in the know

Access to financing and experiencing a successful real estate transaction can benefit from planning.

A word about financing real property
Determine what you can afford and get a lender on board.
Do you want to own your own home or invest in real property as a business venture?

Are you considering financing your purchase or borrowing funds for a construction project on the property, after you buy?

Establishing and maintaining a good credit score will help pave the way to mortgage financing at a competitive interest rate. Paying off credit card debt and other loans can boost your disposable income and credit score. So will correcting errors in your credit report.

To learn more, read 3 Easy Steps To Protect Your Credit; by Stan Gornicz for Forbes Magazine.    

To determine what you can afford, speak to a loan officer where you bank, before you start your property search. You can streamline the mortgage loan approval process by obtaining a pre-approval letter from the lending institution where you bank or from another lender. This involves the lender reviewing your financial status and verifying in writing how much money the lender would be willing to lend to you.

The property you want to finance will still have to meet the lender’s underwriting guidelines; but presenting a pre-approval letter when you bid on a property can guide a seller deciding from among multiple bidders to pick you as the purchaser.

Consider this, if you want to buy real property: Yes, love at first sight does happen when it comes to finding your ideal property.
While it may be a match made in heaven; to be sure, look before you leap.

For most people, home is their most valuable asset. The goal is to maintain and even enhance the property’s value over time, not lose value. Business investors in real property also focus on property value and return on investment.

Before you plunk down your hard earned savings, your inheritance or borrow money from a bank to buy the property that’s grabbed your attention, seek the assistance of a knowledgeable real estate broker to get the scoop on the property and the community.

You’ve probably heard that the three most important considerations when investing in real estate are: location, location, location. There is truth to this mantra. Ask questions. Learn all you can about the region; the local government, the schools, proximity to nearby supermarkets, access to public transportation, health care and open space. Check out the municipality’s website; among other things, it will list local services, amenities, priorities and the codes that govern daily living, property use and building permits.

There’s more. Each piece of real property has unique qualities, a history and future potential to take into consideration. Some buyers bring in a structural engineer to identify property conditions before making a bid. Others, who want to perform construction, consult with the relevant people in the building department to learn what would be permissible and the overall permitting and approval process.

Once you decide to make a bid on property, find legal representation you feel comfortable working with to take you through the stages of the transaction.

Consider this, if you want to sell real property.
 Step out on a high note.

  • Locate the file with the deed and title report to the property; it will come in handy.
  • To avoid unnecessary delay or unnecessary compromise on the sale price, take stock of the property’s condition. 
  • Determine whether the building department in your city, town or village lists property violations or open building permits that need to be addressed.
  • As the seller, you will pay a brokerage commission, unless the parties agree otherwise, or you decide to sell without a broker.                                    
  • Involving legal counsel before you list the property can help you to: review and negotiate beneficial revisions to the brokerage agreement, review and discuss the timeline for completing the sale, and weigh the pros and cons of making improvements to the property or selling it in its “as is” condition.

Take action to preserve property value. As Abraham Lincoln is credited with saying, “The best way to predict your future is to create it." 

Put another way, it is up to We the People to make democracy work.

The representatives we elect to office are there to serve the best interests of their constituents. With a common goal of maintaining sustainable and resilient communities that favor clean water, clean air, safe roads, access to reliable public transportation, up-to-date infrastructure, effective emergency response and an overall good quality of life; preservation of property value will follow. Community residents need to support a plan to accomplish these goals and actively encourage their elected representatives to follow through.

If less than optimal conditions exist in a region where you want to purchase or sell undeveloped land or improved property, speak to the relevant officials to explore what steps are being taken to address and resolve the situation. If more than one voice is needed to bring about the change you seek to make, contact others in the community to engage their involvement.

Contact information for U.S. Senators and Representatives, as well as local legislators is available here.
Contact information for local government officials can be accessed at the website of the city, town or village where you want to locate.

Selecting legal representation

  • When selecting a law firm to represent you with financing real property or the purchase, sale or other real property transaction, ask to speak to the lawyer or paralegal who will handle your matter to decide if the fit is right for you.
  • E-mail communication has become the typical means of transacting business and can often suffice once the transaction is underway. However, there is no replacement for open communication by telephone, or in person, to establish the attorney-client relationship, the priorities of the client and how best to achieve the client’s goals. You deserve nothing less.
  • Expect the law firm to ensure there is no conflict of interest representing you before proceeding with the representation.
  • You can expect to sign an engagement letter if the estimated legal fee meets the statutory amount that requires a written agreement.
  • When it comes to transacting in real estate and real estate finance, no question is too silly or too simple to ask; select counsel who will honor your desire to learn, be in control of the facts and keep informed through completion of the transaction.

RADOW LAW PLLC is a woman owned law firm.

**NOTE: This website provides general information which does not constitute legal advice. Before establishing an attorney-client relationship and undertaking client representation, Beth speaks directly to each prospective client and enters into a mutual written agreement with the client.