|
Jennifer Bunker
CRS, GRI
Owner/Broker
Coldwater Creek
Properties
Utah's Wasatch
Front
Northern Utah 84405
Voice/Text:
801.791.0365
Fax:
866-542-0513
|
|
|
5 Property Tax Questions You Need to Ask |
What is the assessed
value of the property? Note that assessed value is
generally less than market value. Ask to see a recent copy
of the seller's tax bill to help you determine this
information.
How often are properties reassessed and when was the last
reassessment done? Generally taxes jump most significantly
when a property is reassessed.
Will the sale of the property
trigger a tax increase? Often the assessed value of the
property may increase based on the amount you pay for the
property. And in some areas, such as California, taxes may
be frozen until resale.
Is the amount of taxes paid comparable to other properties
in the area? If not, it might be possible to appeal the
tax assessment and lower the rate?
Does the current tax bill reflect any special exemptions
that you might not qualify for? For example, many tax
districts offer reductions to those 65 or over.
|
|
10 Questions to
Ask Your Condo Board |
1. What percentage of
units is owner-occupied? What percentage is
tenant-occupied? Generally, the higher the percentage of
owner-occupied units, the more marketable the units will
be at resale.
2. What covenants, bylaws, and restrictions govern the
property? What grandfather clauses are in place? You may
find, for instance, that those who buy a property after a
certain date can't rent out their units, but buyers who
bought earlier can. Ask for a copy of the bylaws to
determine if you can live within them. And have an
attorney review property docs, including the master deed,
for you.
3. How much does the association
keep in reserve? How is that money being invested?
4. Are association assessments keeping pace with the
annual rate of inflation? Smart boards raise assessments a
certain percentage each year to build reserves to fund
future repairs. To determine if the assessment is
reasonable, compare the rate to others in the area.
5. What does and doesn't the assessment cover—common area
maintenance, recreational facilities, trash collection,
snow removal?
6. What special assessments have been mandated in the past
five years? How much was each owner responsible for? Some
special assessments are unavoidable. But repeated,
expensive assessments could be a red flag about the
condition of the building or the board's fiscal policy.
7. How much turnover occurs in the building?
8. Is the project in litigation? If the builders or
homeowners are involved in a lawsuit, reserves can be
depleted quickly.
9. Is the developer reputable? Find out what other
projects the developer has built and visit one if you can.
Ask residents about their perceptions. Request an
engineer's report for developments that have been
reconverted from other uses to determine what shape the
building is in. If the roof, windows, and bricks aren't in
good repair, they become your problem once you buy.
10. Are multiple associations involved in the property? In
very large developments, umbrella associations, as well as
the smaller association into which you're buying, may
require separate assessments. |
|
10 Questions to Ask
Your Lender |
Be sure you find a loan
that fits your needs with these comprehensive questions.
1. What are the most popular mortgage loans you make? Why?
2.
Which type of mortgage plan do you think would best for
us? Why?
3. Are your rates, terms, fees, and closing costs
negotiable?
4. Will I have to buy private mortgage insurance? If so
how much will it cost and how long will it be required?
NOTE: Private mortgage insurance is usually required if
you make less than a 20-percent downpayment, but most
lenders will let you discontinue the policy when you've
acquired a certain amount of equity by paying down the
loan.
5. Who will service the loan? Your bank or another
company?
6. What escrow requirements do you have?
7. How long is your loan lock-in period (the time that the
quoted interest rate will be honored)? Will I be able to
obtain a lower rate if they drop during this period?
8. How long will the loan approval process take?
9. How long will it take to close the loan?
10. Are there any charges or penalties for prepaying the
loan?
Used with permission from
Real Estate Checklists & Systems,
www.realestatechecklists.com |
|
10 Things a Lender
Needs From You |
1. W-2 forms or
business tax return forms if you're self-employed for the
last two or three years for every person signing the loan.
2. Copies of at least one pay stub for every person
signing the loan.
3. Copies of two to four months
of bank or credit union statements for both checking and
savings accounts.
4. Copies of personal tax forms for the last two to three
years.
5. Copies of brokerage account statements for two to four
months, as well as a list of any other major assets of
value, e.g., a boat, RV, or stocks or bonds not held in a
brokerage account.
6. Copies of your most recent 401(k) or other retirement
account statement.
7. Documentation to verify additional income, such as
child support or a pension.
8. Account numbers of all your credit cards and the
amounts of any outstanding balances.
9. Lender, loan number, and amount owed on other
installment loans, such as student loans and car loans.
10. Addresses where you have lived for the last five to
seven years, with names of landlords if appropriate. |
|
6 Creative Ways to
Afford a Home |
If your income and
savings are making home buying a challenge, consider these
options.
1. Investigate local, state, and national down payment
assistance programs. These programs give loans or grants
to cover all or part of your required down payment.
National programs include the Nehemiah program,
http://www.getdownpayment.com,
and the
American Dream down payment fund from the
Department of Housing and Urban Development.
http://www.hud.gov/news/release.cfm?content=pr02-014.cfm
2. Get the seller to provide financing. In some cases,
sellers may be willing to finance all or part of the
purchase price of the home and let you repay them
gradually, just as you do with a mortgage.
3. Consider a
shared-appreciation, or shared equity, arrangement. Under
this arrangement, your family, friends, or even an
third-party may buy a portion of the home and thus share
in any appreciation when the home is sold. The
owner/occupant usually pays the mortgage, property taxes,
and maintenance costs, but all the investors' names are
usually on the mortgage. There are companies that can help
you find such an investor if your family can't
participate.
4. Get help from your family. Perhaps a family member will
loan you money for the down payment and/or act as a
cosigner for the mortgage. Lenders often like to have a
cosigner if you have little credit history.
5. Lease with the option to buy. Renting the home for a
year or more will give you the chance to save more toward
your down payment. And in many cases, owners will apply
some of the rental amount toward the purchase price. You
usually have to pay a small, nonrefundable option fee to
the owner.
6. See if you can qualify for a short-term second mortgage
to give you the money to make a higher down payment. This
may be possible if you have a good income and little other
debt. |
|
|
|
|
