Entries for May, 2011

Why is it Important to Get Pre-qualified or Pre-approved Before Viewing Properties?

IMPORTANCE OF A PRE-QUALIFICATION OR PRE-APPROVAL LETTER Prior to viewing properties with a Realtor, it is important that you provide a current pre-qualification letter stating the loan amount that you can afford.   If you’re serious about buying a home get pre-qualified before you start viewing homes. When you pre-qualify for a mortgage, the lender calculates [...]

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Why Did Your Home Not Sell?

You had put your home up for sale with a Real Estate professional and it did not sell.   This can have created a lot of stress and anxiety and left you wondering why your home did not sell. What should you do?   You should take a step back and analyze the situation.   Homes usually do [...]

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What are Building Codes?

Building codes protect the public health and safety from inferior construction practices.  Building codes set minimum standards for materials and quality of workmanship, sanitary equipment, electrical wiring, fire prevention, and so forth.  Florida has a statewide building code called the Florida Building Code.

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What is Salvage Value?

Salvage value is the estimated value of an asset at the end of its useful life.

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What is Investment Value?

Investment value is the price an investor would pay, given his or her own financing requirements and income tax situation.  This type of value is personal to a particular investor.

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What is Liquidation Value?

Liquidation value is the value associated with a rapid sale.  The sale price a property should bring in a foreclosure sale is an example of liquidation value.  Liquidation value would result with an shortened marketing period such as an auction or bank foreclosure.  This is different from market value in which a reasonable time is allowed [...]

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What are Recording Fees?

Several of the legal documents signed at closing should be recorded to give notice of new ownership and debt status.   Charges associated with recording these documents are usually paid by the person who wants a particular document recorded.  For example: the grantee (buyer) wants the deed recorded and usually pays for this service.  Recording fees [...]

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What is the Secondary Mortgage Market?

The secondary mortgage market is an investor market that buys and sells existing mortgages.   This market allows banks to sell existing mortgages giving them new funds to offer more mortgages to new borrowers.   Some mortgages are packaged into mortgage-backed securities and sold to investors.

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What is the Rural Housing Service?

The Rural Housing Service is an agency of the U.S Department of Agriculture.  It offers direct loans and other services to farmers, rural residents, and rural communities, enabling them to purchase and operate farms, homes, and businesses.    There are 3 categories for loan programs: 1. Originate new loans 2. Insure Loans 3. Guarantee loans

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