there’s usually low inventory and a high-demand, making the agent a home-seeker’s “best friend”. When a property is under contract, there’s a lot happening at the same time and a Realtor® can help keep it all straight. Realtors® help with heated negotiations, the inspection process, and dual-offer maneuvers when they happen.
As a local Realtor®, I am a fan of today’s technology because I find that my clients are better informed, knowing what they want in their new home and what they can afford. My job description is plentiful, but one of my main objectives is to keep my clients organized during the entire process, getting the best deal for their dream home. Technology is a wonderful asset to all of us, but it’s my ultimate goal to share my knowledge as a Realtor® so clients can rely on me during complex negotiations and more. Mobile apps, for example, can help keep clients organized and see homes more quickly. However; onerecent Forbes articles does state, “While the internet is replete with information, it’s the agent’s knowledge that makes the difference between mediocrity and extraordinary.”
For example, Zillow and Zestimate is more of a range for what the home may be worth. Working in the many Metro-east communities, I understand that a home’s online list price may seem a bit high, but I’ll be able to tell you why. Website’s like Zillow offer home-seekers a starting point, but they don’t know if the homeowner recently updated a master-bedroom closet or kitchen and that’s why the online listings aren’t always an accurate representation. With my network of builders, appraisers, inspectors and lenders, I know more about the homes on sale than any website search engine does.
Because of my real estate knowledge, I can help sellers price their homes right and help buyers know the best home investment for their particular needs. I do research on behalf of my clients, communicate, and listen to them…and relationship-building is something I take seriously. Want to make the most of your home search? Contact me and I’d be happy to answer questions or assist you in any of your real estate needs. My number is (618) 978-2384 or email me at Sandie@SandieLaMantia.com.
I’ve been in the real estate business for quite some time, and often clients hesitate to ask me questions about getting their home ready to sell because they may think the questions seem frivolous or silly. Well, there truly are no silly questions in real estate! Every home is unique, and every situation has its own set of intricacies. If you’ve never had a house for sale before, or if a problem arises that you may have never anticipated, that’s all part of the process. I’ve compiled some questions over the years that homeowners have asked me and thought I would pass the information on to you.
Curbside appeal. What do I need to do?
I’ve written about first impressions before, but did you know that people looking for new homes notice things about your entryway that you may assume they won’t notice? You’ve spent a lot of time getting the interior of your home ready, but what about the entryway? The threshold of your entryway, from the steps to the welcome mat, will be critiqued by new home seekers. Is it dusty and needs to be swept? Is your welcome mat old and tattered? Make sure your mailbox is standing tall and without chipped paint. Pay attention to everything from your front door windows being clean to the walkway being inviting. “Curb appeal” may begin at the curb, but buyers will notice so much more as they approach your front door.
Not sure? Yes, you DO need to do the windows!
Another recommendation I give homeowners that are trying to sell their home is to not neglect the patio doors and windows. This may seem like an obvious tip, but when people are walking through your home and open the blinds or curtains to get a view of the backyard, you really want the frames to be dust free and the window’s glass crystal clear. Patio doors and the door tracks should also be cleaned and any obstructions cleared away, especially times during the year that may be considered “unseasonal” for using outdoor spaces. Wondering if hiring a window cleaner is worth the additional expense? Most definitely, especially if you don’t have time to do it yourself. Having your windows professionally cleaned at a price range anywhere from $6 to $8 a window, which includes the inside, outside and the screens, is well worth the return on that investment. And also make sure your outdoor spaces are tidied up, too.
Should I think about a heating and cooling system check-up?
When trying to sell a home, don’t forget about one of the biggest expenses associated with home ownership…and that’s your home’s energy costs. Heating and cooling your home can be quite expensive, and well-informed people looking to buy may inquire about the last time your HVAC system has been serviced. If your home is newer, it’s easier to present them with any installation and warranty information. For older homes, it’s a good idea to have a certified HVAC company come to your home and give a check-up of your system. Whether you simply need to change your filters or have a bigger maintenance issue to resolve, it helps to know what you are dealing with before you put your home on the market.
What do I do about our pets, pet toys and kid toys?
Homes can get messy, and pets and kids can often be the culprits! Think about walking into a home that you know has pets. Are you preoccupied with the smell you’re noticing or the toys you’re seeing, scattered around the home? When getting your home ready to sell, it’s best to keep the smells as neutral as possible, and always pick up remnants of toys, whether from Fido or your 5 – year old. Think about investing in a toy box for your kid’s room, if you don’t already have one, because it’s an easy way to collect toys and keep them organized. If an interested buyer wants to see your house within the hour, think about ways to keep the stress level contained. Ideally, load up the car with kids and pets before a house showing with snacks, games, and videos ready to keep your family occupied while out of the house!
This is only a sampling of questions sellers and buyers ask me. Throughout the year, I’ll share those questions and some tips as they arise. Attention-to-detail can make the difference between a sale or a snub. Let me help you get your house ready for an open house that is sure to impress! Contact me with any questions that you have about any of your real estate needs. My number is (618) 978-2384 or email me at Sandie@SandieLaMantia.com.
If you know the near future involves putting your house on the market, it’s never too early to begin the planning process. Even if you’d rather wait until the spring months to sell, there is more involved in the sale of your home than simply putting a “For Sale” sign in the yard. Here are some practical tips to consider during this exciting time to get your home ready.
First and foremost, finding a reputable real estate agent should be top of the list! Selling your home solely on your own can be a daunting task and a real estate agent can help navigate the sale of your home, no matter how hot or cool the market may be in your neighborhood. There is a reason knowledgeable homeowners often rely on the talents of a real estate agent, saving you time and money in the long run.
It’s important to find a real estate agent that has experience in the area where you are selling, one that you connect with and feel comfortable sharing your expectations with, too. Do some research when looking for a real estate agent and also seek recommendations from others that have recently sold their home. It’s also important to interview the agent to make sure he/she is a good fit for your needs and your personality.
Curb appeal is one important aspect of selling your home. Buyers do often judge a book by its cover! If interested buyers are driving around looking at neighborhoods and come across your home with unkept landscaping and broken shingles, it’s likely they will mark your “Open House” off of their list. Make sure your front yard is tidy and cracked paint is repaired, adding finishing touches like flowers and a new welcome mat can also make a difference. Old, ugly mailbox? Fix that too.
Declutter and depersonalize. Always on the list of things to do when you’re getting your home ready to sell, cutting down on the clutter, the trinkets and the family heirloom items makes a big difference in your home’s appeal. Staging your home with the motto in mind that “less is more” is something that can begin during the months leading up to the sale of your home. Donate unused items and keep in mind during the process that nothing is off-limits when trying to sell your home. Buyers will peek into your closets and look under your sinks to find out what space is available. If they notice too much stuff, it takes away from the beauty of your home.
Some personal photos are fine to keep up on the walls, but too many family photos and oversized artwork may be distracting and overwhelming to the general public. When you are trying to sell your home and start to think of it as a blank canvas for the new homeowner to enjoy and add their personal touches to, it will help you determine what should go and what could stay as part of your overall décor.
Want to sell your home? Invest in some paint. The cold, winter months are a good time to paint the home’s interior. Accent walls are nice, but you may want to consider painting your walls and halls in a more neutral color since most buyers will appreciate a color scheme that they can spend less time updating. A fresh coat of paint, fixing any scuffs and scratches on the walls, will be very beneficial when trying to sell. How many times have you watched HGTV “House Hunters” and heard potential buyers complain about a room’s color? Although painting walls is one of the easier things to fix for home-buyers when they otherwise love a house when browsing, a paint job is just another way to freshen up a home and give it a neutral “look and feel” that will hopefully entice more shoppers.
Other ways to prepare your home for sale include thoroughly cleaning the house and garage, fixing anything that may have been broken for a while (like a cabinet pull or toilet paper holder), and taking care of any funky smells that you’ve noticed coming from the basement. We tend to overlook certain things in our homes that need fixing because we get busy and tell ourselves, “we’ll fix that next weekend”. Before putting your house on the market, make sure you create a thorough check list of items that need to be fixed and tackle that list. Give yourself enough time to fix what’s broken and freshen up what’s stale.
Now is the perfect time to begin the process of organizing the home for prospective buyers. A little planning will ensure that your home will be ready for the market, whether you want to sell it next month or six months from now! Unsure about what your next steps should be to get your home ready to sell? Contact me and I’d be happy to answer questions or assist you in any of your real estate needs. My number is (618) 978-2384 or email me at Sandie@SandieLaMantia.com. Happy New Year!
There are still home seekers that will look for that perfect new home over the holidays, with the intent of moving into their new space in the New Year. Even though it’s not the most popular time to buy or sell real estate because of everyone’s hectic schedules and cold temperatures, house hunting will still be happening. An HGTV article cites that staging your home for the holidays should be stylish and neutral, giving a vibe of the season without going overboard.
So, what do you do so your home is styled in a festive manner without making it look like a scene from “Christmas Vacation”? The following real estate tips will help, offering ideas for decorating your home and keeping your buyers in the right spirit!
Start with a clean slate. Staging your home, no matter the season, should not be overdone. And before you even unpack that first holiday decoration, make sure to clear out and clean the clutter! Take a look at your house “pre-décor”, and make sure it’s already staged, which means the extra tchotchkes and collections have been put away. If you add your ceramic Christmas tree collection to the mix without cleaning, it will surely look cluttered.
People tend to use all additional spaces in the home when they decorate for holidays, and when staging your home, this isn’t a great idea. You still want the rooms in your home to look as spacious as possible, which means limiting the holiday décor. If you think you may miss your 20 Santa figurines, keep in mind that with a little staging strategy, you’ll be celebrating your nextholiday in a new home…and you can decorate in any way you like!
Holiday flair should be cozy and coordinating. Items like a crystal bowl with pinecones or an evergreen wreath can really spruce up your house. It’s best to also match your existing décor with your holiday style. If you have a dining room painted in a soothing sky blue, stay in harmony with it by opting for white snowflakes or silver-toned ornaments and table coverings. Adding red and green to the mix would clash and not complement. The traditional red and green color scheme works well as accent tones if your room has more earthy colors like forest greens, oranges and golds.
Also, tone down gaudy light displays while your home is on the market. It’s best to use simple string lighting to play up your home’s structure or draw attention to the gorgeous fir tree in your front yard.
Highlight the positive. As stated earlier, too many holiday items scattered throughout the home will distract, but if you add the right accessories in the right spots, it will accent your home’s best features. Think about placement of mistletoe in the arched doorway or displaying your menorah on the ledge of your living room’s bay window. When decorating, just make sure to not block a beautiful view or place cheap-looking window decals that may distract the home buyer from your lovely backyard’s vista. Own a custom fireplace? It may be best to not place 6 personalized stockings over it, taking away from its architectural details.
Neutrality is key. When trying to sell your house, it’s best to leave the life-sized Nativity scene in storage this year as well as multiple blow-ups in the front yard like snow globes with a Santa. Because you want to attract any type of home buyer, it’s best to keep low key décor that isn’t overly religious. You also want to make sure the front yard is safe and not scattered with extension cords to activate the Christmas inflatables. An example of neutral décor may include nutcrackers, reindeer and snowmen.
Trim the tree. If a Christmas tree is in your holiday décor plans, make sure the tree fits your space nicely and not overwhelm it. Have a small living room? Use a skinny tree to save space. When your house is on the market, it also may be best to use cohesive ornaments instead of the mismatched, homemade ones your children made in school. Although those ornaments are sentimental, homebuyers will not understand their significance. Instead, set the stage for a perfect holiday in your home with a tree that looks tailored and tasteful.
Have questions about purchasing a new home in the Metro-east or selling your existing one during the holiday season? Contact me for all of your real estate needs at (618) 978-2384 or email me at Sandie@SandieLaMantia.com.
Anyone that has worked with me knows that I have a genuine passion to find the perfect home for my clients. I love real estate and truly believe that investing in your home is one of the most important investments you can make. A home is where memories are made, love is shared, and your true personal taste and style can be expressed.
When finding someone the perfect home, it’s important to really be able to relate to the client. A Realtor® definitely needs to be a “people-person” to be successful! Listening is one of the best traits of a good Realtor® because finding the perfect home goes beyond the zip code and the price per square foot – matching the needs of the new homeowner is paramount! Tailoring the home search to the client saves time and ultimately is a more enjoyable experience. Open house visits are fun, but when it’s time to get serious in your home search, it’s always best to hire a Realtor®.
One of my favorite mottos is “extraordinary efforts produce extraordinary results.” I offer more of a personal concierge service to ensure that my clients receive the most information about neighborhoods, techniques and recommendations regarding the home buying or home building process, with on-going communication throughout the process. If you’re looking to relocate or change homes in the Metro-east area, I can help make the transition a smooth one!
There are many fantastic neighborhoods in the Metro-east. Here are just a few of my favorites along with some features to fall in love with, time and time again.
Niche.com ranked Edwardsville and Glen Carbon two of the BEST places to live in Madison County. Statistics were based on low crime rates, cost of living, job opportunities, and amenities. The Niche website gave both communities an A+! The Ebbet’s Field subdivision is a good representation of why these communities impress. This neighborhood is mere minutes from shopping as well as the excellent schools in District 7. The newer, full-service and local YMCA is also just down the street. Prices range from $400,000 and up.
Another family-oriented development, this subdivision is located in Glen Carbon. Prices range from $300,000 and up and this development boasts a collection of craftsman and traditional style homes. Community-minded and located conveniently by the many Madison County Bike Trails, Savannah Crossing is also close to shopping and is a part of the Edwardsville School District. Another good reason to think about living in one of the “Top 100 Places to Live”, as ranked in CNN Money.
Another beautiful development in the heart of Edwardsville is Brookshire Hamlet. Easy access to everything we love about Edwardsville, it’s also easy access to all major Interstates and only 25 minutes from downtown St. Louis. This is a simplified living community, which means it’s maintenance free living with lawn and landscaping care included along with snow shoveling and exterior maintenance responsibilities. Looking for a home site to build your next home? This might be it!
A perfect place for friends to gather, share day’s events or simply relax.. @Cloverdale the neighborhood has tremendous walkability factor for a relaxing evening walk with the family, friends, the dog or on your own for a bit of solitude. Hit the trails for a morning workout & easily traverse the 100 plus mile system full of the best that nature can offer. Another bonus: @Cloverdale is only a 20-25 minute walk to downtown Edwardsville for a beautiful morning at the farmer’s market or a delicious trip to one of the local coffee shops
Other neighborhoods that many of my clients now call “home” include Timberwolfe Estates, Arbor Lake, Somerset, Governor’s Way and Stonecliff Manor. Nearby Troy, Illinois is another emerging community that offers a great school district, restaurants, parks and shopping. Hampton Glen and Shadow Creek are two neighborhoods in Troy that are highly suitable when a new home is in your future.
I’ve only named a few of the neighborhoods and communities in the Metro-east area that offer wonderful homes with great features and amenities. My knowledge of the area goes beyond the neighborhoods I’ve listed here, and once I know your budget, ideal location and “wish list” items, I’ll be able to help determine which neighborhoods will best suit you. You can also find additional communities highlighted on my website at https://SandieLaMantia.com/.
It’s my ultimate goal as a Realtor® to find you the perfect home. I can also assist you when selling your existing home because I have a comprehensive knowledge of the local market and what works! I can help you determine which home features will lead you to a higher sale price, negotiating with the right buyer so you can sell your home efficiently and stress-free. Want to learn more? Contact me for all of your real estate needs at (618) 978-2384 or email me at Sandie@SandieLaMantia.com.
There are a number of different things you can do as a homeowner to winterize your home. Where we live, we can experience the mildest of winters one year and a bitterly cold mix of winter storms and below zero temperatures the next. It’s always a good idea to prepare for the worst, so here are some simple ways you can winterize your home in the next month to make sure your home is safe and sound.
Have a winter storm kit prepared. A home safety kit is a good idea, no matter the weather. The experts recommend having a container filled with food, bottled water, and other supplies that will last up to 72 hours in the event of an emergency. Some companies even offer pre-made kits! If a big ice storm hits and the roads become too treacherous to travel on, you’ll be glad you took some time to make a storm kit. It’s also beneficial to have one on hand just in case you lose power because of storms taking out power lines.
Trim trees in your landscaping. If you live in a wooded area and there are tree branches next to your home’s roof, windows, or electrical lines, it’s a good idea to trim them now. Keep in mind that ice and snow will weigh branches down even more, so there is definitely potential for damage to your home or landscaping.
Smoke and carbon monoxide detector check. Unfortunately, the winter months have an increase in home fires and cases of carbon monoxide poisoning because people are running their furnaces more often. Keep your loved ones safe and make sure your detectors have new batteries and if one isn’t working properly, change it out.
Fireplace chimney inspections. When was the last time you had your chimney cleaned or inspected? Visit www.csia.org for information on chimney safety and to find a certified chimney sweep. Cleaning your chimney each season is just one more safeguard against house-fires.
Install proper doors and windows. The better your windows and doors, the better your energy efficiency will be. Storm doors and windows also can be beneficial, and some tax credits are even available. If you can’t afford new windows, doublecheck your insulation around doors and windows and use blinds and shades to help keep the cool weather out.
Check your heating and cooling system. There are many qualified HVAC businesses in our area, and it’s important to have your furnace inspected annually by a dependable technician. It’s also a good idea to have your home’s ducts cleaned and inspected for any leaks and to regularly change your furnace’s filter throughout the winter months. A professional HVAC technician will be able to assess your existing system and help you determine what may need to be done before the cold weather hits.
Reverse ceiling fans for better circulation. Using your ceiling fans in the winter helps to keep your house warm. On typical ceiling fans, there are switches to reverse the flow. This pushes warm air downward and helps it to recirculate throughout the rooms in your home. When warmer weather is upon us, don’t forget to switch the direction again.
Keep your house colder. Set your thermostat a few degrees cooler and you’ll be pleased at the lower energy bill. Wearing a sweater or layers while at home is one of the easiest ways to save money during the winter months on your utility bill.
Other things you can do as a homeowner to prepare for the cooler weather is to bring outdoor patio furniture and accessories inside for storing, also bringing any plants and flowering trees inside before the first frost. Another good idea is to clean and winterize any outdoor equipment like lawn mowers and trimmers, inspecting any of the winter tools you have during the process.
Even though there are still plenty of nice days ahead, winter will be here before we know it. A little planning will ensure that your home will be ready for the colder weather and you’ll be more comfortable, too. Have questions about living in the Metro-east or need some tips about home ownership? Contact me for all of your real estate needs at (618) 978-2384 or email me at Sandie@SandieLaMantia.com.
If you are considering putting your home on the market, your friends and family may want to offer tips and guidance about staging your home, what to list it for, and the best time to sell. Keep in mind there are a lot of factors to consider if you wan to sell your home this Fall season, and they can vary from zip code to zip code, street to cul-de-sac. There can be benefits and drawbacks with listing your home, no matter the season. Hopefully these tips will help during the home selling process if you are considering an autumn sale.
You may have once thought you’d live in your existing home forever! Things change, and a relocation may be necessary due to a new job or unexpected life event. I typically like recommending to my clients that first and foremost, consider what’s best for your family. Sometimes timing a move with a new school year makes sense so your kids are getting started with new classes and new teachers at the same time as the other children in the school district. Fall is typically the second-best time to sell your home, coming in second after spring.
As the cooler, fall weather approaches, there are still people looking for that new home. Fall can be an ideal time to shop, buy, and get moved in before all of the upcoming holidays that the season brings. It’s important to clean up that yard and enhance your home’s curb appeal during the fall months. Trim bushes and cut back vines, move the summer toys and gadgets out of the yard, and begin to give your home that cozy, autumn aesthetic.
What homebuyers see first is important. Mums are lovely additions to the front porch. Or, choose marigolds in your landscape planters. Place the flowered pots by the entrance and along the walkway, accenting your home’s backdrop with pumpkins and squash. Hang a fall wreath on the front door and tidy up your home’s exterior with window washing and a new welcome mat!
There are other benefits to selling your home in the fall months. During the spring, the market is saturated with homes for sale in a variety of neighborhoods. If your home doesn’t have any distinguishing features that sets you ahead of the pack, competition can be fierce. On the other hand, what if your house does have unique features and you decide to sell during a time of year that’s slightly less busy? There’s a very good chance your house will be noticed, possibly even commanding a higher price in the fall.
Other tips include cleaning that wood-burning fireplace from any debris. Why not even place a fall arrangement within it? Autumn is a perfect time to stage your home with scents of homemade cookies baking, pumpkin, and hot apple cider. Many recommend simmering cinnamon sticks on the stove-top so the smell sifts through the air. There are many ways, from candles to essential oils, to create a memorable experience for the potential homebuyer.
Lack of competition is a benefit that should be seriously considered if you are in the market to sell your home. With fewer homes for sale, there’s opportunity to sell your home more quickly, especially if a buyer needs to move immediately. Also, families without school-aged children have more flexibility when considering a move date. In our school district, we have the advantage of being a desirable place to live for homebuyers, no matter what time of year it may be.
As a Realtor®, I can assist you when selling your home because I know the local market inside and out. I can help decide which home features will lead you to a higher sale price, negotiating with the right buyer so you can sell your home in the least amount of time. Fall is a great time to sell! Contact me for all of your real estate needs at (618) 978-2384 or email me at Sandie@SandieLaMantia.com.
The home search is over! You have finally found the perfect home in the ideal location, negotiated the price, had your offer accepted, and are ready to make the big move. After the walk-through, appraisal, and some constructive “back-and-forth” with the agents, family members, and friends, the next step is finally here: it’s closing time! The closing is an exciting milestone in the overall home purchasing process and it’s the final piece of the puzzle when buying and financing a home.
Taken directly from the Consumer Financial Protection Bureau website, the closing, or sometimes referred to as a “settlement”, is when “you and the other parties in a mortgage loan transaction sign the necessary documents” so that the new, beloved home is finally your own! The closing documents make you responsible for the mortgage loan, so it’s important that you know what you are signing during the closing process.
One particular document, the closing disclosure, is a form that includes all final terms of the loan, closing costs, details of who pays and who receives any of the payments in the transaction. This document is a form that has replaced the previous HUD document (Department of Housing and Urban Development). Another document, the initial escrow statement (also called the initial escrow disclosure), lists what is going in the escrow account each month so taxes and insurance is paid on the homebuyer’s behalf. This document also shows the estimated balance in the escrow monthly as payments are made and how their account adjusts.
Contractual documents include the promissory note, which outlines clearly what you are agreeing to. It will include what you owe, interest rate of the mortgage loan, the dates when payments are to be made, total amount, length of time to repay, and more. Another form, a mortgage or security instrument, explains responsibilities as well as rights as a borrower. There are additional state and local government documents that are typically used to collect information about you, the new homeowner. Lender documents will also need to be signed at this time, too. When you receive the closing disclosure, you can ask your lender to provide a full set of all the documents listed here. This way, you can review them in advance and before the closing.
The closing process usually includes your real estate agent or Realtor®, the title company representative, also known as the closer, and potentially the lender. Your lender may or may not attend the closing. State regulations are different, so the closing meeting may include everyone at the conference room table while signatures are happening or it could take several days if signatures are being compiled separately. In some cases, a closing may even be via the internet or mail.
Regardless how the actual closing process happens, it’s important to understand that the paperwork has lasting financial implications. Before signing, make sure the documents have been reviewed and are understood. Don’t sign the documents if you’re unsure of making the payments or if there are errors. Ask questions if you don’t understand something involving the terms of the loan. Also keep in mind that over time, your payments may change. With an adjustable-rate mortgage, payments may increase over time so make sure you know when it will change and by how much. Even fixed-rate mortgages may change because of variations to taxes or insurance.
Being prepared at closing will help alleviate any stress and let you focus instead on this momentous event. Being a new homeowner is definitely a reason to celebrate! If you’re interested in a new home or want to learn more about selling your existing home, I’d love to help. I’ve assisted many families and individuals in the Metro-east area and beyond find their dream home. Contact me for all of your real estate needs at (618) 978-2384 or email me at Sandie@SandieLaMantia.com.