In a ‘normal’ market, buyer and seller come together for closing at one location – the local title company’s office. However in today’s market, it is now the norm for buyer, seller and the title company to be located in three different states - particularly with distressed home sales (bank foreclosures and short sales). To accommodate this kind of closing, the title company will conduct a ‘mail away’ closing, which generally follows these steps: - Title company prepares the closing documents one or two days in advance of the closing date. - Closing docs are emailed to a local closing agent near the buyer/seller. - Closing docs are printed by the closing agent. - Closing agent arranges a time and location to meet the buyer/seller in person for signatures. - Closing agent walks the buyer/seller through the closing packet and answers any questions. - Closing agent overnights the original signed docs back to the title company.
Showing posts with label closing. Show all posts
Showing posts with label closing. Show all posts
Apr 6, 2011
Mar 6, 2011
What Are Doc Stamps?
Doc stamps are excise taxes imposed by Florida law on the transfer of ownership or interest in a real estate transaction. Doc stamps are one of the most expensive closing cost items for both a buyer and a seller. Doc stamps are paid one time at the time of closing and can be seen on lines 1200 to 1206 of the closing statement (also known as “the HUD”).
The rates for doc stamps are as follows:
- Deed $0.70 per $100 of purchase price; customarily paid by seller
- Mortgage $0.35 per $100 of mortgage; customarily paid by buyer
- Intangible Tax $0.002 per $1 of mortgage; customarily paid by buyer
Example: $400,000 purchase price; $300,000 mortgage
- Deed $400,000 / $100 = 4,000 taxable increments x $0.70 = $2,800 customarily paid by seller
- Mortgage $300,000 / $100 = 3,000 taxable increments x $.035 = $1,050 customarily paid by buyer
- Intangible Tax $300,000 x $0.002 = $600 customarily paid by buyer
The rates for doc stamps are as follows:
- Deed $0.70 per $100 of purchase price; customarily paid by seller
- Mortgage $0.35 per $100 of mortgage; customarily paid by buyer
- Intangible Tax $0.002 per $1 of mortgage; customarily paid by buyer
Example: $400,000 purchase price; $300,000 mortgage
- Deed $400,000 / $100 = 4,000 taxable increments x $0.70 = $2,800 customarily paid by seller
- Mortgage $300,000 / $100 = 3,000 taxable increments x $.035 = $1,050 customarily paid by buyer
- Intangible Tax $300,000 x $0.002 = $600 customarily paid by buyer
Feb 24, 2011
Cut Your Closing Costs
Whether you’re a first timer or have been through the drill half a dozen times, buying a home is a stressful proposition. In addition to the anxiety of sinking what may be your life savings into one huge investment, there's the nagging fear that you're getting ripped off in some capacity.
When it comes to closing costs, that may very well be the case. Like car leases, closing costs seem to be designed to confuse the buyer. Most folks don't understand all the mysterious fees they're paying their lender when they close on their home - and sometimes they end up overpaying.
Read full story at smartmoney.com
When it comes to closing costs, that may very well be the case. Like car leases, closing costs seem to be designed to confuse the buyer. Most folks don't understand all the mysterious fees they're paying their lender when they close on their home - and sometimes they end up overpaying.
Read full story at smartmoney.com
May 25, 2010
Stoneybrook Buyers Hit With $4,000 Fee
Homeowners associations have been struggling to make up for thousands in dues lost when homes sit empty for months, waiting for foreclosure.
Two Orange County golf-course communities have decided to make their new residents foot that bill. Buyers in Stoneybrook West in Winter Garden and Stoneybrook East in east Orange County have to add $4,000 to closing costs - mostly for dues that went unpaid by previous owners while the houses were in foreclosure for more than a year.
The so-called "resale capital contribution" doesn't sit well. Typically, buyers in those communities would pay $1,000 to move in, but the fees were increased as the housing crisis deepened.
Read full story from Orlando Sentinel.com
Two Orange County golf-course communities have decided to make their new residents foot that bill. Buyers in Stoneybrook West in Winter Garden and Stoneybrook East in east Orange County have to add $4,000 to closing costs - mostly for dues that went unpaid by previous owners while the houses were in foreclosure for more than a year.
The so-called "resale capital contribution" doesn't sit well. Typically, buyers in those communities would pay $1,000 to move in, but the fees were increased as the housing crisis deepened.
Read full story from Orlando Sentinel.com
Jan 25, 2010
What a Mortgage Will Really Cost
Starting Jan 1, shopping for a mortgage has just gotten simpler.
Lenders are now required to use easy-to-understand forms providing basic loan terms and good-faith estimates of closing costs. And closing agents are required to provide a settlement statement that clearly compares borrowers' final and estimated closing costs.
Read more from Amy Hoak, wsj.com.
Lenders are now required to use easy-to-understand forms providing basic loan terms and good-faith estimates of closing costs. And closing agents are required to provide a settlement statement that clearly compares borrowers' final and estimated closing costs.
Read more from Amy Hoak, wsj.com.
Jan 14, 2010
New Rules Help Borrowers at Closing
Plenty of home buyers have found themselves at the closing table, ready to sign the myriad documents that will officially make them new homeowners only to get nasty sticker shock. What was originally supposed to cost them, say, $2,500 in closing costs, has turned into $3,000.
Read more from Lisa Scherzer, SmartMoney.
Read more from Lisa Scherzer, SmartMoney.
Oct 7, 2009
Mail Away Closing
In a ‘normal’ market, buyer and seller come together for closing at one location – the local title company’s office. However in today’s market, it is now the norm for buyer, seller and the title company to be located in three different states - particularly with distressed home sales (bank foreclosures and short sales).
To accommodate this kind of closing, the title company will conduct a ‘mail away’ closing, which generally follows these steps:
- Title company prepares the closing documents one or two days in advance of the closing date.
- Closing docs are emailed to a local closing agent near the buyer/seller.
- Closing docs are printed by the closing agent.
- Closing agent arranges a time and location to meet the buyer/seller in person for signatures.
- Closing agent walks the buyer/seller through the closing packet and answers any questions.
- Closing agent overnights the original signed docs back to the title company.
Mar 27, 2009
Typical Selling Expenses
By Tammy Stoner, FrontDoor.com
When selling your home, it pays to look at the complete financial picture so you are ready to deal. Make a list of the costs of selling your house including:
Realtor Commission There's a 4% to 7% commission on the sale price of the house if you opt to go with an agent. Usually this rate is between 5% and 6%, but it can go as high as 10% on vacant land deals. It's a considerable amount of money. If you sell your house for $300,000, the standard 6% cut for the agent will be $18,000.
Closing Costs These can add up to 2% to 5% of the purchase price and include title transfer, any county transfer taxes, escrow charges and other miscellaneous fees.
Property Taxes If you didn't pay all of your property taxes before you sell a house, a prorated tax amount will be included in closing costs. Note: If you pay out of an impound tax (that's an amount tacked on to your monthly mortgage), this does not apply, since your taxes will be paid up-to-date.
Home Warranty Often the seller buys a yearlong home warranty for the buyer.
Pest Inspection Don't worry, this doesn't include a judgment of your nosy neighbor. Just termites.
Repairs Although the buyer pays for the home inspection, it's a good idea to get your own inspection before putting your house on the market. This way you're aware of any hidden problems before selling.
When selling your home, it pays to look at the complete financial picture so you are ready to deal. Make a list of the costs of selling your house including:
Realtor Commission There's a 4% to 7% commission on the sale price of the house if you opt to go with an agent. Usually this rate is between 5% and 6%, but it can go as high as 10% on vacant land deals. It's a considerable amount of money. If you sell your house for $300,000, the standard 6% cut for the agent will be $18,000.
Closing Costs These can add up to 2% to 5% of the purchase price and include title transfer, any county transfer taxes, escrow charges and other miscellaneous fees.
Property Taxes If you didn't pay all of your property taxes before you sell a house, a prorated tax amount will be included in closing costs. Note: If you pay out of an impound tax (that's an amount tacked on to your monthly mortgage), this does not apply, since your taxes will be paid up-to-date.
Home Warranty Often the seller buys a yearlong home warranty for the buyer.
Pest Inspection Don't worry, this doesn't include a judgment of your nosy neighbor. Just termites.
Repairs Although the buyer pays for the home inspection, it's a good idea to get your own inspection before putting your house on the market. This way you're aware of any hidden problems before selling.
Nov 25, 2008
What Are Doc Stamps?
Doc stamps are excise taxes imposed by Florida law on the transfer of ownership or interest in a real estate transaction. Doc stamps are one of the most expensive closing cost items for both a buyer and a seller. Doc stamps are paid one time at the time of closing and can be seen on lines 1200 to 1206 of the closing statement (also known as “the HUD”).
The rates for doc stamps are as follows:
- Deed $0.70 per $100 of purchase price; customarily paid by seller
- Mortgage $0.35 per $100 of mortgage; customarily paid by buyer
- Intangible Tax $0.002 per $1 of mortgage; customarily paid by buyer
Example: $400,000 purchase price; $300,000 mortgage
- Deed $400,000 / $100 = 4,000 taxable increments x $0.70 = $2,800 customarily paid by seller
- Mortgage $300,000 / $100 = 3,000 taxable increments x $.035 = $1,050 customarily paid by buyer
- Intangible Tax $300,000 x $0.002 = $600 customarily paid by buyer
The rates for doc stamps are as follows:
- Deed $0.70 per $100 of purchase price; customarily paid by seller
- Mortgage $0.35 per $100 of mortgage; customarily paid by buyer
- Intangible Tax $0.002 per $1 of mortgage; customarily paid by buyer
Example: $400,000 purchase price; $300,000 mortgage
- Deed $400,000 / $100 = 4,000 taxable increments x $0.70 = $2,800 customarily paid by seller
- Mortgage $300,000 / $100 = 3,000 taxable increments x $.035 = $1,050 customarily paid by buyer
- Intangible Tax $300,000 x $0.002 = $600 customarily paid by buyer
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