Closing Day Problems And How To Avoid Them

images (20)Purchasing a home for the first time can be a daunting experience, and the closing day is perhaps the most daunting part of the buying process. Dealing with unexpected issues that may arise can be difficult. While some problems can be easily solved, others can derail a deal at the final hurdle.

Disheartening walk-through surprises

The final walk-through of the property is the number one cause of unexpected issues on closing day. The final inspection takes place the day before, or during the morning of, closing day, leaving the buyer with not much time to prepare and react to potential problems.

A heavy storm may reveal downstairs flooding, or the furniture that you thought was included has vanished, cracks in the ceiling or walls may be revealed.

If the issue is a serious problem you should take careful steps in proceeding with the deal. To avoid any unfortunate revelations, you should have very thorough inspections of the property before the final walk-through on closing day.

Feel free to ask the current owner to view the property after a large storm to inspect for any damp or potential flooding. Discovering a last minute problem does not necessarily mean the deal should be compromised. Negotiate to have the cost of repairs covered by the seller, and have the money put in escrow. Get estimates from professionals to verify how much the repairs will cost.

What the seller takes with them

A common issue on closing day is confusion between the buyer and seller over which items are taken by the seller and which items remain with the property. Perhaps you liked the antique furniture at the property and were disappointed to discover it had disappeared on closing day.

Unless you’re extremely attached to an item and regard it as a deal breaker, it is often best to let go any issues over the transfer of items and furniture. The simplest solution to any misunderstanding on closing day is to state in a contract what is expected to remain or must be removed. Be detailed and make sure that the contract matches what you expect to be in the property on closing day.

Credit issues

Most buyers have approval for a mortgage organised over a month before closing day. However, slight changes to your financial situation can alter your credit rating and problems can occur right up to the point of closing on the deal. If you change your job, apply for a credit card or loan, fail to make payments or bills, even an unexpected influx of cash can cause issues with mortgage approval.

If the lender backs out of the deal, you will have to find another mortgage provider before you can close. The mortgage provider may adjust the interest rate and you will have to reconsider whether the property is still affordable.

To avoid any lending issues, you should communicate with the mortgage provider the day before closing to ensure there are no issues, and resolve any if there are. It’s advisable to avoid any large financial moves in the month or so before closing, like changes to your employment or any financial influx from a relative or family member.

Money transfer problems

The crucial part of closing day is the transfer of funds. Some banks and financial institutions prefer to conduct transfers electronically, while others prefer certified checks. If you bring the wrong paperwork or make a mistake with account numbers, you can delay the deal.

While not to serious, it is best to avoid creating any unnecessary stress. Ask your mortgage provider and real estate agent what type of transfer is required.

Title issues

A title company will reveal details of the property, such as any liens, covenants, and past ownership, that can reveal serious issues on closing day. Give yourself time to consider any issues or stipulations that come with the property. Any tax owed on the property or claims of ownership from family members or co-owners can delay closing. While and unpaid H.O.A. dues or covenants can be a surprise, but not derail closing on the property. It can be frustrating, but all title problems must be resolved before closing. However, when it comes to purchasing a property it is better to proceed with caution than making any costly errors that must be dealt with later.

Erika Bentley

Keeping Real Estate Simple

 

Who Wants to Buy Mykonos Villas?

download (66)So who wants to buy luxury villas in Mykonos? While it is true that Greece is still in the middle of a severe economic crisis, it does seem that the Mykonos real estate market has been literally thriving. No crisis here, whatsoever!

Mykonos has been for long one of the best holiday destinations in the world, loved and frequented by some of the biggest celebrities out there. But it’s not just about celebrities; a lot of ordinary folks have made their way to Mykonos and have purchased luxury accommodation in Mykonos.

Many would prefer to rent a villa in Mykonos, rather than stay here, as they are here for the short-term. But what is clear is that there is a huge amount of interest in Mykonos villas. Everyone wants a piece of them.

Indeed, in spite of the severity of the economic crisis in Greece, in spite of the protests, demonstrations, referendums and elections, Greece still saw a tourist inflow of 22 million in 2015, which is remarkable really.

No surprises for guessing that most tourists to Greece spent most of their time on the Greek Islands, including Mykonos, which have been pretty much insulated from the whole economic crisis. Today, thousands of tourists are flying every day to the Greek islands. Many hope to buy holiday homes here.

Indeed, foreign investors and buyers are lining up to buy properties on popular Greek islands such as Mykonos. The demand has never been higher. There is great demand for holiday homes on the Greek islands. Mykonos, along with Santorini, is perhaps the favourite choice of foreigners who wish to buy a summer home on a Greek island.

Generally, the same nationalities that visit the holiday destinations in Greece are the ones who buy luxury villas here. Britons are among the biggest buyers of Mykonos villas, no surprises there, as British tourists here in Mykonos are quite common. One sees them here, there and everywhere.

Mykonos attracts buyers from across Europe, not just from Britain – from Sweden, Denmark, Norway, Switzerland, France, Russia and Germany. There is a lot of demand for Mykonos real estate from China, Israel, India and Turkey as well.

In fact, wealthy individuals from emerging economies generally show a lot of interest in Greek Islands, and the recent economic crisis hasn’t stemmed the demand even one bit. Luxury accommodation in Mykonos that cost over $1 million are bought almost every other day.

Indeed, wealthy Chinese buyers have recently become very prominent here, with most buying luxury villas in Mykonos in all-cash deals. There is a lot of demand for cottages that have a direct view of the sea. Newly built or newish beachfront Mykonos villages are incredibly popular.

Many foreign investors in Mykonos have benefited from the currency exchange rate, which is in their favour. Some are attracted by the Golden Visa offered by Greek government to non-European Union nationals.

This guarantees foreigners the right to a renewable residency permit for an investment of 250,000 EUR in properties in Greece. They are also given the right to travel to all European nations subject to the Schengen agreement.

Many wealthy Chinese and Hong Kong bankers, hedge fund managers and business executives have been buying Mykonos real estate for this reason.

Things are certainly looking good for the Mykonos real estate market. The interest is high and buying activity couldn’t have been better. It is expected to get much better when the Greek economy stages a recovery, which should happen soon.

In fact, experts predict Greece to stabilize in the near-term and for things to get back to how they were when the goings were good. But this is still a work in progress.

 

5 Tips for Buying a House

download (65)Buying a home can be nerve wrecking and thrilling at the same time. This is especially for a first time home buyer. It is also difficult to know what exactly one should expect. The learning curve is obviously steep but the issues can be resolved by simply doing some homework on it. Some important tips have been explained as below.

1. Evaluate your credit

Your credit score is extremely important because it can be helpful for you to qualify for the loan. The standards are also higher in terms of what score you actually require and how exactly the cost of the loan is going to affect you.

2. Evaluate your liabilities and assets

This should be done so that you don’t owe a lot of money and all your payments are processed up to date. However the exact manner in which you spend your money must be taken into consideration. Any first time homebuyer should have a very good idea of what is owed and what is exactly coming in. Understanding a little bit about the monthly cash flows can also help you.

3. Organize all your documents

While you are applying for a mortgage, you must document all your taxes and incomes. Buying a home can take a long period of time but exactly knowing what you require and where you have to find it can help you to save time whenever you are ready.

4. Qualify yourself

As any first time homebuyer, you should know how much you can exactly afford to spend before any mortgage lender tells you how much you can qualify for. There is however no ratio of fixed debt to income that the lenders might require, but the old standard can dictate that not more than 28 per cent of the gross income will be devoted to housing costs.

5. Your down payment must be figured out

It takes a lot of effort to scrape together your down payment. There are also a variety of programs that can assist the buyers with qualifying situations and incomes. You can also speak with all the mortgage lenders when you are beginning the process. Check with all co-workers, friends and neighbors to find out the lenders they have enjoy being associated with. Take their advice to how to go about with it as it can help you to simplify the process. It is one of the important things to remember.

 

Finding the Perfect Home Can Take a While

download (64)Finding the perfect house can take a while. Patience is not only a virtue, but it’s a determining factor when purchasing a home. The three most important keys to home buying are, making sure you are financially ready, ensuring that you and your partner do not become emotionally attached to any home, and discussing with your partner your expectations of a home prior to shopping.

Often times people think “I finally got that big pay raise; I’m ready to buy a home.” However, the financing of a home is about more than just a steady income. Your lender is going to want to know about all of you and your partner’s financial history, both good and bad. Also, they are going to inquire about that old cell phone bill from high school that you never paid. Yikes! Your credit history will be on full display for the lender. If you don’t have your “financial ducks in a row”; it will really hinder your home buying process. Your debt to income ratio is really key here. Therefore; prior to going out and viewing homes make sure that financially you and your partner are ready to make this big ticket purchase.

The worst thing you can say while shopping for a home is “I love it”. This puts unnecessary pressure on you and your spouse. The key is to not become emotionally attached to any of the homes you view, simply because the next home could be the right home or even the next home! Simply because it has the white picket fence that one of you has always wanted, doesn’t mean that it’s a good investment. This is a very important business transaction that needs to be thoroughly investigated by you and your partner. Logic usually overrules emotions in these situations. Think things through and decide if this home is really worth the asking price and if it’s comparable to your family’s expectations of a home. Get your own appraisal and inspections performed by a company you enlist. And most importantly, don’t be afraid to walk away.

Finally, be sure to discuss what you and your spouse want prior to viewing homes. You should both come up with a list of the top three things you must have in a home and the top three things you want to live without. What are you willing to live with? What are you not willing to compromise on? These are the type of things your list should cover. After both parties have comprised their list of wants and dislikes, compare your lists, so that you and your partner are on the same page. If you love stucco but your partners hates it; that may be something you need to discuss prior the shopping for a home. More often than not, if this is your first home your budget is probably going to be the most important factor. This means that’s you may not be able to afford your absolute dream house at first. However with proper planning and open communication, you will be able to find a home that’s perfect for you and your family.