CentralWI By Owner

Everyone knows that you should never sign on the dotted line without reading the contract.  The same applies to loans.  Signing a loan without knowing the terms and what everything means can be not only detrimental to your finances but to your credit and future investments.  Before you sign on the dotted line, make sure that you know these terms and how they will apply to you.

1. Interest Rate - The interest rate is the percentage of your loan that is added on every month.  The percentage will vary according to the economy and will make a difference in your payments.  To see current rates go to bankrate.com.
2. Fixed Rate - A fixed rate will be an interest rate that stays at the same percentage throughout the entire period of your loan.
3. Variable Rate - A variable rate will change according to the economy.  A variable rate usually changes every year and adjusts according to a specific given range of percentages.
4. Principal - The principal is the amount you will be paying your mortgage loan down.
5. Escrow - This is similar to a savings account for your loan.  Whatever money is put into escrow will accumulate without paying directly into the loan.  The escrow money will usually be put towards your homeowner’s insurance and your homes taxes.
6. Title - A title will be what you receive stating that your home is officially yours, this states that the property belongs to you.
7. Closing Costs - Closing Costs are any fees paid by the buyers or sellers during the closing of the loan.  This can include an origination fee, discount points, attorney’s fees, survey and title insurance.  Closing costs are explained in greater detail at Mortgage-x.
8. Home Equity - A home equity loan is a fixed or variable rate loan that is based upon the value of your home.  The interest paid is usually tax deductable.  The money is often used for home improvement or the consolidation of many other higher interest debts that are not tax deductable. 
9. Appraisal - An appraisal is the estimated fair market value of your home at a specific time. 
10. Equity - The difference in the fair market value of your home and your outstanding loan balance.

Once your comfortable with the basic terms, you will be able to proceed to find the exact loan to fit your needs.  These basic definitions will help you in making the right decision for the type of loan you want.  To see more terms head to this glossary of mortgage definitions.

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Even though you are selling your home without a real estate agent, the assistance of a real estate professional is still possibly needed at various steps while you are selling your home.  Using an attorney specializing in real estate could not only help with the legalities of the selling process but they could also provide a little piece of mind as the legal documentati0n is being completed. 

I know their are times when the only reason for hiring someone is the piece of mind they provide.  Examples would be hiring a plumber or an electrician to fix something in my home.  Yes, I could possibly do the work, but the risks involved far outweigh what I would gain by doing it myself.

Back to an attorney, they are able to assist you in many ways while you complete the sale of your home.  When you hire an attorney that specializes in real estate, the attorney is responsible for seeing that your best interests are met in the housing transaction.  A real estate attorney can act as the escrow agent by holding down payments, documentation, and earnest money deposits.  Not only that, the attorney can help you decipher and evaluate complicated offers you might receive from a buyer.  In the event that the lender’s attorney does not handle the closing, your attorney will host and handle the closing as well.  If the lender does handle the closing, then your attorney still would be able to represent you during the closing process.

Your primary concern should be to find a real estate attorney that will provide you with the assistance you need in the housing transaction.  You can use a local or internet directory to find the names of some attorneys in your area.  Asking friends or family who have recently sold homes for references is another way that you can find an attorney to assist you.  Hiring an attorney that comes as a reference is often better than cold calling attorneys.  Just like when you’re hiring a contractor it’s important to know the work history of someone you’re going to hire to work on your behalf.

As your looking for a real estate attorney to hire, you should choose one that handles a lot of real estate transactions.  Try choosing an attorney who specializes in real estate transactions and not someone who does this on the side.  Your interests may not be best served if the attorney does not spend a significant part of his or her time completing real estate transactions.

Along with experience in real estate transactions, price will be the other factor you use when you hire an attorney.  The attorney you hire will have two major responsibilities: reading and advising you on documents as well as representing you at the closing.  Receive a price quote from prospective real estate attorneys on those two tasks.  Shop around among several attorneys to get a feel for their experience level along with the price they charge.

The most important part is that you have a real estate professional that is available to assist you throughout the transaction.  Even if you have successfully sold by owner before, it may still be better to have legal assistance than to attempt to complete the process on your own.

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