FREQUENTLY ASKED QUESTIONS

1.How do I prepare for closing costs
An easy item that home owners often over look, a conservative estimate of closing cost is about 4% of the home. Make sure that you talk to your lender about this, sometimes it can be negotiated that you ask for seller assistance but that is never a guarantee. For more information, we always advise our buyers to visit kvstitle.com, a free website that will assist you in calculating closing cost.

2. How many homes is too many?
The average homebuyer sees anywhere from 10 to 15 homes before they find the perfect one. If you have seen 25 homes then something is wrong. Either it’s a miscommunication of location, criteria or price, something needs to be readjusted and evaluated.

3. What should I look for in a lender?
A trusted lender is key, big banks are wonderful if you can find someone that will work for you and with you. Open houses are usually on the weekend which means that you need someone that is available when you need them. Especially when it comes to a situation with multiple offers, which can happen when shopping for the home of your dreams.

4. When should I start financially planning for a move?
Prepare for a home purchase as far in advance as you can, even if its two or three years out. There is no problem with identifying price ranges well before you are ready to purchase. Start saving for your down payment and speak with a lender. There is nothing worse than when you have a client who has fallen in love with a house and then they found out that there is some sort of error reported on their credit report.

5. Why do you work with a team?
Working with a team allows us to have numerous resources of information and expertise. Plus it benefits our clients, while someone is showing you a house, another team member may be putting in another offer in that neighborhood, while another is running comparisons to make sure you are getting the best price. As a team we are in constant contact, we all work out of the same office, and towards the same goal; finding you your dream home! At one time, we could have as many as 6 team members working to buy or sell your home at any time.

6. Is the mortgage interest and property tax on a second residence deductible?
The mortgage interest on a second home, which you do not rent out during the taxable year, is generally deductible if the interest satisfies the same requirements as interest deductible on a primary residence. If you rent out the residence, you must use it for more than 14 days or more than 10% of the number of days you rent it out, whichever is longer.

• The combined limitation for mortgage interest on your primary and secondary residence for a married couple filing a joint return, or an unmarried taxpayer is $1,000,000 for acquisition indebtedness and $100,000 for home equity indebtedness.
• Real estate taxes paid on your primary and second residence are generally deductible.
• Deductible real estate taxes include any state, local, or foreign taxes based on the value of the real property levied for the general public welfare.
• Deductible real estate taxes do not include taxes charged for local benefits and improvements that increase the value of the property, such as assessments for sidewalks, water mains, sewer lines, parking lots, and similar improvements.

An itemized charge for services to specific property or people is not a tax, even if the charge is paid to the taxing authority. You cannot deduct the charge as a real estate tax if it is a unit fee for the delivery of a service (such as a $5 fee charged for every 1,000 gallons of water you use), a periodic charge for a residential service (such as a $20 per month or $240 annual fee charged for trash collection), or a flat fee charged for a single service provided by your local government (such as a $30 charge for mowing your lawn because it had grown higher than permitted under a local ordinance).

7. Why use a real estate agent?
While buying or selling a home seems easy, negotiating multiple offers, setting up various showings, and over looking contracts, can get very overwhelming. Just think of the additional time and work you could save by using a realtor, but must importantly a trusted real estate that has your best interest in mind. We are ranked amongst the top 1% of realtors nationwide and we would love to show you how our services can help you succeed and we would love to earn your business.

8. If I’m not on the mortgage can my income still be considered?
This may be referring to a program called HomeReady which will allow income from a family member as a compensating factor. It is not used for direct qualification. That family member will have to certify that they will live in the property for at least 12 months. Their income also has to be verified as stable for the previous 2 years and high probability of continuance.