HUD-1 Closing Process Upcoming Changes

Changes to HUD-1 closing process August 1 2015

The HUD1 Settlement Statement  is a document that lists all charges and credits to the buyer and to the seller in a real estate settlement. In transactions that do not include a seller, such as a refinance loan, the settlement agent may use the shortened HUD-1A form.

On August 1, 2015 the HUD 1 will be replaced by the new Closing Disclosure and the new Loan Estimate will be replacing the Good Faith Estimate and the Trust in Lending Disclosure.

Closing Disclosure: Consumers will receive this form three business days before closing on a loan. It replaces the final Truth in Lending statement and the HUD-1 settlement statement, and provides a detailed accounting of the transaction.

  • •  The new form is now 5 pages a long instead of 3 pages
  • •  This form must be given to the borrower 3 business days before closing instead of 24 hours before closing
  • •  First page of the Closing Disclosure carries much of the same information as the Trust in Lending form does
  • •  Page 2 and 3 resemble the HUD 1 explaining fee’s and closing cost
  • •  Explaining more in detailed about cash to close
  • •  Page 4 has a great easy to read section explaining escrow
  • •  Last page provides a quick summary of the loan calculations, contact information and other disclosures

Loan Estimate: This form will be provided to consumers within three business days after they submit a loan application. It replaces the early Truth in Lending statement and the Good Faith Estimate, and provides a summary of the key loan terms and estimated loan and closing costs. Consumers can use this new form to compare the costs and features of different loans.

  • •  Lenders must provide the borrower the Loan Estimate 3 business days after application is submitted by the consumer
  • •  Page 1 will provide the borrower with a breakdown of loan terms, projected payments and closing cost
  • •  Page 2 breakdowns the closing cost details
  • •  Page 3 explains additional information about the loan and also shows your APR.

You can familiarize yourself with these new forms on the website of the Consumer Financial Protection Bureau (CFPB), which has taken over administration of the Real Estate Settlement Procedures Act (RESPA) from HUD. Just go to and type in the name of the forms in the search box. Current forms can be very confusing to borrowers; and they are lacking important information like cash needed to close and total principal, interest, taxes, and insurance (PITI) payment. There is not even a place for a signature on the existing form.

NAR is recommending that all forms are ready seven days prior to closing, so when you go into the three-day period, you don’t have to make any changes. Because making changes as the clock winds down comes with a cumbersome  set of hurdles. During this time period no APR changes, program changes, interest rate, loan amount, lender charges, and affiliate charges are allowed to change. If changes do occur, the three-day waiting period starts anew.

What this means is, you and the other settlement service providers, including the lender and title agent, have to get everything ready and figured out earlier than you have to today. Buyers and sellers have to be cooperative as well, because if last-minute changes are made, a new three-day waiting period kicks in, at least in some cases.

The CFPB’s goal in making these changes is to increase transparency for consumers. Currently, it is very common for documents to be sent to the title company one to two days in advance and the loan to close immediately afterward. This new waiting period will force borrowers, lenders, and real estate agents to alter their timelines and rework their processes to ensure a smooth and stress-free closing. This will be a challenge for everyone involved and used to having documents ready the day before or even the morning of settlement.

Read full article here.

Article written by Betty Best

Original source: Key Home


Top Tips On Selling Your Home

Tips on selling your home

You could read posts till you’re blue in the face about the best ways to sell your real estate, but unless the details are accurate, you’re not going to learn anything of use. Armed with the right information, you can sell your home to the right buyer.

When selling your home, remove anything of a personal nature. Prospective buyers wish to be able to picture your home as their own. So, the last thing they need to see are photographs or mementos. If possible, keep furniture to a minimum also. In this manner, you are producing a blank space for the prospective property owner to fill up with their own belongings.

Clearing your schedule for a showing will increase the value of that time spent and make a much better impression on prospective buyers. Turn your phone off, keep the kids quiet and prevent other possible disruptions of the showing. You do not want anything sidetracking a prospective buyer from checking your house and imagining themselves living there.

To increase interest on your home, if possible, add a nice garden.

When listing your home on the market, make sure to put in the time to learn exactly what houses that are comparable to yours has actually sold for. Finding the ideal asking price can enhance or discourage possible purchasers. This could be the difference between your house being on the marketplace for a month or a year.

Lots of elements are thought about when finding out the value of a capability. Things like the place, the school district, size, condition and buildings that are comparable to yours that are on the marketplace or have just recently sold. It is a lot easier to employ an appraiser to do the work for this step of home sales. Your Realtor should also assist you with this, if you currently don’t have a real estate professional, click here.

When showing your house, open the windows if weather condition permits but not if there is too much sound outside. If it is cold then turn on the heat, make sure that the house is comfortable inside so that the buyer will certainly spend more time looking at the house.

If a neighbor suffers foreclosure, this will harm the value of your property, unless you act on it. Foreclosed homes frequently deteriorate in time, and this ramshackle look deflates your very own home value. Talk to your next-door neighbors and seek their help in cleaning up foreclosed buildings. This will at least contribute to the look and feel of the area and will certainly help the community values stay high.

If you know that you have a pet that can be aggressive sometimes, then it may be a good idea to find elsewhere for them to be when you are showing your home. Having your animal attack somebody would certainly make a prospective buyer decide not to make a purchase.

Do your homework. Check out realty investments in the area, financial institutions, marketing and acquisition strategies. Being well-informed about the very subject of realty will certainly put you ahead of other prospective buyers and will certainly likewise help you have reasonable desires as you move towards buying your home. Even a new purchaser can feel great about house purchases when they are well informed.

When choosing a real estate representative, make certain you inform the agent just how much communication you would like. A lot of people state that they do not hear from their agent as much as they would like. Let the representative understand what interaction you expect from them and how frequently you want to communicate. Inform the agent first to see if it will be a problem and if you will be an excellent fit with that representative.

Be sure to take a good look at the front lawn of your house when you are selling it. This is extremely important because this is the first thing that your prospective buyer will see and this is generally exactly what gives them their impression. So make certain it looks clean and neat.

Remember that not each and every single idea you check out will certainly turn you into the next realty mogul, however if you do put these tips into practice for your home, it will offer and you will certainly make a profit.

The Basics Of Selling A Home: What You Should Know


Selling my home tips

In virtually every location there will be multiple homes for sale at the same time. You have to make sure to take some steps to have your home stick out from the remainder of the pack. If you do not do that you can look forward to your house being on the marketplace for quite some time.

When selling your home, find an experienced and professional licensed realtor. This person is actually working for you, and you need to make sure that they will do the very best task. Talk with buddies and neighbors who have just recently purchased or offered a home, and learn about their experiences with a particular agent. If possible, try to meet the agent at their place of business. This will give you a good idea regarding how organized they are. Most of all, trust your gut impulses. If you don’t think that the agent is suitable for you, then the chances are you won’t have a favorable experience when it concerns offering your house.

Spring is the best time to get your house on the marketplace. Moms and dads choose not to uproot their youngsters from schools mid-term, and so, purchasing by late spring and relocating the summer season is ideal. Having your real estate agent worked with, your house staged and minor repairs finished by late February, offers you the best timeline for a spring sale.

To persuade a major, qualified buyer who is on the brink of accepting your offer to start, let them actually sleep on it and get the dotted line singed! If a prospect is certainly wanting your home however simply having cold feet, let them invest a night in it and opportunities are good their mind will be made up before morning, in favor of purchasing!

If you have a potential buyer who actually wishes to purchase your realty, however the purchaser is having an extremely hard time getting financial support, see if you can aid him or her. One such way could be a lease-to-own option. Vital alternatives such as spending for closing fees can be the difference between your house selling or not.

Your home must be a blank canvas. Simply because you love vibrantly colored walls, a prospective purchaser may not. If possible, prior to putting your house up for sale, repaint the walls white or another neutral color. A buyer has to be able to envision your home as their own, which is much easier to do when not confronted with your preferred colors. Another plus to painting your walls white is it reflects the light, making the rooms look larger.

Have your realty representative do a rough estimate of everything that would have to be paid for by you at the time of closing. This is essential, since it will certainly show you how low you can drop your price without having to bring your own money to the table. In some cases, there are expenses that a first time seller is not aware of.

For more information on costs related to selling your home, click here.

While you may think that you understand everything there is to find out about selling your home, it would never ever harm to listen to another person. Take what you already understand and combine it with this brand-new understanding and you can have your home sold in an affordable quantity of time.

How To Buy a Northern VA Home for Less

Tips on buying a home in Northern VA

Buying property can be a gratifying experience particularly if you understand when to purchase. Getting a good deal is the tip of the iceberg, you might end up making a profit later if you decide to get rid of it. Sprucing up a place after buying it is constantly a great idea, given that a fixer upper will certainly be generally cheaper than a brand new house.

Research the natural disasters that have happened in the area of the home you are thinking about. Learn if the property lies near a fault or a flood zone, if wildfires are prevalent in the location or if the location is understood for twister activity. Not only do these factors influence the value of the home, this can make guaranteeing the apartment, when you possess it, a lot more pricey.

When it comes time to select a realtor for your realty purchase in the Northern VA area, aim to family and friends for aid in your choice. Do your homework and when possible ask for a referral. Real estate agents are more responsive to referrals since their credibility is the factor that put their name forward.

When attending open houses, ask a service provider who has experience in refurbishing homes to accompany you. They will certainly discover potential repair works that you may have missed out on if you went on your own. The contractor can give you an idea of how much you will have to spend to make the property look the way you desire it to.

To choose the right city or area for you, you should visit it before thinking about moving there. Ask people who live there what the job market or the school district is like. Make sure you transfer to an area that will certainly open brand-new careers possibilities for you and your household. Click here to learn more about the Northern VA area.

Take a look at a lot of houses before you buy, even if you love the first property you tour. It can be easy to fall for the idea of buying a house and then, consequently, the first property you see. Make sure to tour many other properties for contrast, just to make sure that the house you choose has everything you want or need.

Before you make an offer on the home of your dreams see to it you have actually checked out the property on several occasions to know what road traffic is typical for the area. Homes are most often shown when traffic is at a minimum; weekend open houses and midday showings are very popular, but do little to show a prospective buyer what might be normal for the area. Simply driving to the property and parking on the side of the road at various times during the day may look like stalking, but can give you an outstanding photo of what the future may hold as you count the cars and pay attention to other noises that you may find unacceptable to live with throughout the day and night.

When buying, be sure to hire your own realtor and inspector. It’s often tempting to use the seller’s hired help to save a buck, but doing so can cost you more in the long run. The seller’s agent and inspector are keeping an eye out for the best interest of the seller, and you need someone who is looking out for only you.

Don’t buy a piece of real estate as a rental property based solely on the tax advantages. The tax code is constantly in flux, and a tax benefit this year could be a tax burden five years from now. Choose an investment property based on asking price, financing terms, and rental rates, not tax advantages.

When you are looking for a new home, ensure that the home has quite a bit of storage space. This would include closets in the bedrooms and other storage areas for other things. It is always nice to have plenty of room for storage because then it helps you keep your home looking nice and organized instead of looking cluttered.

If you use your resources and get yourself an excellent home, you can definitely profit from it. Whether it’s a new residence for you or something you’re going to sell after fixing it up for profit, knowing when and where to buy property is a very beneficial thing to know.

Looking for homes in the Northern VA area, click here to view available homes for sale and for rent.

Why Hire A Property Management Company?

Property management home repair

Property management is a necessity for lots of rental owners. When you are not efficient in taking care of your leasing for any reason, you are going to have to rely on these services. This assists you to look after the building, and renters’ problems quickly. The factor for this is that there is a large and trustworthy group of professionals at work. When you can not be there to do the job yourself or it is too much for you alone, home management is going to ensure that the work is done.

There are numerous reasons for you to need home management services in the Northern VA area. One of the greatest issues that rental owners deal with is needing to do everything simultaneously. Whether you have one renter or thousands, you can not be anticipated to do everything on your own. Taking care of the building needs a lot of work, generally specialized. Having expert services handle these problems makes sure that the proper people are called. The tenants are going to have the work they need done and the work is going to be much better in the end. This improves satisfaction and quality a fair bit.

If you possess several apartments or rental homes, you are going to need some additional assistance. It is not most likely that you can manage everything on your own when there is a lot of work to be done all over the city. Property management services help to look after all your rentals, not just one. Whether the lease has to be gathered or the renters require help with a problem, there is going to be someone there to help. This increases the possibility of occupants staying and paying.

Even if you feel that you can do everything, there is not constantly going to be enough time in the day. You need to keep in mind that of this work, particularly if you possess various leasing, will eat a huge part of your day. If you invest all your time caring for the issues and regular maintenance, you are not going to have whenever to yourself. It may also take longer to get to each task, which can impact the quality of the work and satisfaction of the tenants. Having lots of professionals look after each rental guarantees that the work is done in a timely way and quality way.

Apartment management can help you to bring in more money. While you are spending for the services, the condition of the rentals will be improved. This means that you might be able to charge more and that you are going to draw in the better tenants out there. These occupants are going to be more likely to pay on time, less most likely to harm the rentals, and will in fact wish to remain in the rental.

For more information about property management services in the Northern VA area, click here.

Great Pointers For Buying Real Estate In Today’s Market

Tips on buying real estate

In these recessionary times, there are a myriad of challenges to getting a home mortgage. The thing is, it’s probably the best time to purchase too, so don’t be delayed. Read this article to get some fantastic concepts on how you can get the home that you want, at the rate that you desire.

When you want buying a home you ought to constantly know your credit report. Keep on eye on your credit report so that you will certainly know if anything uncommon turns up. If something on your report had not been paid or there is a mistake, it can influence your credit report. Even the tiniest thing can cost you points and you don’t want to be turned down for a loan because of 2 points.

To discover a well-maintained building, try trying to find a home in the fall. You will certainly be able to see concerns that may not have appear throughout other times of the year. For instance, pay very close attention to the gutters; if they are full of leaves, it shows that the seller hasn’t been taking care of them properly. This may lead you to question what else on the residence hasn’t been maintained.

To find the perfect home, you should establish a list of features that you will be looking for. This can include the size, the number of rooms or the location. Knowing what you want should help you go through a large number of ads quickly and select the homes that correspond to your needs.

When buying a home on an island, make sure you find out about flooding concerns. Some locations on islands are extremely flood prone and flood whenever it even rains. This can be vital information if you plan to live there year-round because you don’t want to be constantly flooded. Ask how often the island floods, how lots of evacuation routes there are and how often those routes are made use of.

When you want to buy a home and you have the credit, the task and the necessary funds, usually there are no excellent factors to hold off the purchase. In many cases for instance, when you are new to the area, your job is not secure enough or you are getting married in the near future, you might consider delaying the purchase.

Observe your potential new neighborhood at various hours of the day to insure that the activity and the noise levels are to your liking. You may find that what is a quiet little neighborhood during the day is full of life and noise during the late nights and at night.

To help you buy or sell genuine estate you need to find an agent that you can feel comfortable dealing with. Personality is a big consider any relationship, and discovering the one that matches up with yours will make the whole process much easier and less stressful over the next few months.

One important suggestion when it comes to real estate is to be sure to investigate the school district that the house falls within if you have kids or plan on having them. This is important because the quality of school districts might vary significantly from town to town. This may not seem important if you do not have kids yet, but will be incredibly important to your peace of mind and your kid’s education.

Have a garage sale, or consider selling off some of your furniture or electronics in order to have a down payment for buying a residence. You can always re-purchase these things later on after you are in your excellent brand-new house. Consider it a temporary separation in order to get what you want.

One of the biggest mistakes people make when they purchase a home is failing to do their research on the surrounding neighborhood. Research the school district, taxes, place of sex wrongdoers, and crime rates. Gathering this info might be time-consuming, however it can help you to stay clear of nasty surprises. You may likewise think about attending a community conference, which can provide you extra understanding into regional individuals, locations, and issues.

It’s isn’t necessarily difficult for you to surmount all the challenges brought about by the recession and actually end up making a good property deal. It can take place. That’s why you should utilize the info you just found out right here – it can help you, just like it’s helped many others.

For more information about buying real estate, click here.


Why Invest In Northern VA Real Estate

Northern VA real estate investing

Article written by: Betty Best

If you’re tired of the modest returns you get on bonds, the insulting rate of interest paid by banks, and the frenetic fits of the stock market, you might think about relying on rental homes to supplement your retirement income. However it’s not for everyone. Walk through these six tips to see if real estate investing can help you create a sound retirement portfolio. If the idea still seems solid, the next step is to do your homework.

1. Evaluate your goals. The days of buying properties and flipping them for a quick profit are slowly coming to an end. Rental property can supply a steady, long-term income, however it takes work. Are you prepared to do extensive research to determine a property in a great area that will be attractive to people in the rental market? Are you ready to crunch the numbers to determine if a property can turn into a positive income? Are you able to handle the work, which may consist of repairing the plumbing, cleaning the carpets, and adding a fresh coat of paint for new occupants? If not, you will certainly want to find a good property management company that will do it for you.

2. Know the community. Certainly, you’ve heard the old maxim about the 3 essential factors of realty: place, location, and location. If you’re purchasing real estate you need to understand exactly what you’re entering into. Is there something unique about the property, such as a view or proximity to waterfront or public transportation? What are the zoning laws? Is there a new highway on the drawing boards? You can never cover all the unknowns, but you can discover if the rental market is viable. By acquiring an income property in a good location within the Northern Virginia area, you can improve your odds for property value and demand. You can’t accurately predict what the property will be worth in five years, but you should know if you can lease it next month, and at what price.

3. Buy local. There’s no neighborhood you’re more familiar with than your very own. The farther away you are from your rental home, the more difficult it is to do your task as a landlord. If it’s too far, you cannot do it at all. You will have to contract a property manager who will certainly do the job, just keep in mind the costs related to their services.

4. Most common option for first time landlords. Most first time landlords opt for a one bedroom apartment. However, most families opt for renting a single family home, close by their children’ school. So, when investing in real estate, keep in mind your targeted tenants pool.

5. Buy at a good price. An old rule-of-thumb says if you can buy a property for 12 times the amount of its annual rent, then you’re getting a bargain. These days you can do better than that– maybe nine or 10 times the annual rent. Of course, there are always variations, depending on the kind of property, place, and the prospects for appreciation. But, keep in mind, there’s no pressure for you to buy. You don’t pay up because you “fall in love” with a place. If you’ve done your homework, you have a pretty good idea what your monthly rental income will be.

Read full article here.