Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com Rochester Real Estate | LOCAL Homes For Sale | Homes for sale in Rochester, NY, LOCAL Rochester real estate listings, market data, REALTOR® info, and high quality content updated every 15 minutes! Wed, 25 Jun 2025 11:50:30 +0000 hourly 1 https://wordpress.org/?v=6.7.2 https://www.rochesterrealestateblog.com/wp-content/uploads/2016/11/cropped-SITE-LOGO-512-x-512-1-32x32.png “Hidden” Costs & Fees of Buying a Home – Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com 32 32 June Home Maintenance Checklist: 40+ Must-Do Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/june-home-maintenance-checklist-summer-prep/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20501 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> May Home Maintenance Checklist: 30 Essential Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/may-home-maintenance-checklist/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20484 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> April Home Maintenance Checklist: How To Prepare Your Rochester NY Home For Spring https://www.rochesterrealestateblog.com/april-home-maintenance-checklist/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20364 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> March Home Maintenance Checklist: Get Your New York Home Ready for Spring https://www.rochesterrealestateblog.com/march-home-maintenance-checklist/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20338 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Buy a House in New York https://www.rochesterrealestateblog.com/buy-a-house-in-new-york/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19906 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Sell a House in New York https://www.rochesterrealestateblog.com/sell-a-house-in-new-york/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19905 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Risks of Buying a Non-Warrantable Condo In New York: What You Need to Know https://www.rochesterrealestateblog.com/non-warrantable-condo/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19796 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Builders Should Know About Spec Construction Loans In New York https://www.rochesterrealestateblog.com/builders-spec-construction-loans/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19795 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Moving To The Finger Lakes Region Of New York | Guide To Relocating To The Finger Lakes https://www.rochesterrealestateblog.com/moving-to-the-finger-lakes-region/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19875 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Navigating the Numbers: The Pros and Cons of Using Online Home Value Estimators For New York Real Estate https://www.rochesterrealestateblog.com/pros-cons-online-home-value-estimators/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19794 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Role of Location in Home Valuation In New York https://www.rochesterrealestateblog.com/role-of-location-home-valuation/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19768 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Lowe’s vs U-Haul: A Review of Truck Rental Companies https://www.rochesterrealestateblog.com/lowes-vs-uhaul/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19758 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Understanding the Importance of a Seller’s Property Condition Disclosure https://www.rochesterrealestateblog.com/property-condition-disclosure-statement/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19632 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What are Delayed Showings and Negotiations in Real Estate In New York? https://www.rochesterrealestateblog.com/delayed-showings-negotiations/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19547 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 8 Viable Tactics to Selling Your Home and Moving Out of State https://www.rochesterrealestateblog.com/selling-home-moving-out-of-state/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19542 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Unconventional Methods for Selling a House: Thinking Outside the Box https://www.rochesterrealestateblog.com/unconventional-methods-for-selling-a-house/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19519 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Sell My House Off Market: Pros and Cons Explained https://www.rochesterrealestateblog.com/sell-house-off-market/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19503 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What is PITI and How Does It Affect Your Mortgage https://www.rochesterrealestateblog.com/what-is-piti/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19498 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Set A Home Renovation Budget https://www.rochesterrealestateblog.com/home-renovation-budget/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19490 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Does A Co-Borrowers Credit Scores Affect A Home Purchase? https://www.rochesterrealestateblog.com/co-borrower-credit-score/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19474 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> New Construction Final Walk-Through Checklist: Ensuring a Seamless Home Inspection https://www.rochesterrealestateblog.com/new-construction-final-walk-through/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19458 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Essential Tips for Pumping a Septic Tank: What You Need to Know https://www.rochesterrealestateblog.com/pumping-a-septic-tank/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19450 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Can You Submit Multiple Offers On Homes At Once – A Legal And Ethical Analysis https://www.rochesterrealestateblog.com/multiple-offers-on-homes-at-once/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19414 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Get Your Home Photo Ready for Real Estate Listings https://www.rochesterrealestateblog.com/real-estate-photo-ready/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19409 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does a Home Builder’s Warranty Cover? https://www.rochesterrealestateblog.com/home-builders-warranty/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19394 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> July 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/july-2023-rochester-ny-real-estate-market-update/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19403 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Who Pays Real Estate Commission When You Buy or Sell a Home https://www.rochesterrealestateblog.com/real-estate-commission/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19366 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Quitclaim Deeds: What You Need to Know https://www.rochesterrealestateblog.com/quitclaim-deeds/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19358 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Know About Selling a Home As Is for Cash https://www.rochesterrealestateblog.com/selling-home-as-is-cash/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19347 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Know if My House Has Paranormal Activity https://www.rochesterrealestateblog.com/is-my-house-haunted/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19342 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Why Find The History of a House https://www.rochesterrealestateblog.com/find-history-house/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19316 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> June 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/june-2023-rochester-ny-area-real-estate-market-update/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19313 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does a Real Estate Lawyer Do? https://www.rochesterrealestateblog.com/real-estate-lawyer/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19181 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> May 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/may-2023-rochester-ny-area-real-estate-market-update/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19162 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Know About Buying a Home For The First Time https://www.rochesterrealestateblog.com/buying-home-first-time/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19058 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> <strong>What Should a Buyer Look For at a Home Inspection?</strong> https://www.rochesterrealestateblog.com/what-look-for-home-inspection/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18983 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Companies That Buy Houses For Cash Reviewed https://www.rochesterrealestateblog.com/companies-buy-houses-for-cash/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18889 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Does Home Staging Work and What is The Cost? https://www.rochesterrealestateblog.com/does-home-staging-work/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18814 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Avoid When Getting a Mortgage https://www.rochesterrealestateblog.com/avoid-when-getting-mortgage/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18797 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> <strong>5 Options For Replacing a Roof Reviewed</strong> https://www.rochesterrealestateblog.com/replacing-roof/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18771 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are Restrictive Covenants in Real Estate? https://www.rochesterrealestateblog.com/restrictive-covenants/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18714 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Can The Court Force The Sale of Your House in Divorce? https://www.rochesterrealestateblog.com/court-force-sale-divorce/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18693 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Real Estate Agent vs. Broker: What&#8217;s The Difference? https://www.rochesterrealestateblog.com/real-estate-agent-vs-broker/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18650 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Determine Square Feet In Your House For More Accurate Property Estimates https://www.rochesterrealestateblog.com/determine-square-feet/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18167 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 3 Things That Often Results in a Real Estate Agent Getting Sued https://www.rochesterrealestateblog.com/real-estate-agent-sued/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18133 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Top 5 Types Of Home Inspections Buyers Should Consider https://www.rochesterrealestateblog.com/5-types-home-inspections/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18119 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Pros And Cons Of Rent To Own Homes: What You Need To Know https://www.rochesterrealestateblog.com/pros-cons-rent-own-homes/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18104 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Smart Things To Do Before Moving That Will Help Ease Your Transition https://www.rochesterrealestateblog.com/things-before-moving/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18084 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Become a Real Estate Agent https://www.rochesterrealestateblog.com/become-real-estate-agent/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18071 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Renting A House Or An Apartment: Which Is The Better Option https://www.rochesterrealestateblog.com/renting-house-apartment/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17871 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The 5 Most Important Factors To Consider When Buying A House https://www.rochesterrealestateblog.com/5-factors-buying-house/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17851 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Buyers And Sellers Need To Know About An Appraisal Gap https://www.rochesterrealestateblog.com/appraisal-gap/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17827 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Pros And Cons Of Renting With Roommates – What You Need To Know https://www.rochesterrealestateblog.com/renting-with-roommates/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17794 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 6 Things You Should Know About Buying Land https://www.rochesterrealestateblog.com/things-know-buying-land/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17773 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Long Should Home Sellers Wait To Respond To An Offer On Their Home? https://www.rochesterrealestateblog.com/home-sellers-wait-respond-offer/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17745 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Buy A House With A Low Credit Score https://www.rochesterrealestateblog.com/how-to-buy-a-house-with-a-low-credit-score/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16819 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Things To Consider When Shipping A Car https://www.rochesterrealestateblog.com/things-to-consider-when-shipping-a-car/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16248 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Home Depot Truck Rentals: What to Know Including Pricing https://www.rochesterrealestateblog.com/home-depot-truck-rentals-what-to-know-including-pricing/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16156 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 16 Things To Do Before Listing Your Home For Sale https://www.rochesterrealestateblog.com/16-things-to-do-before-listing-your-home-for-sale/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16138 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Biggest Home Inspection Mistakes to Avoid https://www.rochesterrealestateblog.com/biggest-home-inspection-mistakes-to-avoid/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16112 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Your Credit Score Impacts Your Ability To Buy A House https://www.rochesterrealestateblog.com/how-credit-score-impacts-buying-house/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16086 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Winter Home Selling Mistakes | 7 Errors Made While Selling A House During The Winter https://www.rochesterrealestateblog.com/top-winter-home-selling-mistakes/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16051 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Winter Home Buying Mistakes | 11 Errors Made While Buying A House During The Winter https://www.rochesterrealestateblog.com/winter-home-buying-mistakes/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16013 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Address Change Form Should I Use At The Post Office? https://www.rochesterrealestateblog.com/address-change-form-post-office/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15981 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does Contingent Status Mean in Real Estate? https://www.rochesterrealestateblog.com/what-does-contingent-status-mean-real-estate/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15956 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> DIY Renovation Ideas For Your Backyard https://www.rochesterrealestateblog.com/diy-renovation-ideas-backyard/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15937 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Rent Your First Apartment Guide https://www.rochesterrealestateblog.com/how-to-rent-an-apartment/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15931 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Tips For Selling A Home Virtually https://www.rochesterrealestateblog.com/tips-selling-a-home-virtually/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15907 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Complete Winter Storage Checklist For Your Belongings https://www.rochesterrealestateblog.com/winter-storage-checklist/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15885 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Waive My Home Inspection When Buying A House? https://www.rochesterrealestateblog.com/should-i-waive-my-home-inspection/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15870 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Biggest Self Storage Companies Reviewed https://www.rochesterrealestateblog.com/biggest-self-storage-companies/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15836 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Earnest Money and House Deposits Explained https://www.rochesterrealestateblog.com/earnest-money-house-deposits-explained/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15760 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Moving Mistakes To Avoid https://www.rochesterrealestateblog.com/moving-mistakes-to-avoid/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15568 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Mortgage Myths | Demystifying Common Home Loan Misconceptions https://www.rochesterrealestateblog.com/top-mortgage-myths/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15102 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> First-Time Home Buyer Mistakes to Avoid https://www.rochesterrealestateblog.com/first-time-home-buyer-mistakes/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14815 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 10 Tips For Adding Appeal To Your Home This Summer https://www.rochesterrealestateblog.com/10-tips-adding-appeal-to-home-this-summer/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14237 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Exploring The Merits of Smart Home Technology When Selling a Home https://www.rochesterrealestateblog.com/smart-home-technology-selling-a-home/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13782 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Frequently Asked Questions From Home Sellers https://www.rochesterrealestateblog.com/top-frequently-asked-questions-home-sellers/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2424 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> First Time Home Buyer Programs In Rochester NY &#8211; Updated January 2025 https://www.rochesterrealestateblog.com/first-time-home-buyer-programs/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock http://rochesterrealestateblog.com/?p=580 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How New Doors &#038; Windows Can Boost Your Home Value https://www.rochesterrealestateblog.com/how-new-doors-windows-boost-your-home-value/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13643 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top 5 Things To Know When Flipping Your First House https://www.rochesterrealestateblog.com/5-things-to-know-when-flipping-your-first-house/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13574 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are The Best Mortgage Options for Self Employed Borrowers? https://www.rochesterrealestateblog.com/mortgage-options-for-self-employed-borrowers/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13450 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top 10 Best Places To See Christmas Lights In Rochester NY https://www.rochesterrealestateblog.com/top-10-best-places-see-christmas-lights-rochester-ny/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=10236 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are The PROs And CONs Of Multifamily Homes? https://www.rochesterrealestateblog.com/what-are-the-pros-and-cons-of-multifamily-homes/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13219 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Low-Cost Home Improvements Should You Make Before Selling Your Home? https://www.rochesterrealestateblog.com/low-cost-home-improvements-you-should-make-before-selling-your-home/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13114 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 15 Things Millennial Home Buyers Look At While Buying A House https://www.rochesterrealestateblog.com/15-things-millennial-home-buyers-look-at-while-buying-a-house/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13028 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Does A Fence Increase The Value Of Your Home https://www.rochesterrealestateblog.com/how-does-a-fence-increase-the-value-of-your-home/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12995 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Simple &#038; Low Cost Fixes To Make Your Home More Appealing To Buyers https://www.rochesterrealestateblog.com/5-simple-and-low-cost-fixes-to-make-your-home-more-appealing-to-buyers/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12779 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Improve A Homes Curb Appeal In Rochester NY https://www.rochesterrealestateblog.com/how-to-improve-a-homes-curb-appeal-rochester-ny/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12665 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 7 Ways to Create an Energy-Efficient Home While Conserving Your Budget https://www.rochesterrealestateblog.com/7-ways-create-an-energy-efficient-home/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12633 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Hiring Movers Vs. Moving Yourself | The PROs &#038; CONs Of Each https://www.rochesterrealestateblog.com/hiring-movers-vs-moving-yourself/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12592 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should You Pay Off Student Loans Before Purchasing a Home? https://www.rochesterrealestateblog.com/pay-off-student-loans-before-purchasing-a-home/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12531 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Build A New Home Or Buy An Existing Home? https://www.rochesterrealestateblog.com/should-i-build-a-new-home-or-buy-an-existing-home/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2497 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Buying A Condo Vs. Renting A Condo | What Are The PROs &#038; CONs? https://www.rochesterrealestateblog.com/buying-a-condo-vs-renting-a-condo/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12402 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 9 Money Saving Moving Tips | How To Cut Costs When Moving https://www.rochesterrealestateblog.com/9-money-saving-moving-tips/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12341 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Create a Proper Home Maintenance Checklist https://www.rochesterrealestateblog.com/how-to-create-a-proper-home-maintenance-checklist/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12300 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Tips For Tenant Screening | How To Weed Out Bad Tenant Applicants https://www.rochesterrealestateblog.com/tips-for-tenant-screening/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12291 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Social Media Blogs For Real Estate From 2017 https://www.rochesterrealestateblog.com/best-social-media-blogs-2017/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12045 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Home Improvement Blogs From 2017 | Advice For Home Remodeling https://www.rochesterrealestateblog.com/best-home-improvement-blogs-2017/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12044 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Mortgage Blogs From 2017 | Advice For Home Financing https://www.rochesterrealestateblog.com/best-mortgage-blogs-2017/ Fri, 14 Feb 2014 20:20:36 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12043 first home or the tenth home they have purchased.  Often times a buyer (particular first time buyers) doesn't stop and think about what the costs and fees associated with buying a home are.  It can be an eye opening experience for a buyer when they are given a breakdown of the costs and fees associated with buying a home.  None of the costs or fees associated with buying a home, which we will breakdown in this blog post, are out of the ordinary or "hidden." [caption id="attachment_519" align="aligncenter" width="231" class=" "]Example of an FHA Closing Cost Estimate Example of an FHA Closing Cost Estimate[/caption] A good mortgage/loan officer should provide a prospective buyer a "breakdown" (Formally known as a good faith estimate) when pre-qualifying or pre-approving them for financing.  Unfortunately, this isn't always the case.  It is required that a lender provides a buyer with a good faith estimate AND a truth in lending statement within 3 days of mortgage application. There are several "categories" that make up the total cost and fees of buying a home.  The "category" names can vary slightly from lender to lender or real estate agent to real estate agent, so just be conscious of that.  Also, some of the costs and fees are "optional" and the amounts can vary depending on the mortgage lender, inspector, or attorney. Deposit
  • A good faith deposit or earnest money deposit will be needed when making an offer or having a purchase offer accepted.  The purpose of this deposit is to show that the buyer is serious about purchasing the sellers home.  This deposit is normally held in the listing brokers escrow account until closing.  The amount a buyer deposits is subtracted from the total cost they will need at closing.
Inspection Costs
  • Home Inspection (Optional): In most cases a home inspection is recommended.  The cost of a home inspection normally varies based on the square footage of the subject property & other factors too.
  • Pest Inspection (Optional): [caption id="attachment_513" align="aligncenter" width="180" class=" "]A pest inspection is "optional" but can save from problems down the road! A pest inspection is "optional" but can save having problems down the road![/caption] A certified pest inspector will examine both the exterior and interior of the subject property for destructive insects.  Typical ones are termites, carpenter ants, and powder post beetles.  A good pest inspector will provide a detailed report.  If the presence of pests are found, normally the cost to treat the issue are covered by the seller.
  • Chimney Inspection (Optional): A chimney inspector will examine both the exterior condition of the chimney as well as the interior (Liner).  Issues that maybe found by an inspector are negotiated between the buyer and seller of the subject property.
  • Radon Test (Optional): Radon is a natural gas that has been linked to causing cancer (if high "levels" are present) that permeates a home from the ground.  The Environmental Protection Agency (EPA) standard in the United States is 4.0 picocuries(pCi/L).  Anything that exceeds this should be considered dangerous.  Check out the EPA's guide to radon.  If high levels are present, a mitigation system should be installed to rectify the high level.
  • Well Water Test (Optional): Properties that use a well for it's water supply can be tested.  A well water test can determine flow rate, test for nitrates or bacteria, and more. [caption id="attachment_514" align="aligncenter" width="210" class=" "]The EPA's website has lots of great information! Check it out at www.epa.gov. The EPA's website has lots of great information! Check it out at www.epa.gov.[/caption] The EPA has lots of great information regarding private drinking water wells.
  • Septic Inspection (Optional):  If the subject property is hooked up to a septic tank, it is in most cases, recommended to have it inspected.  The cost normally is covered by the seller (or at least should be requested of the seller).
  • Lead Inspection (Optional): If buying a home built prior to 1978, the buyer has the option to perform a lead inspection, at their expense.  In all likelihood, most homes built prior to 1978 will test positive to lead paint to one extent or another.  Whether the lead is present in the window sills, covered behind multiple coats of latex paint, or elsewhere, it can be extremely costly to remove lead.  It's rare that a buyer will perform a lead inspection.  The EPA gives many tips on how to protect your family against lead.
Application Costs
  • Application Fee: This fee will vary from lender to lender.  The fee is charged simply for doing business with the potential buyer.  The mortgage application fee is non-refundable.   [caption id="attachment_515" align="aligncenter" width="179" class=" "]The bank appraisal fee is collected normally at application. The bank appraisal fee is collected normally at application.[/caption]
  • Appraisal Fee: This fee is due when you apply for the mortgage.  An experienced real estate agent should inform the loan officer to hold onto the check for the appraisal until AFTER the inspection contingency(ies) are removed, if the buyer meets with the loan officer prior to the inspection.  This ensures that the buyers money isn't being spent on an appraisal for a home that the buyer may end up not purchasing due to inspection findings.
  • Credit Report: Lenders will charge for pulling a credit report on borrower(s).  This is called a tri-merge or fact data report.  This is normally not a large amount of money.
Down Payment
  • A down payment is often what buyers think is the total of all costs to buying a home.  This is a very common misconception and clarification is needed on this regularly.  The down payment for a home will vary depending on the type of financing that is best for the buyer (FHA, Conventional, VA) and also the buyers qualifications.  The minimum amount required for a down payment for a FHA (Federal Housing Authority) mortgage is 3.5% of the purchase price.  The minimum for a conventional mortgage is 5% and a VA mortgagee is allowed to finance 100% of the home, so $0 is the minimum.
Closing Costs
  • Recording Fee: This fee is generally paid to the local county clerks office for entering the sale into the public records.
  • Flood Certification Fee: This fee determines if the subject property is in a designated flood zone (a flood insurance policy can cost upwards of $1,000 per year).
  • Mortgage Tax Fee: In NYS, when a buyer obtains a mortgage, state and local government enforce a mortgage recording tax to document the transaction.
  • Interim Interest: This interest is due at closing to cover interest due that will not be collected with the first mortgage payment.  The interest is collected from the closing date to the last day of the month.
  • "Points": This is an upfront fee paid to a lender when a buyer gets a loan.  Each "point" equals one percent of the buyers total loan amount.  The more "points" a buyer pays, the lower the rate.
  • Underwriting Fee: This fee is for the review and assessment of the buyers mortgage application and documents.
  • Bank Attorney Fee:  The buyer is required to pay the banks attorney, in addition to their own.
  • Title Insurance Lender Policy Fee: This fee protects the lender against problems with title of the subject property.  This policy protects the property but not the buyers interest in the property.
  • Title Insurance Owner Policy Fee (Optional):  This insurance protects the buyer against problems with the title of the subject property.
  • MIP/PMI Fee:  Private mortgage insurance (PMI) or mortgage insurance premium (MIP) are charged to protect the lender in the case that a buyer "defaults" on their mortgage.
Prepaid Items
  • Real Estate Taxes: Most mortgage products require a buyer to "escrow" an entire years worth of taxes at closing.  There are situations and products that allow a buyer to pay taxes annually, bi-annually, or quarterly.
  • Homeowners Insurance: Most lenders require a buyer to purchase homeowners insurance prior to closing and provide the "binder" to them.  This insurance protects the buyer against fire, natural disaster, and other scenarios.
Personal Attorney Costs
  • Buyers Attorney (Optional): [caption id="attachment_516" align="aligncenter" width="300" class=" "]A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home. A buyer that has an experienced team of professionals working for them should have no surprises about the costs and fees of a buying a home.[/caption]

    This is an optional cost, however, it's strongly recommended to a buyer they have an attorney represent them.  A buyers attorney will ensure the title, abstract, survey, and other documents are reviewed in detail.  This can protect a buyer from future problems.

Though these costs and fees may seem overwhelming and ridiculous to a buyer, it's important to understand them.  Bottom line, if the buyer selects an experienced team of professionals or "teammates" (Buyers agent, Mortgage/Loan Officer, Attorney, Etc) they will understand the costs and fees of buying a home. More Resources for Buyers:   About the authors:  The above information was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With almost 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]>