Tagged: appraisal

Typical lender closing charges in Marlboro

There are many different types of fees associated with purchasing a home. Below are some typical lender closing charges you may encounter in Marlboro, NJ (and anywhere for that matter!)

Lender Closing Charges

Points

Points, sometimes also called a “discount point”, are a form of pre-paid interest. Borrowers can offer to pay a lender points as a method to reduce the interest rate on the loan, thus obtaining a lower monthly payment in exchange for this up-front payment.

Appraisal Fee

An appraisal is mandated by a lender but generated by an independent professional. Appraisals verify the value of a property and its condition. A loan will not receive final approval without a satisfactory appraisal.

Tax Service Fee

Real estate taxes may be included in your monthly mortgage payment. The mortgage company receives the funds from you on a monthly basis and places it in an escrow account. When the tax is due, the necessary amount is withdrawn from that escrow account. Many lenders will require a up-front fee to set up this tax service.

Flood Certificate

Real estate located within a flood zone will require flood insurance. Mortgage companies order a flood certificate to determine the status of a home. Flood certificates are always billed to the home owner.

Credit Report

Credit reports are how mortgage companies determine credit worthiness and applicable mortgage rates. There is a cost associated with obtaining credit scores from the 3 major credit bureaus. Lenders will often pass on this expense to home buyers.

Other Lender Closing Charges

The lender closing charges detailed above are only a few of the actual charges that may be imposed by your lender. For a complete list of potential expenses that you may incur, or for help with other real estate or mortgage matters in Marlboro, NJ and surrounding cities, contact Sujatha Bhaskara at Keller Williams Realty by calling 732-536-9010 or emailing sbhaskara@optonline.net. I invite you to begin your Marlboro, NJ home search at www.bestinnjrealestate.com, a great buyer resource. Here you can save your favorite properties, set up a custom listing alert for homes in Marlboro that meet your needs, view Real Estate trends in the area, get local Marlboro, NJ school and community information, and much more!

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Steps In The Mortgage Process For Purchasing Marlboro, NJ Homes

Steps In The Mortgage Process For Purchasing Marlboro, NJ HomesThere are many distinct steps in the real estate buying process, and many relate to the mortgage. It can be confusing for both new and experienced buyers. This blog provides important details about steps in the mortgage process for purchasing Marlboro NJ homes and covers what you may want to know prior to beginning the process.

Steps In The Mortgage Process For Purchasing Marlboro NJ Homes

Pre-approval

A pre-approval is an introductory review of your finances and credit history to estimate what you may be able to receive as a loan amount. It verifies that you meet the preliminary criteria for financing. Pre-approvals are not a guarantee that you will be able to obtain financing, but is a typical first step in the mortgage process.

Formal Application

An application occurs usually after you have an accepted offer on a home. You may be asked for additional financial paperwork and information. The details on the home are also submitted to the mortgage company for review. They will request a copy of the Purchase and Sales agreement in order to proceed. Your contract will typically specify that you submit an application before a specific date.

Mortgage Appraisal

An appraisal is ordered by a lender (although buyers are in most cases charged the fee for it) to identify the current market value of the property. Appraisers will compare your property to others that recently sold in the area within the last several months. An exact dollar amount is generated. Ultimately, the value of the real estate must satisfy the loan amount.

Commitment Letter

After your financial information and the details on the property are analyzed, the mortgage company issues a commitment letter. This assures the parties that no major problems have been identified and that the mortgage company is somewhat certain that the mortgage will obtain approval. There can be a few conditions included in the letter such as an employment verification and additional credit check. Therefore, it is essential not to complete costly purchases or alter your financial situation even after a commitment is issued as it may lead to last minute issues.

Clear to Close

A clear to close is basically the final approval of a loan. It verifies that all requirements have been satisfied and that the mortgage company can release the information to the closing agent. This sometimes takes place within days or hours before the anticipated closing date.

Settlement

The settlement includes signing of documentation and filing of paperwork into public record. Be sure to bring acceptable identification and a money order or bank check for any monies you are paying. Personal checks or cash are traditionally not acceptable. The transfer of funds takes place at or shortly after and the real estate will be officially yours!

A Few More Tips

Deadlines are an important factor of any real estate transfer, so make sure that you know the deadlines and what you must perform to satisfy each one. Getting representation from a experienced mortgage consultant and real estate broker is very important. They can offer advice and assistance, monitor deadlines, and ensure a more positive experience. As a local real estate consultant, I will offer representation during the mortgage and overall home purchase process. You may reach me, Sujatha Bhaskara, at Keller Williams Realty via phone at 732-536-9010 or email at sbhaskara@optonline.net. To begin your home search in Marlboro, NJ, please visit Best in NJ Real Estate – Marlboro, NJ Homes for Sale.

Property appraisal vs. property assessment

Appraisal and assessment figures are often mistook for one another. As a New Jersey home buyer and home seller, it is crucial to distinguish the difference between these two terms. Below are an explanation of appraisal versus assessment figures in New Jersey.

What Are Asessment Figures

New Jersey charges a tax on residential real estate. The amount of the tax is derived from a pre-established rate multiplied by an assessed value of a piece of property. Assessments are used solely for levying taxes and do not necessarily reflect the market condition. Every city accounts for assessed value in a different manner. They often include land area, interior square footage, and exterior components such as decks. New Jersey can re-assess real estate values and/or increase the property tax percentage on an annual basis.

What Are Appraisal Figures

An appraisal is a estimation of a property’s market value by a authorized professional based on definitive calculation methods. Banks obtain the services of appraisers to determine the value of a property in relation to to the loan amount. Appraisers normally evaluate at least three other homes that sold within the last 6 months within the same neighborhood. Since the New Jersey real estate market can increase or decrease very quickly within a time frame, reviewing relevant sales is very important to a valid appraisal.

An Explanation Of Appraisal Versus Asessment Figures

The market value of a New Jersey home is ascertained by what a buyer is willing to offer, which can change at any time depending on factors such as availability of options. Buyers should be careful when equating assessed values with the purchase price of a home. Assessment values are used exclusively for tax purposes and do not increase and decrease as often as the real estate market does. Some towns infrequently alter assessed values and can increase tax percentages instead. Only an appraisal can offer a true reflection of the market value of a New Jersey property.

This blog post regarding an explanation of New Jersey appraisal versus asessment figures was compiled by Sujatha Bhaskara at Keller Williams Realty. For additional resources on this and other real estate topics, contact Sujatha at 732-319-1340 or sbhaskara@optonline.net.