Homeowners associations- WW S2 E1


A homeowners association (HOA) is an organization that makes and enforces rules for the properties within its jurisdiction.

HOA’s members will have to and are required to pay dues. Some associations can be very restrictive about what members can do with their properties.

Homeowners associations (HOAs) are formed by planned communities with single-family homes or multiple units, such as condominiums.

There are actually certain properties that require becoming a Home Association member in order to purchase them An HOA is typically established to make and enforce rules regarding the properties within the jurisdiction. Most HOAs are incorporated and thus subject to state laws.

Homeowners associations can also have significant legal power over the property owners in their jurisdiction. There will be a set of rules in a document called the Declaration of Covenants, Conditions and Restrictions (CC&Rs), which set certain conditions on owners and their properties. The conditions may include structural restrictions such as the type of fences or landscape allowed, or minor selections such as the color of paint on a house. This document should also outline the penalties for violating the CC&Rs, which may include fees, forced compliance or in some cases, litigation.

HOAs collect monthly association fees or annual dues to pay for upkeep of common areas like parks, tennis courts, elevators and swimming pools. Typical HOA fees are between $200 to $400 per month. HOA fees often contribute to the association’s reserve fund, which is set aside for major renovation projects or emergency use. An HOA’s board of governors is usually responsible for the organization’s finances, including the management of funds.

Advantages of an HOA

HOA members generally aim to maintain a standard of appearance for the property, and the HOA provides the regulations and guidelines for the community. The community standards should support stable property values. There are architectural standards that are designed to keep a uniform appearance to the property. Some HOA fees cover the cost of trash collection and snow removal.

Disadvantages of an HOA

The big downside of being part of an HOA is the high cost of the association fees. HOAs can also be very strict and restrict homeowners from making changes in their own properties.

So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.

Stay hungry and stay positive!

Make it a great day,

Sean La Rue

Facebook: https://www.facebook.com/SeanLaRueHomeLoans/

Instagram: @seanlaruehomeloans

Linkedin: https://www.linkedin.com/company/sean-la-rue-sr-vice-president-franklin-loan-center/

Trusts and Wills- WW S1 E12

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Welcome to a new episode of Woke Wednesdays in Real Estate, where we’ll discuss the terms “will and “trust” as they’re often confused. One main difference between a will and a trust is that a will goes into effect only after you die, while a trust takes effect as soon as you create it.

When it comes to trusts, there are many types but it’s also important to address the issues that you may have to encounter in your estate plan.

We are going to divide trusts in 3 categories: revocable living trusts, Irrevocable living trusts and testamentary trusts.

1- Revocable trusts are those where someone creates the trust and funds his property into it. The trust’s terms can be changed during the individual’s lifetime.

2- Irrevocable trusts are pretty much the opposite, as once they are created they stay forever. It works basically this way: when you fund an irrevocable trust you place the property into the hands of someone else you’ve chosen as trustee. Once you’ve made this decision and created an irrevocable trust, you can’t take it back.

Why do people go for irrevocable trusts then? Well they bring in many great benefits such as very interesting tax implications that are worth to be taken into account and plenty of other benefits that anyone with great financial situation should consider.

3- Testamentary trusts: they are created by a testator and they don’t come into action till the death of the testator.

So, now you must be wondering: When do Wills and Trusts take effect?

Well, as we just mentioned, a last will and testament will be applied after the testator’s death and any living trust will come on the scene once the papers have been signed.

A will can only govern the disposition of property owned in your sole name at the time of your death, including interests you might have in property such as a tenancy in common.

A living trust can govern and distribute any property it’s been funded with. The grantor transfers his assets into it after it’s formed.

So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.

Stay hungry and stay positive!

Make it a great day,

Sean La Rue

Facebook: https://www.facebook.com/SeanLaRueHomeLoans/

Instagram: @seanlaruehomeloans

Linkedin: https://www.linkedin.com/company/sean-la-rue-sr-vice-president-franklin-loan-center/

How Does An Appraiser Verify Value?- WW S1 E13

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An appraisal is an unbiased professional opinion of a home’s value. It is very common to have them in any home purchase and is used to determine whether the home’s price is appropiate or not. It’s like a way to make sure that the lender is giving the property for a fair amount. It also protects the banks in worst-case scenarios.

Lenders want to make sure that homeowners are not overborrowing for a property because the home serves as collateral for the mortgage. If the borrower should default on the mortgage and go into foreclosure, the lender will recoup the money it lent by selling the home. The appraisal helps the bank protect itself against lending more than it might be able to recover in this worst-case scenario.

Note: If you’re considering a refinance, it is beneficial to research interest rates using a mortgage calculator.

The lender will be the main figure that gets protected under an appraisal, and will as well order the appraisal.

A property’s appraisal value is influenced by recent sales of similar properties and by current market trends. The appraiser will do a complete visual inspection of the interior and exterior and note any conditions that may affect the property’s value, such as needed repairs.

The report must include a street map showing the appraised property and comparable sales used; an exterior building sketch; an explanation of how the square footage was calculated; photographs of the home’s front, back and street scene; front exterior photographs of each comparable property used; and any other information, such as market sales data, public land records and public tax records, that the appraiser uses to determine the property’s value. Usually the borrower will have to take care of the appraisal costs.

If you’re refinancing a conventional mortgage, a low appraisal can prevent you from doing so. The home needs to appraise at or above the amount you want to refinance for your loan to be approved..

When the appraisal value is lower than expected, the transaction can be delayed or even canceled. Understanding how an appraisal works will always work in your favour.

So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.

Stay hungry and stay positive!

Make it a great day,

Sean La Rue

Facebook: https://www.facebook.com/SeanLaRueHomeLoans/

Instagram: @seanlaruehomeloans

Linkedin: https://www.linkedin.com/company/sean-la-rue-sr-vice-president-franklin-loan-center/

Property taxes and how they are calculated- WW S1 E11

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FULL VIDEO: https://www.youtube.com/watch?v=5yHbCU1bd_g

Every homeowner has to pay property taxes every year and it may happen that some of them are overcharged. That’s why it’s highly important to maximize your returns and lower your costs.

In Sean La Rue Home Loans we understand how property taxes are calculated, and we can tell you that It is critical to make sure the appropriate rates are charged. This is the key to paying the lowest taxes possible and maximizing your returns.

Why are property taxes so important?

For any city council or state government, property taxes represent one of the big resources to pay really important services such as education, transportation, parks etc…. They estimate the money they need to pay all these services, and they based on the value of a the assessed value of a property, they make the tax rates.

Understanding how these taxes work and which deductions are applied will prevent you from overpaying.


How do we calculate property taxes?

We will know how much taxes we should pay for our home based on its value. However, what many may not know it’s that the land and the buildings on it need to be taken into account.

Assessors have two ways of calculating property taxes: using the mill levy or the assessed property value.

1- Mill Levy

The mill levy is the tax rate levied on your property value, with one mill representing one-tenth of one cent. Tax levies for each tax jurisdiction in an area are calculated separately; then, all the levies are added together to determine the total mill rate for an entire region. Generally, city, county and school districts each have the power to levy taxes against the properties in their boundaries. Each entity calculates its required mill levy, and they are then tallied up to equal the total mill levy.


2-Assessed property value

The assessed value estimates a fair value for a property based upon prevailing local real estate market conditions.

The assessor will be in charge of estimating its overall value by looking at similar properties in the market, how much the replacement costs for the property would be,etc…

So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.

Stay hungry and stay positive!

Make it a great day,

Sean La Rue

Facebook: https://www.facebook.com/SeanLaRueHomeLoans/

Instagram: @seanlaruehomeloans

Linkedin: https://www.linkedin.com/company/sean-la-rue-sr-vice-president-franklin-loan-center/

Purchasing furniture on credit before we close- MMM S1 E11

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FULL VIDEO: https://www.youtube.com/watch?v=ffvW_Lq5i18&t=0s&list=PLwDXba_ZgjWxgzgVoKQgkLIKTzkvPT6ix&index=2

The long process of getting a loan is over and everything is set for you to get a new place, the only thing left is to close on that future home of yours. What shouldn’t you do? Let me tell you what in today’s article.

We all know that before closing on a loan, one can be very excited and want to go crazy and buy big items such as bedding, new furniture…

There will be for sure very tempting offers in the market to satisfy those desires, but that can set you in a trap that can cost you the home. So don’t do it, just wait before you close.

Why? Because any meaningful movement in your credit cards will be noticed, especially when applying for a mortgage. So, be extra careful with any impulsive decisions that involve risking losing the home of your dreams. Once you have the keys in your hands and the house is officially yours, then feel free to fill it out with beautiful furniture and all kind of items you may want to buy.

When you are on the home-buying process, your credit is monitored till the day you close on a home, the fact that you’ve been pre-approved doesn’t mean you are done and you can start spending! You’re not done until the loan closes

If you really need some new furniture to fill your house, renting will be always a much better option than purchasing while you’re still waiting to close on a mortgage.There’s often no hard credit check and given that your store-bought furniture will likely take several weeks or months to be delivered, and it can be a more cost-effective option.

Switching jobs at the last minute could be an issue as well, as if you’re making money money with one company but then you switch to another one, that will for sure slow down the process because everything needs to be validated and they need to find out where everything is coming from.

It’s also important to let your lender know if you’re getting large deposits, such as gifts from family members or withdrawals from your IRA to help with the down payment.

So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.

Stay hungry and stay positive!

Make it a great day,

Sean La Rue

Facebook: https://www.facebook.com/SeanLaRueHomeLoans/

Instagram: @seanlaruehomeloans

Linkedin: https://www.linkedin.com/company/sean-la-rue-sr-vice-president-franklin-loan-center/

Property Tax Deduction- WW S1 E10

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Full Video: https://www.youtube.com/watch?v=ELqM_5n3jrA&t=0s&index=2&list=PLwDXba_ZgjWwOKhc2UP4pxFUXzYO2eP0Q

Property tax deduction are generally those property taxes that someone can deduct from their federal states.

But the question is: When can we ask for a deduction from our property taxes?


We’ll be able to ask for it when we are using our home for personal uses or itemize deductions on our federal tax return. When we say personal property, that includes a taxpayer’s main home, vacation home or a property in a foreign country.

Also, keep in mind, that the real state taxes that we can deduct include the closing costs when buying or selling a property and taxes paid to a county or town’s tax assessor on the assessed value of the personal property.

Now, let’s go over those taxes that we won’t be able to deduct.

Taxes paid on rental or commercial property and property not owned by the taxpayer cannot be deducted. Also, if you are a seller who has paid the seller’s delinquent taxes from a previous year, you won’t be able to apply any deduction for those taxes, as this is a kind of tax that is considered as part of the cost of buying a new place and not deductible.

Another key thing to keep in mind: In order to claim a property tax deduction, the tax must only apply to the value of the personal property owned and be charged on an annual basis. Therefore, if the state tax was only charged at the time the property was purchased then it does not meet the IRS definition of a deductible personal property tax.

A taxpayer can itemize deductions if the sum of all his eligible itemized expenses is greater than the standard deduction allowed in a given tax year.

So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.

Stay positive and stay hungry!

Make it a great day,

Sean La Rue

Facebook: https://www.facebook.com/SeanLaRueHomeLoans/

Instagram: @seanlaruehomeloans

Linkedin: https://www.linkedin.com/company/sean-la-rue-sr-vice-president-franklin-loan-center/