The offer to purchase is designed to hold the property from sale pending the preparation by the Seller’s counsel of a formal contract. In some areas in Connecticut, the Buyer proceeds immediately to an offer/contract provided by a real estate broker.

The final stage of the real estate transaction is the closing. The closing is when the parties sign all documents; in connection with the sale and mortgage and the purchase price balance paid to the Seller. The Seller produces all documents necessary for the title transfer and delivers a deed conveying the title to the Buyer.

A loan modification changes your current home loan, including changing the repayment length, interest rate, or other terms. If you’re having trouble making mortgage payments, a loan modification can make your payments more affordable.

A loan modification restructures your current home loan, and this could be:

• Changing the loan type
• Extending repayment terms
• Altering the interest rate
• Reducing the total principal balance

Some States authorize to assess and collect property tax on most real property and some types of personal property, such as automobiles and boats, located within the county. Property tax is generally due by January 31st of each year and is based on the property’s assessed value from the prior year. Property owners that cannot pay their property tax could face a variety of potential consequences ranging from the taxing authority placing a lien on their property to the property being foreclosed and sold to satisfy the debt.

Falling behind on property taxes does not guarantee to lose your property. Instead, among several options, a well-structured property tax loan can help property owners satisfy their tax obligation as part of a broader strategy for achieving financial success.

Refinancing involves replacing an existing loan with a new loan that pays off the debt of the first one. The new loan should ideally have better terms or features that improve your finances to make the entire process worthwhile.

The finer details of refinancing can vary depending on the type of loan and your lender.

You can refinance a home loan, auto loan, or other debt. If your existing loan is too expensive or risky, you might want to do so. Your financial circumstances have changed since you first borrowed the money, and more beneficial loan terms might be available now.

You won’t reduce or eliminate your original loan balance. You could take on more debt when refinancing. A deficit might occur if you do a cash-out refinance where you take cash for the difference between the refinanced loan and what you owe on the original loan or when you roll your closing costs into your new loan rather than pay them upfront.

Your property might still require collateral for the loan, so you could still lose your home in foreclosure if you refinance a home loan but don’t make payments. Likewise, the lender could repossess your car if you default on the new loan. Your collateral is always at risk unless you refinance a loan into a personal unsecured loan, which doesn’t use the property as collateral.

Types of Refinancing Loans

• Veteran Affair (VA Loan)
• Federal Housing Administration (FHA Loan)
• Conventional

A purchase money loan is a loan issued to the buyer of a home by the seller. It is also called seller financing or owner financing.

If potential homebuyers can’t qualify for a traditional mortgage loan from a bank, they can investigate a loan provided by the home’s seller; this is called a purchase money loan.

Purchase money loans are used by buyers who have trouble getting a traditional mortgage due to poor credit or those who do not have enough cash for the down payment they need.

If offered seller financing, you should still have an appraisal done on the home to ensure that you are not paying too much for it or taking out a larger loan than the property is worth.

Types of Purchasing Loans

• Residential
• Commercial

Home equity loans and home equity lines of credit let you borrow against the equity in your home. However, the loans are structured differently, so they’re not interchangeable.

A home equity loan is typically a fixed-rate loan. It works like a personal loan: you receive your funds as a lump sum and repay the loan in monthly installments, usually over five to 30 years.

A HELOC, on the other hand, is a revolving line of credit secured by your home. During the loan’s “draw period” (or borrow period), you can draw from the line of credit as needed up to your credit limit — similar to a credit card. Most HELOCs have a draw period of 10 years. Once the HELOC’s draw period ends, you’ll either need to pay the balance in full or over a fixed period, known as the “repayment period.” Repayment periods can last up to 20 years. Unlike home equity loans.

HELOCs typically have variable interest rates, so your payments may go up or down over time.

Types of Equity Loans and Lines of Credit

• Home Equity LOC
• Business LOC
• Securities-Backed LOC
• Demand LOC

A piggyback loan is a second loan after the first mortgage used to finance one property. It’s typically used to lower initial mortgage costs like a down payment or private mortgage insurance, which many lenders require on the first mortgage.

Most lenders prefer you have at least 20% of the home’s value saved for a down payment. However, it’s not always possible to have that much in cash (without hurting your savings), especially if home values are rapidly rising.

Some programs allow borrowers to put a smaller amount of money down, such as Federal Housing Administration (FHA) or Veteran Affairs (VA) loans, but they come with specific requirements (income, location, etc.) that you must meet. Plus, you may be required to pay additional fees, making a piggyback loan a more attractive alternative. 

TYPES:

80/10/10

75/15/10

The first number refers to the primary mortgage amount (80%), while the second number represents the piggyback loan amount (10%). The last number represents the down payment amount (10%).

A reverse mortgage allows eligible homeowners to withdraw equity from their homes, then use it as income during their lifetime. Reverse mortgages accumulate interest and fees, like other home equity loans. But there are no monthly payments required for a reverse mortgage.

Instead, a reverse mortgage must be repaid in full once the homeowner no longer uses the home as their primary residence. That can happen if they:

• Make a permanent move to long-term care
• Get divorced and grant the home to their spouse as part of a settlement
• Sell the property
• Pass away

Reverse mortgages can be attractive to seniors who want to tap into their home equity and turn it into a stream of income for retirement. Depending on how the reverse mortgage is structured, homeowners may be able to receive a lump sum, regular installment payments, or a combination of the two.

A commercial loan is a debt-based funding arrangement between a business and a financial institution such as a bank. It is typically used to fund major capital expenditures and/or cover operational costs that the company may otherwise be unable to afford. Expensive upfront costs and regulatory hurdles often prevent small businesses from having direct access to bond and equity markets for financing. This means that, not unlike individual consumers, smaller companies must rely on other lending products, such as lines of credit, unsecured loans, or term loans.

Commercial loans are granted to various business entities, usually to assist with short-term funding for operational costs or purchasing equipment to facilitate the operational process. Sometimes, the loan may be extended to help the business meet more basic functional requirements, such as payroll funding or purchasing supplies used in production and manufacturing.

A deed is a signed legal document that transfers ownership of an asset to a new owner. Deeds are mostly used to transfer ownership of property or vehicles between two parties.

Types of Deeds

• Grant
• Warranty
• Quitclaim
• Mortgage Deed
• Assignment of Mortgage, 
• Conservator’s Deed,
• Testamentary Trustee’s Deed
• Executor’s Deed
• Administrator’s Deed
• Trustee’s Deed