Should You Refinance Your Home?

Admin Blog Post

As mortgage rates hit a historical low, you may be wondering whether or not you should begin the process of refinancing your mortgage. At Frank B. Pallotta Law Firm, we are here to walk you through your options and guide you in the best way we can. 

Benefits of Refinancing

There are multiple advantages to refinancing your mortgage loan. If mortgage rates are exceptionally low to the point that it would lower your monthly mortgage payment, this would be a great opportunity for you to move forward with the refinancing process. 

Another great reason to refinance your mortgage is to shorten your loan term from a 30 year loan to a 15 year mortgage loan. This could seriously accelerate your goals to having your home completely paid off. 

If you have an adjustable rate mortgage (ARM), refinancing your mortgage could give you more predictable payments with a fixed-rate loan to lock in your rate for the remainder of the loan. 

You Should Refinance If…

If you’re facing a cash flow issue then a cash-out refinance issue may be the best plan for you. You can read more about this option in our latest blog post. Since mortgage loans usually have lower interest rates and are tax deductible, this might be a good option for you.

If you have reached 20% equity in your home then it is time to refinance to eliminate the lender-paid mortgage insurance (PMI) premium that is built into your loan.

Lastly, if you need to remove a person from your mortgage usually due to a divorce or to remove a co-signer no longer needed, the only way to accomplish this is by refinancing. 

What To Expect When Refinancing

Before you begin the refinancing process, there are a few things you’ll want to check first. Make sure you have at least 20% equity in your home. If you will still have to pay PMI even after you refinance for a lower interest rate, you will want to crunch the numbers to see if refinancing even makes sense for you. 

You’ll also want to check to make sure your credit score is at least 760 and your debt-to-income ratio is 36% or less. This will give you the best chances to get the lowest interest rate. 

Last but not least, be sure to calculate the break-even point and how refinancing will affect your taxes.

Ready to Call Your Real Estate Attorney?

If you think refinancing is the best next step for you or if you have more questions about what your options are, we are here to help you. Give us a call today and let our expert team guide you. With videoconferencing still in effect under COVID-19 Executive Orders, Frank B. Pallotta Law can make your refinance closing even easier.

What You Should Know About Home EQUITY

Admin Blog Post

We can set all the right plans for our future but no one could predict things like a global pandemic, an economic recession or a natural disaster. When those things hit, it’s important to know what options you have to get your hands on some cash if you need it.

If you need a cash-out refinance or a home equity line of credit, there are some important things to know about the process and how that will impact you long term. 

What is a Cash-Out Refinance?

When you have a cash-out refinance, you are borrowing against your home equity to obtain funds. With this type of refinancing, you receive your check at closing and the amount of this loan is then added onto the mortgage that you owe. Since mortgage rates tend to be lower than other types of debt and are tax-deductible, this route can be a very cost-efficient way to borrow.

Doing this results in a new mortgage loan which may have different terms than your original loan. These terms could range from a different type of loan, a different interest rate or a longer or shorter time period for paying off your loan.

Before your check is cut, proceeds are first used to pay off your existing mortgage and any closing costs or prepaid items. You can expect similar closing costs to your original mortgage at your cash-out refinance closing.

What is a Home Equity Line of Credit?

Home equity line of credit (HELOC) is taken out in addition to your existing mortgage. Since this is considered a 2nd mortgage, it will have its own term and repayment schedule separate from your 1st mortgage. However, if your house is already paid for and fully owned by you (no mortgage), some lenders allow you to open a home equity line of credit and the HELOC will be your 1st and only mortgage.

With a HELOC, you can withdraw from your available line of credit as needed during your draw period, which is usually about 10 years. During this period, you’ll make monthly payments with principal and interest. After the draw period ends, the repayment period begins with 20 years to repay the outstanding balance.

HELOC usually has no (or relatively small) closing costs.

Ready to Call Your Real Estate Attorney?

If you’re in need of taking any equity out on your home, the best next step is to call Frank B. Pallotta Law today. Our expert team will guide you through your current situation and make you feel confident in choosing the right decision between a cash-out refinance or a home equity line of credit. And with videoconferencing still in effect under COVID-19 Executive Orders, Frank B. Pallotta Law can make your refinance closing process entirely stress free. 

Why Home Buyers Should Hire a Real Estate Agent

Admin Blog Post

When searching for a new home in Georgia, you may not be aware that you could technically do it on your own. Georgians are not legally required to hire a real estate agent to assist in finding and purchasing a home. However, if you ask anyone at Frank B. Pallotta Law, the first thing we’re going to recommend is to start interviewing realtors. 

Interviewing real estate agents may sound like a daunting task but, most of the time, all it takes is simply asking your friends and family if they know a good realtor and you’ll probably end up with a longer list than you anticipated. If that comes up with little to no results, we would be happy to provide recommendations of real estate agents in Cobb, Cherokee, Fulton and surrounding Metro Atlanta counties. 

Why Hire a Professional?

A highly skilled real estate agent will help you navigate the real estate industry. They will have a team in place to guide you through one of the largest financial investments of your life. 

To make sure you know who you’re going into business with, start by researching online, ask about everyone on their “team” and learn what techniques they use to get their buyers on the winning end of every purchase. 

One question that is usually overlooked is who they use as their closing attorney. The most important phase of purchasing real estate is the moment the legally binding contracts are signed so it’s worth researching the real estate lawyer who will be processing the transaction.

Remember you are the CEO of your home search! Everyone you hire to guide you through the process, works for you.

Benefits to Hiring a Real Estate Agent

Money is the obvious benefit to hiring a real estate agent for both buyers and sellers. It’s understandable why so many people may initially think that having a middle man between buyer and seller is a waste of money but there are major financial benefits to realtors. Realtors know negotiation. As an unrepresented home buyer, you may miss huge opportunities just by simply not knowing what you can negotiate and what you cannot; what increases your home value and what does not. 

Money aside, real estate agents do a lot of the heavy lifting for you. We all know moving is a major transition and, unfortunately, the world doesn’t stop just because you are moving. You will be juggling more than usual, adding legal documents into the mix without a professional keeping you on track could get dicey. Important things that real estate agents are trained to handle might slip through the cracks. 

At the end of the day, your investment is too important to not hire a real estate agent. 

The final step in your home buying process is the closing. Behind every successful real estate agent is a highly skilled real estate attorney that takes over to process the transaction in a peaceful and fair manner after the selling price and terms have been established.

Georgia Law Requires a Real Estate Attorney 

Although Georgia does not require a realtor to buy or sell a home, all closings must be conducted by a licensed Georgia real estate attorney. Since we already know that closing on a home requires you to sign stacks of legal documents, you’re going to appreciate having that person in the room to help you understand what you’re signing and agreeing to. 

If you decide to buy your next home without a real estate agent, just note that you are still required to have a real estate attorney present at closing. Frank B. Pallotta Law would be happy to help you through that! Give us a call today and let our expert team guide you.

How COVID-19 is Temporarily Changing Georgia Real Estate Law

Admin Blog Post

Every industry in the country has been affected in some way by the COVID-19 outbreak; real estate is no exception. If you’re planning on buying, selling or refinancing a home in Metro Atlanta during the coronavirus pandemic, we’ll take you through the State of Georgia Executive Orders that have been put into effect during this time to ensure your real estate closing appointment is not canceled due to the impact of COVID-19. 

As far as we know, these orders continue to remain in effect even though Governor Kemp has begun to reopen Georgia. As to when the orders will be lifted, we’re not sure, but all of us at Frank B. Pallotta Law are committed to keeping you informed on the real estate laws in Georgia as they continue to evolve.

Below we will reference Executive Order 04.09.20.01 from Governor Kemp. We will break down a few key points that we think are important to understand, specifically regarding “virtual” closings.

Virtual Real Estate Closing via Videoconference

The law that requires a notary, “an attorney licensed to practice law in Georgia or be operating under the supervision of an attorney licensed to practice law in Georgia”, to be present in person to notarize the signing of a legal document has been temporarily suspended. The result is that all the parties to the transaction do not need to gather in one room at the same time to complete the closing.

Remote online authorization has been put into effect using real-time audio visual communication technology (“AVCT”) meaning your closing attorney (notary) can be present via videoconference (i.e. Zoom, MS Teams, Skype, etc.). Recording the AVCT session from beginning to end is required; just make sure everyone is aware when recording begins.

First and foremost, everyone involved in the closing appointment must be physically located in the state of Georgia during the videoconference. 

The signer must present their proper identification to the closing attorney. You may also have to verify your identity through a 6-digit verification code that will be text to the known signer’s phone number. This code will be included in the closing file. Your closing attorney will then witness all “wet” signatures during the real-time AVCT session.

When you first receive your closing package from Frank B. Pallotta Law, you will find a return FedEx envelope with a mailing label attached as well as a blue ink pen for the signing. During the same videoconference session, you will be required to put all of the signed documents into the FedEx envelope and seal it in-view of the attorney. Immediately after the session has ended, you will deliver the envelope via overnight delivery.  

At the end of the videoconference, it’s recommended by the General Best Practices Under Executive Order 04.09.20.01 to consider stating something along the lines of, “This [name of document] was notarized pursuant to Executive Order 04.09.20.01 using [insert technology name] as real-time audio visual communication technology.” Many lenders require such a document be included in the closing package.

Everything else you would normally bring to your real estate closing appointment remains the same. Make sure you have a strong internet connection and have communicated with your attorney about their own videoconference or AVTC process.

If you have more questions or concerns about real estate law in Georgia during the Coronavirus/COVID-19 global pandemic and how it might impact your attempt to buy, sell or refinance your home, Frank B. Pallotta Law is here to help! Give us a call today and let our expert team guide you.

You can find more information about the Executive Orders put into effect due to COVID-19 on the State Bar of Georgia’s website.

Selling Your Home During the COVID-19 Outbreak

Admin Blog Post

The term “new normal” has been used a lot lately when describing the rippling effect the Coronavirus, COVID-19 has had on our country and the world. But there is nothing normal about empty parks, clear roads or long-term school closures. And there is certainly nothing normal about selling your home when you literally can’t be anywhere else.

So far, the real estate market in Metro Atlanta remains open for business but gone are the days of running to Starbucks to pass the time while potential buyers tour your home.

All the medical experts will advise you that the safest route right now is to hold off on putting your home on the market. The rules of the past regarding the best times to sell your home, currently do not apply.

Life, however, isn’t always that simple and you may be facing circumstances that require you to move forward with your home selling process regardless of a shelter-in-place order from your city.

It’s time to get creative and flexible…

1. Create a Video Walk Through of Your Home

Clean the house, turn on all of the lights, organize closets, remove any clutter, pick up the rugs and take down any personal photos… then start filming! You’ll want to film in a “POV” (point of view) style using a DSLR camera or the newest smart phone you have. If you’re using a phone, remember to hold it horizontally while filming.

If your realtor doesn’t have the equipment or experience to do this for you, there are so many resources available online to help guide you through the process. Here’s a great example to get started: https://www.youtube.com/watch?v=GWtK4berZ2s

2. Teleconference Live Virtual Tours with Realtors & Buyers

Technology is playing the biggest role in keeping our economy afloat while we navigate through this current health crisis. Be open to giving potential buyers as many virtual home tours as they request until they feel ready to make an offer. At that time discuss with your realtor about a plan for physical home showings. Discuss a plan that allows sanitizing between appointments and precautions you would like the buyers to take when in the home; i.e. No shoes inside the house, no touch policy unless wearing gloves, only the essential people attend (no children) and if anyone is having symptoms of any kind, they do not attend.

3. Move Out, If Possible

Moving out before your home sells is not an option for everyone unless you have the financial means or a generous friend or family member that can offer you a place to stay without adding any extra risk to either one of you (i.e. someone in the house is a health worker and you are immune compromised or vice versa).

If you have a parent or a grandparent who could use the extra company, it’s a win-win for the both of you! What sounds better than spending some precious time with grandma while your empty house remains open for potential buyers?

Now once you move onto the closing process, we can take it from there! All of us at Frank Pallotta Law are working day and night with real estate agents in Cherokee and neighboring counties to ensure business continues for our clients. You can read more about the steps we are taking to keep your closing process moving forward while also maintaining everyone’s health and safety in our Message To Our Clients About COVID-19 and check out our Facebook for updates as things progress.

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

Admin Blog Post

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?

Admin Blog Post, Uncategorized

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!