The first thing you need to do when you plan to purchase a home in Utah is to find a lender that will provide you with the financing you need. This is to establish your identity and your ability to pay the loan. A broker or an underwriter will verify the information provided. However, if there are problems with the verification process, the borrower will be asked to submit more documents.
It is important that you know the different documents necessary so that you will be able to prepare them ahead of time. Most lenders would require documents from three months or from three years ago in order to verify information.
To help you prepare the necessary documents, below are some of the documents needed:
1. Most lenders will require of paystubs for the last three months. If you have a business or works on a commission basis, additional documents will be required. They may request for a statement of gains and losses over the past year.
2. Your tax return for the last 2 years will also be required. This should include all schedules. If you are paid through commission basis for a sales business, then prepare your tax returns for the last three including all schedules.
3. If employed, your employment status has to be verified. The lender will have your employer sign a form to prove this. Your salary as well as his length of service shall be indicated in the form. Other information regarding the status of the borrower as well as any expected raise may also be identified.
4. If you are currently renting, landlord verification is essential. You will be asked to provide the name and the address of your landlord as well as his contact details. A copy of the lease may also be requested. There are also instances when the landlord will be asked to fill up a form.
5. If you are planning to sell your current home, you will be asked to submit a copy of the listing agreement with your real estate agent or the copy of the Agreement of Sale or Purchase. If you have sold the property already, you will be asked to submit a copy of the closing statement or the HUD1. A copy of the proceed check may also be required.
6. Lenders will also require you of a homeowner’s insurance coverage. You have to show a proof of payment for the coverage of the first year. Most lenders will not approve your loan without this.
7. If you are applying for a loan to refinance an existing loan, the lender may require you to submit a copy of the note or the current mortgage. You can acquire this easily since this is a public record. You may encounter problems if the mortgage has not been filed but you can always contact your previous lender. Before you apply for mortgage, see to it that you are familiar with the documents they require. If you have all the necessary documents, the next steps will be easier. The processing will be faster as well.
If you are thinking about estate lawyer planning and whether you are considering using an attorney or doing it yourself you will need to consider two questions.
• Form; and
• Substance
Form means the type of document you will you be drafting. The two form choices you have are the Will and the Living Trust. Before you visit an attorney or attempt to do it yourself, research both on the internet to learn the pros and cons.
In estate lawyer planning, substance means what goes into the documents. This substance will be the same whether you elect a Will or Trust. Your substantive decisions will include:
• Guardians: This is the hardest decision if you have minor children. These people are responsible for raising your children.
• Trustees: These are the money people. Ask yourself if your proposed trustees understand money. Look at how they handle their own money, whether they spend it wisely or frivolously. Finally ask yourself if you trust them?
• Trust Provisions: When should your children have control of any trust funds?
• Contingent Beneficiaries: Who do you want to get your estate if the entire family should perish? Do you want it to go to brothers and sisters, parents or others including charities. Perhaps a different way to phrase the question is who do you not want to get your estate?
When you are considering your estate lawyer planning decisions, get educated, use the above framework and think about doing it yourself. You can if you have the right resources.
Life changes. So should your Estate Plan.
• Revisit your estate plan when your circumstances change, for better or for worse. This may include a marriage or divorce, birth of a child, loss of a loved one, getting a new job or being terminated.
• Revisit your estate plan periodically even if your circumstances don’t change. Although your situation may be the same, laws may have changed.
• It will take some effort to revise your plan, but take heart. The need to revise means you’ve already avoided the biggest estate planning mistake: never drafting a plan at all.
When Does an Estate Plan Become Necessary?
Many financial advisors would recommend starting an Estate Plan the moment you become a legal adult, and updating it every three to five years after that. The reason for this is because at 18, you are newly responsible for your finances, healthcare (in some states), and power of attorney; and you want to consistently make sure everything is accounted for. However, for most young adults an estate plan is the furthest thing from mind which is normal. But there are a few common life events that warrant prioritizing your Estate Plan that one should never ignore. No matter what your age, consider the following life occurrences as signs to start (or update) your Estate Plan:
• Savings Account: As soon as you start a savings account, a natural next step is to designate where those funds would go in the event of your death. This will ensure the account can be passed on to a loved one or cause of your choosing.
• Home & Additional Property Ownership: The purchase of a home or other property is a sign to start estate planning, as you most likely want to avoid lengthy probate court proceedings.
• Marriage & Remarriage: Combining assets, no matter how many, is a crucial time to start estate planning. Take time to determine what happens in the event of one spouse’s death, as well as both.
• Travel: At the very least, it is recommended to update your estate plan before big trips. Particularly if you travel for long periods of time or frequently leave the country.
• First child and each one after: One of the most obvious estate planning triggers is the birth of a child. You need to think about guardianship and financial security in case anything were to happen.
• Inheritance of money or other assets: An inheritance can kick in suddenly, and provide people with more assets to take care of in the midst of a difficult time. Update your estate plan to reflect any additional money or assets you inherit when you can.
• Divorce: If you find yourself divorced, it is critical to update any previous estate plans that were made with your former spouse.
• Grandchildren or births in the family: With new family members to consider, it is a good plan to update your Will or any Trusts to ensure they are taken care of as well.
When to Nominate a Guardian
As you prepare to have your first child, it is always smart to begin thinking about who you would appoint as a guardian for him or her in the event anything were to happen. This is not a thought most new parents want to dwell on, but it is still crucial to get it into writing. Typically, a guardian is named when you create a Will, but there are other options available for those who may not be ready for this process.
When to Make a Will
The best time to make a Will is essentially as soon as you become a legal adult or reach any of the above estate planning triggers. Unfortunately, many Utah citizens pass away without a valid Will. This leaves family members in the midst of loss while also being in charge of a number of decisions they may not have considered. A Will can prevent this situation, by allowing you to appoint a healthcare proxy, designate a power of attorney, and specify how your assets and money will be distributed.
An Attorney in Utah aims to make this process as seamless as possible and can help you customize a Will today. If you happen to already have a Will or own more than $160,000 in assets it might be time to consider going one step further and create a Trust.
When to Create a Trust
If you have more assets, including property or other investments, it may be time to start your Trust. Trusts give you more control over where your assets will be distributed while you’re still living and after death, and can help you avoid probate. Additionally, creating a trust can help you avoid additional taxes or fees as your assets pass to various beneficiaries. An Attorney in Utah can walk you through the various types of trusts available to ensure you have a comprehensive Estate Plan in place.
When to Update Your Estate Plan
Estate planning “triggers” are essentially any milestones that increase your wealth or impact how you want your assets distributed after death. Each time you approach one of these life events, make sure these additions are accounted for by updating your Estate Plan. After all, life can change quickly and it is important to reflect that with proper planning. A good rule of thumb is to revisit and update your estate plan every three to five years.
Real Estate Short Sale
When a home owner finds themselves in a position of failing to meet mortgage payments, there is an option that does not include foreclosing on the home. A short sale is a home sale where the lender is willing to accept less than the amount owed on the home. While some lenders do not offer short sales for the loans they have secured, and other lenders may choose a foreclosure as being more financially beneficial for the loaning party, others will allow a homeowner to enter into a short sale if all paperwork is filed properly and on time.
The paperwork involved in setting a short sale in motion is the not so short part of the sale. For obtaining permission to begin the short sale process from a lender the homeowner will need the following documents.
• Letter of Authorization: The letter of authorization will need to include the property address, the loan reference number provided by the lender, the name of the home owner or the person holding the loan, the date of the request, and the agents name and address. The agent may be a real estate agent or a lawyer dealing with the financial matters in the case. The letter of authorization will give the lender permission to speak to any outside parties listed in regards to the homes loan and the home loan status.
• Preliminary net sheet. The preliminary net sheet is a financial document proving the amount of money you expect to receive from the sale of the home. The amount of the total sale, any fees, late charges, and real estate charges. The real estate firm handling the short sale will be able to address the preliminary net sheet. To ensure the approval of the short sale, the bottom line of the net sheet should show zero profits going to the seller of the home.
• Letter of hardship: This is one of the most important documents the homeowner will provide to the lender. This letter should read as real and honest as possible. If there are extenuating circumstances surrounding the sale of the home or the loss of income leading up to the late mortgage payments, the lender will need to know these facts in detail.
• Financial documentation: The lender will also need copies of all financial statements and proof of all income and debt. These statements will include assets, income, bank statements, credit card statements and any monetary statements available at the time of the short sale request. Financial statements that prove the homeowner is not in debt will cause the lender to instantly deny the short sale.
• Purchase agreement: The lender will want the listing agreement and purchase agreement agreed upon by the seller of the home and the buyer of the home. The lender has the right to refuse any and all payments in association with the sale of the home that are not required by law. These may include inspections of the home and home protection plans, depending upon the laws of the state.
