Maryland Real Estate Consultant

                                                                Local Talent

This is a wonderful Band, being a guitarist myself I am always checking out the music scene.

Performing at Blues Alley in Washington D.C. Wednesday, June 20^th-Linwood Battle & Woody's Lounge-R&B Vocals

Lindwood Battle, Jr. has been performing in the DC, Maryland and Virginia area's with his core band "Woody's Lounge" whose motto is "not where you are, but where the music takes you" when you the fan are at "one" with this band and their performance, you're there; at "Woody's Lounge". This band delivers a high energy performance reminiscent of great jazz bands like Spyro Gyra, the Yellowjackets and the Crusaders. The band consists of a very dynamic rhythm section featuring a sensational young drummer, Phillip Edwards, a graduate from Towson State University, the bassist, Kevin Jackson and rock/funk styled guitar Kevin Powe.

I love this place!

Blues Alley
1073 Wisconsin Ave. NW
Washington, DC 20007
Daily 6:00pm-12:30am
Tel: (202) 337-4141

                                          Canton Community Located in Baltimore Maryland

For those who would like to know a little more about the Canton area of Baltimore Maryland check out the link below. Many of these homes still have Formstone exterior. Many of the homes have been repointed with brick. When you have the chance come on down and visit. Canton is part of Highlandtown and a wonderful area for the family and kids. I love Canton!

Canton

                                 Columbia Maryland Voted Top Ten Place to Live in America

Best Place to Live

If you are at all interested in Moving to Howard county or Columbia Maryland, go to the link above. I love this city and have lived here since 1989. Columbia is smack in between Washington and Baltimore Maryland. We are (Columbia Maryland) actually celebrating our 40th year anniversary.

                                                       Real estate and Mortgage Terms

Earnest Money

Money given by a buyer to a seller as a deposit to commit the buyer to the future transaction. Earnest money is subtracted from closing costs. We also called this good faith money and some areas people may just put down a dollar. A good rule of thumb may be one half to one percent of the purchase price. The monies go toward the purchase of the home

Closing

Also referred to as settlement.  The meeting at the conclusion of a real estate sale in which the property and funds are exchanged between the two parties involved. I always let buyers and sellers know, especially first timer, that the closing cost also includes cost that the State and County imposes.

Equity

The value an owner has in real estate over and above the obligation against the property.  Equity is fair market value minus the current indebtedness.

Annual Percentage Rate (APR)

An interest rate that reflects the cost of a mortgage as a yearly rate.  This rate takes into account any points and fees and is based on the loan going to it's full-term.

Escrow

Funds given to a third party which will be held to cover payments such as tax or insurance payments and earnest money deposits. 

Fixed Rate Mortgage

A mortgage in which the interest rate remains constant throughout the life of the loan.

Loan-to-Value Ratio

The ratio between the amount of the mortgage loan and the appraised value of the property.

Market Value

The price that a property could possibly bring in the marketplace. The buyer ultimately decides on the value of a property.

Origination Fee

A fee charged by a lender for processing a loan application; usually computed as a percentage of the loan.

PITI

Refers to Principal, Interest, Taxes, and Insurance. 

Underwriting

The decision-making process of granting a loan to a potential homebuyer.

Mortgage Insurance

insurance that protects lenders against loss if a borrower defaults.  This is required when the loan-to-value ratio is greater than 80 percent.

Earnest Money

Money given by a buyer to a seller as a deposit to commit the buyer to the future transaction. Earnest money is subtracted from closing costs. We also call this good faith money and some areas people may just put down a dollar. A good rule of thumb may be one half to one percent of the purchase price. The monies go toward the purchase of the home

Closing

Also referred to as settlement.  The meeting at the conclusion of a real estate sale in which the property and funds are exchanged between the two parties involved. I always let buyers and sellers know, especially first timer, that the closing cost also includes cost that the State and County imposes.

Equity

The value an owner has in real estate over and above the obligation against the property.  Equity is fair market value minus the current indebtedness.

Annual Percentage Rate (APR)

An interest rate that reflects the cost of a mortgage as a yearly rate.  This rate takes into account any points and fees and is based on the loan going to it's full-term.

Escrow

Funds given to a third party which will be held to cover payments such as tax or insurance payments and earnest money deposits. 

Fixed Rate Mortgage

A mortgage in which the interest rate remains constant throughout the life of the loan.

Loan-to-Value Ratio

The ratio between the amount of the mortgage loan and the appraised value of the property.

Market Value

The price that a property could possibly bring in the marketplace.

Origination Fee

A fee charged by a lender for processing a loan application; usually computed as a percentage of the loan.

PITI

Refers to Principal, Interest, Taxes, and Insurance.  This is all added together to understand the clients debt to ratio, which was included in terms from a previous post.

Underwriting

The decision-making process of granting a loan to a potential homebuyer.

Mortgage Insurance

Insurance that protects lenders against loss if a borrower defaults.  This is required when the loan-to-value ratio is greater than 80 percent.

Of course there are more term and I will continue to add to the list. Until next time.

                                                          Real Estate Language

Here are some terms that a Buyer and Seller may find useful. This is aimed mostly toward first time buyers. I know when I purchased my first home, I was terrified.Understanding terms can help ease your anxieties. Soak in all you can so that you may become comfortable with your real estate purchase.

Loan-to-Value Ratio

The ratio between the amount of the mortgage loan and the appraised value of the property.

Assumption

An agreement between buyer and seller in which the buyer assumes responsibility for the seller's existing mortgage. This does not happen as much as it use to, at least here in Maryland.  This agreement usually saves the buyer money because closing costs and the current interest rate, possibly higher, do not apply.

Variable Rate Mortgage

Also referred to as Adjustable Rate Mortgage. A mortgage in which the interest rate is adjusted periodically based on a pre-selected index. There are many many programs.

Debt-to-Income Ratio

The ratio, expressed as a percentage, which results from dividing a borrower's monthly payment obligation on long-term debts by the borrower's gross monthly income.

Adjustable Rate Mortgage (ARM)

Also referred to as a Variable Rate Mortgage.  A mortgage in which the interest rate is adjusted periodically based on a pre-selected index.

Caps

A limit in the amount the interest rate or monthly payments for an adjustable rate mortgage that may change.

Buy-down

A method of lowering the buyer's monthly payment for a short period of time.  The lender or home-builder subsidizes the mortgage by lowering the interest rate for the first few years of a loan. Buy downs were most popular when rates were higher.

Discount Points

Prepaid interest assessed at closing by the lender.  A point is equal to 1 percent of the loan amount.

Down Payment

Cash paid by the buyer at closing that makes up the difference between purchase price and the mortgage amount.

 As more terms pop up in my head I will add them to the list as well. I may also post some info on 100% loans within the next week.

Take care

We have recently started running Home Buyer Seminars and I am often asked, what do I need to do to purchase a home? Here is a brief guideline that you may follow to buy a home.

How the Buying Process Works

•·        Contact lender to get a Pre-Approved loan-please note the difference between getting pre-qualified VS getting pre-approved. A pre-qualification is merely a lender telling you how much your note would be based on how much you make VS how much you owe monthly. It is very import to having a smooth transaction to have a completely approved loan except for a purchase agreement, and an appraisal.

•·        Find a Realtor

•·        Decide your home criteria-The purchase price, area, size etc

•·        Schedule an appointment with your Realtor-Set a convenient time to look for a home with your Realtor.

•·        Negotiate purchase agreement-Price, who pays closing cost, inspection report time limit, closing date, closing attorney, occupancy time, contingencies. This is another function that your Realtor will help you with

•·        Schedule inspection of property by professional of your choice, this should be done as soon as there is a contract. Beware that some inspectors will give you a very detailed report. Don't be scared by this, it is the inspectors job to point out every possible thing that is not new or in the same condition it was when it was new. There are no perfect homes, not even a new home.

•·        Give written report to seller-requesting desired repairs to be made by seller.

•·        Seller agrees or disagrees - You must come to terms before you move to the next step.

•·        Realtor orders Appraisal-Your Realtor should have a team of competent vendors and will gladly recommend a professional appraiser. The appraisal should be ordered within one day of the satisfactory inspection report.

•·        Realtor contacts closing attorney-and purchase agreement is faxed, and time of closing is schedule as per buyer and sellers request.

•·        Walk through inspection is scheduled-this is usually scheduled the day before closing, particularly if there are seller repairs to be made.

Closing is scheduled-This is the grand finale, you get the keys to your new home. Be sure to get your homeowners insurance in advance, you will also need your driver license at the closing. You will need a cashiers check for your down payment. Your lender will be able to give you a close estimate as to how much you will need. The estimate doesn't have to be down to the penny because you will be able to write a check for the difference up to $2500.

This is a basic guideline. I hope this has been helpful. Next time I will talk about some of the duties that your realtor may perform on your behalf.

Happy House Hunting.

First Time Home Buyers Seminar

*New to the Seminar. Discussion of 100% and 103% percent loans. 

You are invited to attend a Free Home Buyers Seminar

Wednesday, June 20th 2007

From 7:00pm to 8:00pm at the Keller William's office

Located at 6350 Steven Forest Road, Ste 107. Columbia, Md. 21046

This Step by Step Introductory First Time Home Buyers Seminar Will Show Potential Home Buyers How To:

•·       Take Advantage of record-high foreclosures & record interest rates.

•·       Take advantage of special government sponsored 1^st Time Buyers programs.

•·       Buy now with as little as $3,000 down!

•·       Speak to credit specialists that can correct and/ or clean up credit.

•·       Find out from a tax advantage why it makes sense to own rather than rent.

PLEASE RSVP BY CALLING 240-472-9008