64. WHAT CAN I EXPECT TO HAPPEN ON CLOSING DAY?

You’ll present your paid homeowner’s insurance policy or a binder and receipt showing that the premium has been paid. The closing agent will then list the money you owe the seller (remainder of down payment, prepaid taxes, etc.) and then the money the seller owes you (unpaid taxes and prepaid rent, if applicable). The seller will provide proofs of any inspection, warranties, etc.

Once you’re sure you understand all the documentation, you’ll sign the mortgage, agreeing that if you don’t make payments the lender is entitled to sell your property and apply the sale price against the amount you owe plus expenses. You’ll also sign a mortgage note, promising to repay the loan. The seller will give you the title to the house in the form of a signed deed.

You’ll pay the lender’s agent all closing costs and, in turn,he or she will provide you with a settlement statement of all the items for which you have paid. The deed and mortgage will then be recorded in the state Registry of Deeds, and you will be a homeowner.

65. WHAT DO I GET AT CLOSING?

	Settlement Statement, HUD-1 Form (itemizes services provided and the fees charged; it is filled out by the closing agent and must be given to you at or before closing)
	Truth-in-Lending Statement
	Mortgage Note
	Mortgage or Deed of Trust
	Binding Sales Contract (prepared by the seller; your lawyer should review it)
	Keys to your new home

HOW CAN HUD and the FHA HELP ME BECOME a BROOKLYN HOMEOWNER

66. WHAT IS THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT?

Also known as HUD, the U.S. Department of Housing and Urban Development was established in 1965 to develop national policies and programs to address housing needs in the U.S. One of HUD’s primary missions is to create a suitable living environment for all Americans by developing and improving the country’s communities and enforcing fair housing laws

67. HOW DOES HUD HELP HOMEBUYERS AND HOMEOWNERS?

HUD helps people by administering a variety of programs that develop and support affordable housing. Specifically, HUD plays a large role in homeownership by making loans available for lower- and moderate-income families through its FHA mortgage insurance program and its HUD Homes program. HUD owns homes in many communities throughout the U.S. and offers them for sale at attractive prices and economical terms. HUD also seeks to protect consumers through education, Fair Housing Laws, and housing rehabilitation initiatives.

68. WHAT IS THE FHA?

Now an agency within HUD, the Federal Housing Administration was established in 1934 to advance opportunities for Americans to own homes. By providing private lenders with mortgage insurance, the FHA gives them the security they need to lend to first-time buyers who might not be able to qualify for conventional loans. The FHA has helped more than 26 million Americans buy a home.

69. HOW CAN THE FHA ASSIST ME IN BUYING A HOME?

The FHA works to make homeownership a possibility for more Americans. With the FHA, you don’t need perfect credit or a high-paying job to qualify for a loan. The FHA also makes loans more accessible by requiring smaller down payments than conventional loans. In fact, an FHA down payment could be as little as a few months rent. And your monthly payments may not be much more than rent.

70. HOW IS THE FHA FUNDED?

Lender claims paid by the FHA mortgage insurance program are drawn from the Mutual Mortgage Insurance fund. This fund is made up of premiums paid by FHA-insured loan borrowers. No tax dollars are used to fund the program.

71. WHO CAN QUALIFY FOR FHA LOANS

anyone who meets the credit requirements, can afford the mortgage payments and cash investment, and who plans to use the mortgaged property as a primary residence may apply for an FHA-insured loan.

If you would like to follow this series of questions and answers about buying your New Brooklyn Home Check it out here

If you’re looking for an experienced, energetic, resourceful  Brooklyn real estate agent or just have a few questions, give me Charles D’Alessandro your Brooklyn Realtor® with Fillmore Real Estate a call at (718) 253-9600 ext.206 or email me at [email protected]

37. WHAT ARE THE ADVANTAGES OF 15- AND 30-YEAR LOAN TERMS?

30-Year:

	In the first 23 years of the loan, more interest is paid off than principal, meaning larger tax deductions.
	As inflation and costs of living increase, mortgage payments become a smaller part of overall expenses.

15-year:

	Loan is usually made at a lower interest rate.
	Equity is built faster because early payments pay more principal.

38. CAN I PAY OFF MY LOAN AHEAD OF SCHEDULE?

Yes. By sending in extra money each month or making an extra payment at the end of the year, you can accelerate the process of paying off the loan. When you send extra money, be sure to indicate that the excess payment is to be applied to the principal. Most lenders allow loan prepayment, though you may have to pay a prepayment penalty to do so. Ask your lender for details.

39. ARE THERE SPECIAL MORTGAGES FOR FIRST-TIME BROOKLYN HOME BUYERS?

Yes. Lenders now offer several affordable mortgage options which can help Brooklyn  first-time home buyers overcome obstacles that made purchasing a home difficult in the past. Lenders may now be able to help borrowers who don’t have a lot of money saved for the down payment and closing costs, have no or a poor credit history, have quite a bit of long-term debt, or have experienced income irregularities.

40. HOW LARGE OF A DOWN PAYMENT DO I NEED?

There are mortgage options now available that only require a down payment of 5% or less of the purchase price. But the larger the down payment, the less you have to borrow, and the more equity you’ll have. Mortgages with less than a 20% down payment generally require a mortgage insurance policy to secure the loan. When considering the size of your down payment, consider that you’ll also need money for closing costs, moving expenses, and – possibly -repairs and decorating.

41. WHAT IS INCLUDED IN A MONTHLY MORTGAGE PAYMENT?

The monthly mortgage payment mainly pays off principal and interest. But most lenders also include local real estate taxes, homeowner’s insurance, and mortgage insurance (if applicable).

42. WHAT FACTORS AFFECT MORTGAGE PAYMENTS?

The amount of the down payment, the size of the mortgage loan, the interest rate, the length of the repayment term and payment schedule will all affect the size of your mortgage payment.

43. HOW DOES THE INTEREST RATE FACTOR IN SECURING A MORTGAGE LOAN?

A lower interest rate allows you to borrow more money than a high rate with the some monthly payment. Interest rates can fluctuate as you shop for a loan, so ask-lenders if they offer a rate “lock-in”which guarantees a specific interest rate for a certain period of time. Remember that a lender must disclose the Annual Percentage Rate (APR) of a loan to you. The APR shows the cost of a mortgage loan by expressing it in terms of a yearly interest rate. It is generally higher than the interest rate because it also includes the cost of points, mortgage insurance, and other fees included in the loan.

44. WHAT HAPPENS IF INTEREST RATES DECREASE AND I HAVE A FIXED RATE LOAN?

If interest rates drop significantly, you may want to investigate refinancing. Most experts agree that if you plan to be in your house for at least 18 months and you can get a rate 2% less than your current one, refinancing is smart. Refinancing may, however, involve paying many of the same fees paid at the original closing, plus origination and application fees.

45. WHAT ARE DISCOUNT POINTS?

Discount points allow you to lower your interest rate. They are essentially prepaid interest, With each point equaling 1% of the total loan amount. Generally, for each point paid on a 30-year mortgage, the interest rate is reduced by 1/8 (or.125) of a percentage point. When shopping for loans, ask lenders for an interest rate with 0 points and then see how much the rate decreases With each point paid. Discount points are smart if you plan to stay in a home for some time since they can lower the monthly loan payment. Points are tax deductible when you purchase a home and you may be able to negotiate for the seller to pay for some of them.

46. WHAT IS AN ESCROW ACCOUNT? DO I NEED ONE?

Established by your lender, an escrow account is a place to set aside a portion of your monthly mortgage payment to cover annual charges for homeowner’s insurance, mortgage insurance (if applicable), and property taxes. Escrow accounts are a good idea because they assure money will always be available for these payments. If you use an escrow account to pay property tax or homeowner’s insurance, make sure you are not penalized for late payments since it is the lender’s responsibility to make those payments.

FIRST STEPS

47. WHAT STEPS NEED TO BE TAKEN TO SECURE A LOAN?

The first step in securing a loan is to complete a loan application. To do so, you’ll need the following information.

	Pay stubs for the past 2-3 months
	W-2 forms for the past 2 years
	Information on long-term debts
	Recent bank statements
	tax returns for the past 2 years
	Proof of any other income
	Address and description of the property you wish to buy
	Sales contract

During the application process, the lender will order a report on your credit history and a professional appraisal of the property you want to purchase. The application process typically takes between 1-6 weeks.

48. HOW DO I CHOOSE THE RIGHT LENDER FOR ME?

Choose your lender carefully. Look for financial stability and a reputation for customer satisfaction. Be sure to choose a company that gives helpful advice and that makes you feel comfortable. A lender that has the authority to approve and process your loan locally is preferable, since it will be easier for you to monitor the status of your application and ask questions. Plus, it’s beneficial when the lender knows home values and conditions in the local area. Do research and ask family, friends, and your real estate agent for recommendations.

49. HOW ARE PRE-QUALIFYING AND PRE-APPROVAL DIFFERENT?

Pre-qualification is an informal way to see how much you maybe able to borrow. You can be ‘pre-qualified’ over the phone with no paperwork by telling a lender your income, your long-term debts, and how large a down payment you can afford. Without any obligation, this helps you arrive at a ballpark figure of the amount you may have available to spend on a house.

Pre-approval is a lender’s actual commitment to lend to you. It involves assembling the financial records mentioned in Question 47 (Without the property description and sales contract) and going through a preliminary approval process. Pre-approval gives you a definite idea of what you can afford and shows sellers that you are serious about buying.

50. HOW CAN I FIND OUT INFORMATION ABOUT MY CREDIT HISTORY?

There are three major credit reporting companies: Equifax, Experian, and Trans Union. Obtaining your credit report is as easy as calling and requesting one. Once you receive the report, it’s important to verify its accuracy. Double check the “high credit limit,”‘total loan,” and ‘past due” columns. It’s a good idea to get copies from all three companies to assure there are no mistakes since any of the three could be providing a report to your lender. Fees, ranging from $5-$20, are usually charged to issue credit reports but some states permit citizens to acquire a free one. Contact the reporting companies at the numbers listed for more information.

CREDIT REPORTING COMPANIES

Company Name	Phone Number
Experian	1-888-397-3742
Equifax	1-800-685-1111
Trans Union	1-800-916-8800

51. WHAT IF I FIND A MISTAKE IN MY CREDIT HISTORY?

Simple mistakes are easily corrected by writing to the reporting company, pointing out the error, and providing proof of the mistake. You can also request to have your own comments added to explain problems. For example, if you made a payment late due to illness, explain that for the record. Lenders are usually understanding about legitimate problems.

52. WHAT IS A CREDIT BUREAU SCORE AND HOW DO LENDERS USE THEM?

A credit bureau score is a number, based upon your credit history, that represents the possibility that you will be unable to repay a loan. Lenders use it to determine your ability to qualify for a mortgage loan. The better the score, the better your chances are of getting a loan. Ask your lender for details.

53. HOW CAN I IMPROVE MY SCORE?

There are no easy ways to improve your credit score, but you can work to keep it acceptable by maintaining a good credit history. This means paying your bills on time and not overextending yourself by buying more than you can afford.

FINDING the RIGHT LOAN for YOU

54. HOW DO I CHOOSE THE BEST LOAN – PROGRAM FOR ME?

Your personal situation will determine the best kind of loan for you. By asking yourself a few questions, you can help narrow your search among the many options available and discover which loan suits you best.

	Do you expect your finances to changeover the next few years?
	Are you planning to live in this home for a long period of time?
	Are you comfortable with the idea of a changing mortgage payment amount?
	Do you wish to be free of mortgage debt as your children approach college age or as you prepare for retirement?

Your lender can help you use your answers to questions such as these to decide which loan best fits your needs.

55. WHAT IS THE BEST WAY TO COMPARE LOAN TERMS BETWEEN LENDERS?

First, devise a checklist for the information from each lending institution. You should include the company’s name and basic information, the type of mortgage, minimum down payment required, interest rate and points, closing costs, loan processing time, and whether prepayment is allowed.

Speak with companies by phone or in person. Be sure to call every lender on the list the same day, as interest rates can fluctuate daily. In addition to doing your own research, your real estate agent may have access to a database of lender and mortgage options. Though your agent may primarily be affiliated with a particular lending institution, he or she may also be able to suggest a variety of different lender options to you.

If you would like to follow this series of questions and answers about buying your New Brooklyn Home Check it out here

If you’re looking for an experienced, energetic, resourceful  Brooklyn real estate agent or just have a few questions, give me Charles D’Alessandro your Brooklyn Realtor® with Fillmore Real Estate a call at (718) 253-9600 ext.206 or email me at [email protected]

The Internet has made researching real estate easy for anyone who knows how to surf online. Whether researching real estate to sell homes or to find for their next big investment, many property owners and home buyers think they’ll save a lot of money by doing all the work themselves.

However, statistics show that you’re more likely to sell your property quicker or find your Brooklyn dream house faster when you work with a professional Brooklyn real estate agent.  Working with an agent provides you with an expanded housing database, years of property-purchasing knowledge and valuable contacts for everything from Home inspections to home loans on your Brooklyn Home.

The trick is to find the right Brooklyn real estate agent to fit your needs.  Here are 5 tips to help you find your perfect fit:

1. Knowledgeable – You’ll want to find an agent who is experienced and doesn’t always agree with you. If they’re constantly telling you yes, then they may not be working in your best interest.
2. Hard working – Agents who’ve been in the real estate business for decades could be burned out and new recruits might not be as skilled. Look for an agent who has experience in your neighborhood, loves the work and has the energy to get the job done.
3. Responsive – Communication is key, so you want to find an agent who gives you constant updates.
4. Objective – When it comes to your home, making decisions can become extremely personal. You want an agent who will keep a level head and help you ensure you’re not making emotional or irrational decisions.
5. Innovative – A resourceful real estate agent who is always looking for new ways to market your Brooklyn property or looking in new places to find you a house will help you achieve your goals quicker.

Don’t endure the frustration of marching through the real estate maze alone. With the right agent by your side, you’ll experience less stress, get what you want faster and save money in the long run.

If you’re looking for an experienced, energetic, resourceful  Brooklyn real estate agent or just have a few questions, give me Charles D’Alessandro your Brooklyn Realtor® with Fillmore Real Estate a call at (718) 253-9600 ext.206 or email me at [email protected]

Despite all the stories you hear on the news, buying Brooklyn home foreclosures doesn’t have to be a negative experience.  Here are 3 tips to make the process smoother and more profitable for you:

Tip #1:  Allow plenty of time for the whole process.

Brooklyn foreclosures take longer to get to closing than traditional homes.  What takes so long?  As you probably know, there are a lot of foreclosures happening now.  That means there is a large backlog of foreclosures lenders have to process before they get to yours.

Another common problem that extends the buying time for foreclosures is title issues. Before closing, the new mortgage lender needs to prove that you have a clean title so they feel safe lending the money.  Each step of a foreclosure increases the amount of time before you can close.

If you can’t be patient, don’t drive yourself crazy by purchasing a foreclosure.  But if you can be patient, the wait can be well worth the savings.

Tip #2:  Flash your cash.

Because bad loans weaken the banks’ bottom line, they will usually accept a lower sales price with a cash offer over a higher sales price that requires financing.  So, the more cash you can flash, the better your chance of getting a great deal.

Pay close attention to the condition of Brooklyn New York foreclosures.

Foreclosures are offered “as-is.”  Do a walk-through of the property before making an offer to ensure it’s worth the price.  Include a final walk-through in the real estate contract to assure the home is in the same condition as it was when the offer was made.  By including an escape clause, if the current residents trash the place, you have the option to walk away.

If you’re in the market to buy a foreclosure, I can help.  Give me Charles The Realtor® of Fillmore Real Estate a call today at (718) 253-9600 ext.206 or email me at [email protected]

The ongoing debate as to whether selling your Brooklyn New York real estate is better as a FSBO or with the help of a REALTOR® just got some new ammunition.  The new survey supports past findings that using a REALTOR® is more beneficial to Brooklyn New York real estate sellers.

The survey, conducted by HomeGain.com, a leading online real estate resource that connects home buyers and sellers with real estate professionals, surveyed over 1,000 homeowners.   Here’s what HomeGain’s survey found:

• 83% of homeowners surveyed said they used a REALTOR® to sell their home and 17% said they tried to sell their home on their own.
• 59% of homeowners that used a REALTOR® to sell their homes were successful vs. 39% of FSBO’s, reflecting a 50% higher closing rate for those home sellers using a REALTOR®.
• 81% percent of homeowners that used a REALTOR® to try and sell their homes said they would use a REALTOR® again for their real estate needs.
• 88% of homeowners who sold their homes using a REALTOR® said they would use a REALTOR® again.
• 71% of FSBOs who managed to sell their Brooklyn homes on their own said they would try and sell their Brooklyn homes on their own again.
• 24% of FSBOs eventually enlisted the aid of a REALTOR® to help sell their homes.

If you’re ready to use the method most likely to get your Brooklyn New York real estate sold, give Charles D’Alessandro Your Brooklyn Realtor® with Fillmore Real Estate a call today at (718) 253-9600 ext 206 or email me at [email protected]

Do you know how closing costs actually work? Or, how you’d use CMAs (comparative market analysis) to evaluate Brooklyn New York real estate? And, can you decipher all of the abbreviations and acronyms, such as FDR, lo dues and MLS.

Purchasing a home is frustrating enough without having to go through the frustration of decoding all the complicated speak and legalese. If you brush up with a real estate dictionary before your home-buying search, you’ll gain valuable knowledge and save yourself a lot of time and headaches in the long run.

Basic lingo every Brooklyn New York real estate buyer or seller should know …

• ARM – This stands for Adjustable-Rate Mortgage, which is a type of mortgage where the interest rate periodically adjusts.
• Closing costs – These are miscellaneous expenses buyers and sellers pay upon closing; they usually include brokerage commission, escrow taxes, recording fees, etc.
• CMA – This stands for Comparable Market Analysis, which is a report of recently sold, comparable homes in the same market as the home you’re selling.
• ERV – Estimated Rental Value
• FDR – Formal Dining Room
• Fixture – Anything that is permanently attached to the home, such as door knobs, carpeting, light fixtures and landscaping
• FP – Fireplace
• HDW – Hard Wood Floors
• Lo dues – Dues paid to the homeowners association
• MLS – Multiple Listing Service, which is an organization that compiles multiple listings into one report and distributes it to all of their realty members.
• PSF – Per Square Foot
• Sale price – The actual price at which the property sells.

Don’t let the hectic housing market overwhelm you.  If you understand Brooklyn New York real estate lingo, you’ll be more knowledgeable and able to easily achieve your real estate goals.

If you have questions about any of these terms or want help achieving your real estate goals, call me Charles D’Alessandro of Fillmore Real Estate, your Brooklyn New York Realtor® at (718) 253-9600 ext 206 or email me at [email protected] for more information.

Charles D’Alessandro of Fillmore Real Estate

is happy to announce Brooklyn Real Estate sales one stop shopping. Search the Brooklyn Multiple listing . Search any of the 5 boroughs by visiting one web site just click  here. BrooklynRealEstatesales.com

Searching for the perfect Brooklyn Home or a Realtor® who gets homes sold?  Congratulations, you’ve just found one ! Charles D’Alessandro Your Brooklyn Realtor®. I’d be honored if you’d give me a chance to interview for the job of selling your Brooklyn New York home.  Please call me at (718)253-9600 ext.206 or email me at [email protected] to

The right lighting can make your home appear bigger and fresher. It makes a small room look bigger and a large room seem more intimate.  It can also add value to your Brooklyn New York home for sale.

Just like furniture, lighting can be used as home décor to make your home more beautiful and functional.  Done correctly, lighting can positively impact the way buyers view your Brooklyn New York home for sale – and for far less money than other decoration options.

For maximum impact, every room in your home should have three layers of light:

1.      Ambient Lighting: Ambient lighting provides overall illumination for the whole room.  Typical lighting fixtures for this layer include ceiling fixtures such as recessed lights, chandeliers and surface-mounted lights.

2.      Task Lighting: Task lighting focuses on a specific area of the room where activities like playing cards, reading or sewing require additional light.  It can be as simple as under-cabinet lighting in a kitchen or a reading lamp by a chair.

3.      Accent Lighting: Accent lighting creates drama in a room by highlighting architectural features, paintings, statues and other decorative items.  Accent lights should be small and specifically directed toward the decorative piece you want to accentuate.  One of the most popular forms of accent lighting is track lighting.

Thinking of putting your Brooklyn New York home up for sale?  Let me give you a free in-home consultation to determine if subtle changes in lighting, or other home improvements, can improve your sales price or time on market.  Call Charles D’Alessandro of Fillmore Real Estate today at (718) 253-9600 ext.206 or email at [email protected] to schedule your free consultation.

Ideally, to make a room light and bright you want a lot of large windows that let in natural light. Unfortunately, most of us don’t have large windows in every room of our Brooklyn homes.  So, what do we do to brighten those dark rooms?

Increase Natural Light

If a room has one large window, make the most of this natural light by placing a mirror opposite that window.  The mirror will scatter and reflect the ambient daylight throughout the room.

Add Artificial Light

Another great way to lighten window-challenged rooms in your Brooklyn home is to add artificial ambient lighting.  Ambient lighting, whether natural or artificial, sets the tone and mood of each room. Here are several ways to add artificial ambient light to your rooms:

• Recessed fixtures: Recessed fixtures throw light downward in a cone shape, so place them in an evenly spaced grid pattern. This allows pools of light to overlap and provide consistent lighting.

• Chandeliers: A chandelier can overpower a room if it’s too big or seem out of proportion if it’s too small.  To calculate the best size chandelier for your room, measure the width of the room in feet.  Double that number to get the diameter of the ideal chandelier in inches.  For example, a room that’s 10 feet wide should have a chandelier no wider than 20 inches in diameter.

• Surface-mounted fixtures: Unlike recessed fixtures, surface-mounted fixtures do not disappear into the ceiling or wall.  If you want to achieve a unified look, match the color of the surface-mounted light with the color of the ceiling or wall. Surface-mounted lights come in a wide range of styles.  They can be very functional fluorescent types with white diffusing plastic covers or decorative crystal designs that add sparkle and drama to the foyers and hallways.

The best ambient lighting is subtle lighting that comes from all directions and softens the look of your room, making it more livable.

Looking for a Brooklyn home with a lot of windows or well-place ambient lighting?  I can help.  Call Charles D’Alessandro of Fillmore Real Estate today at (718) 253-9600 ext.206 or email at [email protected]