Fees in Real Estate Lending
A mortgage broker may charge you loan application processing fees. You may incur appraisal and credit inquiry expenses. However, if the mortgage broker asks for payment in advance for any service other than an appraisal or credit inquiry, call the DRE to see if the broker has approval to do so. Closing costs may include charges for document preparation, escrow services, title insurance, notary services, and recording fees. You may also be charged for fire or homeowner's insurance coverage, optional credit life or disability insurance, or beneficiary statements.
You do not have to buy life or disability insurance. Life and disability insurance benefits make your mortgage payments if you die or become disabled. Many life and disability policies have limitations that excuse the insurer from paying under a variety of circumstances. Make certain you understand the terms of the policy and what it excludes. You can also secure financial protection from disability or death through standard term life insurance or disability insurance. Before you buy credit life or disability insurance, compare the cost with the cost of a term life or disability policy.
If you have any questions regarding this or any other real estate topics, please give us a call.
Volume 3 Issue 8
Final Inspection is Important
Most real estate contracts enforce a clause that states that the property is to remain in the same condition throughout escrow as it is at the time of contract acceptance. If this clause is in place, is a final walkthrough necessary?
Yes! If you can't do it, have your agent do it for you. A final walk-through provision in your purchase contract gives you the right to inspect the property prior to closing to make sure it is in the same general condition as it was when you agreed to buy it. A walk-through also gives you an opportunity to ascertain that the sellers have completed agreed-upon repairs, or that construction has been completed (as in the case of a new home). If the walkthrough is not done and the buyer sees that work is not done, or other provisions of the contract are not met, it becomes much more difficult to remedy the problem after the close of escrow.
Curious about your home value?
Email us at john.case@caseproperties.net. We will supply you a comparative market analysis at no charge. You can call us at (925) 754-9023 if you want mail service. Find out your Home's Worth!
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