August | 2011 | Cascades St. Lucie West

Archive | August, 2011

Mortgage Talk in Simple Terms

Mortgage Talk in Simple Terms. There are many stresses associated with home buying – both financial and emotional, and frankly speaking, it doesn’t help that the process comes with its very own foreign language. While your mortgage broker can help de-mystify these terms, it helps to have a bit of a primer on what some of these terms mean. After all, it’s your money and your home we’re talking about; as a Mortgagor you have a right to understand what you’re reading.

We’ll start with Amortization” and “Term”. Both refer to periods of time in the life of your mortgage, and you’ll want to be sure that you understand the difference.

The amortization” of your mortgage is the length of time that would be required to reduce your mortgage debt to zero, based on regular payments at a specified interest rate. The amortization period is typically 15, 20 or even 30 years, although it can be any number of years or part-years.

You could establish that you are able to make a certain payment each month of say $950 for your $130,000 mortgage at 5.0%. In this case, your amortization period will be just under 18 years. Or you could tell your broker that you’d like to be mortgage-free in just 10 years. With an amortization period of 10 years at the same interest rate, your $130,000 mortgage will cost you about $1,407 per month. That’s a tougher mortgage payment but you would save thousands of dollars in interest. (More than $30,000)

As you arrange your mortgage, then, keep in mind that your amortization period may be fairly long — although the shorter you can make it, the less you’ll wind up paying for your home in the long term.

The “term” of your mortgage will typically be shorter. The “term” is the duration of your mortgage agreement, at your agreed interest rate. This will be a very specific length of time, although you will have several choices. A 6-month mortgage is a very short-term mortgage. A 10-year mortgage will be one of the longest terms, generally with a higher rate of interest to represent the higher degree of uncertainty in the economic outlook.

After your mortgage term expires, you will need to either pay off the balance of the mortgage principal, or negotiate a new mortgage loan at whatever rates are available at that time.

Now, back to the term “Mortgagor”. This is one of three very similar terms: “Mortgagee”, “Mortgagor”, and “Mortgage”.

•   A Mortgagee is the lender of the money: a bank, company, or individual.
•   A Mortgagor is the borrower: the person or persons (or company) that is borrowing the money, and who will pay it back to the mortgagee.
•   The Mortgage, of course, is the legal document that pledges the property as a security for the debt.

Still confused? Don’t worry because when purchasing a home you’ll get everything in writing as well as all the information broken down into simple terms. And when you have questions, ask your lender to clarify before signing any documents.

About the Author: Millie Gil has been a successful Licensed Real Estate agent for over 25 years in Florida. Millie is Vice President of Bold Real Estate Group, a boutique agency committed to concierge personalized service for discerning buyers, sellers and renters of residential and commercial properties. For more information please forward your request to communityinfo@comcast.net

View thousands of listings www.Northeast-Florida-Relocation.com www.BoldRealEstateGroup.com www.NewYork-Florida-RealEstate.com www.PGAVillage-Homes.com www.TheCascadesAtStLucieWest.com www.HealthcareRelocationServices.com

Tags: 55+ Port St. Lucie Community, 55+ St. Lucie West Community, Amortization, Bold Real Estate Group, Cascades Community St. Lucie West, Cascades Foreclosure Homes, Cascades St. Lucie West, Florida, Florida Homes, Mortgage broker, Mortgage law, Mortgage loan, New York Mets, Palm Coast Florida, Real estate, Real estate broker/agent, Senior Living, Short Sales, St. Lucie West Homes

Life after bankruptcy and qualifiying for a home

29 Aug

Life after Bankruptcy and Qualifying for a Home. Bankruptcy can help relieve you of your debts and stop harassing creditors from contacting you but have you thought about life after bankruptcy? Will you be able to qualify for a new home?

You can be approved for a new mortgage at a normal interest rate within 24 to 30 months after your discharge. If you can prove the bankruptcy was caused by medical reasons or a divorce you probably can be approved much sooner. But there are qualifications that you must meet to get a new mortgage and this all depends upon how you re-established yourself after the bankruptcy discharge.

Even if you don’t meet all the qualifications you can still get a mortgage but it will come with a higher interest rate and a larger down payment. Lenders will be inquiring about your finances and looking to see if you’ve paid your bills on-time since the bankruptcy.

So How Much Credit is Enough?

If mortgaging a new home, it will take more than a bank card with a $500 limit to re-establish your credit. Begin by concentrating on the necessities and time will work miracles. Start establishing the following:

1.   Bank checking and savings account
2.   A secured credit card from a reputable institution
3.   An auto loan

You will need at least 3 credit references since your bankruptcy.

Put Your Financial House in Order

It all starts with your money. Have you noticed that most people in dire financial straits seem to have everything? Large screen televisions, expensive appliances, fancy cars, etc? When you are discharged from bankruptcy you must cut expenses and stop throwing money away on useless things however the problem here lies with our mindset – we believe everything we have is a necessity; the new wardrobe, the mini-mansion, the over-priced automobile; you may very well deserve these things but if you can’t afford it you simply have to understand the obvious – You Can’t Afford It!

Did You Know –

After your bankruptcy discharge you can re-build your credit score within 24 months up to a high 800? But this requires paying all bills on time and securing new credit responsibilities to show that you’re ready.

I wish I could say that you’ll be automatically qualified but this all depends on what you’ve done since your bankruptcy and the lender’s guidelines.

Things that will Kill a Mortgage Loan Application

Start anticipating a bumpy ride; I know this sounds negative but it’s best to be prepared and after a bankruptcy it’s not a walk in the park. There are twists and turns but it will prove to be well worth the hassle so never give up.

There are things that will likely kill or just delay your chances for a new mortgage;

1.   Poor credit since bankruptcy
2.   High debt to income ratio
3.   Job instability
4.   Tax liens or levies against your paycheck
5.   Insufficient down payment

Reality hurts sometimes but when you’ve been given a second chance you should know you have to prove yourself all over again. The most important thing here is to know that you must take a hard look at how you’re living and the work you must put into re-establishing your credit. This will improve your chances not only for a mortgage but living encumbered without the benefits of good credit.

View thousands of listings www.Northeast-Florida-Relocation.com, www.BoldRealEstateGroup.com, www.NewYork-Florida-RealEstate.com, www.PGAVillage-Homes.com, www.TheCascadesAtStLucieWest.com, www.HealthcareRelocationServices.com

Tags: 55+ Port St. Lucie Community, 55+ St. Lucie West Community, Bankruptcy, Bold Real Estate Group, Canasta, Cascades Community St. Lucie West, Cascades Foreclosure Homes, Cascades Short Sale Homes, Cascades St. Lucie West, Credit card, Credit history, Florida, Home insurance, Jacksonville Beach Florida, Loan, Mortgage loan, Ponte Vedra Beach Florida, port st. lucie florida, Real estate, Real estate broker/agent, st. lucie west, St. Lucie West Homes

Comments Leave a Comment
Categories Cascades Community, Cascades St. Lucie West, Estate Planning, Florida Best Real Estae Investment, Florida Real Estate, Gated Community, Golf Carts, Home Buying, Kings Isle St Lucie West, Real Estate, Retire, Retirement Amenities, Retirement Communities, Retirement Community, Retirement Living
Author Millie Gil, Lic. Florida Real Estate Broker

Is Green another type of Mortgage nor readily used?

29 Aug

Is Green another type of Mortgage nor readily used? Green Mortgages may seem like a new novel idea but they’ve been around for decades. A green mortgage simply is a type of mortgage that provides you a money-saving discount or a bigger loan than normally permitted as a reward for making energy-efficient improvements or for buying a home that meets particular energy-efficiency standards. It also makes it easier for you to qualify for a loan.

Green mortgages hinge on the principle that a more energy-efficient home means lower utility bills and, as a result, greater income, qualifying a prospective homeowner to buy a more expensive house. Officially, the mortgages often are called Energy Efficient Mortgages (EEMs) or Energy Improvement Mortgages (EIMs).

A green mortgage allows you to roll in the costs of making specific energy saving improvements to the home you are building or purchasing. This will, of course, increase your monthly mortgage payment but since because these improvements will drastically lower your energy, gas and water consumption, your monthly utilities will decrease even more so than your mortgage -saving you money every month.

Individual monthly savings will differ depending on the degree of the property’s energy efficiency. There are instances where the home energy efficiency improvements have led to monthly savings of $400 and greater.

If you saved $100 per month in energy costs for an annual savings of $1200, your home’s value would increase $24k.With the increase over the past 10 years in energy costs, this amount is probably higher.

There are several options for Energy Efficient Mortgages or EEM that one might qualify for

•   Fannie Mae Energy Efficient Mortgage (EEM) Pilot
•   Federal Housing Authority (FHA) Energy Mortgage Program
•   Veterans Administration Energy Mortgage Program
•   Freddie Mac Support for Energy Conservation
•   Energy Star Mortgages

The process of getting an energy efficient mortgage is exactly the same as a conventional mortgage with the exception of adding in the extra step of having the energy audit performed.

1. First you select your property, received an approved offer, enter into contract, complete home inspection and property appraisal.

2. Schedule the home energy audit to be completed as soon as possible after home inspection and appraisal.

3. Once these reports come back, the loan officer with finish the remaining paperwork which includes the application for the EEM and includes the energy audit report. Your lender then completes a two page Energy Addendum form to include with the rest of the loan paperwork.

While commercial builders have taken advantage of this program more than homeowners the opportunity is there to reduce your home energy outlay by from 30 to 50 percent, guaranteed.

Tags: 55+ Port St. Lucie Community, 55+ St. Lucie West Community, Active Adult Community, Bold Real Estate Group, Cascades Community St. Lucie West, Conservation, Efficient energy use, Energy, Energy conservation, Energy Star, Federal Housing Administration, Florida Real Estate, Home, port st. lucie florida, Real estate broker/agent, St. Lucie West Homes, Technology

Comments Leave a Comment
Categories Cascades Community, Cascades St. Lucie West, Estate Planning, Florida Best Real Estae Investment, Florida Real Estate, Gated Community, Golf Carts, Home Buying, Retirement Communities, Retirement Community, Retirement Living, Senior Living, Short Sale Homes, St. Lucie West Homes
Author Millie Gil, Lic. Florida Real Estate Broker

The benefits of owner financing

29 Aug

There are many benefits for doing an owner-carry installment sale as opposed to conventional financing for both the buyer and seller. Sometimes this type of transaction may benefit only one or the other, but in most cases this contract is “Win/Win” for both parties.

Benefits for the Seller

Most sellers of real property insist on the highest price and all cash. Sellers want a fast closing with little hassle. Sellers also want to pay as little taxes as possible on the gains incurred. In many cases, the seller can have most of his needs satisfied by an installment sale rather than a traditional cash sale. Let’s look at these needs one by one.

1. Highest Price. There is no doubt that a seller can insist on and receive the highest price when offering flexible owner-finance terms. In many cases, the seller can receive more than the fair market value of the property by offering these “soft” terms. People are always willing to pay a premium for non-qualifying financing.

2. Cash. Nearly ever seller says he wants all cash, but few need it. What the typical seller wants is the most net cash from the deal. Often, the seller has to pay closing costs, title insurance, broker fees and the balance of the existing financing. In addition, there may be capital gains tax due to Uncle Sam. In many cases, the sale of a property by an installment sale will net the seller more future yield than any source from which the cash proceeds were reinvested.

3. Fast Closing. Nothing holds up a sale more than new lender financing. In some areas of the country, it can take months for a buyer to qualify and close a new loan to purchase your property. Since most standard real estate contracts contain a financing contingency, you may end up back at square one if your buyer does not qualify. Furthermore, if your house is not particularly nice or unique, it may take you some time to even find an interested buyer. Since you are competing with all of the other houses for sale, you may need to spend thousands of dollars in paint, new carpet and landscaping just getting the house ready for the market.

There are very few “assumable” loans and few sellers are offering “soft terms.” Thus, an owner-carry sale makes your house unique. Furthermore, an owner-carry transaction can be consummated in a matter of days, since there is no appraisal, underwriting survey involved.

4. Tax Savings. On an installment sale, you only pay gains to the extent you receive payments each year. This can be particularly advantageous if you have owned the property for several years. Furthermore, you can combine the installment sale with a Tax-Deferred Exchange for further savings.

As you can see, the installment sale provides many advantages to the seller of real property. Let us now turn to the advantages for the buyer.

Advantages for the Buyer

1. Easy Qualification. The buyer, in many cases, prefers an installment sale to conventional financing because it does not require traditional bank income and credit approval. The buyer may have poor credit because of a divorce or recent bankruptcy. He may be self-employed and cannot prove income. He may be new to his job and cannot meet strict lender guidelines. Even if he could qualify for a loan, the rate will be astronomical if he has poor credit. Furthermore, few conventional lenders offer fixed interest rate loans to people with a poor credit rating.
As you can see, there are many reasons why a buyer cannot (or will not) qualify for a conventional bank loan. The installment sale becomes the perfect solution for him.

2. Credit Rating. An installment sale may give the buyer a chance to improve his credit rating by owning a home and making payments timely.

3. No Loan Costs. One of the biggest benefits for the buyer is that they do not have to pay the costs associated with conventional loans. Points, origination fees, underwriting charges, appraisal, credit reports, title insurance and the plethora of other “junk” fees charged by conventional lenders can amount to thousands of dollars at closing. The buyer is free from these with an owner-carry installment sale.

4. Fast Closing. A buyer can close and move into a property within days, since there is no third party lender holding up the transaction.

Despite the elevated purchase price and interest rate, there are many benefits to a buyer who engages in an installment sale transaction.

Tags: 55+ Port St. Lucie Community, 55+ St. Lucie West Community, Bold Real Estate Group, Business, Buyer, Cascades Community St. Lucie West, Cascades Foreclosure Homes, Cascades St. Lucie West, Closing costs, Finance, Home Buyer, Jacksonville Beach Florida, Loan, Price, Real estate, Sales, St. Lucie West Homes

Comments 1 Comment
Categories Cascades Community, Cascades St. Lucie West, Estate Planning, Florida Best Real Estae Investment, Florida Real Estate, Gated Community, Golf Carts, Home Buying, Kings Isle St Lucie West, Retirement Community, Retirement Living, Reverse Mortgage, Seller, Senior Living, Short Sale Homes, St. Lucie West Homes, Vacation Home
Author Millie Gil, Lic. Florida Real Estate Broker

Golf Course Living

29 Aug

Golf Course Living. Wow! Imagine how great living on a Golf Course can be?

If you’re a lover of golf then waking up to walk to the course or simply strolling along watching others play can be pure heaven – or is it?

The Pro’s of Golf Course Homes

Well – Golf Course Homes are very nice because of the view, privacy and the open space behind your home. Looking out at a slowly undulating golf course fairway with trees and grass is very relaxing and stress relieving. It is like having a park outside your back door!

When your backyard opens out onto an even larger expanse of green grass that someone else takes care of – it can be fantastic! (even if you do not play golf!)

It means that you do not have any close backyard neighbors looking into your backyard or peering down from their windows into your personal, private space. Usually you only have neighbors on each side of your house or perhaps across one corner if you live near a green.

The closest neighbors in back are usually across the fairway. How far away they are will depend on how wide the fairways on that course or golf hole are.

If you like to play golf and belong to the course that you live on it is even better because you don’t have to drive to the course. Check the community regulations on whether you can have your own golf cart, or if you can just walk the course and pull or carry your bag. Figure out the total cost per month based on how many times a month you will be playing and the monthly fees and cart charges.

Many communities are very family oriented and most of the children that live there can start learning to play at a very young age, and can play after school!

But living on a golf course does have it’s disadvantages —

The Disadvantages of Golf Course Homes

Your house may be hit by golf balls! Yes, this does happen and depending on how narrow the fairways are and the placement of your house along the course it may happen really often. Home owners insurance may or may not pay for damage to your home from golf balls hitting it.

Windows can be broken, house siding can be hit & pitted, screen porches torn & furniture damaged.

Probably the most difficult thing to fix is the divots in the stucco siding of a home from golf balls hitting it. Many people discover numerous pock marks in their siding from the golf ball impacts. And they must be filled and painted before the home can be sold.

Noise from Golf Course Maintenance! Do not expect to sleep in on the weekends! The guys come around between 7AM & 8AM to cut the grass, groom the bunkers and change the pin locations. Sometimes they even come around before it is light out and the new equipment has headlights that can shine directly in your bedroom windows facing the back of the house and golf course.

Animals – having more nature in your backyard means more animals and creatures. Any golf course ponds naturally attract frogs, toads, birds, snakes, etc. These can be tremendously fun to watch, but you have to be wary of what may be in your yard and fences will not keep everything out. The animals in ponds can also be incredibly noisy at various times of the year.

Spraying – Golf Courses have to fertilize, and control weeds. The overspray can reach easily into your yard and impact your plants. Be careful what you plant along the back edge that adjoins the area maintained by the golf course. The weed killer that they spray can cause bushes to turn totally brown and lose their leaves.

The thought of Golf Course Living is a dream but in reality it could drive you up a wall if you’re not prepared for everything that comes with this luxury lifestyle.

Tags: 55+ Port St. Lucie Community, 55+ St. Lucie West Community, Florida, Garage (house), Golf, Golf ball, Golf course, New York Mets, port st. lucie florida, Real estate, St. Lucie West Homes

Comments 1 Comment
Categories Cascades Community, Cascades St. Lucie West, Estate Planning, Florida Best Real Estae Investment, Florida Real Estate, Gated Community, Golf Carts, Home Buying, Kings Isle St Lucie West, Retirement Community, Retirement Living, Reverse Mortgage, Seller, Senior Living, Short Sale Homes, St. Lucie West Homes
Author Millie Gil, Lic. Florida Real Estate Broker

The Allure of Walkable Neighborhoods

29 Aug

The Allure of Walkable Neighborhoods. In suburbia there are rows and rows of little white identical houses and neat cul-de-sacs surrounded by grass and space in complete isolation. For many this sounds like a dream come true and the complete opposite from the concrete city scapes but for other residents this type of planned development becomes a liability for social, economic and sustainable living.

More and more urban planners are dedicating new approaches to functionality, sustainability and family friendly Walkable Neighborhoods. The inviting character of any accommodating neighborhood impacts every resident in numerous ways.

Considering today’s common residential concerns choosing a walkable neighborhood can be advantageous to your waistline and your wallet.

Just think – a neighborhood with multiple destinations including clusters of grocery stores, banks, family parks, schools, daycare centers, pedestrian and pet trails, bus stops and all pertinent avenues to foster mixed-used development and less costs. How about less reasons to start up the car, go get gas and begin your lengthy ride to your next destination. These communities give consumers a wide range of choices including a more robust and diverse daily life.

Many reports that have been developed on the science and art of walkable neighborhoods echo the same sentiment; healthier lifestyles coincide with mixed-use communities. More parents will walk their children to school, spend less, economize and use public transportation more.

The benefit of nearby destinations encourages residents out of the home to interact with neighbors thus there’s a decrease of crime, a heightened awareness of whom is living in your neighborhood and a direct correlation to the quality of longer life for seniors.

Walkable neighborhoods are nothing new. Our parents sent us to the neighborhood store to pick up some sugar, eggs and milk as we passed by our neighbors chatting away on their front porch. Then along came the challenges of traffic, crime, more personal property full of grass and less sidewalks and there went the decline of our walkable communities. But these characteristics are becoming the newest trend once again.

The attractiveness of convenience is appealing to all age and socio-economic groups.

•   Streetscaping for schools provide safer walkways with maximum sight distances.
•   Roadways engineered with newer designs provide better designations for speed limits, intersections and raised crossings.
•   Calmer vehicular traffic with safe routes for children, seniors, bicycling and walking.

• Eliminate car crashes and the potential of vehicle conflicts by introducing longer driveways, wider sidewalks and drop-off points.

• The introduction of more ramps, alternative curbs and heights and lower signals at intersections to accommodate disabled adults.

Every city in every state has a walkable neighborhood and as more developers embrace the thought of providing much more than just “another white picket fence” home buyers are embracing the thought of active living in functional communities.

Tags: 55+ Port St. Lucie Community, Bold Real Estate Group, Buyer, Cascades Community St. Lucie West, Cascades Short Sale Homes, Cascades St. Lucie West, Fernandina Beach Florida, Florida, Grocery store, New York Mets, port st. lucie florida, Port St. Lucie Homes, Real estate, Real estate broker/agent, Senior Living, Walkability

Preparing Home for the Elderly

29 Aug

Preparing Home for the Elderly. Preparing your home for elderly family members and guests will help you avoid costly hazards and many modifications to your home will increase the market value. While there are a few additions you’ll have to scrutinize for budget-busting construction cost, preparing your home for the elderly can also be very budget friendly.

Any changes or minor improvements you make to your house on their behalf now can help you “age in place” and live more independently as the years go by. But don’t succumb to major transformations as its really not necessary; any general construction can be traumatic; a myriad of decisions, contractors, delays, and of course finances to fund these changes can turn a simple project into a complicated subject. A few practical considerations to eliminate a hazardous environment is all you need.

Keep in mind, there are elements that any elderly individual can benefit from and then there are over-the-top traps that contractors will have you consider but you won’t necessarily need. We’ve compiled a list of items you can embrace without spending a dime and then a few others that still won’t break the bank.

Here are some tips on necessary modifications for the elderly.

1. Check the paths to and from your home to ensure there are no hazards waiting to trip on. Falls are the number-one cause of injury to elderly people. Check sidewalk cracks, loose steps and shaky railings. And all of these things can easily be remedied by visiting your local neighborhood hardware store. Can a walker or wheelchair easily fit through your door? Also, examine chair legs and stairs and remove throw rugs during your elderly visitor’s stay.

2. Give extra attention to the bathroom, where most falls occur. Porcelain is unforgiving to elderly bodies so replace no-slip mats inside the bath and shower if they’re loose. Check that bath mats or rugs outside the bath/shower area to make sure they have non-skid backing. You can purchase grab bars for inside the bath and shower for as little as $50, but check that the label states the bar meets the Americans with Disabilities Act guidelines for safety.

3. Review your lighting in stairways and hallways, two very dangerous areas for aging eyes.

4. Take into consideration any mobility limits your elderly guest may have and plan ahead. Be sure their room is close to a bathroom. If they use a wheelchair or walker, the doorways to their room and the bathroom should be wide enough. Rather than remodeling door frames, some experts suggest installing doors with swing-clear hinges, which can add an extra inch or two of space.

A good plan can help transform any home into an elderly-friendly homestead without hiring expensive contractors. You know what works best in any home? Less is more and it’s better because it always eliminates vulnerability.

Tags: 55+ Port St. Lucie Community, 55+ St. Lucie West Community, Bathroom, Bold Real Estate Group, Cascades Community St. Lucie West, Cascades Foreclosure Homes, Cascades Short Sale Homes, Cascades St. Lucie West, Fernandina Beach Florida, Florida, Garage (house), Health care, New York Mets, port st. lucie florida, Port St. Lucie Homes, Real estate, Real estate broker/agent

Comments Leave a Comment
Categories Cascades Community, Cascades St. Lucie West, Florida Best Real Estae Investment, Florida Real Estate, Gated Community, Golf Carts, Home Buying, Kings Isle St Lucie West, Retirement Community, Retirement Living, Seller, Senior Living, Short Sale Homes, St. Lucie West Homes
Author Millie Gil, Lic. Florida Real Estate Broker

What’s Your Game Plan For Buying A Home?

29 Aug

What’s Your Game Plan for Buying a Home? Most home buyers don’t have a stash of cash waiting nearby to buy a home without a mortgage. So to figure out what price you can pay for a home, you need to find out what size loan you will qualify for. The mortgage prequalification is an introduction to the loan qualification process that involves a brief, informal meeting with a loan agent or broker to establish what size loan a lender is likely to give you. This loan amount, plus the cash you have for a down payment and closing costs, will determine what price home you can afford. You should get yourself pre-qualified before you start looking at property. This saves time and avoids the frustration of looking at homes that are way out of your price range.

Make an appointment for a pre-qualification interview and be prepared to discuss the intimate details of your financial situation. Take information with you about your income, length of time at your job, assets and debts. Be completely candid with the loan agent.

Lenders can be sticklers for good credit, so the mortgage broker will want to run a credit check on you. Many people are more inclined to wait until they are about to lock into a contract to have their credit checked, but it is better to know in advance if there is anything on your credit record that could prevent you from being approved. Additionally, the loan agent will be able to advise you what to clean up on your credit record if needed. Or, he/she may be able to direct you to a lender who may be willing to give you a loan even though your credit report has some blemishes.

Ask the loan agent or broker to write a pre-qualification letter indicating that you have been pre-qualified for a loan. Sellers are very receptive to offers from buyers who have a pre-qualification letter from a lender or mortgage broker. This can work in your favor if there are other buyers bidding against you for the property.

What’s your ideal price range?

Most buyers have a notion of how much they would like to spend per month for a home. This amount is often based on what they are currently paying for rent. Although it is not wise to stretch yourself too think where finances are concerned, you should take the tax advantages of home ownership into account when determining your ideal price range. Considering the tax savings, you can probably afford to pay about 25 percent more for a home than you might think you can.

Suppose you want to pay no more than $1,100. per month for a home. This must cover the cost of your principal and interest, property taxes and hazard insurance. Property taxes and insurance vary from one location to the next.

Here’s an Example to figure out your payment: If your property taxes and insurance make up about 15 percent of your PITI (principal, interest, taxes and insurance). If you subtract 15 percent ($165.) from $1,100, this leaves you with $935. per month to use for a mortgage payment. If you get an adjustable rate mortgage with a starting rate of 7.5 percent, $935 per month will buy you a loan in the amount of approximately $133,750. If you have enough cash for a 10 percent cash down payment, your budget will allow you to buy a home for approximately $149,000.

The limit to your ideal price will be determined by the maximum home price you can qualify for as determined by lender underwriting guidelines. Even when approved, many buyers will choose to pay less than the maximum they can afford. Establishing your ideal price is a personal decision that will depend on various factors. Your present and anticipated income stream is one important consideration. If your income is rising rapidly, you may want to stretch and buy a more expensive home now rather than have to move again soon.

Other considerations are: Do you have any long-term debts you have to pay off? Do you have enough cash reserves to take care of an unanticipated crisis, as well as predictable home maintenance expenses? How much disposable income do you have?

Some prospective home buyers find it useful to prepare a financial statement and monthly operating expense budget. This will help you determine just how much cash it takes for you to survive each month.

Figuring out where home ownership fits into your long-range financial plan can be complicated. If the decision making process seems baffling, consult your realtor to discuss your options. It will be well worth the headache to become prepared before diving head first into the home buying process.

Tags: 55+ Port St. Lucie Community, 55+ St. Lucie West Community, Active Adult Community, Bold Real Estate Group, Cascade Range, Cascades Community St. Lucie West, Cascades Foreclosure Homes, Cascades Short Sale Homes, Credit history, Health care, Loan, Mortgage, Mortgage loan, Owner-occupier, PITI, Real estate broker/agent, Real estate pricing, Retirement Community, St. Lucie West Homes

Voting for HOA Board Members

29 Aug

Voting for HOA Board Members. Why do so many homeowners have issues with their home owner association and board members? Probably because you’re voting in the wrong people who don’t have a clue what your community needs.

Homeowner associations are designed to be representative democracies governed by a board of directors elected by the members. Electing directors to the board that can thoughtfully govern is extremely important. To accomplish this, elections must be carefully planned with the candidates thoroughly researched, not hatched at the last minute.

Here are important components of a successful election process:

Find Worthy Candidates. When seeking nominations, a job description should be prepared so potential candidates know what is expected of them. Some refuse to run because they fear the unknown or an open-ended commitment. The director job and term of office can easily be summarized in a paragraph as can the descriptions of officer jobs (president, treasurer and secretary). Take the time to make sure all potential candidates understand and commit to fulfilling the job description by informing them of expectations in advance.

Candidates are identified a number of ways:

1. By a Nominating Committee. The board can appoint a Nominating Committee which can identify, interview and recommend certain individuals for election. While the Nominating Committee’s recommendations are worth considering, any member in good standing is still entitled to run for office even if not recommended by the Committee.

2. Nominated by Self or Others. Any member may nominate themselves or be nominated by another member. It’s best to do this as soon as the nomination process begins, far in advance of the annual meeting, so the name and credentials can be known to all members. Since it is common for some members not to attend the meeting and to provide a proxy to someone that does, if a candidate is not known in advance, those not attending the meeting will not have the ability to support that candidate.

3. Nominated at the Annual Meeting. Nominations are usually accepted from the floor at the annual meeting. Unfortunately, this option fails to inform members who have not attended the meeting; it is often difficult to get elected when nominated from the floor unless there are not enough candidates to fill vacancies.

4. Write-in Candidate. Writing someone’s name on a ballot does not ensure that person is actually qualified for the job or interested in running unless the person was nominated from the floor.

Candidate Qualifications. Candidates should present their qualifications and platforms to the members in writing. This can be done door to door, by email, by letter, in the HOA newsletter, by the HOA website and at the annual meeting where the candidates can also answer questions posed by owners. Since some members may not be able to attend the meeting, circulating candidate qualifications before the meeting is very important.

It is definitely in the community’s best interest to identify candidates who have experience that will benefit the HOA such as:

•Having an organized president is essential. Seek those that are comfortable in that role. The president should also have experience in dealing with different personalities.

•Having a treasurer who regularly works with financial matters like a bookkeeper or CPA.

•Having a secretary who understands or can learn the art of minute taking.

•Having directors that are available and committed to attend all board meetings. This requirement cannot be understated. If board meetings fail to achieve a quorum or directors, official business cannot be done.

Good board members act to protect the interests of all members. Handle the candidate selection process carefully by seeking out the best candidates available. When it comes to board elections, rather than expect a train wreck, elect the right person for the job!

Tags: 55+ Port St. Lucie Community, 55+ St. Lucie West Community, Active Adult Community, Board of directors, Bold Real Estate Group, Business and Economy, Campaigns and Elections, Candidate, Cascades Community St. Lucie West, Cascades Foreclosure Homes, Cascades Short Sale Homes, Cascades St. Lucie West, Election, Home insurance, Nominating Committee, Politics, President, Real estate, Retirement Community, United States

Competing with Short Sales and Bank Owned Properties

29 Aug

Competing With Short Sales and Bank Owned Properties. It is no secret that the home selling market is flooded with short sales and bank owned homes, so the question is how to compete with these homes when it comes time to sell your home.

Yes, it is a buyer’s market as some might say but the need or desire to sell your home may still be inevitable.

If you are in this situation then you need to understand your area and the competition. Do you need to price your home the same as a short sale home or a bank owned home? The answer is not likely.

First of all most bank owned homes are in need of much TLC and not necessarily a good comparison to yours. Short sales take so long and are not only in disrepair but the wait as well as possible rejection by the bank often times makes many buyers not willing to deal with these homes. While waiting on the bank’s response just imagine how many homes the buyer will miss out on.

This brings us to homes like yours that is a mainstream sale! Mainstream being an operative word here, basically, not a short sale or bank owned home.

Most home buyers today are looking for mainstream homes for many reasons. The obvious wait time and frustration in short sales has driven home buyers away from dealing with this type of sale.

The competition with cash buyers and investors on well maintained bank owned homes finds most mainstream buyers in an unlikely position to obtain the home.

Buyers have realized that a normal sale in which they can make a reasonable offer, get a response in a timely manner, have an inspection and actually ask for repairs to be done and expect to get the home in good condition is well worth it.

Competing with short sale homes and bank owned homes aren’t that difficult. Real estate agents are on top of the market and will know your competition and how well things are selling for in your area. Be reasonable when it comes to pricing because you still need to appraise when it comes down to it. Obviously, making your home look nicer than most of the competition should be the easy part; let your pride in your home show. Take the advice from your seasoned agent on how to stage your home.
Do not get wrapped up in the fact that you think your home is worth more than what it is likely to sell in this market or you will waste a lot of time with little to no showings. You need traffic, traffic brings potential buyers.

Make sure your home has several shots or pictures of areas in and around your property that makes a buyer want to see more! Neutral tones and less furniture and belongings make your home feel more open and spacious.

You can price your home higher than your competition of short sales and bank owned – just not so far out of reach that you are not going to get potential buyers interested in your home. Homes of all price ranges are selling in this market and yours can too.

Believe it or not, if you and your agent have done a good job, you are likely to sell your home very quickly in a market like this!

Tags: 55+ Port St. Lucie Community, 55+ St. Lucie West Community, Bold Real Estate Group, Cascade Range, Cascades Community St. Lucie West, Cascades Foreclosure Homes, Cascades Short Sale Homes, Cascades St. Lucie West, Florida, Garage (house), New York Mets, port st. lucie florida, Real estate, Real estate broker/agent, Senior Living, Short (finance), TLC

← Older Entries

Search

Cascades St. Lucie West

Mortgage Talk in Simple Terms

Life after bankruptcy and qualifiying for a home

Is Green another type of Mortgage nor readily used?

The benefits of owner financing

Golf Course Living

The Allure of Walkable Neighborhoods

Preparing Home for the Elderly

What’s Your Game Plan For Buying A Home?

Voting for HOA Board Members

Competing with Short Sales and Bank Owned Properties

Email Subscription

Buyer Resources

Cascades Listings

Community

Search Other Areas!

Seller Resources

Residential Real Estate News – Residential Real Estate News Headlines | Bizjournals.com

Archives

Become A Fan

Twitter Updates

ASR Search Engine

Search

Rate this:

Share this:

Rate this:

Share this:

Rate this:

Share this:

Rate this:

Share this:

Rate this:

Share this:

Rate this:

Share this:

Rate this:

Share this:

Rate this:

Share this:

Rate this:

Share this:

Rate this:

Share this:

Email Subscription

Buyer Resources

Cascades Listings

Community

Search Other Areas!

Seller Resources

Archives

ASR Search Engine