FINANCING
This type of loan adjusts its interest rate periodically
What is an (ARM) Adjustable Rate Mortgage
This is the professional who determines the value of a home for a lender
Who is an appraiser?
This is the required down payment amount for all condominiums unless they have at least 10% of the budget amount until their reserves
25% down payment
Doing this allows family member and or spouse to be on title of the property even if they are not on the loan.
What add the person to the sales contract
Your client is purchasing a home for $1,100,000 and is putting down 25%, what type of loan will they be required to obtain
What is Jumbo Loan?
The appraisal report comes in much lower than it should have and you have comps to support that your home value should have came in much higher. What is your next step?
What is request a rebuttal by emailing lender comps that are exactly the same as subject property (roof age, remodel, etc)
What kind of property can you put 5% down on
Townhome fee simple
This document shows buyer and seller fees at closing including how much the seller will net at closing
What is Closing Disclosure
This is a document that lenders provide to attach to an contract to strengthen the offer. This will quickly analyze buyer income/credit and give a result such as: Approve/Eligible or Ineligible – Doesn’t meet requirements
What is a DU (desktop underwrite)
Contract price of the property is $1,250,000 and the appraisal comes in at $1,310,000 how much equity does the client have right off the bat once you close on the home?
What is $60,000
This is the type of loan that you normally need when purchasing a condo unit
What is a conventional loan
This party holds escrow but does not need to do title work
What is escrow agent
This is a tax-deferral strategy that allows real estate investors to defer paying capital gains taxes when they sell a property, as long as they reinvest the proceeds into another similar ("like-kind") property.
A 1031 exchange (named after Section 1031 of the U.S. Internal Revenue Code)
Contract price is $1,090,000 and the appraisal comes in at $1,055,000, buyer decides that they will walk away if the seller does not come down on price. Seller decides that they will only come down $15K. What are the next steps if buyer agrees, how much does buyer have to pay out of pocket and what is new contract price.
Buyer must come out of $20,000. Will need to write up addendum stating new contract price. New contract price is $1,075,000
This document shows if a condo is approved for FHA financing
What is the FHA approved condo list or (HUD) list
The Closing Disclosure must be provided to the borrower at least this many days before closing..
What is 3 business days?
Purchase price is $955K and down payment and closing cost is 8% combined and escrow was already paid in the amount of $30K. What is the cash to close at closing?
What is $46,400
Subject property has been completely remodeled but has a 2000 roof and no pool. There is a property on the same street with the same Sq Ft and entire home remodeled except for master bathroom which cost about $20k for both homes, this home has a pool, and a newer roof. This home sold for $850,000 what price should subject property price be.
Between $800,000-815,000
This insurance policy covers personal property inside a condo unit and is usually the type of policy used for condos
What is a HO-6 insurance policy
This party typically issues the Closing Disclosure to the buyer
Who is the lender?