Frequently Asked Questions

Q:		I heard that buying a home can be complicated. What are some key things I should know and do while searching for the perfect home?
A:		There are many things you should know and do while shopping for a home! Here are just a few suggestions that will provide you, either a first time home buyer or a seasoned buyer, with a reference to the buying process and the steps needed to successfully move you into the home of your dreams! Get Pre-qualified! Many Sellers will not accept an offer without a qualification letter from your lender. Understanding your buying power will help you and your Realtor to structure your plan for purchasing a home within your budget. You will be one step ahead of other buyers and can possibly strengthen your offer! Make an offer! Once you find the perfect home for you and your family, let your Realtor explain the buying process and help you complete the necessary forms required to secure your offer. Get a Home Inspection! Home inspections are optional, but well worth the expense!· You are allotted 10 days from the date of acceptance of your offer to GET A HOME INSPECTION! After this 10 day period, you waive your right to an inspection. Apply for Homeowner’s Insurance! You must obtain a homeowner’s policy and, if applicable, a flood policy, before your scheduled closing date. This information must be given to the lender chosen in the transaction that is providing your funds. Have certified funds available at closing! If any down payment, closing costs, or discount points are to be paid at closing, make arrangements through your lender to have those funds available for disbursement at the closing.
Q:		I am looking at homes in East Baton Rouge, and would like to know what public schools my children will attend?
A:		The East Baton Rouge School Board has an easy to access link on their website, so that parents can determine what public schools their children will attend. Attendance zones are constantly changing, so to be sure please call the East Baton Rouge Parish School Board office. To do an online check just click here
Q:		What information do I need when applying for a mortgage loan?
A:		All applications for a mortgage loan require the following documents: Copy of your most recent payroll voucher for at least 3 months. A copy of your last two years W2's/tax returns. At least two of your most recent monthly bank statements (all pages) on all checking/savings accounts The latest statement of your retirement/401K accounts. Copy of home owners coverage with agents name and phone number listed if loan is refinance and copy of latest escrow analysis from current lender is available. Information of proposed homeowner's insurance policy (agent name and phone number) if a purchase. Previous addresses for all residences for past two years if not at your current address for a full two year period. If currently renting, the name, address, and telephone numbers for all landlords for the past two years. Name, address, and telephone numbers for all employeres for the past two years in date order. Conditional Document Requirements If self-employed or paid on commission/1099 basis: 1) Signed copies of Federal Tax returns for the last two years 2) Signed Corporate/Partnership tax returns for the last two years 3) Profit & Loss Statement for most recent year if taxes are not completed 4) IRS Extension to File form if taxes not filed for most recent year. If refinancing a home loan, you will need a copy of the legal description on subject property and latest tax bill. If purchase, copy of purchase agreement signed by all parties (Must contain legal description of property and phone number of seller). If you are selling your current home, you will need a copy of the sales contract on your home. If you are applying for a Construction Loan, you will need a copy of builder's plans and specs for construction of home (two sets). If previously married, you will need copies of all divorce decrees and community property settlements. If bankruptcy filed, need bankruptcy discharge papers and schedule of all creditors. Current year's "award letter" if recipient of Social Security or other retirement benefits. (Note: need birth certificates for recipient if a child to prove at least three years remaining) Copies of twelve month's canceled checks if paying off privately held mortgage (i.e. land contract/"Bond for Deed") or three month's if proving a debt is paid by someone else. If Applying for an FHA Loan, the Following Additonal Item is Needed Copy of Social Security card and/or Driver's License. Special FHA Disclosures will need to be signed. If Applying for a VA Loan, the Following Items are Needed Copy of Social Security card and/or Driver's License. Copy of Certificate of Eligibility (only Vet and wife can be on note). Special VA disclosures signed and form DD214. Name/Address/Phone Number of nearest relative not living with Borrower.
Q:		What are Closing Costs?
A:		Understanding Closing Costs, the fees associated with a mortgage can be intimidating, especialy when you see them for the first time at closing. Some fees, such as those for administration, loan processing and underwriting, are negotiable ahead of time with your lender, and some lenders charge fees for services that others offer for free. So, shop around. Fee names can different, but here's what they mean: Processing Terms - What the lender charges for procesing the paperwork. Underwriting - For determining whether you qualify for the loan. Document preparation - Paid to the lender's lawyers for preparing the documents. Escrow - The title firm's fees to close the deal and be escrow agent. Appraisal - The appraisal determines if the property is valued correctly Survey - Usually a prperty survey isn't needed when refinancing. Title Insurance - Protects lenders if someone claims they own your land. Tax Service - For the lender to verify your yearly property taxes. Credit Report - The lender's cost to check your credit. Flood Check - Required by lenders to see if you're in a flood-plain. Courier - For delivering documents among the parties. Recording - For recording the deed in the courthouse. Negotiating Closing Costs - In addition to the sales price, buyers and sellers frequently include closing costs in their negotiations. This can be for both major and minor fees. For example, if a buyer is particularly nervous about the condition of the heating and air conditioning system, the seller may agree to pay for servicing the unit prior to closing. Likewise, a Buyer may want to save on up-front expenditures, and agree to pay the Seller's full asking price in return for the Seller paying all the allowable closing costs. Negotiating closing costs should be a Win-Win negotiation for Buyer and Seller. Get your agent to explain the Good Faith Estimate your mortgage lender can provide well before closing. And, make sure all the terms are written into your purchase agreement. Prorations - Certain expenses are prorated (or distributed) between the Buyer and Seller. The most common expense that are prorated are "property taxes". Property taxes are typically paid at the end of the year for which they were assessed and are prorated accordingly. For example, if a house is sold in July, the Sellers will have lived in the house for more than half a year, but the bill for the taxes won't come due until the following year! These taxes are prorated to accordingly to make them more equitable to each party.
Q:		How can I estimate Closing Costs?
A:		You really shouldn't have to estimate closing costs because by law your mortgage lender is required by law to provide you a "Good Faith Estimate" of your actual closing costs.
Q:		What is Title Insurance, and why do I need it?
A:		There are many reasons why buyers need Title Insurance . . . here are just a few good reasons! Title insurance can help ensure the buyer and the lender that title defects will not make a property unsellable in the future because of: 1. Forged documents 2. Undisclosed heirs to the property 3. Mistaken legal interpretations of wills or trusts 4. Misfiled documents—deeds, liens, mortgage satisfaction documents 5. Confusion caused by similarities in names 6. Incorrect marital status 7. Mental incompetence Be sure to review the title policy for any exceptions or judgments against the Seller(s) that might derail the sale. Also, remind buyers that because the lender's liability under a title insurance policy is usually limited to the outstanding balance of the mortgage, it may be possible to cancel this insurance when the loan balance has been reduced to minimize the risks.
Q:		How does the NEW Property Disclosure Law affect home owners?
A:		Property Disclosure Law Now In Effect Louisiana's mandatory property disclosure law went into effect on July 1. The Property Disclosure Act of 2003 required the Louisiana Real Estate Commission to promulgate an approved residential property disclosure form, which sellers of residential real estate are now required to complete. The form is available from the LREC website and applies to all transactions entered into on or after July 1, 2004.
Q:		Where can I find information on the NEW Mold Disclosure Law?
A:		Mold Disclosure Law IS Now In Effect - Act 1123 of the 2003 Louisiana State Legislature Regular Session required the Louisiana Real Estate Commission to approve a mold informational pamphlet that licensed real estate agents may distribute to buyers. To download a copy of this phamplet go to http://www.lrec.state.la.us/ , or go to the Environmental Protection Agency's Website for a complete overview on mold at http://www.epa.gov/iaq/molds/index.html . For your protection, get a home inspection!
Q:		I've heard about people who have made money by buying property cheaply at mortgage foreclosure sales and then reselling it at a profit. What does this involve? Is it something I could do?
A:		Many companies and private investors specialize in buying foreclosed properties. This is can be an extremely high-risk form of investment that is definitely not for the inexperienced or faint of heart. Consider the differences between a sheriff's sale and a standard real estate purchase. In a standard real estate sales transaction, the seller gives the buyer an opportunity to inspect the property, and provides promises and warranties regarding title. These promises are in turn generally backed up by a title insurance policy or an attorney's title opinion. In a sheriff's sale, none of these safeguards exist; the rule is caveat emptor, or "let the buyer beware." The deed that the sheriff conveys to the purchaser has no covenants, warranties, or representations of any kind, and the purchaser generally has no recourse if there is something wrong with the title to the real estate. Another major problem with purchasing at a sheriff's sale is that there is little or no opportunity to inspect the property prior to the sale. In general, the delinquent borrower still lives in the property at the time of the sale, and may be at best uncooperative (and at worst downright hostile) if asked to allow inspection by a prospective purchaser. In many states the owner/borrower will be allowed to remain in the property for some period of time after the sale (the redemption period); this is often up to six months and sometimes as much as a year. During that period, the owner/borrower obviously has no incentive to maintain the property, pay tax or utility bills, and may actually be antagonistic enough to deliberately damage the property. These problems explain why the mortgagor/lender is usually the only bidder at a sheriff's foreclosure sale. With experience and the assistance of competent counsel, a purchaser can indeed successfully obtain good title to property, often at bargain prices, through the foreclosure sale process. But this is an activity best left to those with expertise in the area and a high tolerance for financial risk.
Q:		Is there an easy way to disconnect, transfer, and connect utilities?
A:		Yes, you can disconnect, transfer, and connect your utilities in just minutes! Connect Utilities has been helping movers shop, request, and connect their home services since early 2002. Today, ConnectUtilities has over 40,000 service offerings and has successfully connected thousands of customers and services with a 99.9% success and approval rating which is backed by our Service Guarantee! In the simplest of terms, ConnectUtilities has consolidated the entire utility and service connections process into a single website that allows customers to shop, request, and schedule their services in minutes versus hours. Once you check out, we simply communicate your request to the selected providers just as if you had spent hours calling each provider yourself or visited each multiple provider web sites. We take the hassle out of searching for the correct providers and phone numbers, waiting on hold, and providing your personal information repeatedly by doing the work for you. Our mission is to help our customers select and connect their home services in as little time as possible. We have a revolutionary platform that walks customers through the traditionally painful connection process in only a few minutes...versus hours! It's fast and easy. Best of all, it's guaranteed to provide you with results! Don't wait until the last minute. It's really very simple. A 3-step process is all it takes. 1. Identify the services of choice 2. Create an account 3. Submit the information required by the selected providers You're done! We'll take it from there and keep you updated every step of the way. Connect Now!