A lender calculates the LTV by dividing the mortgage amount into the sales price or the appraised value of the property. Lenders use this number to determine the amount of the mortgage that they are going to give you when you decide to purchase a home.
Articles Posted in Real Estate Transactions
Environmental Site Assessments
Depending on the property-type obtaining an Environmental Site Assessment is highly recommended. Typically, properties that would require an environmental site assessment would be gas stations or a dry cleaner. Another consideration is whether you are getting a loan. Generally, depending on the property-type, a lender will require an environmental site assessment prior to closing.
Documentary Stamp Taxes
In Florida, Documentary stamp taxes are due at a rate of 70 cents per 100 dollars of transferable value (the sales price), with the exception of Miami-Dade County, whose documentary stamp tax is 60 cents per 100 dollars. Documentary stamp taxes on promissory notes are 35 cents per 100 dollars.
Liens are claims on real estate that are used to secure debt. Failure to pay that debt can result in the mechanics lien or foreclosing on the lien and taking your property.
Differences Between a Line of Credit and a Term Loan
With a line of credit the borrower has recurring access to the funds and can borrow and repay the funds as he or she needs them. A term loan is funded fully at the time of the closing and the borrow repays it over a set schedule over a period of time.
What Happens at the Closing?
At a traditional sit-down closing, the buyer and their representatives, and the seller and their representatives sit at a table. Documents are executed, and money’s exchanged. Once that happens, the transaction is officially closed. With the advancements in technology, a traditional “sit-down” closing is now rare. Now a days, the Buyer and Seller go to their respective representatives, execute the transaction documents, and then documents are exchanged via courier.
What is a 1031 Exchange?
Under section 1031 of the Internal Revenue Code, certain types of properties can be exchanged and taxes on the sale can be deferred.
What is a Closing Statement?
A closing statement is a document that details all the costs related to a real estate transaction. It is typically prepared by the closing agent and is signed by both the buyer and the seller.
What is a Re-Issue Credit on Title Insurance?
A reissue credit is available if certain conditions are met. It is a significant savings on the title insurance premium.
What is a Survey and What is the Purpose of a Survey?
A survey is a sketch of the property performed by a surveyor. It will determine if there are any overlaps, encroachments, or boundary issues with the subject property.