Sometimes it feels like the process of buying/selling is overwhelming. Realtors seem to speak another language and there are so many details to understand.  Here are some frequently asked questions I have been asked.

What is an HOA?
HOA stands for Homeowner’s Association. This is a board that regulates and maintains a community. There are mandatory dues associated with living in an HOA community. Some like communities with HOAs as they benefit from amenities like pools, etc. There are typically several restrictions in these communities, which are not bad, but it is good to know about them before deciding to live in a community. Others see no benefit and choose to live in a community without one.

What is PMI/MIP/MI?
PMI/MIP/MI stand for Private Mortgage Insurance/Mortgage Insurance Premium/Mortgage Insurance.  All are used synonymously to describe the additional monthly fee that could be assessed on loans with an 80% LTV, or is required by FHA loan programs.  With the countless programs available, there are methods to avoid this without investing 20%.  Please contact me to partner you with a licensed mortgage professional for options.

What is LTV?
LTV stands for loan to value.  This is the amount of money financed as a ratio of the price.  For instance, if you are investing 10% into a new home, your LTV would be 90%.

What inspections are available to me?
Realtors will always insist on obtaining several home inspections when deciding to move forward on a new home.  The benefits of knowing just what you’re getting into are priceless.  Most are optional, but some loans may require one or more to meet their guidelines.  Inspections available to you include:
1. Home and internal systems
2. Survey of the property
3. Well and septic, where applicable.
4. Radon
5. Wood destroying insects

What is due diligence?
The due diligence time period is the time when inspections and the loan process should be completed.  This is the key time in the buying process for a buyer to decide if the home will be a good fit.


Did I miss anything?  Please contact me with any questions.