The price of the house is just part of the money that changes hands when a house is sold.
Closing costs usually total 3% - 5% of the purchase price, and are in addition to your down payment.
Eye on Real Estate
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From the hot properties to the latest real, estate market trends, from mortgage news to the answers to all your real estate questions you'll be in the know, with help from our experts!
Dottie Herman
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Dorothy Herman, Dottie, is the quintessential New York success story. In only two decades, she climbed to the pinnacle of the housing industry – CEO of Douglas Elliman, the #4 ranked real estate company in the United States.
Today, under her leadership, Douglas Elliman is New York’s largest residential brokerage, with over 3,800 real estate professionals and 675 employees working in more than 60 offices in Manhattan, Brooklyn, Queens, Long Island, the Hamptons and the North Fork, Westchester and Riverdale.
Dottie created a company that serves the customer’s every real estate need. In addition to leading New York’s largest residential real estate brokerage and rentals, she also controls a portfolio of real estate services, including commercial and retail leasing and sales, relocation and settling in services, new development consulting and also Manhattan’s largest residential property manager, Douglas Elliman Property Management, as well as PDE Title, and DE Capital Mortgage.
Jonathan Miller
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President and CEO of Miller Samuel, a leading real estate appraisal and consulting firm he co-founded in 1986. His firm provides appraisal services on roughly $5 billion worth of property per year in Manhattan, Brooklyn, Queens, Long Island, The Hamptons/North Fork, Northern New Jersey, Westchester County, NY and Fairfield County, CT. He is the co-founder of Miller Cicero, LLC, a commercial real estate advisory service covering the New York City metropolitan area. Jonathan is a state certified real estate appraiser in New York and Connecticut and he performs court testimony as an expert witness in local, state and federal courts. Jonathan authors of a series of market reports considered the "report of record" covering the New York metropolitan area that are relied on by the media, financial institutions as well as government agencies including the Federal Reserve, Internal Revenue Service, US Department of Housing and Urban Development and the NYC Office of Management and Budget and others. He also serves on the New York City Mayor's Economic Advisory Panel representing the residential real estate sector and has participated in studies on valuation issues with academic institutions including New York University, Princeton University, Columbia University and Baruch College. A well-regarded real estate prognosticator, Jonathan comments regularly on US and regional housing issues in the media including The New York Times, The Wall Street Journal, Bloomberg, AP, Reuters, CNBC, CNN, ABC, Fox and others.
Jonathan was named the "Best Online Real Estate Expert" by Money Magazine and was recognized by Inman News as one of the top 25 most influential real estate bloggers in the US. His blog Matrix was voted one of the top five US real estate blogs. On his podcast The Housing Helix with Jonathan Miller he interviews a wide variety of housing experts.
Visit Jonathan's online resources:
Website at www.millersamuel.com
Blog at http://matrix.millersamuel.com
Podcast at www.thehousinghelix.com
Jerry M. Feeney
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Jerry M. Feeney, is a New York City attorney whose practice is focused on representing buyers and sellers of cooperative apartments, condominiums, and townhouses. He has offices in Manhattan, Brooklyn and Staten Island. Mr. Feeney graduated cum laude from Fordham University School of Law in 1995, where he was inducted into the Order of the Coif for his high academic achievements in the study of law. After graduating, he worked in the Division of Enforcement in the U.S. Securities and Exchange Commission, prosecuting violators of the federal securities laws, and thereafter was an associate with the firm of Simpson Thacher & Bartlett, practicing in the field of complex commercial and securities litigation. Subsequent to that, Mr. Feeney practiced commercial litigation and real estate law with the firm of Ingram Yuzek Carroll & Bertolotti, LLP, before leaving to start his own practice in 2003. Mr. Feeney has been quoted in such prominent publications as The New York Times, Details, New York Magazine, and The New York Law Journal.
Visit Jerry's website at www.jerryfeeney.com
Jan William Sheck
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Jan William Scheck has originated over two billion dollars in residential mortgages since 1984. His focus on personal attention, detail and integrity has helped him grow and maintain valuable relationships throughout the New York and tri-state residential real estate community. Jan earned a bachelor of science in finance and tax from The University of Florida in 1982. In 1983 he joined Chemical Bank’s management development program and completed their commercial credit training in 1984. He spent 20 years between 2 prestigious national mortgage lenders here in New York focused on mortgage lending to high net worth borrowers. From 2005 to present Jan took on management responsibility for 2 national mortgage lenders expanding their New York presence. Today, Jan manages DE Capital mortgage in New York. DE capital is a joint venture between the largest US mortgage lender, Wells Fargo and the tri-states largest real estate broker Prudential Douglas Elliman. In addition, Jan in the on-air mortgage expert on WOR Radio “Eye On Real Estate” radio show with host Dottie Herman. Visit Jan's website at www.decapitalmortgage.com
ON DEMAND
Monday, November 12, 2012
Who Pays For What When You Buy A House
Monday, November 12, 2012
The Four C's Of Mortgage Underwriting
Capacity
That's the borrowers income versus the debt they will occur.
Lenders add together all the principal, interest, real estate taxes and homeowners insurance, and then they divide it by your monthly income.
28% or less would be an acceptable ratio, although there are always exceptions.
Lenders use another formula to figure out your debt. They take all your monthly payments that show up on your credit report, and that should be no more than 40% of your income.
So, lenders want you to be less than 68% in debt if they loan you the money.
Credit
This is how lenders figure out if the borrower is a good payer. This helps the lender figure out what the chances are that you'll repay the money. This is dependent on your credit score. The higher the score the better the chance, and the lower your monthly payment.
Cash
Lenders look at your liquid assets. If two borrowers have the same capacity and credit scores, but one of them is going to be left with $10 in the bank after closing, and another is going to be left with $75,000, who do you think the lender is going to give the loan to?
Collateral
This depends on the appraisal and how much the property the borrower wants to buy is worth. In case the property is foreclosed, is it worth substantially more than the amount the borrow is paying for it?
Appraisals that come in lower than the agreed-upon sales price are a source of frustration for home buyers, sellers, and real estate professionals, as they can quickly derail a deal.
If an appraisal comes in 10 percent lower than the agreed-upon sales price, for example, a bank will likely only agree to finance the lower value, which means either a buyer must make up the difference, a seller must come down on price, or the deal falls apart.
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