A Message to Our Clients about COVID-19

Admin. Blog Post

All of us at Frank Pallotta Law Firm want to take a moment to express our care and concern for every single one of our customers during this time of uncertainty surrounding the Coronavirus. Amidst school closures and overall daily life disruptions, we remain. We will continue to give our clients, friends and family the class A service that you have come to expect.

And while it’s not business as usual, it is still business and we are prepared to be flexible. Whether it’s changing an in-person meeting to a virtual one or a previously scheduled appointment to a different date, there’s nothing we can’t work out if we continue to communicate and help each other!

If all parties wish to continue with the closing process, we are prepared to deliver a clean and safe environment or adjust our closing locations and procedures as needed to maximize safety and comfort.

Before any customers and/or visitors come to the closing appointment, we ask that you go through a quick self assessment to monitor your symptoms, if any. Below are a few questions to ask yourself. If you answer ‘yes’ to any of them, please stay home and call your doctor. Access to our offices will be denied to anyone showing symptoms so we ask that you simply alert us in advance so we can make other arrangements.

1. Have you had close contact with or cared for someone diagnosed with COVID-19 within the last 14 days?

2. Have you returned from a cruise trip or any of the countries with travel restrictions from the CDC site in the last 14 days?

3. Have you experienced fever, cough, and/or shortness of breath in the last 14 days (symptoms can also include sore throat, respiratory illness, difficulty breathing)?

If you have any concerns, please give us a call and let us know how we can customize your closing experience.

Everyone at Frank Pallotta Law Firm will be doing their part to ensure your health and safety.

Be well,

Frank B. Pallotta, Attorney at Law

Best Months to Sell Your Home – RANKED

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When to sell? When to buy? When to close? If you’re in the beginning phase of putting your home on the market, you’ve most likely already been told that it’s a seller’s market out there. Lucky for you, right?! Yes, as long as you have a wise real estate agent and a thorough closing attorney by your side.

Although the current real estate market is in favor of home-sellers, you still need to find the right season for homebuyers. We’ll take you through the top 4 months to put your home on the market based on the demographic that your newly listed home in the Metro Atlanta area will appeal to!

1. July 

There are so many factors that make July the #1 month to sell your home. The obvious one being BEAUTIFUL weather! What better way to showcase what your home has to offer on the inside and outside than a beautiful summer day? The second biggest reason July is the top month to sell your house is children are on summer break so your home buyers have more time and convenience to move, change school districts and get settled all before the kids start their next school year.

2. August

August is ranked 2nd best month to sell your home for many of the same reasons that make July the hottest month for homebuyers to be shopping the real estate market! Although listing your home in August could be a little riskier than July, due to the school year quickly approaching, but if you know you’re in a desired real estate location like Woodstock, GA, then you could set yourself up for the perfect bidding war. In this “seller’s market” we see a lot of homebuyer bidding wars that result in homes selling above list price. MAJOR WIN!

3. September

I know, we said to sell while the kids are out of school but September could still work for the young families on the search! Young growing families with children who are not yet in the school system will be searching while the weather is still nice. So if you have a home near a good school district, listing your home in September could motivate a lot of homebuyers to close before the holidays begin!

4. October

If your home is more the bachelor pad type or a retirement community, you don’t have to work around the general school schedule. However, you will want to get your home listed before the Holiday Season and FLU season begins! No one wants a lot of foot traffic in and out of their homes during this time (not to mention, where will you hide all of the presents?). List your home at the beginning of the fall season so you can have it sold before the Christmas trees are up and the germs are out!

If you’re ready to sell your home and need to be connected with a team that will know the in’s and out’s of the real estate market, we’re here to help! Give us a call today and let our expert team guide you through the process.

What Should You Fix Before You List?

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When you’re getting ready to list your home, you want to be sure you’re showing it in the best light. Taking time to highlight its strengths (and fix up some of its possible weaknesses) can make a big difference in how fast it sells. Here are our top five recommended repairs to make before selling your home.

Repaint walls.

Giving your home a fresh coat of paint is one of the most cost effective ways to spruce it up, and generally, it can be a DIY project. Make sure to cover any walls with scratches and chips and consider updating any accent walls with a more neutral coat.

Repair floors.

Hardwood floors are a very desirable feature in a home, so you want to be sure yours look their best by fixing scratches or dull areas. If your carpet is worn or stained, consider replacing them. And don’t forget the tile in your kitchen or bathrooms — re-grouting can go a long way in making dingy tile work look brand new!

Refresh the landscaping.

Show buyers your home is the full package by dressing up the outside as well as the in. Clean walkways and driveways, plant seasonal flowers and plants, trim hedges and trees, install outdoor décor pieces and fill in mulch and gravel.

Fix your fixtures.

Leaky faucet? Rusted drains? Loose drawer handle? Making these small fixes can make a big difference to potential buyers with detailed-orientated minds. Improve your kitchen. An outdated kitchen can be a real eyesore in a home. Updating cabinetry, repairing or replacing countertops, and installing new faucets and sinks may be worth the investment

These small improvements can make a major difference in your home’s appeal. If you’re ready to sell your home, we’re ready to help make it official. Give us a call today!

Real Estate Terms Explained: Short Sale and Foreclosure

Admin. Blog Post, Real Estate Terms Explained

As unfortunate as it can be when homeowners fall behind on mortgage payments and must face the possibility of losing their homes, short sales and foreclosures provide them options for moving on financially. The terms are often used interchangeably, but they’re actually quite different, with varying timelines and financial impact on the homeowner. Here’s a brief overview.

A short sale comes into play when a homeowner needs to sell their home, but the home is worth less than the remaining balance that they owe. The lender can allow the homeowner to sell the home for less than the amount owed, freeing the homeowner from the financial predicament.On the buyer side, short sales typically take three to four months to complete and many of the closing and repair costs are shifted from the seller to the lender.

A foreclosure occurs when a homeowner can no longer make payments on their home so the bank begins the process of repossessing it. A foreclosure usually moves much faster than a short sale and is more financially damaging to the homeowner. After foreclosure the bank can sell the home in a foreclosure auction. For buyers, foreclosures are riskier than short sales, because homes are often bought sight unseen, with no inspection or warranty.

Neither of these are an ideal situation for any homeowner to find themselves in, but understanding the difference is important to know you’re making the best financial choice for yourself. If you’re thinking of selling your home in a short sale, or interested in buying a foreclosed property, give us a call today! 

Should You Make a Smaller Down Payment?

Admin. Blog Post, Mortgages

You’ve most likely heard the rule: save for a 20-percent down payment before you buy a home. The logic behind saving 20-percent is solid. It shows that you have the financial discipline and stability to save for a long-term goal, and helps you get favorable rates from lenders.

But there can be financial benefits to putting down a smaller down payment—one as low as three percent—rather than parting with so much cash up front, even if you have the money available.

THE DOWNSIDE

The downsides of a small down payment are pretty well known. You might have to pay private mortgage insurance, which is a type of insurance that is typically required for buyers with a conventional loan and less than 20-percent down payment. The lower your down payment, the more you’ll pay. You could also be offered a lesser loan amount than borrowers who have a 20-percent down payment, which will eliminate some homes from your search.

THE UPSIDE

The national average for home appreciation is currently a little less than five percent. The appreciation is independent from your home payment, so whether you put down 20-percent or three percent, the increase in equity is the same. If you’re looking at your home as an investment, putting down a smaller amount can lead to a higher return on investment, while also leaving more of your savings free for home repairs, upgrades, or other investment opportunities. 

THE HAPPY MEDIUM

Of course, your home payment options aren’t binary. Most borrowers can find some common ground between the security of a traditional 20 percent and an investment-focused, small down payment. As always, it’s best to work with a team of trusted experts that can provide some answers as you explore your financing options.

Ready to close on your dream property? Give us a call today!

What Should You Negotiate?

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Whether you’re a first-time homebuyer or a seasoned veteran, negotiations on a property purchase can be a little daunting and stressful. That’s why you should always work with trusted experts (like us). So, what should you negotiate when buying a home? 

Closing Costs 

Your closing costs are determined by a variety of factors, but you can expect it to be between 2% to 5% of the purchase price. Ask the seller to cover some or all of the closing costs upfront, or request a closing credit that can be used to make specific updates and fixes to the home.

Furnishings

Love how the seller has furnished and decorated the home? Buyers often negotiate keeping couches, fixtures, landscaping items, patio furniture, appliances, and more. Many sellers will agree, because they want to make the home more appealing and get the deal they’re looking for.

Inspection & Closing Timing 

Offers that include a quick inspection and closing timeline are often more attractive to sellers, especially those who have been going through the process for a long time. Just make sure you aren’t moving too quickly — even with quick turnarounds, you need to allow yourself ample time to get your financing in place and conduct proper, thorough inspections.

Home Warranty

Sellers will often agree to pay the premium on the home warranty at closing and then hand it off to the new homeowner, who is responsible for the deductible on any future claims.

Repairs

Your inspection may uncover small or large repairs needed to bring the home up to standard. You can negotiate to have these items fixed before closing or ask for a price reduction to cover the costs.

Whenever you’re ready to start negotiations on a new property, make sure you’re working with the right team of experts. We’re dedicated to making sure your closing is quick, efficient and as cost-effective as possible. Give us a call today!

What is a Home Appraisal?

Admin. Blog Post, Real Estate Terms Explained, Uncategorized

You’ve found your dream home, and now it’s time to make it your own. One of the first things you’ll want to check off your final closing list is the home appraisal. So, what exactly is that?

The home appraisal is essentially a value assessment of the home and property. It is conducted by a certified third party and is used to determine whether the home is priced appropriately. If you’re buying your home using a mortgage, your bank will require the home appraisal. This is different from a home inspection — an appraisal protects the financial interests of the lender, and while a home inspection protects the buyer from potential maintenance or repair issues.   

During a home appraisal, the appraiser conducts a complete visual inspection of the interior and exterior of the home. Their assessment will factor in a variety of things, including the home’s floor plan, functionality, condition, location, school district, fixtures, lot size, and more. Adjustments will generally be made if the home was recently renovated, or exterior upgrades like a deck or pool were put in place. The appraiser will also compare the home to several similar homes in the area — known as comps — that sold within the last six months.

Unlike a home inspection, an appraisal only looks at the surface value of the property. The appraiser will note any obvious damage, such as a badly dilapidated roof, but won’t conduct the same thorough tests you’ll get from a home inspector. The final appraisal report must include a street map showing the property and the comps, photographs of the interior and exterior, an explanation on how the square footage was calculated, market sales data, public land records, and more.

After the appraisal report is complete, the lender uses the information to ensure that the property is worth the amount they are investing. This is a safeguard for the lender, as the home acts as collateral for the mortgage. If a buyer defaults on the mortgage and goes into foreclosure, the lender generally sells the home to recover the money borrowed. 

As a buyer, the most important thing to note is that home appraisals protect the bank, not the homeowner. You’ll still need to schedule a home inspection to be sure that your home is in good condition and won’t require any unexpected repairs. 

Are you ready to close on your dream home? Give us a call! 

What Every First-Time Homebuyer Should Know

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Buying a home can be an incredibly intimidating process, especially if you’re a first-time buyer. But fear not! Here are some simple tips to keep in mind to make your first home-buying experience run smoothly. 

Start saving early. 

Most people will tell you that a 20% down payment is standard, but some lending programs will allow you to put down as little as 3%. This doesn’t always mean you’re saving money, however. A low down payment often results in higher costs in the future. Even if you are able to negotiate a small down payment, that can still be a lot of money. For example, a 10% payment on a $200,000 home is still $20,000.  

Know your mortgage options.

There are a lot of factors to consider when you’re applying for your first mortgage, and a lot of opportunity for less-than-scrupulous lenders to take advantage. Make sure you do your research and work with a mortgage expert so you know you’re getting the best deal. 

Get a pre-approval letter.

You can pre-qualify for a mortgage, which means you can get a basic idea of how much a lender is willing to approve based on factors like your income, credit history, and down payment. As you get closer to finalizing your home purchase, make sure you get a pre-approval letter in writing. This will help you look more serious to sellers, and help protect you from last minute approval changes that could cost you.   

Budget for additional expenses.

It can be hard to see past the asking price of your dream home, but don’t forget there are other expenses to consider. Closing costs, title insurance, moving costs, or necessary updates and repairs can add up quickly. It’s helpful to have a little extra set aside to cover these final costs so you don’t find yourself going over budget. 

Trust the experts.

You may have seen every episode of House Hunters, but that doesn’t always translate to real world knowledge. Work with a realtor and a closing attorney you trust (hey, we know a guy!) to make sure everything runs smoothly and is cost-effective. 

Becoming a homeowner for the first time is an exciting experience, and one you’ll remember forever. Make sure you’re ready to take the leap, and know that there are plenty of people ready to help you open the door to your dream home! 

What is a Cash-Out Refinance?

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Refinancing your home means asking a lot of questions. Like any major financial decision, you want to be sure you have all of the information you need to make the best choice for you and your family. Understanding the way refinancing works can seem overwhelming, but that’s okay! If real estate finance was easy, you wouldn’t need us around. We’re here to help explain a few things that you need to know. 

Today’s Lesson: Cash-Out Refinances

In real estate, there are two basic refinance options: rate-and-term and cash-out refinances. While a rate-and-term refinance could help you save money over time, a cash-out refinance could be a good option for anyone looking for a boost of cash flow in the short term. Cash-out refinancing means that your home equity is converted into cash by creating a new mortgage for a larger amount than what you currently owe. 

For example, if you took out a $200,000 home loan and have paid off $100,000 over time, this means you have $100,000 worth of home equity. If you wanted to convert $50,000 of that equity into cash, you could opt for a cash-out refinance. In this scenario, you would get a new loan for $150,000 — the remaining balance on your original loan plus the $50,000 cash. You pay the balance on the first loan ($100,000) and keep the remaining $50,000. You still owe that $100,000, but you’ll be paying a new lender at a new interest rate.  

Lenders will look at your property’s loan-to-value ratio to calculate how much equity you have, and how much you could potentially cash out. If your home has drastically increased in value since you purchased it — but you’re not ready to sell anytime soon — a cash-out refinance could be a good option. This type of refinance could also be a smart choice if you want to renovate your current home, because you’re essentially using the equity you already have to increase the value of your home. 

Cash-out refinances typically come with much higher interest rates than your initial mortgage, so they’re not always the right option for someone looking to save money long-term. Instead, a cash-out refinance could work for someone looking for extra money in the immediate future. It’s not a get-rich-quick scheme, though. You might be getting a boost of cash right away, but could end up paying more over time. 

As always, make sure you’re working with a team of trusted experts. There are so many individual factors to consider when refinancing your mortgage, and you’ll want someone who has the time to answer all of your questions and make sure your specific needs are meant. If you think a cash-out refinance is right for you, give us a call today!

What is a Rate-and-Term Refinance?

Admin. Blog Post, Real Estate Terms Explained, Uncategorized

Mortgage rates are lower than in recent years, which means now is a great time to think about refinancing your existing home loan. A mortgage refinance is a big decision, and making the right choice now could save you thousands of dollars in the future. If you’ve never considered refinancing before, you’re probably finding yourself overwhelmed with questions and unfamiliar terms. And that’s okay! If real estate finance was easy, you wouldn’t need us around.   

We’re here to help explain a few things you might want to know.

Today’s lesson: Rate-and-Term Refinance

A rate-and-term refinance changes the interest rate on your loan, the term (or length) of the loan, or both. Unlike with a cash-out refinance, this type of change doesn’t advance any money on the loan — which means you won’t see a lump sum of cash. Instead, this type of refinance can save you money by lowering your monthly payment or by allowing you to pay off your loan faster (saving you money in interest). Rate-and-term refinances are driven by drops in market interest rate values. 

If you purchased your home during a time of high market interest rates, you might want to consider a rate-and-term refinance now while the rates are lower. This type of refinance is also a great option for homeowners who have seen positive changes in their financial situation since they purchased. If your consumer credit score has improved drastically over the last few years you’ve owned your home, you could qualify for a much lower interest rate. 

Rate-and-term refinances aren’t right for everyone. If you’ve only been in your home for a few years and you haven’t experienced any major financial changes, you might be better off waiting a few years or looking for a different type of refinance. 

No matter what you decide, make sure you’re working with a team of trusted experts. There are so many individual factors to consider when refinancing your mortgage, and you’ll want someone who has the time to answer all of your questions and make sure your specific needs are meant. If you think a rate-and-term refinance is right for you, give us a call today!