Q & A with Dottie Herman

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Q1 - I'm buying a house and am currently in the process of getting a mortgage.  Can I buy a new car now or should I wait?

A - When you are applying for a mortgage you should NOT be opening any type of new credit. This is including but not limited to, car loans, credit cards (of any kind including store cards) student loans, personal loans etc....

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Q2 - My closing is in two weeks, and I just found out that I can't be there.  What should I do?

A - You should ask your attorney to find out if the lender will allow a Power of Attorney, which will allow your attorney to sign all of the closing documents for you at the closing.  If you have someone else on the loan with you who will be present at the closing, that person can also sign for you.  Please make sure your attorney knows that the Power of Attorney must be specific to the transaction.

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Q3 - How should I hold title to my new home?

A - It depends on if your single, single with children, married, married with children, owning with others, etc.  You can be vested as Solely, Jointly JTWROS (Joint Tenants with Rights of Survivorship), Tenants by the Entirety, Tenants in Common.  Please ask your attorney for advice on this one.

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Q4 - Do I need homeowner's insurance?  What should it cover?

A - Whenever you take out a mortgage the lender is going to require that you get homeowners insurance.  You are only required to get an insurance policy that covers the amount of your loan or the "Cost Estimated New" (located on your appraisal), whichever is less.  You should know of the 6 types of home owners insurance coverages. Dwelling, other structures, Personal Property, Loss of Use, Personal Liability Protection and Medical payments.

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Q5 - I don't have enough money for closing costs and was told that I could get a seller's concession.  What is a seller's concession?

A - A seller's concession is a way for a buyer to purchase a home with little to no money out of pocket. It works likes this:

Lets say you were purchasing a home for $100,000 and wanted to add a 6% sellers concession to help with the closing costs. Your new purchase price would be $106,000, of which $6000 would go towards your closing costs at time of closing. The seller still nets his $100,000, and the buyer gets $6,000 to put towards closing costs.  It's a win-win for both sides.  The caveat here is that the house must appraise for the $106,000.

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If you have a real estate question for Dottie, please send it to; Reporters@WorldPropertyChannel.com