Lily Tran, REALTOR

There are a few steps you can take to protect your earnest money: 1. Use An Escrow Account 2. Know Your Contingencies 3. Stay On Track With Your Responsibilities 4. Put It All In Writing

Earnest money has contingencies that protect both the seller and buyer in certain situations. When you make an offer on a home and the seller accepts, the sale is only finalized when contingencies, or certain criteria, are met. They're typically listed in the purchase agreement and cover the inspection, appraisal and mortgage approval, among other items.

The amount of earnest money you should offer depends on the particular real estate market your desired property is in. A languishing real estate listing in a slow market may not need as much earnest money as in a hot market with multiple buyers who are vying for the same property. If you plan to purchase in a neighborhood where cash offers and bidding wars are common, a higher good faith deposit is a good idea. If you're working with a real estate agent, they should be able to provide direction on how much earnest money you should offer. If you're competing with others for the same property, it's in your best interest not to undercut the earnest money deposit amount because you could lose the home to a stronger offer. If it's a slow or moderate market, your agent can advise you if a good faith deposit in the standard range will suffice.

Earnest money isn't always a requirement, but it could be a necessity if you're shopping in a competitive real estate market. Sellers tend to favor these good faith deposits because they want to ensure that the sale won't fall through. Earnest money can act as added insurance for both parties in the transaction. Earnest money could also lower the amount you need at closing because it's applied directly to your down payment or closing costs. Essentially, you're just putting up some of the money earlier in the process.

Earnest money is put down before closing on a house to show you're serious about purchasing. It's also known as a good faith deposit. Earnest money protects the seller if the buyer backs out. It's typically around 1 – 3% of the sale price and is held in an escrow account until the deal is complete. The exact amount depends on what's customary in your market. If all goes smoothly, the earnest money is applied to the buyer's down payment or closing costs.

The date when both parties, seller and buyer, have agreed to and completed signing and/or initialing the contract.

Whether you are in the market to buy or sell, it is important to have a good understanding of the service options and insights available to you as you prepare for your next move. An appraisal reviews a home’s worth and is conducted by a licensed professional, such as a real estate appraiser. Comparative market analysis, or CMA for short, is done by a real estate agent who may or may not be professionally trained for performing a valuation.

A buydown allows homebuyers to obtain a lower interest rate when taking out a mortgage loan. A buydown can involve purchasing discount points against the loan, which may require payment of an up-front fee. Buydowns can save homeowners money on interest over the life of the loan. Whether it makes sense to choose a buydown when buying a home can depend on the interest rate for which you qualify and how long you plan to remain in the home.

The value in your home above the total amount of liens against your home.

A measure of whether someone earns enough to qualify for a loan on a typical home based on the most recent price, income, and mortgage rate data.

A provision in a contract requiring an inspection to be completed.

A letter from a lender that shows what they're willing to lend you for your home loan.

The interest rate you pay to borrow money when buying a home.

Down payments are typically 3.5% to 20% of the purchase price of a home.

The number ranging from 300-850 that's based on an analysis of your credit history.

The fees required to complete the real estate transaction.

A report highlighting the estimated value of the property completed by a qualified third party.

The legal claim of a creditor on a borrower's property, to be used as security for a debt.

Mortgage preapprovals can result in a temporary dip in your credit score. A mortgage preapproval counts as what is known as a hard inquiry.

Pre-qualifying is just the first step. It gives you an idea of how large a loan you'll likely qualify for. Pre-approval is the second step, a conditional commitment to actually grant you the mortgage.

The ratio of the mortgage loan principal (amount borrowed) to the property's appraised value (selling price). Example - on a $100,000 home, with a mortgage loan principal of $80,000 the loan to value ratio is 80%.

If the seller fails to disclose or actively conceals problems they’re aware of that effect the property’s value, the buyer can sue. The seller can be subject to lawsuits for recovery of damages based on fraud, deceit, misrepresentation, and breach of contract. If the law doesn’t require you to disclose something, it’s best practice to find out if it may impact the buyer.

There are several circumstances in which a buyer may not receive a seller’s disclosure – this is known as a “no seller’s disclosure sale.” This means the seller is selling the property without disclosing any defects or issues that the buyer might need to know to make an informed decision.

Each state has different requirements for seller disclosures – it’s best to check with your state’s guidelines. They can vary on a county basis, so make sure to check there as well.

The seller’s disclosure can significantly impact the home selling process if a property has substantial issues. Buyers will need to decide if they’re comfortable with any significant issues disclosed and get a professional inspection to assess what it takes to handle the problem. As a buyer, it’s important to carefully review the seller’s disclosure packets with a real estate agent and during the home inspection.

Typically, a seller’s disclosure is provided a few days after mutual acceptance during the closing stages of the transaction. However, some sellers may choose to disclose as early as home tours. The listing agent must be transparent with buyers about any known issues with the property, so some will do this upfront to make the process quicker. Usually, your state will have a standard form the seller fills out, while some states allow sellers to disclose more casually. Before the seller’s disclosure is signed, the buyer can still back out of the deal. However, once it’s signed, the buyer only has a few days to back out of the agreement without consequences.

A seller’s disclosure is a legal document protecting both the seller and the buyer. It protects the buyer by informing them of any issues or defects the home and surrounding property may have. It also safeguards the seller from being sued by the buyer after the transaction if the seller’s disclosure was completed correctly.

A property marketed in "as is" condition usually indicates that the seller is unwilling to perform most if not all repairs.

Refinancing can save you money in a number of ways. You can: Lower your monthly mortgage payments, shorten your mortgage’s term, and/or protect yourself from volatile interest rates. Take advantage of falling interest rates. Follow me for all things real estate.

Debt consolidation refers to the act of taking out a new loan to pay off other liabilities and consumer debts.

Title Insurance protects your home from any past defects or issues with a title after ownership was transferred to you. Common title issues to be mindful of include public records errors, unknown liens, forgery, disputes over land boundaries, and unknown easements.

Having a place to go is important, but it shouldn't keep you from forging ahead and making a move that's right for you. Here's the things: Selling your home isn't about the details of selling. It's about you keeping the big picture in mind long after you've left the closing table. And that is you in an amazing new home that fits your needs, wants, and lifestyle for the next chapter of your life. And while you may need a plan for temporary housing (think friends with a spare room, family with a basement, a house-sitting gig, or a leaseback with your buyers), the real estate stars may align, as they often do, allowing you to sell and buy withinhe days of one another. Plus, there a a few things we can do to simplify the process of buying and selling simultaneously.

Any loan where the borrower pays a portion of the interest due each month during the first few years of the loan. The payment increases gradually during the first few years to the amount necessary to fully amortize the loan during its life.

- Neighborhood, price, days on market, condition, and floorplans.

Foreclosure can refer to two things. First, a five-stage legal process begins when a borrower misses a loan repayment and ends with the property being sold if it gets that far. Secondly, “a foreclosure” is often used to refer to a property going through this legal process.

- Pay the difference - Renegotiate the offer - Dispute the appraisal - Walk away from the sale

The difference between the fair market value determined by the appraiser and the amount you agreed to pay for the home.

An evaluation report performed by a licensed appraiser to determine a home's fair market value.

A professional home inspection is where a qualified home inspector looks for any defects & potential problems. Just as an appraisal is designed to protect mortgage lenders, an inspection is for the home buyer's benefits. There are four key points that should be on every inspection in Florida: Radon testing, mold, foundation, and termite.

Expenses beyond the price of the home that must be paid to finalize the transaction.

A fund held by a neutral third party until the purchase transaction has been finalized.

A contingency in an offer means there's something the buyer has to do for the process to move forward, such as getting approved for a loan or selling a property they own.

Funds sent from a buyer to a seller with an offer letter to express readiness and seriousness to purchase a home. The money is typically held in escrow.

A professional real estate agent who guides a buyer through the process of purchasing a home.

These types of home loans help make homeownership possible for borrowers who don't have a large down payment saved up or don't have pristine credit.

After the buyer and seller agree and sign upon the terms of the PSA and the earnest money is deposited, the buyer and third-party companies will begin the home inspections, title searches, loan agreements, and anything else outlined in the agreement that needs to be checked. It can take several weeks for the finalization of the purchase and sale agreement if problems arise during an inspection which can lead to negotiations and counters. Once the PSA is signed the buyer has finished the inspections, and other requests are outlined, the buyer will sign the purchase agreement at closing and receive the keys to their new home.

The specific items in this contract vary by state, but will almost always include the following: 1. Final sale price. 2. Earnest money details. 3. Closing date. 4. Title insurance company. 5. Title condition. 6. Contingencies. 7. Inspection contingency. 8. Financing contingency. 9. Title contingency. 10. Appraisal contingency. 11. Home sale contingency. 12. Addendum.

Depending on the state where your dream home resides, either the buyer’s agent or the real estate attorney will draft up the contract. In states where escrow agents handle the closing process, the buyer’s agent is responsible for preparing the PSA document. In areas where attorneys handle the closing, the attorneys will prepare the document. The buyer, seller, and their respective agents will sign the document.

A purchase and sale agreement, PSA or P&S for short, is the document received after mutual acceptance of an offer. It states the final sale price and all terms of the purchase in a real estate transaction. PSAs can vary by state but they typically consist of the final sale price, earnest money details, closing date, title information, and contingencies agreed upon by the buyer and seller. Additionally, other details will be outlined in the agreement regarding timelines and anything else the buyer/seller requests.

Title Fraud happens when the title to a property is stolen. The thief then sells the property or applies for a new mortgage against it.

Amortization is the process of combining interest and principal in payments rather than only paying off interest at the start, allowing you to build more equity in your home early on.

A VA loan is a mortgage offered through the U.S Department of Veterans Affairs. VA loans are available to active and veteran service personnel and their surviving spouses, and are backed by the federal government. VA loans frequently offer benefits not offered through other programs.

A buyer's market occurs when supply (available homes for sale) exceeds demand. The housing market is in the favor of the buyer. Sellers compete to attract buyers and are often willing to negotiate more with buyers. Homes tend to sell for less and sit on the market for a longer period of time.

Before buying a home, you need to wrestle with these two things: your budget and your non-negotiables.⁣ Your budget: Sit down with a reputable bank or mortgage lender to get pre-approved. Plus, a pre-approval letter will strengthen your offers.⁣ Your non-negotiables: These are your “must-haves” in a new home. Need to stay in the same school district? Need a fenced yard for the dog or a guest room for grandma? Keep this list short, but clear. You may need to reference it when the emotions of buying ramp up.⁣

Keep your monthly payment to no more than 25% of your take-home pay. Once you know what affordability looks like, share your boundaries with your real estate agent and develop a plan. If you are ready to buy, contact me today!

YES! The pulled credit report from the loan officer may expire before you go under contract. During underwriting, a new report may be needed and if your credit score decreases, you could lose your financing.

Proof that you own a home. It includes a physical description of your property, the names of anyone who owns the property and any liens on the home.

Yes! There are many reasons why you should get pre-approved before looking at homes. A pre-approval can help guide you in determining how much you can afford, what costs are associated with buying a home, and the process/timeline for purchasing.

PMI MIP is an insurance policy used in FHA loans. It can be paid monthly, on your mortgage rate, or upfront during closing.

PMI is mainly for conventional loans and can be paid monthly with your mortgage payment. You can have it built into your mortgage rate upfront during closing.

How much you actually get when selling your home depends on a lot of factors, but in general, expect somewhere between 90–92% of the sale price.

Early spring and summer, especially June, is a great time to sell a home. Research shows that home sales in May, June, July, and August account for 40% of total annual sales volume.

Your agent will find similar homes in your neighborhood and see what these homes recently sold for or are listed for. They use this as a starting point for your own list price.

On average, a house takes between 55 and 70 days to sell. That includes 25 days on the market and 30 to 45 days for closing.

When preparing to sell your home, the first thing to do is make it presentable. This means giving the entire house a thorough cleaning and making small repairs. If you’re not moving out before listing your home, you’ll also need to depersonalize and declutter.

If you're thinking that waiting a year or two to purchase a home might mean you'll save some money, think again. Based on projections, you might pay more for a median-priced home if you wait to buy.

The answer to this mortgage question mostly comes down to your finances and personal preferences. You may like the predictable payments of fixed-rate loans, or you may prefer to take a gamble and see if your payment amounts decrease after a specific period of time with an adjustable-rate mortgage. If you know you'll be in your home for several years, a fixed-rate loan may be the way to go.

The debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes to paying your monthly debt payments and is used by lenders to determine your borrowing risk.

An earnest money deposit (EMD), sometimes referred to a "a good faith deposit", is the initial funds that a buyer is asked to put down once a seller accpeted the buyer's offer. It shows not only that the buyer is serious about buying, but that they are also willing to put their money where their mouth is.

Once you receive an accepted offer, the due-diligence period starts a series of timelines for final mortgage approval, appraisal, inspections and other requirements which would be stated in the terms of the contract.

While today’s water heaters are better designed than older models, they still require regular maintenance in order to prolong their lives. With regular inspection, draining, and flushing, you can expect a gas water heater to last anywhere from 8-12 years and an electric water heater to last anywhere from 10-15 years.

Modern air conditioners can last between 15-20 years, and older air conditioners last around 10-12 years. The health and efficiency of your A/C depend on a number of factors, including whether or not you properly maintained the unit throughout its lifetime.

Slate, copper, and tile roofs can last more than 50 years. Homeowners with wood shake roofs should expect them to last about 30 years, while fiber cement shingles last about 25 years and asphalt shingle/composition roofs last about 20 years, the NAHB found. Climate and weather conditions, such as snow, hail, and hurricanes, can cut the life span of all types of roofs.

A final walkthrough is an opportunity for homebuyers to inspect the house before the official closing. The final walkthrough allows the buyer and their real estate agent to go through the house room by room. They can verify that the seller hasn’t taken anything from the home they weren’t supposed to. The final walkthrough also allows the buyer to see that the seller has made any repairs they promised to make.

Prepaids are upfront cash payments made before your down payment to obtain a mortgage. Prepaid costs are paid at closing and placed into an escrow account to cover mortgage expenses that are typically included in monthly homeownership-related fees.

A 4-point inspection is an examination of the current condition of a house or condominium, reviewing four major systems: roofing, electrical, plumbing and HVAC. This specific inspection is requested by homeowners insurance companies before someone can renew or be eligible for their desired coverage plan.

A wind mitigation inspection (also called a windstorm mitigation inspection) is when a certified inspector checks your home's wind-resistant features. Though a wind mitigation inspection is not required to get Florida homeowners insurance, it can result in substantial savings. A wind mitigation report informs the insurance company of a home's construction in order to determine its stability in the event of strong winds.

WDO (Wood Destroying Organisms) or Termite Inspection- as it's commonly called- is an extensive visual inspection that checks for the presence or evidence of past, on-going, or possible conducive conditions future termite infestations. The WDO inspector visually checks for decayed wood from wood-decaying fungus, signs of subterranean termite activity, Drywood Termite damage, or evidence from wood-destroying beetles. The visual inspection consists of a home's exterior, the interior, attic locations, and crawlspaces of applicable homes.

The septic tank is a buried, water-tight container usually made of concrete, fiberglass, or polyethylene. Its job is to hold the wastewater long enough to allow solids to settle down to the bottom forming sludge, while the oil and grease float to the top as scum. It is located either at the front or back of the home. The average household septic system should be inspected at least every three years by a septic service professional. Household septic tanks are typically pumped every two to five years.

Property tax is the annual amount paid by a land owner to the local government or the municipal corporation of the area. The property includes all tangible real estate property, house, office buildings.

The value in your home above the total amount of liens against your home. With today's price appreciation, many homeowners are realizing they have more equity than they thought and they're using it to move.

A measure of whether someone earns enough to qualify for a loan on a typical home based on the most recent price, income, and mortgage rate data. As prices and mortgage rates continue to rise, that will impact how much home you can afford.

A provision in a contract requiring an inspection to be completed. While it can be tempting to waive in a competitive market, the home inspection is essential. It gives you information on the home's condition and potential repairs.

A letter from a lender that shows what they're willing to lend you for your home loan. This is a critical step in today's competitive market.

The interest rate you pay to borrow money when buying a home. The lower the rate, the better.

Down payments are typically 3.5-20% of the purchase price of the home. Some 0% down programs are also available. Ask your lender for more information.

A number ranging from 300-850 that's based on an analysis of your credit history. This helps lenders determine the likelihood you'll repay future debts.

The fees required to complete the real estate transaction. Paid at closing. Ask your lender for a complete list of closing cost items, including points, taxes, title insurance, and more.

A report highlighting the estimated value of the property completed by a qualified third party. Lenders rely on appraisals to validate a home's value and ensure they're not lending more than the home is worth.

A process a lender follows to assess a home loan applicant's income, assets, and credit, and the risk involved in offering the applicant a mortgage.

On average, selling your home will cost you around 10% of your home’s sale price. In addition to any market-ready expenses, here are 3 C’s to keep in mind if you're thinking about selling: ⁣Concessions (1-2%), Commissions (5-6%), and Capital Gains (varies).

A clear title is a title without any type of lien or levy from creditors or others parties that would pose a question as to legal ownership. For example, an owner of a home with a clear title is the sole undisputed owner, and no other party can make any kind of legal claim to its ownership.

Equity is the difference between what you owe on your mortgage and what your home is currently worth. If you owe $150,000 on your mortgage loan and your home is worth $200,000, you have $50,000 of equity in your home.

The buyer’s and seller’s agents have similar goals: to get their clients the best deal and to close the home sale. But their responsibilities through the process are different. The most basic difference between the buyer’s and seller’s agents is that they represent opposite interests. The buyer’s agent is responsible for making sure the buyer gets the best deal possible and the seller’s agent does the same for the seller.

An escrow is a legal arrangement in which a third party temporarily holds a sum of money or property until a particular condition has been met.

1. The price of your future home is also increasing. 2. Interest rates are still at historic lows. 3. You have equity to leverage now & demand is strong.

A home equity line of credit, or HELOC, is a loan in which the lender agrees to lend a maximum amount within an agreed period (called a term), where the collateral is the borrower’s equity in their house.

Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment. Ask any real estate expert what the #1 upgrade with the greatest return is and the answer will be the kitchen. The average recoup? 98.5%!

A mortgage broker brings borrowers and mortgage lenders together by acting as an intermediary between the two. Brokers can help if you want to shop around without the hassle of contacting multiple lenders on your own.

1. Earnest Money 2. Home Inspection 3. Appraisal 4. Survey 5. Contract Quotes

In most cases, you can roll your closing costs into your new mortgage balance. This is also known as financing your closing costs.

It's true you can sell your home without an agent. But the better questions is - should you sell your home without an agent?

1. Is this my forever home or is it good enough for right now? 2. What will my income look like later? 3. Will I entertain a lot or have many guests? 4. How much space do I want from my family members? 5. Does the home feel spacious, regardless of square footage?

According to 83% of buyer's agents, staging a home makes it easier for a buyer to visualize the property as a future home - this leads to quicker sales.

The average MLS listing has over 200 fields of information about a property and is more accurate/up-to-date than other sites.

A Title is a bundle of rights that encompasses all of the rights on a piece of property held by the homeowner. A home's title tells us who legally owns it and who has a claim to the property.

If an appraisal comes back low, a buyer can go back to the seller and negotiate a lower sale price. If the seller refuses, the buyer could end up walking away from the home completely. Hire an agent who can help you through the process if this happens!

When it’s time to list, your agent will make sure your home is priced just right, helping to maximize your offers and sell faster. An agent will also take care of all the paperwork, market your home, and coordinate open houses. Ready to sell? Contact me today!

How much you actually get when selling your home depends on a lot of factors, but in general, expect somewhere between 90–92% of the sale price.

Setting the right asking price is key to maximizing your offer price and selling quickly. If you’re wondering how your list price is determined, contact me today for a free valuation.

Marketing is key. It’s what can drive higher demand. Higher demand means more potential homebuyers. Contact me to discuss a marketing strategy for your home and let’s get your house sold!

The primary purpose of a final walkthrough is to make certain that the property is in the condition in which you agreed to buy it, including whether agreed-on repairs, if any, were made, and that nothing has gone wrong with the home since you last looked at it.

Staging a home can increase a home's selling price and the likelihood that it will sell quickly as it helps prospective buyers better imagine how they can use the livable space. Ready to sell? Contact me today!

Having a clear understanding of how much you get approved for will keep you from wasting time on homes listed at prices the bank won't approve. Going into the market understanding your buying power keeps you from losing out on the home of your dreams to other buyers who are more prepared.

With the home buying process being as complex as it is, working alone without an agent means dealing with paperwork and negotiations without the help of a trained and experienced professional. Agents bring experience to ensure a smooth transaction and local real estate knowledge to help you find a home that meets your needs.

Ordering a home inspection is highly recommended, even if it is a new build. A quality home inspector will be able to identify serious issues with the home that you may not otherwise have been able to access or see. A home inspection can virtually save you thousands of dollars in repairs if there are significant issues with the home.

There are two options: 1. Buyer to pay a bunch of extra or 2. File an appraisal disupte