Most lenders have always been good about giving their customers this information at application and most lenders don’t change their fees significantly between application and closing so this should not be a problem. This law really will protect the consumer by forcing all lenders to disclose their fees accurately and in a timely manner so customers aren’t sitting at the closing table thinking…”This isn’t the loan I signed up for!”

So what documentation should a borrower receive when they apply for a loan? The two documents in question are a Good Faith Estimate and a Truth in Lending Disclosure. The Good Faith Estimate breaks down the payment for the loan, discloses the down payment required, type of loan, the closing costs that the lender expects to charge and the items to set up the borrower’s escrow accounts if the borrower will be putting real estate taxes and homeowner’s insurance in an escrow account.

The Truth in Lending tells a customer the annual percentage rate, how much they will pay in finance charges, whether the loan is fixed or variable and whether a loan has a pre-payment penalty, among other items. All the things you’d like to know in writing before you agree to the loan, huh?

One of the first numbers on a Truth in Lending Disclosure is the Annual Percentage Rate. APR is a required item to be disclosed when you make a major purchase like a car or a home. It blends the note rate with the cost of the financing.

The official definition reads: “APR is the cost of the loan in percentage terms taking into account various loan charges of which interest is only one such charge. Other charges which are used in calculation of the Annual Percentage Rate are Private Mortgage Insurance or FHA Mortgage Insurance Premium (when applicable) and prepaid finance charges (loan discount, origination fees, prepaid interest and other credit costs). The APR is calculated by spreading these charges over the life of the loan which results in a rate higher than the interest rate shown on your mortgage/deed of trust note. If interest was the only finance charge, then the interest rate and the annual percentage rate would be the same.”

Charges on the Good Faith Estimate which are for actual services, like a survey and an appraisal, don’t impact annual percentage rate. However, charges on the form that go to pay lender’s and title company’s overhead do impact the annual percentage rate.

The important way this protects the consumer is that the figures disclosed at loan application can’t vary much between application and closing without letting the customer know in advance. This law won’t hurt a consumer dealing with a reputable lender, but it will protect a consumer who has fallen in with a lender who planned to bait and switch.

If you’re purchasing a new home, you know that part of the process is calling all of the utility companies to make sure that service is transferred into your name the day that you and the seller have previously agreed upon.

Well…here’s a little tip for you…if the property you’re moving to has both electric and gas service, you’re going to want to make sure that you call and establish the electric service first.  Here’s why…the electric has to be on first, before the gas can be turned on.

(By the way, in Johnson County, your electric company will more than likely be either Johnson County REMC or Duke Energy.  The gas company is probably to be Vectren).

So…we already know that waiting on hold forever and a day to talk to the utility companies is a pain in the neck in the first place…don’t make it worse by having to call the gas company twice (once to set it up and once again because you didn’t call the electric company first).

Hope that helps and please, be sure to enjoy the lovely elevator music while you’re holding… Para Espanol o primo “dos”…

For more tips on the Home Buying Process, click here.  For a complete list of all Greenwoood and Johnson County utility phone numbers, click here.

If you’re anticpating a move, these are some helpful suggestions that might make the transition a little smoother:

Before You Leave

Address Change

• Post Office:  Give forwarding address
• Charge Accounts, Credit Cards
• Subscription:  Notice requires several weeks

Insurance

• Notify company of new location for coverages:
• Life, Health, Fire and Auto

Utility Companies

• Gas, electric, water, sewer, cable, telephone, fuel, garbage
• Refunds on any deposits made

Bank

• Transfer funds, arrange check-cashing in new city
• Arrange credit reference

Pets

• Ask about regulations for licenses, vaccinations, tags, etc.

Delivery Companies

• Laundry, newspaper, change over of services

Medical, Dental, Prescription Histories

• Ask doctor or dentist for referrals; transfer prescriptions, eyeglasses, X-rays.  Obtain birth records, medical records, etc.

And Don’t Forget…

• Empty freezer; plan use of foods
• Defrost freezer and clean refrigerator
• Place charcoal to dispel odors
• Have appliances serviced for moving
• Clean rugs or clothing before moving; have them moving-wrapped
• Check with your Moving Counselor; insurance coverage, packing and unpacking labor, arrival day, various shipping papers, method and time of expected payment
• Plan for special care needs of infants and pets

On Moving Day

• Carry enough cash or traveler’s checks to cover the cost of moving services and expenses until you make banking connections in your new city
• Carry jewelry and documents yourself; or use registered mail
• Plan for transporting of pets; they are poor traveling companions if unhappy
• Let close friends or relatives know the route and schedule you will travel including overnight stops; use them as message headquarters
• Double check closets, drawers, shelves to be sure they are empty
• Leave old keys needed by new tenant or owner with Realtor or owner

At Your New Address

• Obtain certified check or cashier’s check necessary for closing on your new home
• Check on service of telephone, gas, electricity, water and garbage
• Check pilot light on stove, hot water heater and furnace
• Have appliances checked
• Ask letter carrier for mail he may be holding for your arrival
• Have new address recorded on driver’s license
• Visit city offices and register for voting
• Register car within 5 days after arrival in state or a penalty may have to be paid when getting new license plates
• Obtain car inspection sticker (where applicable) and transfer motor club membership
• Apply for state driver’s license
• Register children in school
• Arrange for medical services; Doctor, Dentist, Veterinarian, etc.

Hope these help…Good Luck!

Well, I think there has been a lot of confusion over the years (even among Realtors) about exactly what an Exclusive Buyer Agency Agreement and why it is important.

Essentially, if you’re working with a Realtor that you like and that you feel comfortable with, and you want them to represent you in your real estate transaction then yes, by all means, you need to enter into an Exclusive Buyer Agency Agreement with that Realtor.

It seems to be common knowledge that if you’re a Seller wanting to list your home, you sign a Listing Contract with your Realtor.  When you do this, it means that you (the Seller) and the Realtor have entered into an Exclusive relationship in which you have agreed to hire the Realtor to represent you in the transaction and the Realtor has agreed to represent you (the Seller) and your best interests in the transaction.

Well, if you’re a Buyer out running around calling the phone numbers listed on every For Sale sign you see, and you have not signed an Exclusive Buyer Agency Agreement with any one particular Realtor, then at the end of the day, who is really obligated to help you and represent your best interests in the real estate transaction?

No One!  The only people being properly represented in that real estate transaction are the Sellers!

So regardless of who you choose to work with, be sure you ask about getting an Exclusive Buyer Agency Agreement signed.  And Realtors, don’t be afraid to ask the Buyer to sign one.  It is in your Buyers best interest and gives them the assurance that you are going to be loyal to them and not jump ship mid way through the process!

PS – Want to take a sneak peak at what the Exclusive Buyer Agency Agreement looks like before signing one? By all means, please let us know, we’ll be happy to send you a copy!