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Why Every Homebuyer Needs a Residential Real Estate Attorney

Tue, 03 Feb 2026 17:56:24 GMT

Are you prepared to navigate the complex world of Brooklyn’s real estate contracts without legal expertise? Purchasing a home is one of the most significant financial decisions you’ll ever make, especially in Brooklyn’s highly competitive and fast-moving real estate market. Engaging a residential real estate attorney in Brooklyn, NY, before signing anything can be the difference between a smooth, secure transaction and costly legal headaches down the line. With complex contracts, “as-is” clauses, mortgage contingencies, and more, having an experienced attorney by your side is simply essential for protecting your investment and peace of mind.

In this article, we’ll explore the critical reasons why every homebuyer should retain a residential real estate attorney and how their expertise can safeguard you against the pitfalls common in NYC real estate transactions.

Understanding the Complexity of Brooklyn Real Estate Contracts

New York City real estate contracts are infamously complex documents loaded with legal jargon and clauses that often favor the seller. Buyers must pay close attention to “as-is” clauses, which essentially mean you accept the property in its current condition, defects and all. This clause removes the seller’s obligation to make repairs or disclose certain issues, which can lead to surprises that cost thousands after closing.

Beyond the “as-is” clause, mortgage contingencies are a crucial aspect to understand. These clauses protect your earnest money, the down payment you put down when the offer is accepted, by allowing you to cancel the contract if you cannot secure financing. However, these contingencies often come with strict deadlines or conditions. Missing these can risk you losing your deposit or being legally bound to unfavorable terms.

Add to this the detailed riders, special addendums that modify a contract’s terms, and it becomes clear why expert review is non-negotiable. If not carefully examined, riders can include conditions that might limit your rights or leave you exposed financially.

How a Residential Real Estate Attorney Protects You From Risk

Hiring a residential real estate attorney at the start of your home-buying journey ensures that all contract details work in your favor. Your attorney will:

Review Every Contract & Rider Thoroughly: Your attorney examines all documents line by line, identifying potentially harmful provisions hidden in riders or footnotes.
Clarify “As-Is” Clauses: The lawyer explains what these clauses mean and advises on inspection contingencies or additional protections you should seek.
Negotiate Favorable Terms: A skilled residential real estate attorney can negotiate amendments to better protect you against risks like missed deadlines or ambiguous language.
Protect Your Earnest Money: They ensure mortgage contingencies and financing clauses explicitly protect your down payment should your loan fall through.
Coordinate With Other Professionals: Your attorney works alongside inspectors, lenders, and real estate agents to align the contractual terms with all aspects of the transaction.

Having a knowledgeable lawyer prevents legal missteps that could lead to lengthy disputes, renegotiations, or even lost investments.

Why Brooklyn Homebuyers Particularly Need a Local Real Estate Attorney

Brooklyn’s real estate market is unique, with its patchwork of historic brownstones, new developments, co-ops, and condos. This diversity means contracts and applicable laws can vary significantly depending on the property type. For example, co-op purchases often require board approval and come with additional legal documentation and restrictions, something a local residential real estate attorney understands intimately.

In addition, Brooklyn’s fast-paced market often pressures buyers to make quick decisions, which increases the risk of overlooking important contract details. A local attorney who knows the Brooklyn market can spot common pitfalls, anticipate potential issues, and safeguard your interests amid the hustle and bustle.

Avoiding Costly Post-Sale Legal and Financial Surprises

One of the biggest advantages of having a residential real estate attorney at your side is avoiding costly surprises after closing. Overlooking hidden clauses or not understanding contingencies can lead to expensive repairs without recourse, legal disputes over contract breaches, or forfeiting your down payment.

Imagine closing on your dream home only to discover major defects covered by the “as-is” clause, and having no legal ground to demand repairs or compensation. Or worse, not fully comprehending the financing contingency language and unexpectedly losing your deposit when your mortgage approval stalls. These scenarios happen all too often in Brooklyn real estate transactions when buyers go in without legal representation.

Your attorney’s vigilant contract review, negotiation skills, and detailed explanations give you the confidence to proceed, knowing that your rights and finances are protected.

The True Cost of Skipping Legal Representation

Some buyers try to save money by skipping legal representation and relying solely on their real estate agent or online contract templates. But this can be a false economy. A single overlooked clause can lead to costly disputes, loss of your initial deposit, or unexpected financial liability.

In contrast, the affordable investment in hiring a residential real estate attorney pays for itself by preventing these setbacks. The Law Office of Steven Kurlander, for example, provides expert advice tailored to Brooklyn homebuyers, ensuring your transaction closes smoothly and without surprises.

Take the Next Step: Secure Your Brooklyn Home Purchase With Trusted Legal Expertise

If you’re buying property in Brooklyn, NY, don’t leave your biggest investment to chance. The Law Office of Steven Kurlander is here to provide the expert legal guidance you need to navigate complex contracts, riders, and contingencies with confidence.

Call us today at 845-796-8948 or visit our contact page to schedule your consultation. Let us help you protect your interests and avoid costly pitfalls, because when it comes to buying a home in Brooklyn, NY, you deserve the expertise of a seasoned residential real estate attorney.

Debunking FHA Loan Myths: Get the Facts Before You Decide

Thu, 17 Oct 2024 20:44:00 GMT

The Federal Housing Administration (FHA) loan is one of the most misunderstood mortgage options available. Many prospective homebuyers shy away from FHA loans due to misconceptions about eligibility and usage. In this post, we’ll break down the most common myths surrounding FHA loans and separate fact from fiction. If you’ve ever asked yourself, “How many FHA loans can you get?” or “Can I have 2 FHA loans in different states?”, keep reading to discover the answers.

Myth #1: FHA Loans Are Only for Low-Income Buyers

FHA loans are available to anyone who meets the requirements, regardless of income level. The main goal of these loans is to make homeownership accessible by offering lower down payments and more flexible credit requirements. This makes FHA loans an attractive option for first-time homebuyers or those with less-than-perfect credit.

Myth #2: You Can Only Get One FHA Loan in Your Lifetime

In reality, you can get multiple FHA loans, but there are restrictions. Generally, FHA guidelines only allow one FHA loan per borrower at a time. However, there are exceptions. For example, if you need to relocate for work or if your family size increases significantly, you may be able to get a second FHA loan. This brings us to a popular question: “Can I have 2 FHA loans in different states?” The answer depends on your unique circumstances, but a real estate lawyer can help clarify your options.

Myth #3: FHA Loans Come with Income Limitations

While it’s true that FHA loans are designed to assist buyers who may not qualify for conventional loans, there is no official maximum income cap. As long as you meet the basic requirements for credit score, debt-to-income ratio, and down payment, you may be eligible regardless of how much you earn.

Myth #4: FHA Loans Are Harder to Sell or Refinance

This misconception stems from outdated information about older FHA requirements. Today, FHA loans can be refinanced just like any other mortgage. Additionally, if you’re selling your home, a prospective buyer can easily assume your existing FHA loan through an FHA streamlined refinance, making your property more marketable.

Myth #5: FHA Loans Can Only Be Used for Single-Family Homes

Many buyers assume that FHA loans are limited to single-family properties, but they can actually be used for a variety of properties, including condos, duplexes, and multi-family homes up to four units. This makes FHA loans a versatile option for those looking to invest in multi-unit properties while still meeting FHA criteria.

Myth #6: FHA Loans Are Only for First-Time Homebuyers

Although FHA loans are popular among first-time buyers, they’re not exclusive to them. Repeat buyers, investors, and even those looking to purchase a second property can take advantage of FHA financing as long as they meet the program’s requirements.

Get Legal Guidance for FHA Loans

At the Law Office of Steven Kurlander, we specialize in helping clients navigate FHA loan regulations to make informed decisions. Contact us today to learn how we can assist you in determining your eligibility and finding the best mortgage option for your needs.

Conclusion

FHA loans can be an excellent tool for achieving homeownership, but it’s important to separate fact from fiction. By understanding the truth behind these common FHA loan myths, you can decide whether this option is right for you. From eligibility to the number of loans allowed, the rules are more flexible than most people realize.

An Insight Into Title Insurance

Thu, 04 Apr 2024 18:38:00 GMT

Having the right title insurance can be the difference between keeping, litigating, or losing a piece of property. While often overlooked, this key piece of the purchase process protects buyers from fraud and legal challenges that can tie up property in court for years. But not all title insurance policies are created equal, and some buyers discover that their policies are barely worth the paper on which they’re printed after it’s too late. TRD sat down with Marie Rizk, Co-Founder and Executive Director at ANS Title, to learn how her firm keeps heads cool and focused during high-pressure transactions in order to make sure their clients’ title insurance policies are rock-solid. In addition to her daily career leading ANS’s title insurance practice, Rizk is the energy and soul behind the recently-launched Distinguished League of Women in Real Estate, which is devoted to creating a platform that celebrates women who have made a name for themselves in the traditionally male-dominated industry as well as providing mentorship and guidance to newcomers.

Avoiding the Gray Areas

In the title business, clearing a title faster or easier isn’t necessarily better, and trying to find a gray area to save some time or money can result in disaster. It’s important to work with a title company that will scrutinize the transaction and come up with a paper-heavy file that protects the buyer, even if it takes a little longer upfront. ANS Title makes sure to clear up any outstanding issues with a title before its clients sit down at the closing table, giving them peace of mind that any potential problems have already been addressed. By doing this, ANS Title gives their clients the ability to fight any challenges that might come up during the transaction with facts instead of theoretical claims.

“At ANS Title, we keep ALL our papers Kosher!” emphasizes Rizk. In her experience, buyers, attorneys, and brokers are laser-focused on pushing through the file to get the deal done as quickly as possible, and it’s the job of the title agent to keep calm. “If you have someone who is cutting corners or is not taking the appropriate steps to clear the file the right way or is making exceptions, you might find yourself in a situation where your policy is void and without substance,” explains Rizk. “You end up with an expensive paperweight.”

As documented within the title insurance binder, title insurance doesn’t cover claims of fraud, theft, defalcation, or malicious activities. This means that doing it right the first time is crucial. Rizk told us about a file that ANS Title wouldn’t close because they couldn’t prove that the previous homeowner had passed away fast enough to meet the parties needs for a closing date. Another title company took on the file and closed by providing a photograph of a tombstone instead of a death certificate, opening the buyer up to any number of potential issues down the line, not the least of which being that the photographed tombstone does not belong to the purported previous homeowner.

“You could call that a business decision, is it though…?” asks Rizk. “Imagine buying that property then finding out that the person isn’t deceased and your title policy is worthless. It’s better to have a full file of documentation to make your policy valid than just getting to a transaction closing that leaves the buyer or the bank with the baggage of a bad title.”

In another case, an owner passed away, and his was the only name on the property deed. He was married once, got divorced, married a second time and was legally separated and not divorced, but then lived with another woman for 20 years. He also had nine children. Who is entitled to that property?For many companies, doing the hard work of spending upwards of 80 hours meticulously unwinding a chain of title spanning multiple generations and marriages simply isn’t worth it. So they take the easy way out, issuing a quick “clear to close” lacking oversight. What separates ANS Title from the crowd is their dedication to building trust with their customers across multiple cases and their value for their brand.

“This is a relationship business,” explains Rizk. “Every entity, regardless of size or transactional volume that is bringing the file, is important to us. We are heavily vested in the growth of our clients. Their success is in our DNA”.

A family business

ANS Title founders and brothers Radni and Raymond Y. Davoodi met Rizk when they were operating a title agency prior to ANS Title and she was working for a real estate lawyer, and they hit it off immediately. The brothers brought Rizk on as a receptionist in 2001, and she came with them when they founded The Atlantis Organization in 2004, becoming a pillar in all of their future businesses and real estate activities.

“I moved up the ladder from reception, learning every aspect of title when it was just the three of us,” recalls Rizk, who is now not only Executive Director of ANS Title but is also a partner in The Atlantis Organization of Companies.

Rizk has been instrumental in building ANS Title into a nationally recognized brand and the industry leader it is today. The SSAE 16 SOC1 Type II and SOC2 Type I certified agency stays ahead of local and federal government requirements at all times, and has created a corporate culture that fosters its employees’ creativity and problem-solving skills. One of the biggest testaments to Atlantis’s unusual commitment to its employees is that, over its 20 years of existence, it has had no turnover. Everyone who has come in as an employee has stayed.

“If you’re happy and you love what you’re doing, then you never ‘work’ a day in your life” says Rizk. “Everyone in our office truly gives with their heart. It’s truly an example of ‘teamwork making the dream work.’”

Empowering Women

Atlantis is supporting Rizk in her most recent endeavor, the launch of the Distinguished League of Women in Real Estate (DLOWRE). The real estate industry of 20 years ago was very male-dominated, and Rizk has worked tirelessly to bring more women into the real estate world. Today, the majority of ANSTitle employees are women, to the point that the founding brothers are often referred to by Rizk and her fellow employees as “The Guys.”

Rizk launched DLOWRE as a networking platform to offer support, resources and education to other women in the industry. “I wouldn’t be here without my girls,” says Rizk. “We did it as a team. It wasn’t about the financials, it was always about the goal line. “‘The Guys’ stood behind us without any limitations. Our success is their success, and vice versa”.

DLOWRE is just one expression of Rizk’s dedication to community service. She is also the Chairman and board member of Share4Kids, a not for profit charitable organization started by the company’s founders and executive team. Its mission is to host fundraising events to support children’s care, including cancer research and other illnesses. Beneficiaries of Share4Kids charitable contributions include Sunrise Day Camp, Friendship Circle, St. Mary’s Hospital, Friends of Karen and Jewish Children’s Museum.

It’s been 24 years since the Davoodi brothers and Rizk’s began their collaboration, and the trio has spent the last two plus decades building not only a successful title agency but an organization that’s dedicated to creating a stronger, more balanced real estate industry for the future.

If you’re in the market for title insurance or want to learn more about DLOWRE, reach out to Rizk via email or phone at 917.754.2492 .

https://therealdeal.com/sponsored/baker-tilly/enter-strategic-partnerships-with-confidence-when-utilizing-proactive-assurance/

What To Do When You Discover Your New Home Has A Squatter In It

Mon, 04 Mar 2024 21:10:00 GMT

Buying a new home is an exciting experience, from exploring different neighborhoods to deciding on your dream home. But what do you do if you discover that your new home has an uninvited guest, a squatter? A squatter is someone who resides in a property without the permission of the owner or the legal right to do so.

In this article, we will discuss what you can do legally if you discover your new home has a squatter in it, the benefits of hiring a real estate lawyer, and whether you can back out of a home purchase if the presence of a squatter was not disclosed at the time of the sale.

What Can You Legally do if You Discover a Squatter in Your New Home?

If you discover a squatter in your new home, your first step should be to contact a real estate lawyer. Many states have unique laws regarding squatters, and a lawyer can best advise you on how to proceed. Generally, a homeowner has the right to remove a squatter from their property if they act within the boundaries prescribed by law. However, a squatter may be able to claim the property if they have been there for an extended period of time, which varies depending on the state.

The Benefits of Hiring a Real Estate Lawyer

A real estate lawyer can navigate the complicated legal process and advise you on appropriate actions to take to remove the squatter legally. Moreover, a real estate lawyer can help with eviction proceedings and other legal processes that may arise, ensuring that the matter is resolved as quickly and efficiently as possible. Patience and legal diligence is key, as it may take several months to formally remove a squatter from your home.

Can You Back Out of a Home Purchase if There was no Disclosure About the Squatter's Presence?

If a squatter resides in a home, it is unlikely that the seller would disclose this information. However, generally, a homeowner should disclose any known issues with the property, including the presence of a squatter. If the seller failed to disclose the squatter's presence, the buyer may have the right to back out of the home purchase. In some cases, the buyer may also be entitled to damages, such as lost rental income or expenses associated with moving.

How to Prevent a Squatter From Moving Into Your New Home

Ensure that your home is secure with secure doors and windows and a robust alarm system. Change the locks as soon as you have the keys to your new property. You can also install cameras around the property to monitor any suspicious activity. Furthermore, it's vital to stay vigilant about any potential signs of a squatter, such as unoccupied mailboxes, broken windows or doors, or overgrown lawns. In addition, it's always good to perform routine property inspections, especially if you will be away from the house for an extended period.

What Are Your Obligations as a Homeowner if You Want to Rent Out Your Property?

It's crucial to have a written lease agreement with your tenant that can be enforced if any issues arise. Additionally, it's recommended to maintain a healthy relationship with your tenant to avoid any potential conflicts that could lead to squatting issues. Finally, performing regular inspections and making sure the property is maintained also reduces the likelihood of squatters.

Buying a new home is an exciting event in one's life, but discovering a squatter can put a damper on things. If you find yourself in this situation, it's essential to contact a real estate lawyer to ensure that you navigate the legal proceedings and resolve the matter as quickly as possible.

Furthermore, taking preventive measures and staying vigilant about any suspicious activity around your property can reduce the likelihood of a squatter problem in the first place. Buying a home is a significant investment, and the Law Office of Steven Kurlander can help you if you have a squatter in the home you've recently purchased.

What Legal Documents Do You Need When Buying A Commercial Property?

Thu, 08 Feb 2024 20:26:00 GMT

Purchasing a commercial property can be a lucrative investment opportunity in the long run. However, it is also a complex process that requires extensive research and legal documents to ensure the deal is safe, beneficial, and free from any potential legal issues down the road. To protect yourself, your investment, and your interests, it's crucial to understand what legal documents you need when buying commercial property. In this post, we'll explore the essential legal documents you need to have before closing the deal.

Purchase Agreement

A purchase agreement is a formal contract that outlines all the essential terms and conditions of the transaction, such as the property's purchase price, closing costs, and the closing date. It also outlines any contingencies that must be met before the sale is completed. The purchase agreement includes provisions for what happens if either party breaches the contract or the transaction falls through. It's critical to have an attorney review and sign the purchase agreement to ensure it meets all legal requirements and minimizes any potential legal issues.

Title Documents

Title documents certify the buyer's ownership of the commercial property and provide proof that the seller has the legal right to sell the property. Having a clean title is crucial to the sale as it protects the buyer and ensures the property isn't burdened with liens, mortgages, or other legal disputes. Title documents typically include a title report, title insurance, property surveys, and any other relevant records that can confirm the property's ownership and encumbrances.

Financing Documents

Suppose you're purchasing a commercial property with financing. In that case, you'll need to provide a wide range of financial documents to your lender, such as tax returns, credit reports, income statements, and any other supporting documents. These documents help the lender determine your eligibility for financing and the interest rate and terms you qualify for. It's essential to understand the terms of your loan and have an attorney review all documents before signing any paperwork.

Leases and Rental Agreements

For commercial income properties, having a clear and effective lease and rental agreement in place is essential to avoid any legal disputes with tenants. Before purchasing a commercial property, review all existing leases and rental agreements and ensure that they meet your standards and are legally binding.

Environmental Reports

If the property you are considering purchasing has industrial or commercial uses, thoroughly reviewing environmental reports is highly recommended. These reports can provide crucial information to ensure there are no existing or potential environmental issues that could impact your investment. Some of the critical areas to focus on include groundwater contamination, hazardous waste management, and even the possibility of vapor intrusion. By carefully examining these aspects, you can safeguard your investment and make an informed decision about the property.

Closing Documents

Lastly, you'll need to deal with various closing documents to transfer the property's ownership. These documents include the closing statement, the deed, the bill of sale, certificates of occupancy if applicable, and any other state-mandated forms. Ensure that you review each document carefully and have an attorney present to help you understand any legal terms or clauses before signing.

Buying a commercial property is a complex process that involves many legal documents, but with the right team of experts on your side, you can ensure a seamless and successful transaction. We recommend hiring a real estate attorney, financial advisor, and other professionals to guide you throughout the process and ensure that all legal documents meet your specific needs and requirements. With the proper preparation and legal paperwork in order, you can feel confident in your investment and secure your future as a commercial property owner. Contact the team at the Law Office of Steven Kurlander if you need more guidance.

What You Need To Know About Title Reviews

Tue, 16 Jan 2024 21:19:00 GMT

Part of the process of buying property in New York is the title review. You'll want to hire a real estate lawyer to do this, even though there are title companies that will do it for you. The title review is one of the more important tasks during a home purchase because it saves you a lot of time, trouble, and money. It can even show you that a particular property might not be the best choice for you.

Title reviews can show whether a title is clean and free of any issues that could cost you later on. Never skip this part of the home-buying process.

What Title Reviews Are Supposed to Find

Title reviews are straightforward inspections of the house and property title to find liens, debts, and other adverse items. A clean title has none of these; when you buy that house, the house is yours.

Title reviews also look for things like easements that give others the right to be on your property. Common easements include city- and county-related easements for utility companies, for example. Neighbors may also use easements to access parts of their own property, such as when a couple of houses share a small, private road or driveway.

What's a Defect in a Title?

A defect in a title is something that makes the title not clean. Unpaid liens against the house, for example, are defects; the current owner would have to remedy those (by paying them off) in order to make the title clean. They might be counting on the money that you're paying toward the house to pay them, but you'd want those liens taken care of before the title goes into your name. Once the title is in your name, you have to deal with any defects.

Defects aren't uncommon; you just need to know about them before you make any more of a commitment. If the review does uncover defects, and the current owner doesn't want to deal with them, that's a red flag. That means you need to rethink your purchase before allowing any of those defects to be placed in your name. And if you're trying to get a mortgage, the lender may refuse to fund a loan for a house that has title defects.

What Consequences Do You Face if You Skip a Title Review?

If you skip a title review, you run the risk of discovering a title defect after you've committed to spending all this money to buy the house. You could find instances of adverse possession, which could render your claim to the house moot and leave ownership in the hands of the other person who had taken possession of the property.

And, of course, if you're getting a mortgage to pay for the house, the lender could refuse you until those title defects are cleared up. If you were to default on the loan, then the lender would have to deal with title defects.

Where Does Title Insurance Fit Into All This?

Title insurance helps cover you and the lender financially if another defect is discovered later on. First, you'll have a real estate lawyer do the title review and handle any defects that they discover, and then you'll get title insurance. This is standard when getting a mortgage, although having the title review done and getting title insurance is advisable even if you're paying cash for the house upfront.

Navigating the process of buying a property can be intricate, but understanding the importance of a title review can make the journey smoother and less daunting. Title reviews serve as a protective measure, providing you with valuable information about the property you intend to purchase and potentially saving you from future headaches. While title defects may occur, they are often addressable and shouldn't discourage you from pursuing your dream property. Engaging a real estate lawyer from a law office, such as that of Steven Kurlander, and securing title insurance can provide added assurance.

Things You Need To Do To Be Pre-Approved for a Mortgage

Wed, 03 Jan 2024 17:41:00 GMT

Buying a home is an exciting journey that often starts with securing a mortgage. While the process may seem daunting, being pre-approved for a mortgage is a crucial step that simplifies the home-buying process and helps you understand your budget. To ensure a smooth ride on this path to homeownership, discover the essential things you need to keep in mind when seeking pre-approval.

Check Your Credit History

Before setting foot on the path to homeownership, understand your financial standing, starting with your credit history. Obtain a comprehensive credit report from major bureaus, and scrutinize it for accuracy. Look out for any discrepancies, late payments, or errors that might negatively impact your credit score. Rectifying these issues early on can significantly improve your creditworthiness, potentially resulting in more favorable mortgage terms.

Pick the Right Pre-Approval Mortgage Program

The world of mortgages offers a variety of programs, each catering to different financial scenarios. Research and evaluate the pros and cons of fixed-rate and adjustable-rate mortgages.

Consider the length of the loan term and how it aligns with your financial goals. A fixed-rate mortgage offers stability with consistent monthly payments, while an adjustable-rate mortgage may provide flexibility but comes with potential interest rate fluctuations. Choose the option that best suits your long-term plans and financial comfort.

Show Proof of Income

Lenders need assurance that you can meet your mortgage obligations, making proof of income a critical component of the pre-approval process. Gather documents such as pay stubs, W-2 forms, and tax returns to provide a comprehensive overview of your financial stability.

If you're self-employed or receive income from various sources, be prepared to submit additional documentation. A robust and verifiable income history enhances your credibility in the eyes of lenders, increasing your chances of a successful pre-approval.

Calculate Your Debt-to-Income Ratio

Understanding and managing your debt-to-income (DTI) ratio is pivotal in the pre-approval process. If your ratio is higher, consider paying down debts before seeking pre-approval. A lower DTI not only improves your eligibility for a mortgage but also signifies financial responsibility, positioning you as a less risky borrower.

Gather Income, Financial Account, and Personal Information

Preparation is key when approaching the pre-approval process. Gather all necessary documentation, including recent bank statements, information on investment accounts, and details about other assets.

Lenders will also require personal information, such as your Social Security number and a detailed employment history. Having these documents readily available not only expedites the pre-approval process but also showcases your commitment and readiness as a potential homebuyer.

Compare Lenders

Not all lenders offer the same terms and conditions, so take the time to compare multiple mortgage lenders. Investigate interest rates, fees, and customer reviews to make an informed decision.

A lower interest rate can result in substantial long-term savings, making the effort to shop around worthwhile. Beyond financial considerations, choose a lender known for excellent customer service and responsiveness. A positive and supportive lending experience can greatly enhance your overall homebuying journey.

Fill Out a Loan Application

Once you've selected a lender, the next step is to complete the loan application. Pay careful attention to detail, ensuring that all required information is accurate and up-to-date. Any discrepancies or missing details may lead to delays in the pre-approval process. Take the time to read and understand the terms and conditions of the loan before submitting your application. Clear communication with your lender ensures a smooth and efficient pre-approval process.

Make Down Payment and Closing Costs Funds

Saving for a down payment and covering closing costs are integral parts of preparing for homeownership. While down payment requirements vary, having a substantial amount saved demonstrates financial responsibility to lenders. Additionally, be prepared to cover closing costs.

Being pre-approved for a mortgage is a pivotal step in the home-buying journey. The Law Office of Steven Kurlander can help you to get started. Contact us today.

Be Prepared: 3 Real Estate Pitfalls Your Lawyer Can Help You Prevent

Tue, 07 Nov 2023 05:55:00 GMT

Finding a way through the labyrinth of real estate transactions can sometimes feel like walking through a minefield without a map. The stakes are high, and even the most seasoned investors are not immune to missteps.

But what if you had a secret weapon to dodge these pitfalls? Armed with a wealth of knowledge and the superpower of legal foresight, a real estate lawyer can help you sidestep common mistakes and protect your investment.

Here are three things you should avoid for a journey to safer and smarter property investment.

Misunderstanding the Contract Terms

Misunderstanding the contract terms in a real estate deal can lead to severe consequences, including financial losses and legal disputes. The language in these contracts might be complex and laden with legal jargon, making it hard for novices and even experienced investors to comprehend fully.

A misunderstood clause or overlooked fine print can equate to agreeing to terms that are unfavorable or even detrimental to your investment. For instance, you might miss out on information about hidden fees, repair responsibilities, property boundary disputes, or escape clauses, which could lead to unexpected costs or disputes later on.

This is where a real estate lawyer can help. An experienced lawyer can interpret the contract terms accurately and help you clearly understand what you're signing. They will scrutinize every detail and highlight any red flags to ensure the contract terms align with your best interests. These legal experts are your best ticket to safeguarding your investment and enjoying some peace of mind.

Dealing With a Difficult Buyer or Seller Alone

Tackling the challenge of a difficult buyer or seller single-handedly can be a risky move in real estate transactions. Such people often have unrealistic expectations, are uncooperative, or employ manipulative tactics, which can impede the smooth progression of the deal. They may resist negotiations, offer unfair terms, or even withhold crucial information about the property.

For example, a seller may conceal past structural damage or other issues, while a buyer may refuse to pay their part of the closing costs. In these situations, emotions can run high and lead to undue stress, delays, or even the deal's collapse. This could leave you exposed to financial loss and other disruptive complications.

Here's where the role of a real estate lawyer becomes invaluable. A lawyer brings their negotiation skills, objectivity, and legal expertise to the table. They can handle communications and negotiations with difficult parties, ensuring fairness and transparency in the transaction.

In addition, a good lawyer can validate the accuracy of property disclosures, helping you unearth any hidden issues that a difficult seller might have tried to sweep under the rug. Essentially, they act as a buffer between you and the difficult party, allowing you to navigate the transaction more confidently.

Not Conducting Due Diligence

Due diligence involves meticulously examining all aspects of a property, including its physical condition, zoning regulations, rental income history, and any liens or encumbrances. Overlooking this step is like walking into a deal blindfolded, unaware of underlying issues that could prove detrimental to the investment.

For instance, you might unknowingly purchase a property with undisclosed structural defects or legal complications, leading to unforeseen expenses and potential litigation. In addition, you might buy a property that doesn't align with your investment goals or is priced higher than its market value.

A seasoned lawyer possesses the legal acumen required to conduct a thorough due diligence review on your behalf. They can help identify potential risks, verify all necessary legal documentation, and ensure zoning and environmental laws compliance.

In addition, experienced lawyers understand how to deal with complex issues such as lien checks, property tax assessments, and title reviews, ensuring no stone is left unturned. This makes a huge difference, especially if you're investing in a new market or buying your first property.

Don't underestimate the power of legal advice in real estate transactions. The Law Office of Steven Kurlander is always here to help you navigate the legal complexities of property investment and secure your best interests. Contact us today to schedule a consultation and learn more about how we can assist you in your real estate journey.

Factors Affecting Conforming Loan Limits

Thu, 28 Sep 2023 20:46:00 GMT

Conforming loans meet the criteria for federally backed mortgage institutions such as Fannie Mae and Freddie Mac. Mortgage lenders and borrowers prefer conforming loans due to their low interest rates. The Federal Housing Finance Agency (FHFA) sets the dollar limit for conforming loans yearly. Below are the major factors the agency uses to set the limits.

Housing Market Conditions

The housing market changes a lot due to multiple factors. For example, a property market may experience an extended period when property prices generally rise. If that happens, the FHFA may raise its loan limits to enable buyers to afford loans and buy houses. Such a situation may arise if developers have fewer properties on the market that cannot meet the demand.

Home Price Indices

The House Price Index (HPI) tracks several parameters related to the residential property market. The index considers different issues, including:

Residential mortgage defaults
Mortgage prepayments
Residential property availability
Residential property prices

The HPI is a crucial tool in loan limits since it provides insights into home affordability. For example, the FHFA can use the index to determine whether homebuyers can afford the available loans with the current limits.

Inflation and Interest Rates

Inflation and interest rates directly affect home affordability and price. For example, inflation increases the cost of building materials, forcing developers to hike their home prices. A home that cost $500,000 last year might cost at least $25,000 more this year with 5% inflation.

If the above scenario happens, then you might not afford the same house you could afford last year if your loan limit stays the same. An increased loan limit may help you afford the same property.

Regional Differences

Conforming loan limits are not uniform across the country. The variations make sense because property prices and markets vary by location. Prime states (in terms of housing markets) like Hawaii have predominantly higher property prices than others. Thus, a home costing $500,000 might cost more in some states than home costs in Hawaii.

Changes in home prices or affordability vary by location. The calculation for conforming loan limits incorporates these regional variations. For example, a prime market might witness a bigger price change than others in a given year.

Property Type

A uniform loan limit for all property types would not make sense since different properties attract different prices. For example, condominiums (condos), single-family homes, and multi-unit homes all attract different prices. As such, a single-family home (that attracts high prices in many areas) might get a higher loan limit than a condo in any given year.

Mortgage Market Stability

The mortgage market is a slave to several factors that change over time. Loan demand, inflation, property prices, and real estate laws affect the mortgage market. Unfortunately, too much instability is bad for the market since the players (like home sellers and buyers) cannot confidently operate.

For this reason, the FHFA sometimes adjusts loan limits to stabilize the market. For example, if mortgage rates increase too much, the FHFA may raise its limits to enable more people to buy homes.

Government Legislation or Regulation

Lastly, direct government action can determine whether the FHFA increases, lowers, or maintains the loan limit. For example, the U.S. Congress might decide to enact property laws addressing specific issues, like the availability of low-income houses. Similarly, individual states might enact new regulations affecting home prices. Such changes may affect overall loan limits.

Real estate deals are high stakes and require due diligence. The Law Office of Steven Kurlander has incredible experience with real estate law. We promise personalized and responsive legal advice for all your real estate transactions. Contact us whether you have commenced your real estate deals, and we will guide you every step of the way.

Need To Evict Someone? What To Do (Or Not Do) In New York

Tue, 29 Aug 2023 19:00:00 GMT

Being a landlord is a great way to build valuable assets and receive largely passive income each month. But it comes with the headaches that can happen when dealing with tenants. Perhaps the most contentious of these is having to evict a tenant. What can and can't you do as a landlord? What process must you follow in New York? And why should you get legal help with your evictions? Here are answers to your questions.

What Can and Can't Landlords Do?

Unfortunately, tenants have a range of protections against eviction which slow down the process and put burdens on the landlord. New York is one of many states which often feel more biased toward renters than toward landlords. Therefore, you must follow the legal process to be successful.

This usually starts with documenting your efforts to find solutions to tenant problems, including late payments. You must send specific notices with specific time frames. However, you cannot act in haste or emotionally even when your property is at risk. Landlords are generally barred from changing the locks, removing a tenant's belongings, refusing to accept rent, or turning off the utilities.

What Is the Eviction Process?

New York outlines a series of official, confirmed notices which must be given to renters based on the nature of the dispute. If a tenant hasn't paid rent, the landlord must generally send a nonpayment notice 5 days after it's due. This is often accompanied by a more serious notice giving the tenant 14 days to pay the total due or quit the premises. Only then can action begin.

What if the tenant is damaging the property or otherwise violating the lease? The set of notices is different. A notice to cure stipulates the violation and provides a time limit in which to fix the problem or stop (cure) the violation. You must usually wait out this period, even if you know there is damage being done to the property. If the deadline to cure the violation passes, the landlord issues a notice of termination.

Even when you are terminating or not renewing a lease, you must provide adequate written notice. However, there is no one single time frame for such notice. In New York, the amount of time given to the renter depends on how long they've leased from you.

Can You Skip the Notices?

In general, landlords need to be prepared to wait out the required notice periods. However, there are a few exceptions. The most common is when the tenant is engaging in illegal activity. This includes prostitution, illegal drug activities, and violence against others (both neighbors and persons within the home). In these cases, you should consult immediately with an attorney to determine if you can skip straight to the later steps of eviction.

Why Follow The Rules?

As mentioned, New York landlords should always adhere to the eviction rules as closely as possible. Yes, they can seem onerous and frustrating. But following them is the best way to prove your case in court and win the eviction order from a judge. Failure to provide any single notice, to make reasonable accommodations, or to provide a habitable home will provide solid defenses for your tenants against you in court.

Where Should You Start?

Before taking any eviction actions, begin by learning more about your rights and responsibilities as a New York property owner. Meet with the Law Office of Steven Kurlander . We'll work with you to identify the necessary steps in your case, provide helpful legal guidance during the eviction, and prove your case in court. Call today to learn what the next, best step is.

From Fear to Action: 3 Critical Steps When Confronted With Mortgage Foreclosure

Wed, 16 Aug 2023 19:32:00 GMT

Facing mortgage foreclosure is a difficult experience that can put any homeowner in a state of panic. For many people, their home is the most prized asset they own, and the prospect of losing it can be devastating.

However, when you find yourself in this situation, you have to focus on practical steps rather than give in to fear. This blog post highlights three critical steps you need to take to protect your home and move forward with confidence.

1. Understand Your Legal Rights

You need to understand your rights as a homeowner to know what kind of protection you have against foreclosure. Every state has different laws that dictate the foreclosure process, so you need to know what your specific rights and options are.

New York, for instance, has an Anti-Foreclosure Law that protects homeowners from wrongful foreclosure. This law requires lenders to give the homeowner a foreclosure notice 90 days before any legal action is taken. This allows you time to organize your finances and find alternative options.

2. Communicate With Your Lender

A good lender won't be quick to foreclose on your property. Foreclosing your home can be costly for them and might damage their reputation in the community. Plus, they'll have to deal with the consequences of an empty house becoming a blight in the neighborhood. Therefore, your lender might be willing to work with you if you contact them and explain your situation.

You might be hesitant because you feel embarrassed about your financial situation, but you need to communicate with your lender as soon as possible. Try and be honest and forthright about your situation and explain why it's difficult for you to make payments on time. It also shows that you are proactive in finding a solution to your problem, which makes them more likely to see you in a favorable light.

Your lender may be willing to negotiate if they believe there's a chance for you to make your payments in the future. Your lender might offer you options such as forbearance or repayment plans that can help you stay in your home without losing it to foreclosure.

Forbearance is when the lender allows you to temporarily stop making payments while figuring out a solution. Other options, like loan modifications, can reduce your payments or extend the loan term as you work out a solution to your financial difficulties. But once you have an agreement, stick to it religiously and make timely payments.

3. Seek Counsel

Many people who face mortgage foreclosure feel ashamed or scared and avoid seeking help. They may think they can handle the situation on their own, or seeking help is admitting defeat. But this couldn't be further from the truth.

Seeking counsel can help you understand your options and develop a strategy to move forward. You should seek professional help from an attorney who specializes in foreclosure defense. These lawyers understand the intricate details of foreclosure laws and can help you navigate the legal process.

For example, your lawyer may negotiate with the lender on your behalf and possibly find a way for you to stay in your home. Alternatively, they can help you avoid foreclosure by negotiating a short sale or deed-in-lieu of foreclosure agreement.

A deed-in-lieu of foreclosure is a mutually agreed-upon arrangement between you and the lender. It grants you the option to transfer ownership of your home to the lender in exchange for the release of any outstanding debts. This option can help you avoid the foreclosure process and the damage to your credit that comes with it.

Short sales involve selling your property for less than what you owe on it to pay off the mortgage debt. While this might seem less desirable, it's still better than losing the property altogether.

These options can help you regain control of your finances and move on with your life, but they'll only work if you take the necessary steps to protect yourself. So don't wait until it's too late. Discuss your situation with us at the Law Office of Steven Kurlander so we can help you figure out your best move.

Which Type of Home Mortgage Is Best for You?

Tue, 27 Jun 2023 17:51:00 GMT

Many Americans apply for mortgages to afford their dream home. The process can be overwhelming, especially when considering the best mortgage option for your needs. This blog will help you weigh the pros and cons of various mortgages.

Conventional Mortgage

A conventional mortgage is not backed by the government, and while they are common, you must meet certain requirements like having an appropriate credit score and debt-to-income ratio. In addition, you can have a low down payment; but if the down payment is below 20 percent, you usually need to purchase mortgage insurance.

The types of conventional loans include conforming and non-conforming. Conforming loans follow rules set forth by the government and companies like Fannie Mae or others that back loans. There is a limit on how much you can borrow with a conforming conventional loan. If you want a loan for more than about $726,000, you'll need to consider a non-conforming loan. These are less standardized, so prices and eligibility can vary.

Fixed-Rate Mortgage

A fixed-rate mortgage can be a conventional loan, or it can be one backed by the government. Ultimately, however, a fixed-rate mortgage has a fixed interest rate. Therefore, unless you refinance, the interest rate can't change, making it easier to budget your mortgage in the long run because your mortgage should cost the same every month.

When you start repaying the loan, however, much more money goes toward the interest than the principal. The biggest downside to a fixed-rate mortgage is that if the national mortgage interest rates drastically fall, you cannot change yours unless you refinance.

Adjustable-Rate Mortgage

Like fixed-rate loans, adjustable-rate mortgages can be conventional or backed by the government. Unlike a fixed-rate mortgage, however, the interest rate changes based on many factors, including current industry standards. For this reason, your mortgage bill may increase or decrease throughout the course of repayment.

Many people choose adjustable-rate mortgages because the initial interest rate starts much lower than industry standards. This makes it possible to get a bigger loan or save money after using your savings for the down payment.

FHA Mortgage

An FHA mortgage is backed by the government. This means there is less risk to lenders. An FHA loan may be a good idea if you don't qualify for a conventional loan because of a poor credit score or little down payment. In fact, you may only need a 3.5 percent down payment if your credit score is at least 580 .

On the downside, however, you must purchase mortgage insurance. With a conventional loan, mortgage insurance is only required if you don't have 20 percent equity in the house. Equity comes from the down payment, but it also builds slowly each month. With an FHA loan, regardless of how much equity you have, you must pay mortgage insurance.

VA Mortgage

A VA mortgage is only provided to veterans, active service members, and eligible surviving spouses. Like FHA mortgages, they are backed by the government and purchased via private insurance carriers. If you qualify for a VA loan, you get amazing benefits.

For starters, you don't have to pay any down payment. On top of that, regardless of the down payment, you don't need to worry about paying for mortgage insurance. Plus, lenders keep interest rates low and have little closing costs.

There are different types of VA loans. For example, veterans with permanent disabilities may benefit from adaptive housing grants, and a Native American veteran can consider the Native American Direct Loan Program.

Owning a home can be a rewarding investment. However, there is also a lot of red tape and legally binding documents. If you're looking for a new home and need a mortgage, an attorney can help. If you would like to know more or talk about which type of loan may be best for your financial needs, contact us at the Law Office of Steven Kurlander.

5 Considerations To Prove When You Apply for a Mortgage

Thu, 15 Jun 2023 20:51:00 GMT

Most mortgage providers implement the ability-to-repay guideline as they screen applicants, which assures that the applicants can afford the loans they want. This critical regulation ensures the safety of borrowers and lenders alike by encouraging ethical lending practices. Learn about five essential considerations lenders typically examine to determine your ability to repay the mortgage.

1. Identity

You must demonstrate your valid identification with documents like a birth certificate and a driver's license when you request a mortgage.

This proof of identity may include an up-to-date utility bill, account statement, or credit card statement in addition to a current photo identification (ID). The information on these documents, such as your name and residence, must be consistent and no older than three months.

You and your co-buyer(s) must present a recent utility bill in your name. If you are not an American citizen, you may also have to present immigration paperwork like a green card, an employment authorization record, or a valid visa. These records may also require authentication to prove legitimacy.

2. Income

Financial institutions must confirm that you can access consistent funds to qualify for a mortgage loan.

For example, you can offer pay stubs from the previous month to show your employer's identity, remittance date, and total and net compensation. Alternatively, you can offer your W-2 form from the previous year, which highlights your pay, taxes, and other deductions.

You must prove that you will continue to earn alimony or child support payments for a minimum of three years after you apply for a mortgage. A certified copy of the court decree might suffice.

For the self-employed, lenders need evidence of two years of consistent self-employment in the same sector. You will also need a cash-flow assessment and profit statement verified by a licensed accountant and two years of federal tax filings.

3. Assets

Lenders will want to examine bank and investment account records to prove your financial health. An applicant's bank statements must be unaltered and current, at least within the past two months.

You can present your pension plans, 401(k)s, equities, and certificates of deposit to demonstrate your investment capabilities.

If the application includes a gift of money, the donor should sign a gift letter that states that the recipient is under no obligation to repay the gift. All the paperwork presented should give a clear picture of the applicant's ability to pay for the deposit and closing expenses.

4. Credit

A mortgage lender will check your credit background and score when you apply for a loan. Your credit report and rating will determine the type of loan you can get. In most cases, a better credit score means a more favorable interest rate.

Lenders will verify your credit history after you permit them to do so, either verbally or in writing. The lender might request a letter of explanation for any negative information on your credit report, such as payment delays, collections, verdicts, or other negative elements.

5. Renting History

Finally, lenders may inquire about your rental history to verify your reliability in making payments on time. They may ask to see a year's worth of rent checks that your property manager or owner cashed, so double-check that the property owner has done so. Lenders may also ask for proof you paid your rent on time during the past year. This information is especially crucial if you have a limited credit history.

The mortgage application process can sometimes feel overwhelming due to the extensive documentation lenders require. Consequently, a closing notary can help you navigate this complex process as you apply for a mortgage. Contact the Law Office of Steven Kurlander if you need notary closing services in the Catskill, Hudson Valley, or Monticello, NY, regions.

When Should You Refinance Your Mortgage?

Thu, 11 May 2023 22:17:00 GMT

Refinancing a home mortgage allows you to trade in an old mortgage for a new loan with better terms and interest rates. This way, your lender will use the old loan to pay off the new one. Therefore, for most individuals, refinancing may allow them to lower their monthly mortgage payments. So, how do you know when the best time is to refinance your mortgage? Explore some indicators to look out for.

Your Credit Score Has Improved

Mortgage lenders consider your credit score to determine your loan eligibility and the ideal interest rate. The higher your credit score is, the better opportunity you have to receive attractive loan terms.

So, if your credit score was not attractive when you originally obtained the loan, the chances are that your interest rates were high. If you have taken time to clean up and improve your credit score, you can use that to negotiate better terms and lower interest rates.

Your Adjustable Rate Mortgage (ARM) Is About To Reset

Adjustable-rate mortgages (ARMs) are loans with interest rates that increase and decrease depending on the current economic climate. When you first started your mortgage, your lender may have given you a low introductory rate for the first few years of the loan.

When these introductory periods end, you are likely to experience significant increases or decreases in your mortgage rate. If you are expecting a boost, you can refinance for a fixed rate as soon as possible.

Your Income Has Increased

Your lender will consider your income to determine how much you can afford for a monthly payment. If your income was low when you first applied for the loan, the chances are that your interest rate was higher.

If you have significantly increased income since you first applied, the lender will likely perceive you as more creditworthy and offer you better terms.

You Can Lower the Rates by 0.5%

A range of factors can influence interest rate fluctuation. For example, economic and mortgage market conditions determine current interest rates.

If what you are already paying is higher than the current market rates, consider refinancing and taking advantage of better terms. Getting an interest rate lower by 0.5% is worth refinancing.

You Want to Reduce Payments

Perhaps your finances have decreased since you originally obtained the loan, and you are struggling to make payments. You need to put more money in your pockets and reduce your monthly payments.

If that is the case, you can refinance for a longer loan term. This idea will spread the payments over a longer period and make it more affordable for you to repay the loan.

Your Home Value Has Increased

Lastly, if the value of your property has appreciated since you took out the mortgage, then it is worth considering refinancing. You can use this increased home equity to negotiate better terms on a new loan and reduce your interest rate.

Refinancing your mortgage can be an excellent way to save money on interest payments and free up extra cash for other needs. Consider these criteria to determine whether or not this is the best time for you to refinance. When in doubt, consult a real estate lawyer who can help guide you through the process. The attorney will assess your financial situation, explain the implications of refinancing, and advise whether it is worth taking out a new loan.

You can trust us at the Law Office of Steven Kurlander for all your real estate needs. We will offer sound legal advice after evaluating your unique situation and guide you through refinancing. Contact us for a consultation.

7 Common Mortgage Mistakes To Avoid

Mon, 10 Apr 2023 20:09:00 GMT

The process of buying a home can be exciting but also stressful. Because of this, first-time or seasoned home buyers can make avoidable mistakes when mortgaging a new home. Here are some common mortgage mistakes that homebuyers often make and ways you can avoid making them yourself.

1. Failure to Get Pre-Approved

Many mortgage providers typically don't require people to get pre-approved, but a pre-approval letter can increase your chances of getting a mortgage. The pre-approval letter provides critical information about your creditworthiness and ability to repay a loan. A pre-approval letter also helps you understand the value of homes that you can afford.

2. Not Keeping Tabs on Your Credit

Lenders can deny or provide unfavorable lending terms if you have significant debt or a history of late payments. To avoid any surprises:

Keep a close eye on your credit history.
Regularly check your credit report to know your credit score.
Notify your creditor or reporting agency for rectification if you notice any disputes or errors.

If your credit score is low, adopt better financial practices to improve it. For instance, pay your bills on time and avoid maxing out the available credit. Also, try to make more than the minimum monthly debt repayments. You'll then have to be patient and wait for the credit score to improve.

3. Not Shopping Around

Various lenders have different closing costs, interest rates, lender fees, and loan products. If you don't shop around, you might choose a mortgage that doesn't have the best terms in the market. Some lenders are offering discounts to attract more borrowers. If you don't have time to shop around, hire a mortgage broker to review all mortgage rates and find the best deal.

4. Having a High-debt to Income Ratio

The debt-to-income ratio is your total monthly debts divided by your gross monthly income. Having ongoing loans doesn't disqualify you from getting pre-approved for a mortgage as long as you have sufficient income. The problem arises when your total monthly debt is a high percentage of your income. Mortgage providers will be reluctant to offer you a loan because your risk of default is higher.

5. Including Unpredictable Bonuses or Overtime

Some homebuyers often include bonuses and overtime payments as part of their salary. While this can show that you have a higher income, such a strategy also has disadvantages. Your lender will evaluate your overtime and bonus rates over the last several months. If the bonuses and overtime fluctuate, the lender will not accept your claims of higher income.

6. Forgetting the Rate Lock

Whenever you apply for a mortgage, you have the option of choosing a rate lock. This means that you agree with the lender to have a specific loan rate for a specified amount of days. For instance, you can agree to pay your loan at an interest rate of 4% for the next three months. When that period expires, the lender can agree to extend the agreement at a small cost or for free.

You are vulnerable to industry changes if you forget to choose the rate lock. The interest rates can rise anytime, and you will have to make higher monthly repayments.

7. Opening or Closing Lines of Credit

Most people think the lender won't look at their credit after getting pre-approved for a mortgage. As a result, these aspiring homeowners will open a new line of credit to cater to mortgage application expenses. However, whenever you open or close a line of credit, the lender will automatically have to investigate the impact of this action on your creditworthiness.

The process of buying and selling a home involves many things. It would be best to have a qualified real estate attorney guiding you through the process. The Law Office of Steven Kurlander provides assistance and legal advice to close real estate transactions on time. Contact us for more information.

5 Ways To Qualify for Multiple FHA Loans

Thu, 16 Mar 2023 16:38:00 GMT

A Federal Housing Administration (FHA) loan is a viable financing option for a first-time potential homeowner. However, a borrower must meet specific requirements to qualify for an FHA loan. Nonetheless, some FHA credit holders may not know they could be eligible for multiple loans.

A borrower doesn't have to clear an existing FHA loan to qualify for another one, which allows you the opportunity to buy a new home without significant financial constraints. This blog highlights five ways to qualify for a second FHA loan.

1. Relocate

Relocating to a new town qualifies you for a second FHA loan. However, the distance from your first residence to your new home must be at least 100 miles for eligibility. In addition, your relocation must be employment-related, including retirement. Therefore, you should meet both conditions to be suitable for a second loan.

Relocation from New York to a new residence in the Catskills qualifies you for a second government-backed mortgage since the towns are more than 100 miles apart. Real estate lawyers understand the 100-mile rule and will work closely with housing agents to help clients get properties that meet this condition.

2. Finance a New Primary Residence

Your residence type is another requirement that lenders consider before granting a second FHA loan. A homebuyer must prove they intend to use a second property as their primary residence.

Lenders consider non-adherence to FHA occupancy rules as an act of bad faith, which could affect eligibility for future loan applications. You can contact a real estate attorney for questions about primary occupancy guidelines to ensure you adhere to them so your second loan application is successful.

3. Increase Family Size

18% of Americans live in multigenerational homes due to extensive housing costs. Therefore, retirees and loved ones are able to save money by sharing a living space. The decision to retire in a house that accommodates more family members improves eligibility for a second FHA loan.

FHA loan limits depend on the type of property a borrower seeks to finance. Thus, a multifamily home for a multigenerational household is eligible for a higher loan limit than a single-family house. A lawyer can converse with a real estate agent to find a property that meets a client's multigenerational family needs.

4. Leave a Co-Owned Home

Leave a co-owned home to increase your chances of securing a second FHA loan. For instance, a retiree's spouse might prefer the city's convenience for their work rather than a remote town with their partner. In such a case, you should purchase a new home with an FHA mortgage.

Each spouse lives in one of the two homes, which qualifies these houses as primary residences. You should leave a co-owned home and buy another property as a primary home to fulfill two requirements and improve your eligibility for a second FHA loan. You can speak with a real estate lawyer to draft a second FHA loan application that clarifies the arrangement with your spouse.

5. Co-Borrow with a Family Member

FHA rules allow a loan holder to apply for a second credit if they co-borrow with a family member. A co-borrower does not have to occupy a property to qualify as a co-signer. The flexibility makes FHA loans attractive to people interested in a second mortgage.

Since income might reduce on retirement, qualifying for a second FHA loan may not be possible. However, FHA rules qualify a working family member as a co-borrower, even if a retiree has no income. This option is affordable for retirees because a co-signee can finance a second loan with their salary.

An active FHA loan only disqualifies you for a second financing if you don't meet the minimum requirements. Contact us at the Law Office of Steve Kurlander for expert advice on improving your eligibility for multiple FHA loans.

Pros and Cons of a Real Estate Open House

Mon, 06 Feb 2023 19:40:00 GMT

An open house is an opportunity to showcase a home's features to potential buyers. Hosting an open house offers advantages to both the agent and buyers. However, you should take into consideration security and privacy concerns.

The bottom line is that open houses are a valuable tool for selling homes. Nevertheless, they need proper planning and management to ensure a successful outcome. Keep reading to learn more about the pros and cons of a real estate open house.

Advantages

As a real estate professional, you are primarily looking to attract buyers. An open house does that and builds relationships with potential sellers as well.

Reliable Marketing Tool

Open houses provide an excellent opportunity to showcase a property and gather a pool of potential buyers at once. They also increase awareness as more people get information about your property in a single place. Open houses ensure your property won't go unnoticed in the competitive market.

Free for All

Hosting an open house is an excellent way to show off the amenities and fixtures of a property. They open the door for potential buyers to take advantage of seeing a home without commitment.

At open houses, buyers can ask questions, see how much natural light is in each room, compare flooring choices, and take photographs. This open format makes the open house an ideal choice for both buyers and sellers in any given situation.

More Exposure

An open house can greatly increase your property's exposure, making it more appealing to potential buyers. An open house can also attract casual buyers walking or driving by. Sellers don't have to rely solely on advertising campaigns and online postings. Open houses allow more people to view your property, generating more interest.

As such, holding an open house should be part of any real estate marketing plan looking to maximize public awareness.

Disadvantages

An open house gets your property in front of many buyers. You should also consider the potential risks before moving forward with scheduling one.

Unqualified Buyers

Unfortunately, open houses also attract unqualified buyers. Buyers who can't secure financing for the property. Because of this, you’ll need to ensure you deal with vetted buyers and not just curious onlookers. This means solid communication with agents and prospective clients before the open house.

Security

Security can be a major cause of concern for open houses. Little supervision and unmonitored access consequently invite troublemakers into the property. Unfortunately, due to the nature of an open house, homeowners cannot have a guard at their doorstep 24/7.

You need to be aware of potential vandals or criminals. You must also protect your personal and valuable items while the house is open to prospective buyers. Real estate agents should have someone stationed at the property as an extra pair of eyes or even a guard. This way, the house and its contents remain safe from crime.

Little Personal Attention

Buyers attend an open house to get a sense of a property. Because an open house attracts the attention of many buyers, it can be overwhelming for realtors. Many buyers vying for a property in an open house means competing offers can come in quickly. The requests leave the realtor little time to provide each buyer with personal attention while exploring the space.

In the real estate industry, more offers are good. However, private viewing may be beneficial sometimes in providing more individualized attention for each potential buyer.

Ultimately, real estate open houses have their advantages and disadvantages from both the buyer's and the seller's perspectives. However, if successfully utilized, open houses can offer buyers a chance to gain valuable insight into potential future homes without commitment.

Contact us at the Law Office of Steven Kurlander to check available open house reservations.

Factors to Consider When Shopping for a Mortgage

Thu, 05 Jan 2023 17:47:00 GMT

You have many factors to consider when shopping for a mortgage, making the process confusing for those unfamiliar with it. Choosing the right mortgage can significantly impact your finances because it determines the monthly payments and total loan cost.

Below are some key factors to consider when shopping for a mortgage.

Interest Rate

The interest rate is one of the most important factors when shopping for a mortgage. The interest rate is the percentage of the loan amount you must pay in addition to the principal you borrow. The higher the interest rate, the greater the total amount you will pay over the life of the loan. Shopping around and comparing rates from multiple lenders is necessary to find the best deal.

Mortgage Type

Various types of mortgages are available, each with unique features and benefits. The most common mortgage types include fixed-rate, adjustable-rate (ARMs), and government-insured mortgages such as FHA and VA loans.

Fixed-Rate Mortgage

The rate of interest on a fixed-rate mortgage stays the same throughout the loan's term. Fixed rates imply that your monthly payment will remain constant regardless of market interest rate changes. Fixed-rate mortgages are a good choice for borrowers who want the security of a consistent monthly payment and can afford a larger down payment.

Adjustable-Rate Mortgage

The interest rate on an adjustable-rate mortgage (ARM) can change over time. The rate is typically set for a number of years at the start of the loan and then adjusts regularly based on changes in market interest rates.

ARMs can be a good option for borrowers anticipating an income increase or selling their homes before the interest rate adjusts. They can, however, be risky if market interest rates rise significantly, as this can result in higher monthly payments.

Government-Insured Mortgage

Government-insured mortgages such as FHA and VA loans have backing from the Federal Housing Administration and the Department of Veterans Affairs, respectively. These loans may have more flexible qualifying criteria and a lower down payment than a traditional mortgage. They are an excellent choice for first-time buyers or those with less-than-perfect credit.

Term

The term of a mortgage refers to when you must repay the loan. Most mortgage terms range from 15 to 30 years, with 15-year mortgages typically having lower interest rates but higher monthly payments. When shopping for a mortgage, consider the term, as this will affect the total cost of the loan and the size of your monthly payments.

Credit Score

When evaluating your mortgage application, your credit score is an important consideration for lenders. A higher credit score can lead to a lower interest rate and better loan terms. Before applying for a mortgage, check your credit score and work to improve it, as this can save you a significant amount of money over the life of the loan.

Debt-to-Income Ratio (DTI)

Your debt-to-income ratio calculates what percentage of your earnings goes to repaying your debt, including your mortgage. Lenders prefer to lend to borrowers with a lower debt-to-income ratio, indicating a lower risk of default. When looking for a mortgage, consider your debt-to-income ratio because it can affect your ability to qualify for a loan and the terms you receive.

If you have shopped for a mortgage and need legal advice or assistance to close your real estate transaction, the Law Office of Steven Kurlander can help. Our team of experienced attorneys is dedicated to providing our clients with the legal guidance they need to navigate the complex world of real estate.

We understand the mortgage process and can help you choose the right product for your needs. Contact us today to schedule a consultation and see how we can assist you with your mortgage shopping needs.

3 Ways a Lawyer Can Help Someone Selling Residential Real Estate

Thu, 06 Oct 2022 16:00:00 GMT

The most expensive item that you likely will ever sell in your lifetime is a home. That is why you should have a lawyer on your side to ensure that the sale is correct. You may end up getting a bit over your head once you start the process if you think that you can handle the job on your own. Discover three things that a real estate lawyer can do to assist with selling a home.

Help Sell Unique Properties

When you have a property that might face unique circumstances, then a lawyer will ensure the sale goes smoothly and successfully. They can help you understand all the requirements and regulations you might face due to your specific property and assist you accordingly. Instead of facing the potential hurdles and challenges yourself, you will have a valuable ally to assist you with all legal aspects.

For example, properties that might require extra legal assistance include:

Properties you’ve inherited
Properties with easements or potential boundary issues
Properties you need to sell because of a divorce
Properties that might require major repairs

No matter your property’s situation, an experienced real estate attorney can help. They can give your unique property the best chance for success.

Help You Review the Documents You Sign

So many documents need signing when closing on the sale of a home. Without a lawyer, you will need to not only find the time to read all of those documents about the sale of the home but actually understand what they say.

Your lawyer helps you understand exactly what you sign at the time of the closing. They will be able to check each document to ensure it is accurate and then explain each document in simple language so that you understand the legal implications.

Working with your own lawyer is important because they are on your side during this transaction. If you use the buyer's lawyer, they clearly work with the buyer's interest in mind by wanting the sale to go through. You need someone to look out for you to confirm that you sell the home correctly and to catch any potential mistake that can benefit the buyer.

Help Communicate With the Buyer

Home sellers typically do not communicate directly with home buyers, with all the communication going through a third party. This often means that the buyer and seller's lawyers do most of the talking, which will help avoid any legal mishaps due to a miscommunication.

You will have some back-and-forth communication that you should not have to handle directly, such as negotiating the terms of the purchase and sale agreement before you accept an offer.

This document lays out the terms of how the sale of the home will happen, which includes the closing date, the way the earnest money is handled, and any contingencies that define when a buyer or seller is allowed to back out of the transaction. You will definitely start off the process correctly by having your lawyer draft and review this document.

These are just a few reasons why you should work with a lawyer when selling a home. Reach out to the Law Office of Steven Kurlander for more information on how we can help. We are happy to discuss your real estate situation and answer any questions or concerns you have. Please let us know how we can assist with your home sale today. You deserve the best price for your home, and we want to provide that to you with our legal experience in real estate sales. A successful sale is just a call or click away.

4 Things That Can Save You From a Mortgage Foreclosure

Fri, 09 Sep 2022 15:43:00 GMT

Mortgage foreclosures are a financial disaster for homeowners since you lose a hard-earned asset that houses your family. While a foreclosure notice can generate significant economic and psychological stress, a borrower can enact several defense protocols to stop or stall the foreclosure. Here are four ways you can restrain the lending institution from enacting the foreclosure notice.

1. Illegitimate Foreclosure

An institution can foreclose a mortgage based on New York State laws if the borrower fails to make payments on the mortgage or they violate the terms of the mortgage. New York State laws mandate that an institution file a foreclosure notice with the county clerk.

Once filed, they must publish the foreclosure notice in a local newspaper and serve the notice of the foreclosure on the borrower. They can only hold a public auction of the property after following these steps. The mortgage foreclosure becomes illegitimate if the institution does not follow this procedure.

Additionally, the lender must provide accurate and transparent details that are reasonable to both parties according to state law. Therefore, the property owner can seek legal compensation if a lender changes the terms of the agreement without the borrower's consent or intentionally hides vital information that affects the agreement terms.

2. Active Service

The government protects any active military and civil duty members from financial debts. The Servicemembers Civil Relief Act (SCRA) is a federal law that protects military members when they enter active duty. The SCRA allows servicemembers to cancel or postpone certain civil obligations, such as paying mortgages, leases, and credit card debt.

This provision gives servicemembers some financial breathing room while they are away from home serving our country. If you receive a foreclosure notice while on active duty, you can seek the court's assistance to postpone payments until you conclude your current deployment.

3. Bankruptcy

Individuals can file for bankruptcy if they cannot repay their debts. A borrower laden with debt can only file Chapter 13 bankruptcy if they want to keep their home, as Chapter 13 provides the necessary leeway to reorganize finances and develop a repayment plan.

Chapter 13 bankruptcy allows you to pay off your debts over three years and continue living within your means. While you can afford living expenses, it doesn't mean you'll have money left for anything else. A Chapter 13 plan also requires that you file specific paperwork with the court, which can be time-consuming and expensive.

In this instance, you can receive some relief from any mortgage repayment obligations and either pay off the debt entirely or with installments after a renegotiation. However, you should only take a bankruptcy claim after serious deliberation with your attorney.

4. Mortgage Reinstatement and Redemption

Mortgage reinstatement brings a mortgage loan that is in default back up to date. This process usually involves paying the entire amount of past-due payments, plus any fees and penalties accrued. With a mortgage reinstatement, you must discuss with the lender how you can fulfill the remaining portion of the contract to avoid future foreclosure notices.

Mortgage redemption involves paying off a mortgage loan in full. You can fulfill this complete payment at any time during the life of the loan, but you must complete it before the lender sells the property. Full settlement entitles you to the mortgaged property, which rescinds any claims made by the lender.

A mortgage foreclosure can make you anxious about a potential loss to the property that houses your family or business interests. Fortunately, you can take necessary legal actions to protect yourself from a foreclosure notice if you use any of these four tactics.

Contact the Law Office of Steven Kurlander to receive legal assistance with a mortgage foreclosure defense.