Platinum Realty

Education Month - February 26

Platinum Realty — Mon, 26 Feb 2007 23:29:00 GMT

Q: I put in a bid to purchase a house down the country. The owner accepted my offer!!! Now what happens?

A: Congratulations! At this point, other parties become involved – your loan officer and your lawyer. LOAN OFFICER’S ROLE - If you require financing, you will need to inform your loan officer of what has transpired. At that point, your loan officer will schedule a Bank appraisal (refer to last week’s broadcast for definition) to be conducted. Once the results are finalized, and all parties - loan officer, you, and the Vendor (Seller) – are in agreement, your loan officer may start preparing the necessary documents to show how you will finance this purchase. LAWYER’S ROLE – The Vendor’s (Seller’s) lawyer will forward a copy of the Sales and Purchase Agreement (otherwise known as the contract) to your lawyer. Your lawyer will then arrange for you to come in to meet with him/her to discuss what is outlined within the contract and address any questions you may have. Once all parties are in agreement with the conditions outlined in the contract, all necessary parties – you, the Vendor, and any other required others – will sign. At the same time, a deposit may be requested of you by the Vendor (Seller) or the real estate agent (if you were shown the property via a real estate agency). This deposit – usually 10% of the agreed purchase price – is to be held in an interest bearing account or else otherwise agreed. These funds are applied toward any closing costs (see last week’s broadcast for definition). Once the deposit has been received and the contract has been signed by all parties, you now enter what is termed “under contract”, “sale pending”, and/or “closing period”. During this period, your lawyer will prepare all necessary documents and conduct any necessary searches concerning this property. There is basically nothing for you to do but sit tight. This period takes a minimum of approx. 30 days. At the end of this period, your lawyer will contact you and arrange for you to meet him/her to sign the deed(s) (see last week’s broadcast for definition). Once all parties have signed and all funds have been transferred to their necessary accounts, you officially become the new owner! Congratulations!

Today is the last Monday in February – Education Month. The blogs featuring each Monday Broadcast will remain on the website until the end of this week. So here’s your opportunity to ask your questions and have them answered!
Stay tuned for more Platinum Realty features to assist first-time homebuyers and first-time home sellers
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Got other questions or terms you need help understanding??? Post them on the My Blog page of our website – www.platinumrealty.bm - and we'll post the answer to your question

Click on the ‘Buying Real Estate’ button on our website – www.platinumrealty.bm – for more information on steps to buying a piece of the rock!

Education Month - February 19

Platinum Realty — Fri, 23 Feb 2007 11:50:00 GMT

Q: I just left my appointment with the Bank. I don't have a clue as to what my loan officer just told me! What do all of these terms mean?

A: When shopping for a mortgage (and a house!), you will come across some lingo that is not commonly used in everyday language - particularly for first-time homebuyers. Here is a list of some of the terms and their definitions that you may hear being used in your meeting with your loan officer:-

ARM (adjustable rate mortgage) - a mortgage with an interest rate that changes periodically

Appraisal - written report done by a professional who assesses and determines their opinion of the value of property based on other similar properties

Closing Costs - expenses that are paid (just once) when you purchase a property and/or get a mortgage. Examples may include stamp duty, legal fees, bank fees, etc.

Collateral - assets used to secure the repayment of a loan/mortgage; you risk losing these assets if you do not repay your loan/mortgage according to the terms of the Bank/lender

Credit Report/Check - a report of a person's history to repay bills/loans.

Deed - a legal document that transfers ownership/responsibility from one person to another person

Mortgage deed - a legal document that confirms the transfer of funds from the Bank to the borrower to purchase property. It also outlines the terms to repay these funds back to the Bank.
Title/Conveyance deed - a legal document that transfers ownership from one owner to another owner

Down Payment - the part of the purchase price of a property that the buyer pays in cash. Example, if you get 95% financing for a $1,000,000 house, the Bank is willing to loan to you $950,000 - you will have to pay a down payment of $50,000 in cash.

Interest Rate - the rate used to calculate the cost for you to borrow funds from the Bank.

Term - the length of time you have to pay back what you borrowed from the Bank plus pay back the interest you are charged for these funds.

Got other questions or terms you need help understanding??? Drop us an email and we'll post the answer to your question on the website

Education Month - February 12, 2007

Platinum Realty — Tue, 13 Feb 2007 13:39:00 GMT

Q: I’m excited! I’m starting to look at prospective properties this week. What should I be looking out for?

A: Congratulations on starting your new journey! BEFORE you even start up your bike/car to head out to view any properties, there are some things you should consider first:-

Make a list of your top 10 requirements for the new house you buy. If it’s 3 bedrooms, single storey, pool, new, fixer-upper, garage – put it on your list.
Take this same list and choose your top 3 must-haves. You will find during your home search that not all of the properties you view will have every single request on your list.
Keep an open-mind. The property you find may have just your top 3 priorities BUT have future development/potential for the other desires on your list.

Once you’ve equipped yourself with your list and your desire, then

Contact your real estate agent to conduct a detailed search based on your financial requirements and personal preferences.
Contact your loan officer, if you require financing, for a copy of your pre-approval letter. Having your financing in place beforehand will help much should you decide to place an offer to purchase the property you desire

Once you arrive at the property,

Take note of what you see and compare it to your list of requirements/expectations
Keep an open-mind. Look beyond overgrown hedges, ugly wall colour, bad taste décor. These are minor matters when looking at the structure of the property and how it best suits your needs.
Take notes so you may compare it with other potential properties that interest you when you sit with your real estate agent later on.
Schedule a 2^nd viewing so you may look at the property in more detail after your initial “I’ve got to have this house” excitement as subsided slightly.

Click on the ‘Buying Real Estate’ button on our website – www.platinumrealty.bm – for more information on steps to buying a piece of the rock!

Education Month - February 5, 2007

Platinum Realty — Tue, 13 Feb 2007 13:31:00 GMT

February is a month for Black History, Heart Health, among other important subjects. Education is one of them as well.

Every Monday, during the month of February, we will provide you with educational tips/FAQs to help you during your Home Buying/Selling process.

Let us know if you have any specific questions. We will gladly answer and possibly post it on our website and via our weekly e-blast for others.

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Q: Everyone I talk to says I should look into buying a house instead of spending all of my money on rent. It’s sparked some interest but I’m not sure where/how do I start. What should I do?

A: Buying real estate is an important step in a person’s life especially when you are considering buying a home with an average price of a $1,000,000. First, consider if this is the route that you want to take. Will this be your decision or the decision of someone else? Second, consider meeting with a professional – a real estate agent, a real estate investment advisor, etc – who may share a few moments of their time to discuss the aspects of real estate with you. Third, check out your financial position. Do you have the ability and commitment to purchase a property and stick with the monthly payments over a lengthy period of time? Here is where you should consider meeting with a mortgage officer at one of the local banks. They will be able to assess your current and potential future financial position and offer recommendations on how much house you can afford according to the various options they offer.

Click on the ‘Buying Real Estate’ button on our website – www.platinumrealty.bm – for more information on steps to buying a piece of the rock!