Anyone who has a mortgage can attest to the volume of legal paperwork that is involved in the process. When you review your mortgage, you may notice a number of different sections known as clauses or covenants, which govern the details of the mortgage transaction and ownership of the property thereafter. Considering the sheer amount of paperwork required in a home purchase, you’ll be better equipped if you can walk into each meeting knowing what some of these basic clauses mean before you begin putting your signature to paper.

Acceleration clause – This clause protects the lender, by triggering a legal demand for the full loan to be repaid at once, should conditions such as borrower default exist.

Due-on-sale clause – A variation of the acceleration clause, this allows the lender to ask for the full loan repayment if the property is sold or otherwise transferred to somebody else.

Assumption clause – In increasingly rare cases, a mortgage may be “assumable,” meaning that rather than the homebuyer receiving a new mortgage, they are allowed to simply take on the previous owner’s mortgage and monthly payments. This setup also allows the buyer to forgo settlement costs and loan application procedures, and possibly even assume the seller’s interest rate. Most current mortgages, however, provide the opposite clause on the mortgage—a “nonassumption” clause.

Conversion clause – A clause specific to ARM mortgages, this gives the borrower an option to convert the ARM to a fixed-rate mortgage (usually for a fee, and often only within a specific time-frame).

Insurance covenant – The mortgage lender may add this to the contract to ensure that the buyer protects the home with a reasonable amount of property insurance. The covenant often allows the lender to purchase coverage at the borrower’s expense, if the borrower does not take responsibility on their own to keep this coverage.

Although the prospect of reading your mortgage paperwork may seem daunting, in many cases, the clauses of a contract are simply common-sense statements included in the legal paperwork. Speak with your attorney and loan officer; they’ll help make sure you understand everything you’re signing!

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Advances in technology have affected every aspect of our daily lives, from small tasks to major decisions…including real estate purchases. Smartphones allow us to have this technology with us anywhere we go. Here are a handful of downloadable apps that you can use to shop for a new home or get quick mortgage answers.

Zillow
Zillow is one of the most trusted real estate databases in the nation. Their app for iPhone, Android, Blackberry, and iPad will show you detailed information on every home in the United States, whether they’re up for sale or not. Download at: www.zillow.com/mobile/

Trulia
Trulia is a real estate search engine, and they’ve combined their powerful system with the GPS abilities of iPhone and Android to create an app that allows you to find homes, as well as sales concentrations, in whatever neighborhood you’re currently located. Download at www.trulia.com/mobile/

Redfin
Similar to Trulia, Redfin’s app uses the GPS capabilities of iPhone to give you a detailed map of your current location, although unlike Trulia it is only built for major metropolitan areas. The first versions of the app for Android have just been released, but you can download the well-tested iPhone version at www.redfin.com/iphone/

Realtor.com
With over three million homes in its database, Realtor.com’s app for iPhone and Android will allow you to view nearby properties and ratings on a clear map, and alerts you to open houses in the area. Download at www.realtor.com/mobile/

Homes.com
Available for iPhone, Android, Blackberry, and Windows Phone 7, this app allows you to search property listings using address or MLS number and can instantly give you driving directions to the location. This app also includes a mortgage calculator feature to help you decide whether the price of a listing is something you can afford. Learn more about the app and download at: www.homes.com/mobile-apps/

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Whether you’re selling your home or refinancing, one of the key steps of the process will be the appraisal. The appraisal plays the most significant role in determining the value of the home, which then determines either how much you can expect to receive from a sale or whether it is even worthwhile to refinance. Because of the potentially thousands of dollars at stake during an appraisal, a smart, responsible homeowner will take steps to prepare their home. During the past few years in the housing market decline, equity in homes has been on the decline. Follow these simple advices to improve your chances of getting the most out of your home’s value for the appraisal purposes.

Repairs and upgrades are high on an appraiser’s list of things to examine. Anything that displays signs of poor maintenance—damaged walls or leaky pipes, for example—will instantly lower the price of a home. On the opposite token, investments in the development of the home, such as new windows or room additions, add value. Before the appraiser arrives, do your own inspection, and fix what needs fixing. Then, catalog all improvements made to the home in a simple, easy-to-read sheet for the appraiser.

Consider that an appraiser is a bit like a prospective buyer, and make sure that the house is looking its best from a tidiness angle as well. Take time to pick up clutter and to make sure that a walkthrough won’t run into any obstacles, including access to basements, storage closets, and attics.

Finally, understand that the appraiser will not only be reviewing the house as it appears in real life…they’re also going to want to see how it looks on paper. Have building plans and tax information handy for the appraiser. The size of the property is especially key to the property’s appraisal value, and it’s best for the appraiser to have the dimensions certified in writing.

Don’t take appraisal preparation lightly! Although you can’t control everything an appraiser will notice, you can make sure that you’ve given yourself the best possible chance of receiving the highest value for your home.

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