Tag Archives: Loan

The Most Common Credit Myths Revealed

23 Feb

The Most Common Credit Myths Revealed.   One of the most challenging things to grasp in the home buying process is your credit score and how it works.  Many people “assume” they have good credit because they pay their bills on time etc.  However, the credit bureaus do not look at credit like you and I do.  So let’s talk about exactly what it is they do think and exactly what “they” consider “good” credit.    Read on .  .  . you might be surprised!
Common Credit Myths

• You may think that if you  have a lot of cash and you have a great income or that you have a good amount of equity in your home that your FICO score will not matter.   In reality your credit score will determine whether or not you qualify for a loan and what your interest rate will be.  There are a few exceptions to this:  if you pay cash or if you put down a much larger than normal down payment

• You may think that if you do not have any debt and no late payments that you have good credit.  This is the myth that shocks almost everyone because it doesn’t make much sense.  The credit lenders look a credit differently.  They consider financial responsibility and good credit two separate issues.  Your FICO score is used to measure how you manage your debt.  So if you have credit accounts they look to see if you use them regularly or if you abuse them

• Here is the tricky part of credit scoring that most people don’t understand.  If you have no credit and no debt does not mean you have good credit.  On the other hand, if you have credit and you are maxed out on many of your accounts or if you are constantly applying for credit; they consider this to be an indicator of credit abuse

• Believe it or not FICO will give you a top score if you keep your credit account balances  at 30% of your credit limit and you make your payments on time

• When was the last time you checked your credit?  If you are thinking about buying a home, now is the time to check your credit.  This will allow you time to fix any inaccuracies so that there are no surprises when you apply for your loan.

Additionally, the higher you are able to get your credit score could quite possibly get you a lower interest rate and over 30 years that can really add up.  FYI – make sure you check all three credit bureaus because each of them can have differing information

• Some people think that if they have had a foreclosure or a short sale that their credit report will be bad for seven to ten years.  However, some of the items on your credit report like late mortgage payments,  derogatory credit items, foreclosures and short sales will show up for seven to ten years, but your actual credit “score” can be fixed at least enough for you to buy another home.  Of course, this depends on several factors such as how much cash you have to put down, what type of loan are you trying to get and if you had any extenuating circumstances that caused you to lose your first home

• You may think that a short sale has much less effect on your credit score than a foreclosure does.   The fact is that short sales and foreclosures have the same negative impact on your credit score

Well there you have it.  The most common credit myths revealed.  If you are thinking about buying a home and you have credit issues that you are concerned about, contact your realtor to help you sort things out.  Your realtor has quite a bit of experience in helping people just like you buy a home.

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

Serving Locally and Globally.  View thousands of new and resale homes:  www.Northeast-Florida-Relocation.comwww.BoldRealEstateGroup.com,  www.NewYork-Florida-RealEstate.com, www.PGAVillage-Homes.com a Golf Style Private Community,  www.TheCascadesAtStLucieWest.com  a 55+ Resort Lifestyle Community, www.HealthcareRelocationServices.com

The Best Ways To Get A Short Sale Approved

9 Feb

The Best Ways To Get A Short Sale Approved.  How many times have you heard someone claiming to be a short sale “specialist” and then tell you the best way to negotiate a short sale was to use a loss mitigation specialist?  Then they will tell you that they use specialized spreadsheets, secret language and inside information etc, etc all to help get you approved.  Well guess what?  It’s all hogwash!

The real experts will not feed you all of that rubbish.   A short sale expert will know that there are several essential things that need to be done to effectively get a short sale approved and that there is never immediate acceptance.  Any short sale expert will have the experience to know what the challenges are and exactly what to expect.  Additionally, a short sale expert will know what tried and true techniques to use to get the job done.

Here are some tips and tricks to getting your short sale approved.

• Think like a lender – how much is this going to cost them, how can they collect that debt, how can they avoid long term debt
• Follow up – after submitting each short sale package, call the loss mitigator that it was assigned to to make sure they got it
• Continual follow up – lenders are very busy with foreclosure so it is very important that you call every four days or so.  Make sure you are being personable so that you don’t come across as someone they will try to avoid; however, you need to be persistent to help keep things moving
• Who owns the loan – Fannie, Freddie, FHA, VA etc, each has their own acceptable percentage value of your property
• Make your offer – then very nicely ask your loss mitagator to order a new interior BPO asap
• Get a title report – to make sure there are no surprises that you didn’t know about
• Talk to the loss mitigator – try to find out what value the BPO appraiser turned in.  You may not be able to get them to give you this information but it is definitely worth a try
• Appraised value – 90% is what you should expect to pay
• Counteroffer – if you cannot get the value that the BPO appraiser submitted, make sure you ask for a counteroffer
• Submit your counteroffers – attach proof with your counteroffers to validate your claims.  You can use the MLS listing to show days on the market, cost of repairs needed, the comps that have a low value and any negative press your area has received.  All of these will act as proof to support your lower offer
• Cash – your loss mitagator will already know this but it doesn’t hurt to remind them that you can close more quickly with cash

Remember, lenders don’t like to do short sales; however, it is not the worst thing in their book.  So you need to take charge and make an offer they can’t refuse.   Show them that you are prepared and that you know what you are doing.  Be as polite and courteous as you can possibly be.  This is the best way to get what you want.

Talk to your realtor, they have been working with short sales for many, many years and they will be your best possible support throughout this entire process.  So team up with someone that has the experience and know how to get the job done and done quickly!

For a FREE and confidential consultation about selling your Florida home “Short Sale” contact Attorney Bonnie A.  Brown, PA.  at  772-221-9024

Bold Real Estate Group Short Sale division is dedicated to working with home sellers towards a successful resolution of the Short Sale process.  Our legal assistant will collect and review all the necessary documents, research tax, title and liens on the property and purchase contract for lender review.  Our legal assistant will not collect a retainer fee for services.  Legal fees and Real Estate commission will be paid by the lender as part of their NET loss for the short sale approval.  Your lender is contacted weekly for updates and make sure positive progress is being made on the file.  Please feel to contact our office with any questions or concerns regarding our short sale process.

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

Serving Locally and Globally.  View thousands of new and resale homes:  www.Northeast-Florida-Relocation.comwww.BoldRealEstateGroup.com,  www.NewYork-Florida-RealEstate.com, www.PGAVillage-Homes.com a Golf Style Private Community,  www.TheCascadesAtStLucieWest.com  a 55+ Resort Lifestyle Community, www.HealthcareRelocationServices.com

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The In’s And Out’s Of Locking In An Interest Rate

12 Jan

The In’s And Out’s Of Locking In An Interest Rate

Congratulations on your decision to buy a new home!  Buying a new home can be a very exciting time; however, there are many things to consider and many things to get done.   One of the most important things – if not the most important thing – when buying a new home is your choice of lenders and the interest rates they charge.   Get this wrong and it could cost you thousands of dollars over the life of your loan.

Whether you are buying a new home or just re-financing your current one, it is a good idea to do some comparison shopping for the best lender with the best rates.  A low interest rate isn’t the only thing you should consider when shopping for a loan.  You will also want to consider the terms of the mortgage, what the closing costs will be and you will want to check the reputation of your lender.  Remember, this is going to be your lender for quite possibly 30 years, so you want to make sure they are reputable.

Your real estate agent will be a huge help when it comes to lenders and loans.  They will be able to provide you with a list of lenders that have the best loan packages available and will be able to tell you what their qualifying requirements are.   Your realtor can also tell you which lenders are willing to go above and beyond the call of duty  to provide you with excellent service and the ones that will make sure everything goes smoothly from start to finish.

The first thing your lender and realtor will tell you is that you need to “Lock In” your interest rate.  What that means is that the lender will guarantee you the current interest rate with specific predetermined points and fees for a specific amount of time, usually 30 days.

So after you have applied for your mortgage loan, the rates will more than likely fluctuate from day to day and week to week.  Therefore, if you don’t want to risk losing that great current interest rate, you will need to ask for a rate lock from the lender.   This will lock in your interest rate.

Don’t worry, your real estate agent will be there to help you.   So don’t hesitate to pick up the phone and give them a call.  They are professionals with years of experience just waiting to help you through the home buying process and will be there for you every step of the way.

Having the right real estate agent means having an agent who is committed to helping you buy, sell or rent  your home with the highest level of expertise in your local market. This commitment level has helped me build a remarkable track record of delivering results.

Nothing is more exciting to me than the gratifying feeling I get from helping people meet their real estate needs. You can count on me to always do what’s in your best interest. I pride myself on being honest, trustworthy, and knowledgeable in the real estate market. I know how important it is to find your dream home. Therefore I will make it my responsibility to help you achieve those goals.

Whether you are an experienced investor or a first time buyer, I can help you in finding the property of your dreams. Please feel free to browse my website or let me guide you every step of the way by calling or e-mailing me to set up an appointment today.

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

Serving Locally and Globally.  View thousands of new and resale homes:  www.Northeast-Florida-Relocation.comwww.BoldRealEstateGroup.com,  www.NewYork-Florida-RealEstate.com, www.PGAVillage-Homes.com a Golf Style Private Community,  www.TheCascadesAtStLucieWest.com  a 55+ Resort Lifestyle Community, www.HealthcareRelocationServices.com

11 Jan

What Is Escrow And How Does It Work?

So what exactly is escrow.  If you have recently bought a house or are thinking about buying a house, you will need to know what escrow is.  Here is a quick overview of what escrow is and how it works.

Escrow is a deposit that is held by a third party or escrow agent.  So in other words, an escrow deposit, is the money you put down on your new home.  Your escrow deposit is held in a secure location by a neutral third party.

The escrow agent works for both the lender and the buyer and their purpose is to carry out the instructions that both parties have agreed on.  The escrow agent will release your money once all of the terms of your agreement have been upheld.

Your mortgage lender will more than likely require you to open an escrow account to make sure there is enough money to cover your insurance and taxes.  The way this works is you will make an initial deposit to your escrow account followed my monthly installments.  Most lenders will arrange to have this included in your monthly mortgage payments.  When your taxes and insurance premiums come due the escrow agent will release the funds to the appropriate party.

The reasoning behind having an escrow account is to protect the lender in the event you default on your payments.  The lender is then protected from external perils that could arise as a result of you not paying your taxes or your insurance causing the lender to be left with no collateral.

An escrow account also helps the buyer because it allows you to spread your payments  evenly over a 12 month period.  Just imagine if your yearly taxes were $3000 and your yearly insurance was $1400, that would leave you owing $4400 in one lump sum.

Your escrow amounts could change from year to year due to the possible increase in your taxes and insurance.  Therefore, your lender will review and adjust your escrow amounts annually and you will be given a revised mortgage payment if your taxes or insurance go up.   On the same token; however, if your taxes or insurance rates go down, you will be given a refund.

Sometimes an escrow requirement can be waived.  Some buyers prefer to pay all of their taxes and insurance directly.  Your lender may allow you to do this if your down payment is more than 20% but they will more than likely raise your interest rate slightly to compensate.   One thing to remember is that once you begin putting your funds into an escrow account, it can be difficult to cancel this process so make sure that you fully understand what your options are before doing anything.

Well, I hope that I have fully explained what escrow means and how it works.  However, if there is anything you don’t understand or anything you have questions about, please call your realtor.  Your realtor has many years of experience with these kinds of things and will be more than happy to assist you.

Having the right real estate agent means having an agent who is committed to helping you buy, sell or rent  your home with the highest level of expertise in your local market. This commitment level has helped me build a remarkable track record of delivering results.

Nothing is more exciting to me than the gratifying feeling I get from helping people meet their real estate needs. You can count on me to always do what’s in your best interest. I pride myself on being honest, trustworthy, and knowledgeable in the real estate market. I know how important it is to find your dream home. Therefore I will make it my responsibility to help you achieve those goals.

Whether you are an experienced investor or a first time buyer, I can help you in finding the property of your dreams. Please feel free to browse my website or let me guide you every step of the way by calling or e-mailing me to set up an appointment today.

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 new and resale homes:  www.Northeast-Florida-Relocation.comwww.BoldRealEstateGroup.com,  www.NewYork-Florida-RealEstate.com, www.PGAVillage-Homes.com a Golf Style Private Community,  www.TheCascadesAtStLucieWest.com  a 55+ Resort Lifestyle Community, www.HealthcareRelocationServices.com

The Facts About Financing A Second Home

11 Jan

The Facts About Financing A Second Home

Buying a second home is very exciting.  This may be a home in the place where you vacation every year, somewhere that you like to  go and relax and enjoy your time off.   Perhaps you are looking for an investment opportunity.  Whatever the case may be, here are some things to consider when it comes time to buy and finance your second home.

• It is a great time to buy a second home – the mortgage rates are low
• If you have a strong credit history you are guaranteed the best rates
• You can use the equity in your current home as a down payment or closing costs
• Lenders are offering some really affordable loan options right now
• Remember, the guidelines for how much you can quality for is based on 28% of your gross income
• If you are a long term homeowner, you may be able to borrow more than you think

A second home as an investment property is a fantastic idea.  If you are looking for a way to save money for your retirement,  this is it.  A second home forces you to put away money every month in the form of a mortgage payment.  When it comes time to retire, you can sell it or use the income, which could be significant if you have it paid off.

Another reason a second home as part of your retirement plan is a good idea is due to the fact that your investment money is subject to less income tax and the interest and taxes may be deductible.   So planning ahead could pay off in a big way.

You must make sure; however, that you have enough money to cover the mortgage payments plus any additional expenses such as repairs, yearly taxes and insurance, if they are not a part of your mortgage payment, and anything else that may arise.  The good news is if you buy the right house at the right price, your rental property should always stay rented.

So if you are able, don’t hesitate to call your real estate agent and let them know that you are ready to buy a second home and they will move heaven and earth to help you find a home that fits your needs.  Your realtor has “inside information” if you will, about all types of homes in all types of markets and some that are not even on the market yet.  So take advantage of their wealth of knowledge and the next thing you know you will be vacationing in your second home or enjoying the benefits of all that extra income!

Having the right real estate agent means having an agent who is committed to helping you buy, sell or rent  your home with the highest level of expertise in your local market. This commitment level has helped me build a remarkable track record of delivering results.

Nothing is more exciting to me than the gratifying feeling I get from helping people meet their real estate needs. You can count on me to always do what’s in your best interest. I pride myself on being honest, trustworthy, and knowledgeable in the real estate market. I know how important it is to find your dream home. Therefore I will make it my responsibility to help you achieve those goals.

Whether you are an experienced investor or a first time buyer, I can help you in finding the property of your dreams. Please feel free to browse my website or let me guide you every step of the way by calling or e-mailing me to set up an appointment today.

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 new and resale homes:  www.Northeast-Florida-Relocation.comwww.BoldRealEstateGroup.com,  www.NewYork-Florida-RealEstate.com, www.PGAVillage-Homes.com a Golf Style Private Community,  www.TheCascadesAtStLucieWest.com  a 55+ Resort Lifestyle Community, www.HealthcareRelocationServices.com

Making Sense Of Points, Rates And Fees

11 Jan

Making Sense Of Points, Rates And Fees

You have just found the home of your dreams and the seller has accepted your offer.  Now the fun begins.  You keep hearing terms like “buy down”, “discount points”, “purchase points, but you have no idea what all this means.  Do they all mean the same thing or is each term something different?  This is where your realtor comes in.  Of course you can always call your lender; however, your realtor is the one you have been dealing with and the one that will be more than happy to explain everything to you.

Purchase Points – which are also known as a buy down or discount points.  Points is a term used to define an amount of money given to the lender at closing to lower your interest rate for your mortgage loan.   Every point is equal to one percent of the total amount of your loan.  So if you have a mortgage that is $100,000 then one point would equal $1000.  Every point you buy will lower your interest rate by a certain percentage.   Just remember, the more points you buy, the more money you are going to have to come up with at closing.

The question is – is it smarter to buy points or to hold on to your money?  Well, that depends on how long you plan on staying in that home and of course what you can afford to pay.  If you are planning on staying in this home for more than five years then my advice is for you to buy as many points as you can.  Because this will lower your monthly payments and will save you interest over the life of the loan.

Interest Rates – interest rates fluctuate daily, and when you apply for a loan it doesn’t mean that the rate you were quoted that day is the same rate you will get at closing unless you “lock in” your interest rate.  Locking in your interest rate will give you a guaranteed rate within a specific time frame.  Most lock in periods are for 15, 45 or 60 days.   Keep in mind that the longer you lock in your rate the more it will cost you because a lender takes more of a risk to lock you in for a longer period of time.

Fees – since when have you ever bought anything that did not have some sort of fee associated with it?  Well, a mortgage is no different.   Some of the fees you can expect are:  title fees, underwriting fees, land survey fees,  appraisal fees etc.  Each lender is different and will work your loan differently; some lenders will charge you lower fees but a higher interest rate.

So before you sign on the dotted line, make sure you do your homework and most definitely ask your realtor to let you know who they have had the best experiences with.  Make sure there are no hidden fees and make sure that you fully understand what costs are involved and what your obligations are for the life of your loan.

Having the right real estate agent means having an agent who is committed to helping you buy, sell or rent  your home with the highest level of expertise in your local market. This commitment level has helped me build a remarkable track record of delivering results.

Nothing is more exciting to me than the gratifying feeling I get from helping people meet their real estate needs. You can count on me to always do what’s in your best interest. I pride myself on being honest, trustworthy, and knowledgeable in the real estate market. I know how important it is to find your dream home. Therefore I will make it my responsibility to help you achieve those goals.

Whether you are an experienced investor or a first time buyer, I can help you in finding the property of your dreams. Please feel free to browse my website or let me guide you every step of the way by calling or e-mailing me to set up an appointment today.

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 new and resale homes:  www.Northeast-Florida-Relocation.comwww.BoldRealEstateGroup.com,  www.NewYork-Florida-RealEstate.com, www.PGAVillage-Homes.com a Golf Style Private Community,  www.TheCascadesAtStLucieWest.com  a 55+ Resort Lifestyle Community, www.HealthcareRelocationServices.com

Should I Buy A Home If Interest Rates Rise?

10 Jan

Should I Buy A Home If Interest Rates Rise?

You may ask this question and get ten different answers.    Just because the interest rates have risen does not necessarily mean it is not the right time to buy.  If you hold off, this mistake could cost you thousands.

So how do you know when it’s ok to buy a home if you know the interest rates are rising?  Well, that is a good question and here are some facts to help you sort through it all.

1.  Consider specialty loan options

• Hybrid mortgages – this is a mortgage loan that will offer a very low rate for a fixed amount of time, usually 5-7 years, then the loan will revert to an adjustable rate mortgage.  This sounds a bit risky; however, if you are not planning on staying in your current home for more than five years, this is a fantastic option for you

• An ARM  loan with an option that would allow it to be converted to a fixed rate loan when at the borrowers discretion

• An interest only loan – this is a loan that requires you to make payments to the interest only for a set number of years, then it converts to an amortized loan with interest and principal payments each month

2.  Talk to a tax advisor – before you do anything, make sure you talk to your tax advisor about whether or not one of these types of loans is right for you.

3.  Ask for a Buy Down – this is a fee paid at closing to get a lower interest rate.  Sometimes a motivated seller will be willing to paying some if not all of the buy down just to get the deal.

4.  Ask the seller to pay some or all of the closing costs.  Quite frequently the seller’s closing costs are used as a write off by the buyer.  (Check with your tax advisor before doing this)

5.  Lower prices mean lower loan amounts so don’t let higher interest rates chase you off.  With some skillful negotiating your realtor can help you secure an unbelievable deal  saving you loads of money.  So a high interest rate does not have to mean more money.

Remember, many people drop out of the home buying market when the interest rates go up, but as you can see this could be a very costly mistake.  Some of the best mortgage loans come about when the lenders are competing for your business and when sellers are realizing that there are more homes for sale than there are buyers.

So talk with your realtor and come up with a game plan to help you find your dream home.  Don’t let rising interest rates stop you, use it to your advantage!

Having the right real estate agent means having an agent who is committed to helping you buy, sell or rent  your home with the highest level of expertise in your local market. This commitment level has helped me build a remarkable track record of delivering results.

Nothing is more exciting to me than the gratifying feeling I get from helping people meet their real estate needs. You can count on me to always do what’s in your best interest. I pride myself on being honest, trustworthy, and knowledgeable in the real estate market. I know how important it is to find your dream home. Therefore I will make it my responsibility to help you achieve those goals.

Whether you are an experienced investor or a first time buyer, I can help you in finding the property of your dreams. Please feel free to browse my website or let me guide you every step of the way by calling or e-mailing me to set up an appointment today.

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 new and resale homes:  www.Northeast-Florida-Relocation.comwww.BoldRealEstateGroup.com,  www.NewYork-Florida-RealEstate.com, www.PGAVillage-Homes.com a Golf Style Private Community,  www.TheCascadesAtStLucieWest.com  a 55+ Resort Lifestyle Community, www.HealthcareRelocationServices.com

Top 5 Homebuyer Mistakes To Avoid

2 Nov

Top 5 Homebuyer Mistakes To Avoid.  Feeling indecisive about purchasing a new home is common. Home purchases are typically the biggest financial investment you’ll make; however, the home buying process is challenging and, at times, confusing.  Utilize your real estate agents’ knowledge and advice.  These next 5 common mistakes are ones you don’t have to make;

1. What’s your price range?  Don’t get driven to buy more than you can afford.  It’s hard to know where to look or what to look at (detached house, condominiums, and town homes) until you know how much you can afford.  Visiting homes that are way out of your price range, regardless of whether the price is on the high side or low side, is not only a waste of time, it’s discouraging and a waste of time.

2. You don’t have the required down payment and closing costs available.  Many people purchase with less than a 20 percent down payment.  There are plenty of financing options available for low cash down home buyers, even in today’s market.

3. Real estate agents are not mind readers.  The most common complaint is that the real estate agent didn’t show the right kind of homes.  If you are looking at homes that do not appeal to you, could there be a miscommunication between you and your agent?  It helps to detail what you want and clearly communicate your desires about what you Love, Like and Dislike about homes.  This can really help your agent fine tune your choices and make great selections for you to review.

4. Underestimating the amount of cash you will need to close the sale.  This mistake should never happen but yes, it does.  Your real estate agent will provide an estimate of your closing costs at the time you make an offer to buy your home.  Then your loan agent or broker should provide you with another closing cost estimate within a reasonable amount of time after you submit your loan application.  Buyers will often come up short because it is not explained until the last minute that the lender requires extra cash.  This can often happen if there is a down payment less than 20 percent of the purchase price.

5. Applying for a loan with a lender who offers the lowest rates in town.  You’ve heard all the horror stories about the “best” lenders turning out to be the worst lenders. Great advertising complimented by over the top promises does not make that lender the best.  Often lenders who promise a too-good-to-be-true loan usually perform a bait and switch, just before your loan is approved.  Low interest rates are important, but always check a lender’s reputation because the best deal in town may not be worth the savings and aggravation down the road.

Just keep in mind during your home buying process that the price of buying, owning and maintaining your home will be worth all the bumps in the road.

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 new and resale homes:  www.Northeast-Florida-Relocation.comwww.BoldRealEstateGroup.com,  www.NewYork-Florida-RealEstate.com, www.PGAVillage-Homes.com a Golf Style Private Community,  www.TheCascadesAtStLucieWest.com  a 55+ Resort Lifestyle Community, www.HealthcareRelocationServices.com

PRIVATE MORTGAGE INSURANCE VS. FHA INSURANCE

26 Oct

Q: What is the difference between private mortgage insurance (MI)

used with conventional loans and FHA?

A: Private MI is the private sector alternative to Federal Housing

Administration (FHA) mortgage insurance, which is a government

program backed by taxpayers. While both guaranty repayment to

banks if a buyer defaults on their loan, there are some important

differences:

• Private MI generally costs less for high FICO buyers.

• Private MI may typically be canceled sooner.

• Private MI is available on a wider variety of loan products.

Q: When should I suggest private MI over FHA?

A: If your borrower has a FICO score of 720 or higher with at least 3%

down, then private MI with Radian is the clear answer for them!

Borrowers with a FICO score of 680 or higher and at least 10%

down will also benefit from this.

Q: How much does MI cost?

A: That depends. Less MI is required with a 15% down payment than

with a 5% down payment. In addition, it depends on other factors

including the type of mortgage, the amount of coverage, and the

MI payment option..

Q: What are the ways to pay for MI?

A: The premium can be paid monthly, in a lump sum at closing or by

financing it into the loan amount.

Q: Do borrowers have to pay for MI for the entire term of the mortgage?

A: No. A federal law called the Homeowners Protection Act requires

that MI be canceled when a home builds up a certain amount

of equity. Homeowners can request cancellation of MI when the

balance on the mortgage reaches 80% of the home’s original value.

Otherwise when the mortgage balance reaches 78% of the home’s

original value MI must automatically be canceled by the lender as

long as payments are current.

Q: Are MI premiums tax deductible?

A: Yes. Under federal legislation, families with a household income of

$100,000 or less may be able to deduct the full premium cost of

MI, while families earning up to $109,000 can qualify for a reduced

deduction. Borrowers should consult their tax professional for more

information.

Contact your Radian sales representative for more information today!

 

Kim Davis

The “Porikos” Team

Mortgage Loan Originator Assistant NMLS #272652     

Group One Mortgage NMLS #53185

900 E Indiantown Rd Suite 110

Jupiter, Fl 33477

561-745-6075  fax  561-747-8409

 

5 Reasons To Buy a Home In Cascades Community Now

15 Oct

5 Reasons to buy a home in Cascades community now.  With prices declining in many markets, it now makes the cost of buying a home a better financial deal than renting. However, many potential homebuyers are transfixed on the market, wanting to believe prices will drop lower. The question is how low do you expect home prices to fall?

Now is the right time to buy in Cascades and here are some great reasons to contact Bold Real Estate Group now;

• Renting isn’t such a great deal. This is all about Economics 101: Demand for rentals the past few years has increased  — a consequence of foreclosures and fewer existing renters making the decision to buy  –  and supply hasn’t kept up as there has been little new construction since the financial crisis hit. That’s pushing up rental prices.

• Mortgage rates are at historic lows. Right now the average mortgage rate hovers around 4.6 percent on a 30-year fixed rate mortgage which is beyond dirt cheap.  While many mortgage lenders advertise fire-sale cheap rates that are lower than four percent, the fees almost double to that of the averaged rate loans.

• There is far less competition for buyers. There may be plenty of potential homebuyers at open houses these days, but the anemic sales pace is proof that there are fewer serious buyers looking to make a deal. That makes it less likely you’ll find yourself in a bidding war today. It also means you can negotiate more effectively with eager sellers.  Wait to dive in and you could find yourself in a more crowded pool of buyers.

• Qualifying for a mortgage is likely to get harder, not easier. The goal of Washington in the coming years is to shift more of the mortgage market out of the hands of Fannie Mae and Freddie Mac and into the hands of the private market. It is admittedly too early to know when and what that transition might look like. But whether the government backing is scaled down or disappears all together, that means higher borrowing costs. Moreover, there’s already a new federal regulation being considered that would require banks that want to keep selling 100 percent of their mortgages to Fannie and Freddie to hold borrowers to tougher lending standards.

Its common sense that potential homebuyers want the best price possible but the market is at the lowest it’s been in over 30 years. Wait much longer and you may be spending hundreds more on a monthly mortgage loan.

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 new and resale homes:  www.Northeast-Florida-Relocation.comwww.BoldRealEstateGroup.com,  www.NewYork-Florida-RealEstate.com, www.PGAVillage-Homes.com a Golf Style Private Community,  www.TheCascadesAtStLucieWest.com  a 55+ Resort Lifestyle Community, www.HealthcareRelocationServices.com

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