How-to Guides
Your step-by-step online resource
- Step A : Find your Dream Home.
- Step B : Choose your Attorney.
- Step C : Pick your Lender and determine the loan program.
- Step D : Find your Title Insurance Company.
- Step E : FSA will coordinate the closing with all parties.
Step A : Find your Dream Home.
Buying a home is the biggest long-term financial investment most of us ever make. It requires dealing with a variety of complex issues, both financial and non-financial including, but not limited to, whether or not to use a real estate broker (you should) price range, amount of down payment, type of mortgage, annual carrying charges, and related tax deductions, comparable prices for nearby properties, condition and any required renovation cost, engineering study, location, neighborhood, schools, transportation, recreational, cultural and social amenities and many other. Before you start searching for a home, you should do a pre-qualification test in order to allow you to focus in on a realistic price range. You should look at your household budget to determine how much you can spend on a mortgage each month. Conventional residential mortgages limit housing costs to income ratios 28% of the buyer’s gross monthly income, and total monthly debt payments cannot exceed 36% of gross monthly income rules.
Step B : Choose your Attorney.
When you find your dream home and you decide to buy it, you should engage an attorney who specializes in residential real estate transactions to review the contract of sale drawn by the seller’s attorney. The best way to choose an experienced attorney specialized in handling real estate transaction in your area to represent you is through recommendation of friend or associate who has had dealings with an attorney. The attorney will assist you in reviewing and negotiating specific terms in the Sales Contract; review all legal documents, such as the deed, title policy, mortgage, survey, closing statement, and Seller disclosure statement; attend the closing and make sure clear title is transferred; scrutinize charges to make sure that they are consistent with estimates; provide updates of any facts that affect the property interest and provide counsel throughout the process.
The Sales Contract will detail all the terms and conditions of the purchase and sale, including any contingencies that the transaction is subject to such as financing, engineer’s report, etc. A closing on the property will usually be between 60 and 90 days from the execution of the Sales Contract. If you are financing the property you should engage a mortgage broker to find a financial institution who will give you the best terms on a mortgage. The advantage of using a Mortgage Broker is that they have relationships with many financial institutions and can invariably get you a better deal on a mortgage then if you had shopped for one yourself. The Mortgage Brokers fee is paid by the lender, not the buyer or seller.
Step C : Pick your Lender and determine the loan program.
The first step in obtaining a home mortgage is to select your Lender either yourself or through a Mortgage Broker. You will then need to gather the required information which is included in a Uniform Residential Loan Application. To obtain a pre-approval commitment from a Lender, the following information must be submitted:
- Copy of Sales Contract and legal description.
- Personal data – full name of the applicant, address, and Social Security number of the Borrower.
- Personal Financial Statements includes:
- Amount and sources of income for the Borrower.
- Information on all assets you will be using to qualify for the loan, such as checking and savings accounts, stocks and bonds, retirement plans, real estate owned and miscellaneous assets.
- Information on all outstanding debts and other financial obligations.
- W-2’s or tax returns for the past 3 years.
- Employment verification.
- Income verification.
- Source or proof of down payment and closing costs.
- Credit report.
Step D : Select your Title Insurance Company.
The best way to select a reputable title insurance company is through the recommendation of your attorney or Lender who has had dealings with the title company since they are in a position to know which companies provide good service. You can select Title Insurance Company on line and order your own Title Insurance with FSA & Associates. Please click here (hyperlink to that certain page) to find out more about your total savings with FSA in Title Services and Closing & Settlement Services.
Step E : FSA will coordinate the closing with all parties.
FSA & Associates specializes in title clearance and settlement services featuring highly trained and experienced attorneys, paralegals and supporting staff. We have offices strategically located around New York City in Queens, Manhattan, and Brooklyn offering you the utmost in convenience. All our high tech offices are fully equipped to ensure closings are handled quickly and efficiently. Closings can be scheduled in our offices or outside offices as well. Additionally, closings after office hours and weekends are also available upon request.
FSA & Associates works closely with your Lender and Federal Standard Abstract to conduct and review all searches related to Title which includes Bankruptcy Search, Continuation Search, Municipal Search, Patriot Search, Highway Search and Tax Search. If there are any outstanding issues related to the searches such as building violations, judgments or other title defects that could stand in the way of the sale, our staff will coordinate and work closely with the Bank/Lender, Seller and Buyer to resolve any issues early in the process. FSA & Associates will prepare the settlement statement, known as the HUD-1, which outlines the closing costs. After all the documents are signed, dated, notarized and checked for accuracy, at the closing our post-closing staff will personally deliver all required documents to the County Clerk to complete the recording of the closing documents and then immediately send the recorded documents to the Bank/Lender.
