Sometimes when I list a house, I may find that there are surprises the seller may not know about.  If you’re buying a home in the Ann Arbor, Michigan area, you should receive a preliminary title policy from the title company within a few days of signing the sales contract.

This is the title company committing to issue title insurance subject to the terms inside the policy.

It begins with a page called “Schedule A.”  Schedule A describes who will be insured, to what amount, and legally describes the property on which they’ll issue title insurance.  The Seller usually pays for a title policy in the amount of the sale price to insure clear title to the Buyer.  The Buyer pays for a title policy required by the lender, in the amount of the loan.

It continues with "Schedule B, Section 1".  This describes the requirements that must be met before the title policy is issued.  Typically in this section, you see the Seller’s loans that must be paid off, any taxes due, anything that must be satisfied before the policy can be issued.  This is a must-read section.  Sometimes, there’s an odd lien or requirement that you need to find out about sooner rather than later.

"Schedule B, Section 2" are exceptions to the title policy - things the title policy will not cover.  Usually, this list includes the recorded easements, future tax liens, etc.

Issues do surface. Some times we find gas and oil leases that may be defunct so we will contact the gas company to remove this.  Sometimes we find a mortgage has not been discharged even though it was paid off.  There may be a road assessment that needs to be disclosed.  There may be a tax lien that one of the Sellers does not even know is on the home.  There have been improper legal descriptions. Previous title policies may have missed easements. Finding out about these issues early allows them to be addressed. If you don’t understand what you see, you can always ask your agent, attorney or title agent to explain it to you.  We align with Liberty Title and have access to Harvard undergrad and U of M Law grad Tom Richardson, owner, who is extremely valuable.

Whether you are buying your first home or your 10th home, it is not an easy process, but that is ok, we are here to help.  Contact me anytime.

Kathy Toth and Team
Keller Williams Realty
2144 S. State St., Ann Arbor, Michigan 48104
Phone: (734) 669-0337
Fax: (734) 661-4315
info@KathyToth.com

Related Links
Real Estate Process Explained | Click here
           This report explains in details the entire process of buying real estate

Are you ready to take advantage of the low interest rates? 
Do you want to time the market successfully and take advantage of some fantastic investment opportunities? 
Would you like to have an expert at your side during the whole process? 
What are the secret ins and outs of Ann Arbor home buying?         What is the $7500 tax credit? 
Don’t want to make a mistake in the Ann Arbor Real Estate market? 

Join us:

Related Links
Ann Arbor Home Buying Seminar     
           Check out the 15 reasons to attend this event

This is a significant piece of regulation to boost the housing market, which has been signed into law by the president, clearly now is a time to consider buying, Ann Arbor Real Estate. Usually the bottom hits when properties at the low end of the market start moving. In this bill there are several initiatives to do just that.  When first time buyers enter the market, everything else moves up the ladder. This bill will now encourage lenders to make loans, which in my opinion has been the single most important reason for the slow recovery, the availability of credit. Many, many deals in the last few months have fallen apart because borrowers, even really good borrowers with excellent credit, etc, could not get loans.

Call our team, if you’re interested in Ann Arbor Michigan Real Estate or come to our

First Time Home Buyer Seminar on:

August 26^th at 6:30 PM.

Call Vicki at 734-216-2172 for details.

Provisions of Housing-Mortgage Relief bill signed into law

Gives the Federal Housing Administration $300 billion in new lending authority and relaxes standards to provide affordable, fixed-rate mortgages to an estimated 400,000 debt-ridden homeowners. Any losses would be covered by an affordable housing fund financed by Fannie Mae and Freddie Mac, the government-sponsored companies that finance mortgages.

How To Use The Web To Find The Lowest Rates | Click here
According to recent surveys, the Internet has been used for more than 50% of the general adult online population when it comes to shopping for the best mortgage rates. Learn why so many people are using this method.

Loans, Mortgages, And Financing Options | Click here
While shopping for a home is exciting, it also means you need to do some research to find the best loan. Finding a good loan can make a huge difference in your monthly payment as well as the overall process. Here are some tips to help you along your way…

Mortgage Rates
U.S. averages as of June 26, 2008:

30 yr. fixed:   6.45%
15 yr. fixed:   6.04%
1 yr. adj:        5.99%
30 yr. jumbo:  6.98%

View current rates

1. Do you work full time or part time as a real estate agent?
An agent who cannot focus on your needs during the week will not make an ideal agent. Most people assume their agent is fulltime, but quickly find out they are hard to reach because they work a second job!
2. Is your license in good standing?
You assume it is, but this is not always the case. Obvious questions can be a life savor; so ask them!
3. How many years of experience do you have?
Experience is key, but even more important are results. A young agent does not mean fewer results, but be careful. If the agent has less experience, then make sure you do more research before choosing them.
4. How would you assess the current market for selling/buying?
An agent that inflates the appearance of the market conditions is a sales person, so be careful. You want an honest opinion and not one that is full of hot air.
5. How long have you sold homes in this area?
An established agent in a specific area is ideal, because they know the market and the needs of the buyers. This does not means someone with less experience in the area means fewer results, but an agent who has sold many homes in your area is a plus.
6. How many other clients (sellers and buyers) do you represent?
An agent who is swamped with clients will give you less time. If their number is excessive, then ask details about their office, if they use assistants and how they can meet your needs with excessive clients. Also, watch closely, because many agents are well organized and this will show by calls being returned quickly and consistently, which means the amount of clients they have can be handled easily. Note: An agent with few clients or none is likely to represent a problem and not an ideal scenario for you.
7. Will you handle all aspects of my transaction or will you delegate some tasks to a sales associate or administrative assistant?
If you work with a busy agent, a knowledgeable assistant can be invaluable when you have questions. Busy agents also are often the top producers in an area, but you may not get as much personal attention as you want.
8. Will you give me a list of homes you sold in the last 12 months?
The list should contain addresses, property types, names of sellers or buyers, list prices, sale dates, and sale prices. If you’re undecided about an agent, contact the agent’s former clients and ask whether the agent was easy to work with, whether they feel they got a good price and a good contract, and whether they would use the agent again.
9. Do you require a contract, if so terms?
Contracts are required by most states, so this answer is surely to be yes. What you want to find out are the terms in detail, when the contract ends, option to cancel and requirements of both parties.
10. How much commission do you charge? What other fees are attached?
Find out the commission the agent is willing to negotiate. The seller pays a majority of commissions, but occasions exist where the buyer will charge. The average commission is around 6% of the total sale price. Find out if the agent charges additional fees or charges and what they are for.

Related Links
Buyer’s Special Reports
           Visit our website for much more useful information for home buyers.

Seller’s Special Reports
            Visit our website for much more useful information for home sellers.

THE HOME BUYER PROCESS
You are ready to buy, so let’s talk about what to anticipate and how to be ready for the road ahead!

It’s now time to close the deal. It is closing day and the seller officially signs the house over to you. Before signing any paperwork have your agent discuss each detail. From the day of signing the paperwork, it could take between 10 to 100 days to move into your new home, depending on the complications of the deal.

Related Links
Kathy Toth and Team VIP Buyer Program
           We created the Buyer’s Preferred Service for buyers that are serious about finding a home.

Love It or Leave It Buyer’s Guarantee
          We want you to be totally satisfied with your home and will do everything to get you into a home that you will love.

Additional Buyer Links
Foreclosure Deals
Buyers Seminar

Top 15 Reasons to Attend This Free Workshop - What You’ll Learn

• Why you should never fall into the trap of working with the name on the For Sale sign.
• 3 Ways homebuyers surrender their power to negotiate a better price.
• Negotiate $10,000 savings on any home you buy.
• How to keep your confidential financial information from landing in the Seller’s hands.
• How to avoid paying hidden “junk fees” that add thousands to the cost of a loan.
• How credit scores are determined, how they can affect your mortgage rate and increase the cost of your loan by thousands.
• How to build a team of buyer – friendly experts that will be on your side, and not the seller’s.
• Why it’s illegal for an ordinary real estate agent to recommend a home inspector, and the important reason why only Buyer Agents are legally allowed to do so.
• 10 critical mistakes made by virtually all homebuyers.
• The single most common, money-draining mistake most homebuyers make when choosing an agent.
• The 3 scare tactics that mortgage lenders use to stop you from shopping for the best loan.
• Low and no-money down loans and special grant programs available right here.
• Legal Pitfalls: 50 ways to lose your property.
• The two phrases that must be included in every Offer to Purchase real estate.
• How to get the widest selection of homes, including access to very motivated sellers and For Sale By Owner properties.
• How to save $5,000 or get $500 Cash Back at closing Guaranteed.

When: Tuesday, September 23rd, 2008
Time: Pre-Approval at 6:30 p.m. - Seminar Begins at 7:00 p.m.
Where: United Bank and Trust
                  355 S. Zeeb Rd.
                  Ann Arbor, MI 48103
RSVP: 734-216-2172 or Click here to fill out the form and we will be in touch with you shortly!

 There are probably few things in life that are as exciting–or as nerve- racking–as the search for a house. With an organized home buying plan, you can minimize a great deal of the emotional impact. By determining your buying power, your wants and needs, and having an organized search plan, your chances of a stress-free experience are much better.

Gertrude Singer, a Realtor with National Realty suggests that buyers, and especially first-time buyers consider a few issues when preparing for and purchasing a home.

· Run before walking. This is easy to do once the decision to buy a home has been made. It means rushing off looking at homes, surfing the web or calling on advertisements before doing some up-front preparation.

· Don’t over-buy the first time. A large and beautiful home with little or no furniture tends to be empty and cold. A life where almost every dime of your earnings goes to the support of your house wears thin very quickly and is a frequent cause of family stress. Leave yourself some breathing room!

· Compare mortgages. Don’t simply accept the first plan presented to you. Spend time comparing to get the most advantageous plan for your requirements and financial situation

· Get mortgage pre-approval. Pre-qualification and pre-approvals are a necessary part of the home buying process. Not only will it give you an exact price range for your purchase, pre-approval will add a great deal of strength to your offer.

· Don’t wait for the "perfect" home. Many first time buyers make the mistake that they will, if they look around long enough, find a home that has a full 100% of their needs and wants. Instead, it makes sense to determine the most important of your needs and the most desired of your wants and selecting a home that meets the majority of them.

· The inspection process. This can involve skipping a whole house inspection completely in order to save the relatively small amount of money involved, or it may involve using a friend or relative with limited experience to conduct the inspection. In either case you run the risk of not exposing potentially expensive–or even hazardous–defects in the property. Protect yourself by investing the $200 to $500 for a professional inspection.

As soon as you’ve completed the pre-qualification portion of the loan, you will be ready to start looking for your new home. As you start into the process, one very important step is often overlooked - scouting out neighborhoods.

Sometimes people will find a home and be so thrilled with their find that they fail to look at the neighborhood in which the home sits. You should consider many things, for example, if you have a family, is there a park nearby for the kids? Are the schools appropriate for your kids? If you enjoy having things close by, check out restaurants, grocery stores, etc. Is the neighborhood clean and safe?

Take a Saturday or Sunday when most people are home and get in your car to drive around. Start exploring different areas until you find one or several that appeal to you.

Take a notepad with you and jot down names of subdivisions, general appearances of the homes to include maintenance and landscaping. Are there kids outside playing around the same age of your kids? If you’re elderly, is this a quiet neighborhood with other elderly people?

If you are working through a real estate agent, once you outline the things that are important to you, they should be able to provide several neighborhoods as starting points.

Schools- Just as good school districts are important if you have kids, they are also important if you don’t have kids. Buying a home in a reputable school district is a huge advantage for a future sale. Typically, homes with good schools attract more buyers. If you want to determine a good district from a not so good district, you can always conduct Internet research. For example, go to www.homestore.com, choose a geographical area or zip code, and you can find out just about anything you want to know. Other options would be to ask your real estate agent for information, talk to other people in the neighborhood, or even take a tour of the school.

Crime- Determining crime statistics in a neighborhood isn’t as difficult as you think. Using either www.homestore.com or www.Realtor.com, you can enter a specific geographical area or zip code and research the crime in that area.

Suburbs generally have lower crime rates but living in a suburb may require you to drive further distances to work, school, etc. On the other hand, cities have higher crime rates but are far more convenient. The choice is really yours and the type of lifestyle you prefer.

As you drive around, here are some additional things you can do to check the crime rate:

· Look for obvious signs such as bars on windows or doors · Look for gang graffiti · Talk with the local police

Family- As you probably know, buying a home isn’t just an investment. It’s a place of safe haven, fun, memories for the entire family. Because of this, after considering the community, you need to consider the number of bedrooms and baths. Will you need a closed garage? Are schools within walking distance for the kids, if not, where are the nearest bus stops?

Property Value/Taxes- Another very important factor when buying a home is property values of other homes in the area. You don’t want to buy the most expensive or least expensive home. Also, check on property taxes to see how much they’ve jumped in the past few years.

What happens if you find two houses that you like equally or perhaps both you and your spouse each have one house that you love?

Making the final decision needs to be done rationally and not led by emotion. Sometimes this is hard to do but to ensure you get the right home, it’s an absolute necessity. It might be necessary to write down all the needs versus all your wants in order to make the right decision.

You should also take your time if possible. You may not have the luxury of time, which makes buying a little more challenging. The best situation is to look at many homes and don’t make an offer on the first house you see. In addition, look at houses more than once. If there is one or two that you like, wait a day, then go back, and look again. Usually the second time around you will find something you don’t like or something you do like that you didn’t notice the first time.

Related Links
First Time Home Owners - Must Know Facts!
VIP Buyer Program

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