Brett Larson Buyer Guide

home THE ROAD TO

A HOME BUYER'S GUIDE

Brett Larson

608.575.4123 | BRETTLARSONREALESTATE@GMAIL.COM

Committed to bringing you the most professional, informative, trustworthy & dedicated service.

My responsibility is protecting the interests of my clients in every transaction.

Welcome

Powerful Results. Real People Lauer Realty Group is a full-service residential brokerage, specializing in home sales in the most desirable neighborhoods in Madison, Dane County and beyond. It takes more than a computer and MLS access to move you when and where you want to go.

The best real estate transactions happen with a great realtor at your side, and gives you the edge in the process. We bring our clients the latest information, technology, and our mastery of the industry. In using our expertise, you’re tapping into the top performing 1% of realtors in Dane County for over a decade.

At your side and on your side. Our Madison real estate agents live, work, and play right here in the Madison area and are deeply tied to the communities where you’re looking to purchase. We know the perks and quirks of each neighborhood, and we’ll work hard to honor the unique hopes and dreams you bring to the table when searching for a home.

At Lauer Realty Group we believe that being the best isn’t something you say, it’s something you are. We believe the most important thing is that we listen to our clients’ wants, needs, and expectations and deliver on them every single time. Thank you for your interest in our firm and we look forward to delivering a superior real estate experience that exceeds your every expectation.

Cheers, Liz Lauer

TO BUYING A HOME

ten steps

FIND THE RIGHT AGENT PREPARE FINANCES GET PRE-APPROVED START HOME SHOPPING MAKE AN OFFER ORDER AN INSPECTION NEGOTIATE FINAL OFFER APPRAISAL ORDERED SCHEDULE THE MOVE CLOSING DAY

FIND THE RIGHT AGENT Buying a home is one of the most significant purchases in a lifetime. It is essential to have an experienced agent in your corner, always looking out for your best interest. A buyer agent’s fiduciary responsibility is to represent the buyer and to ensure that they are protected.

After all, a seller has someone in their corner. A listing agent has an allegiance to the seller. Their goal is to get the seller top dollar for their home. There is incredible value in having someone working for YOUR best interests when buying a home.

GETTING YOU IN THE DOOR

We will narrow down the homes that fit your unique wants and needs and get you in the door! I look at dozens of homes every week, and I can help you identify potential problems within a home.

HANDLING CHALLENGING CONVERSATIONS

When repairs or changes in price need to be made, I will be your guide and handle requesting any repairs or changes in price to the sellers.

STAYING ON TOP OF THE PAPERWORK

Buying a home involves many types of documentation. I have the experience and knowledge to navigate real estate contracts.

Ensuring that nothing is overlooked, and that you truly understand what a paper means before ever signing on the dotted line.

ON YOUR SIDE

A buyer’s agent will represent your best interests. With a pulse on the local market and a sound understanding of how various amenities effect the value of a home, we will make sure we submit a competitive offer on the right house for you.

NEIGHBORHOOD EXPERT

I work daily in neighborhoods with inspectors, contractors, and negotiating with sellers. I have the market knowledge you need to get you the home of your dreams at the best price! Understanding the local real estate market is essential when it comes time to make an offer on a house.

PROBLEM SOLVER

I will work hard to protect all of your interests and take on any issues that may arise throughout the entire process. I work tirelessly to make sure buying a home is a fun and stress-free process.

AFFORDABILITY

The seller typically pays the commission for both the seller’s agent and the buyer’s agent.

Home Wishlist/Must Haves

PREPARING

for a home loan

PREPARE FINANCES HOW MUCH HOUSE CAN YOU AFFORD? Mortgage lenders recommend you do not buy a home that is more than 3 to 5 times your annual household income. If you are not purchasing a home with cash, you will need a mortgage pre-approval provided by your mortgage lender. A lender will work with you to get a loan that meets your needs. Some buyers are concerned with keeping their monthly payments as low as possible, others want to make sure that their monthly payments never increase.

CHECK YOUR CREDIT

A mortgage requires a good credit score. You can improve your score by: ●Paying down credit card balances ●Continuing to make payments on time ●Avoid applying for a new credit card or car loan until you have been approved ●Avoid making big purchases until you have been approved ●If possible, avoid job changes until you have been approved

SAVE CASH FOR A DOWN PAYMENT & OTHER EXPENSES

In order to make your dream of buying a home a reality, you will need to save cash for your down payment, earnest money, closing costs & home inspector. ●A Down Payment is typically between 3.5% & 20% of the purchase price ●Earnest Money is money you put down to show you’re serious about purchasing a home. It’s also known as a good faith deposit. ●Closing Costs for the buyer run between 2% & 5% of the loan amount ●A Home Inspection costs $300 to $500

GET PRE-APPROVED Being pre-approved, unlike being pre-qualified, means you've actually been approved by a lender for a specific loan amount. You will need to provide documented financial information (income, statements, assets, debt & credit reports etc.) to be reviewed & verified by the lender.

GET

qualified

TYPE OF LOAN

CREDIT SCORE

DOWN PAYMENT

CONVENTIONAL USDA LOAN FHA LOAN

620 620 580+

3% NO DOWN PAYMENT 3.5%

VA LOAN 203K LOAN

620 640

NO DOWN PAYMENT 3.5%

JUMBO LOAN

700

10-20%

INCOME

qualifications

QUALIFYING INCOME

NON-QUALIFYING INCOME

W-2 Income/Salary Income from part-time jobs Income from a second Job Overtime & Bonuses Seasonal jobs Self-employed Income Alimony & child support (Documentation required)

Income from the lottery Gambling Unemployment pay Single bonuses Non-occupying co-signer income Unverifiable income Income from rental properties

NEEDED

documents

W2’S FROM THE PAST 2 YEARS 3 MONTHS WORTH OF PAY-STUBS BANK STATEMENTS (PAST 3 MONTHS) PREVIOUS 2 YEARS OF TAX RETURNS LIST OF YOUR DEBTS & ASSETS DIVORCE DECREE ADDITIONAL INCOME DOCUMENTS

TYPES OF LOANS

TYPES OF

mortgage LOANS UPFRONT MORTGAGE INSURANCE

MONTHLY MORTGAGE INSURANCE

MINIMUM CREDIT SCORE

NONE

REQUIRED

620

NONE

1% of the loan amount.

REQUIRED

620

At least 3.5% of purchase price

1.75% of loan amount

REQUIRED

580-640

NONE

0-3.60% of loan amount

NONE

580

At least 3.5% of purchase price

1.75% of loan amount

REQUIRED

580-640

Varies from 10% -20%,

NONE

REQUIRED

700

WHO QUALIFIES

DOWN PAYMENT

CONVENTIONAL

Anyone who meets the minimum credit and income levels.

At least 3% of purchase price

USDA Department of Agriculture

Someone who is buying a home in a USDA -designated rural area.

FHA Federal Housing Administration

Anyone who meets the minimum credit and income levels.

Veterans

VA Department of Veteran Affairs

Personnel with honorable discharge Reservists & National Guard Surviving Spouses

203K Federal Housing Administration

JUMBO

Anyone who plans to purchase a fixer-upper or needs to renovate their home and meets credit & income requirements

Anyone who meets lenders credit, income & debt level requirements

START

shopping

START HOME SHOPPING START TOURING HOMES IN YOUR PRICE RANGE Time to start shopping! We will take notes on all the homes we visit. It can be hard to remember all the details of each home, so take pictures or video to help you remember each home, and review the notes you have written. Once we have found THE house for you, we will present an appropriate offer based off of recent sales and current buyer activity in the area, as well as the value of the property in it’s current condition. Negotiations may take place after the offer is presented.

TIP Evaluate the neighborhood and surrounding areas •Are the surrounding homes well maintained to your liking?

•How much traffic is on the street, does it matter to you?

•Is it conveniently located to schools, shopping, restaurants, & parks?

MAKE AN

offer

MAKE AN OFFER WHEN TO MAKE AN OFFER:

So you have found THE house! Congrats! In today’s market when the demand is higher than the amount of homes available it is important to act fast!

HOW MUCH TO OFFER:

We will sit down and look at recent sales and current buyer activity in the area, as well as the value of the property in it’s present condition.

Putting all this information together, we will determine the price that you would like to offer.

SUBMITTING AN OFFER

There are some components to an offer that makes it more appealing to the sellers.

•Put Your Best Foot Forward

We will work together to discuss your options and create your very best offer. Depending on the circumstances, you may have only one chance to make a good impression.

•Put Down an Earnest Deposit

A healthy earnest money deposit written into the offer shows the seller you are serious

•Cash Talks

A transaction that is not dependent on receiving loan approval is often more attractive to a seller

•Shorter Inspection Periods

Try shortening the inspection period to 10 days

•Contingencies

If the market is very competitive we may discuss the needed contingencies vs what to expect if you choose to exclude any.

•Offer to Close Quickly

Many sellers prefer to close within 30 days.

THE PROCESS AFTER YOU SUBMIT AN OFFER THE SELLER COULD •ACCEPT THE OFFER •DECLINE THE OFFER This happens if the seller thinks your offer isn’t close enough to their expectations to further negotiate.

•COUNTER-OFFER A counter-offer is when the seller offers you different terms. If this happens, you can:

•ACCEPT THE SELLER’S COUNTER-OFFER •DECLINE THE SELLER’S COUNTER-OFFER •COUNTER THE SELLER’S COUNTER-OFFER You can negotiate back and forth as many times as needed until you reach an agreement or someone chooses to walk away.

OFFER IS ACCEPTED - CONGRATS! You will sign the purchase agreement and you are now officially under contract! This period of time is called the contingency period. Now inspections, appraisals, or anything else built into your purchase agreement will take place.

ORDER AN INSPECTION During the inspection period, you will schedule an inspection with a reputable home inspector to do a thorough investigation of the home. Once this is complete, the inspector will provide us with a list of their findings. You can take the issues as-is or request the seller to address some or all of the findings. We will be mindful and reasonable on smaller items, while being very cautious and vigilant of potentially significant issues.

NEGOTIATE FINAL OFFER Issues typically arise after the home inspection, and those issues tend to result in another round of negotiations for credits or fixes.

1. Ask for a credit for the work that needs to be done. Likely, the last thing the seller wants to do is repair work.

2. Think “big picture” and don’t sweat the small stuff. Tile that needs some caulking, or a leaky faucet can easily be fixed.

Repairs are still up for negotiation and perhaps a small credit would help with closing costs.

3.Keep your poker face. Typically it's just you and the inspector present during inspections, however occasionally the seller and/or list agent may be present. Revealing your comfort level with the home could come back to haunt you in further discussions or negotiations.

APPRAISAL ORDERED Your lender will arrange for a third party appraiser to provide an independent estimate of the value of the house you are buying. The appraisal lets all parties involved know that the price is fair. The loan file then moves on to the mortgage underwriter.

If approved you will receive your final commitment letter that includes the final loan terms & percentage rates.

Property Title Search

Homeowner's Insurance

This ensures that the seller truly owns the property, and that all existing liens, loans or judgments are disclosed.

You'll need insurance for the new home prior to closing.

This will protect against things like fire, storms and flooding

scheduling

YOUR MOVE AFTER SIGNING •FINALIZE MORTGAGE •SCHEDULE HOME INSPECTION •Declutter! Sort through every drawer, closet, cupboard & shelf, removing items you no longer need or like. Donate or sell items that are in good condition •Make sure to have copies of all important documents and have them safely stored to easily find when needed •Create an inventory of anything valuable that you plan to move •Get estimates from moving companies

4 WEEKS TO MOVE

•Give 30 days notice if you are currently renting •Schedule movers/moving truck •Buy/find packing materials •START PACKING

3 WEEKS TO MOVE

•ARRANGE APPRAISAL •COMPLETE TITLE SEARCH (TITLE COMPANY WILL DO THIS)

2 WEEKS TO MOVE

•SECURE HOME WARRANTY •GET QUOTES FOR HOME INSURANCE •SCHEDULE TIME FOR CLOSING •Contact utility companies (water, electric, cable) •Change address: mailing, subscriptions, etc.

•Minimize grocery shopping •Keep on packing

1 WEEKS TO MOVE

•OBTAIN CERTIFIED CHECKS FOR CLOSING •SCHEDULE AND ATTEND FINAL WALK THROUGH •Finish packing •Clean •Pack essentials for a few nights in new home •Confirm delivery date with the moving company. Write directions to the new home, along with your cell phone number

closing day

CLOSING DAY Closing is when you sign ownership and insurance paperwork and you receive your new home’s keys! Typically, closing takes four to six weeks. During this time, make sure to make no big purchases or job changes that could affect your loan approval prior to closing day. Funds are brought the day of to complete the purchase.

CLOSING DISCLOSURE Lenders are required to provide you with a closing disclosure, at least three days before closing. This will show you what your final loan terms and closing costs will be. You will have three days to review the statement. This is done to ensure that there are no surprises at the closing table. If there is a significant discrepancy between the loan estimate and the closing disclosure, we must notify your lender and title company immediately.

FINAL WALK THROUGH We will do a final walk through the home within 3 days of closing to check the property’s condition. This final inspection takes about an hour. We will make sure any repair work that the seller agreed to make has been done.

We will be sure to: • Make sure home is clean • Seller removed any and all personal property that was not discussed in offer • Any included items in offer have remained on property CLOSING TABLE Who will be there: • Your agent • The seller • The seller’s agent • A title company representative • Your loan officer • Any real estate attorneys involved in the transaction The closing typically happens at the title company. You will be signing lots of paper work so get your writing hand warmed up! Some of the papers you will be signing include: the deed of trust, promissory note, and other documents.

CLOSING COSTS Closing costs can vary depending on your home’s purchase price and where you are located. Your lender should be able to help determine the closing costs as well. You can generally expect your closing costs to be around 2% to 5% of the home’s sales price.

BRING TO CLOSING • Government-issued photo ID • Homeowner’s insurance certificate • A certified check for the rest of your down payment and closing cost (personal checks are not accepted at closings) RECEIVE YOUR KEYS Congratulations! It was a lot of hard work but you are now officially home owners!!

Time to throw a party and get to know your new neighbors!

LENDERS& INSPECTORS

protect your loan approval DON’T buy or lease a new vehicle.

DON’T quit your job to change industries, start a company or go into business for yourself.

DON’T switch from a salaried job to a commission job or a 1099 independent contractor position.

DON’T transfer large sums of money between bank accounts.

DON’T forget to pay your bills, even ones in dispute.

DON’T open new credit cards.

DON’T make big purhcases on existing credit cards. (Buy furniture and appliances AFTER you own the home.)

DON’T close any credit card accounts.

DON’T accept a cash gift without filing the proper “gift” paperwork.

DON’T make random, undocumented deposits into your bank account.

DON’T spend the money you have set aside from closing.

DON’T omit debts or liabilities from your loan application.

DON’T do things that cause inquiries into your credit score. This includes test driving cars (they sometimes pull your credit)!

DON’T co-sign a loan for someone. This debt will change the ratios that qualified you for your loan.

Should circumstances arise where you need to engage in these activities, consult your Lender first.

recommended LENDERS

The following Lenders are recommended by previous clients. You are not required to choose from this list and are encouraged to do your own research to determine the best Lender for you.

AMY FOSDICK

RICK MCKINLEY

Office: 608-834-5594 Email: amy.fosdick@bankfivenine.com

Office: 608-232-5000 x2015 Email: rmckinley@uwcu.org

ADAM PELLETTER

MICHAEL ZILLI

Office: 608-243-5000 ext. 2493 Cell: 608-347-2888 Email: adam.pelletter@summitcreditunion.com

Mobile: 608-318-4671 Email: mzilli@fairwaymc.com

Bank Five Nine

Summit Credit Union

UW Credit Union

Fairway Independent Mortgage Corp

Home Inspections When you are purchasing a property we highly recommend that you have a Professional Home Inspector conduct a thorough inspection.

The inspection will include the following: *Appliances *Plumbing *Electrical *Air Conditioning (weather permitting) and Heating Systems *Ventilation *Roof and Attic (if accessible) *Foundation * General Structure

The inspection is not designed to identify every minor problem or defect in the home. It is intended to report on defects that, at the time of the inspection, are identified as causing health or safety risks, or that affect the resale value of the property. Should serious problems be found, the Inspector will recommend that an additional inspection be done by a Qualified Professional (i.e. Electrician, Plumber, Roofer, ect).

Your home cannot “pass or fail” an inspection and your Inspector will not tell you whether they think the home is worth the money you are offering, or if you should or should not buy the home. The Inspector’s job is to make you aware of repairs that are recommended or necessary.

As a guideline, the Seller may be willing to negotiate; a.)The completion of repairs b.)A credit for the completion of repairs In addition to the overall inspection, you may wish to have separate tests conducted (i.e. well water, septic system or the presence of Radon gas).

When choosing a Home Inspector, be sure to select one that has been certified as a qualified and experienced member by a Trade Association.

We strongly recommend being present at the inspection. This is to your advantage, as you will be able to clearly understand the inspection report and know exactly which areas need attention. Plus, you can get answers to many questions, tips for maintenance, and general information that will help you once you move into your new home. Most importantly you will see the home through the eyes of an independent third party.

qualified

INSPECTORS

The following inspectors again are recommended from previous clients, as well as being inspectors we know are thorough and professional. Again, you are not required to use an inspector on this list and are welcome to do your own research and pick an inspector of your choice.

MIKE HOESER

BRIAN PAULL

Office: 608-276-8060 Email: mike.hoeser@amerispec.net

Office: 608-845-9300 Email: brian@premierhomeinspector.com

DENNIS KRUGER

KYLE BECKSTROM

Cell: 608-835-5395 www.homegauge.com/shgi/drkruger/

Office: 608-395-9689 Email: madisonhomeinspectionllc@gmail.com

PAT SKEFFINGTON

PATRICK SHANNAHAN

Office: 608-492-0360 Email: pjskeffington@gmail.com

Office: 608-354-5366 Email: Newrootshomeinspection@gmail.com

AmeriSpec

Southern WI Home Inspection

Inspection 360 Pros

Premier Inspection & Consulting

Madison Home Inspection

New Roots Home Inspections

ABOUT US

nice to meet you Brett Larson BROKER ASSOCIATE

My path to becoming a licensed Realtor in 2012 and Broker in 2013 was built upon experiences that have been beneficial to serving my clients in buying, selling, and investing in real estate. After earning a degree in Natural Resources and Landscape Architecture from UW-Madison, I worked as an ecologist and owned and operated a landscape design company and a home remodeling company. In addition, I operated a property management company, renovated homes for resale, and owned and managed single family and commercial investment properties.

These experiences have allowed me to successfully represent a diverse set of clients from first-time homeowners to seasoned investors. I take pride in my responsiveness, and past clients also appreciate my creativity, patience, and expertise in the real estate process.

I have made Madison my home for the past 38 years and currently live on the near west side with my partner Jill, a recently retired educator in the community. We continue to volunteer locally including Olbrich Gardens, Luke House Community Meal Program and neighborhood events. We raised three children who attended the Madison School District and participated in the many activities that are available to youth in this area.

As a result of my years and experience here, I am an excellent resource for all things Madison and the surrounding areas and am an enthusiastic fan of outdoor activities including cross country skiing, biking, kayaking and golf.

MEET THE TEAM Liz Lauer

Lindsey Cooper

Lindsey DeFlorian

Rachel Whaley

Alejandra Torres

Tom Syring

Asher Masino

Tina Rogers-Frisch

REALTOR®

EXECUTIVE ASSISTANT COMPLIANCE BROKER

Jon Millard

Tamara McDougal

Kate Weis

Toni Kraile

Mark Gladue

Ben Anton

Brian Rea

Minh Nguyen

Tobi Silgman

Cristina Daza

Renee Heine

BROKER/OWNER

REALTOR®

REALTOR®

BROKER

REALTOR®

REALTOR®

REALTOR®

BROKER ASSOCIATE

BROKER ASSOCIATE

BROKER ASSOCIATE

REALTOR®

REALTOR®

REALTOR®

REALTOR®

MARKETING COORDINATOR

EXECUTIVE ASSISTANT FOR GLADUE TEAM

AGENT ENGAGMENT LAISON ADMINISTRATIVE ASSISTANT

Community

OUTREACH We believe in and are committed to staying connected and involved with our local community. We love to give back and throughout the year we participate, contribute, sponsor, and donate time and resources to many wonderful organizations and causes. You’ll be sure to find us volunteering in neighborhood festivals, walking in a community parade, and supporting local artists. Whether it’s fundraising with the Goodman Center for the Annual Thanksgiving Drive, or working with GSAFE to ensure LGBTQ+ youth and families thrive, we are dedicated and passionate about the community we live in.

#atLRGinthecommunity

REVIEWS & MORE

“When my wife and I set out to buy our first house in 2017, we were greeted by a fast-moving, intimidating market. Thank goodness a friend referred us to Brett. Brett’s expertise and honesty were immeasurably important, not only in finding our current home but in the negotiating process.

Since buying our house, we have happily referred Brett to family and friends with no hesitation, and he has treated them with the same patience and respect shown to us. We hope to work with Brett for every future home purchase and cannot recommend him enough.”

“In the midst of a competitive real estate market, Brett helped us find a house that had everything we wanted and was within our price range. He was great at finding prospective homes for us to look at. On our visits to those homes, it was valuable to have his remodeling experience to help us evaluate those homes. He helped guide us successfully through the offer process, and he was helpful and proactive at every step from offer to closing. We would happily recommend Brett to all of our family and friends. You couldn’t have a better agent by your side”

“Brett was recommended to us by a colleague and working with him was an absolute pleasure!

His experience helped us navigate a tough Madison housing market while still living out of state and led to the purchase of a great home in a neighborhood that is perfect for us. We would highly recommend Brett to anyone who is in the market for a new Madison-area home!”

“We’ve used Brett twice to help us find our perfect home in Madison, the second included a move back across state lines! He was extremely flexible with us through the entire process. Brett provided on the ground information while we were hundreds of miles away, procured a lengthy list of homes that met our needs, and took an entire weekend to set up showings for all of these homes in the 3 short days we were in town to knock everything out! We’re pretty picky and have a lot of questions and Brett never wavered or made us feel like we were “too much” in working through everything with us. We couldn’t recommend him highly enough!”

"My boyfriend and I worked with Brett when we decided to buy our first house together, as well as to sell my house and my boyfriend’s condo. It was obvious from the start that Brett had our best interests in mind throughout the entire home buying/selling process. He took the time to listen and understand our needs, budget, and criteria we were looking for in a house, and was extremely knowledgeable about the market. Brett struck the perfect balance of educating and advising without ever being pushy or demanding.

Navigating three sizable real estate transactions simultaneously was overwhelming at times, but Brett calmly guided us through every step and detail and was so supportive.

We ended up with the perfect house for us.

We highly recommend Brett for buying or selling a home!"

glossary of Real Estate terms

These terms represent a small portion of the jargon used in describing the purchase process for Real Estate. An important part of our relationship is making you more familiar with how these terms are part of your puchase and ownership of Real Estate. We have provided here a simplified, common language explanation of these terms limited to how they will most likley be used in your home puchase process.

Appraisal-An estimate of the quanitity, quality or value of something. The process through which conclusions of property value are obtained; also refers to the report that sets forth the process of estimation and conclusion of value. (Most Lenders require an appraisal of a property before giving you a loan to confirm that the sale price reflects the market value of the home.)

Assessment-The imposition of a tax, charge or levy, usually according to established rates. (In Dane County, Real Estate taxes are based on the Municipality’s assessment or financial value assigned to a home and land. Ask us for the current tax rates in the areas you are looking.)

Buyer Agency Agreement-An agreement which allows a REALTOR® to represent the best interests of a Buyer throughout the search, negotiations, and purchase process.

Capital Gain-Profit earned from the sale of an asset.

Closing Statement-A detailed accounting of a Real Estate sale showing all cash received, all charges and credits accounted for, and all cash paid out in the transaction.

This is the standardized form which is used as the final accounting at time of closing to determine the amount of funds due at the time of closing. (Also known as a Settlement Statement or ALTA.) Competitive Market Analysis (CMA)-A comparison of the prices of recently sold homes that are similar to a particular home in terms of location, style and amenities.

(When we find you a home that you are going to make an offer on, we will look at the sale prices of comparable properties to help determine an offer price.)

Earnest Money-Money paid by a Buyer under the terms of an offer contract, held by the Listing Broker during the term of the contract, and credited back to the Buyer at time of closing. This money is understood to be forfeited if the Buyer defaults on their offer contract.

Easement-A right to use the land of another for a specific purpose, such as for a right-of-way or utilities. An easement can stay in place beyond the sale of a property, therefore any Buyer will receive Title Insurance to discover any recorded easements that will stay with the property.

Equity-The interest or value that the owner has in proeprty over and above any indebtedness.

Escrow-The closing of a transaction through a third party called an Escrow Agent, or escrowee, who receives certain funds and documents to be delivered upon the performance of certain conditions outlined in the escrow instructions. (Brokerage companies, i.e. Lauer Realty Group Inc, acts as an Escrow Agent while holding earnest money.)

Fixture-An item of personal property that is attached to the Real Estate property or function of the property in such a way that it is considered part of that Real Estate (i.e. light fixtures, floorboards, furnace, water heater, doorknobs.

Lien-A right given by law to certain creditors to have their debts paid out of the debtor’s property. This is a debt that must be paid by the Seller prior to receiving any proceeds on the sale of a home and includes any debts for which the property is put up as collateral (a mortgage).

PITI-Principle, Interest, Taxes and Insurance. This amount makes up the monthly payment normally due monthly to the home owner’s mortgage company.

Private Mortgage Insurance (PMI)-Insurance provided by private carrier that protects a Lender against a loss in the event of a foreclosure and defi ciency. This is usually required when a loan amount exceeds 80% of the value of the property. Ask about loan program options that avoid PMI. Special Assessment-A tax or levy customarily imposed against only those specific parcels of Real Estate that will benefit from a proposed public improvement like a street or sewer. (It is important in a Real Estate transaction to determine who will be paying the balance if a special assessment is upcoming or currently due.)

Title Insurance-A policy insuring the owner or mortgagee against loss by reasons of defects in the title (ownership) of a parcel of Real Estate, other than encumbrances, defects and matters specifically excluded by the policy. It is also provided as proof of ownership of the property, usually provided by the Seller to a Buyer, which also shows any other liens or encumbrances which are attached to a property.

Truth-in-Lending-Act requiring credit institutions to inform borrowers of the true cost of obtaining credit.

unicorn HELPING YOU FIND YOUR

Brett Larson

608.575.4123 BRETTLARSONREALESTATE@GMAIL.COM 2526 MONROE ST MADISON, WI 53711 LAUERREALTYGROUP.COM