4 Reasons to Buy This Summer!

Here are four great reasons to consider buying a home today, instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 7.1% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.9% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained around 4%. Most experts predict that they will begin to rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You are Paying a Mortgage

There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

4. It’s Time to Move on with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Article by Keeping Current Matters – Click here for the original article

YOUR OPPORTUNITY TO ACHIEVE THE AMERICAN DREAM KEEPS GETTING BETTER!

Forbes.com recently released the latest results of their American Dream Index, in which they measure “the prosperity of the middle class, and…examine which states best support the American Dream.”

The monthly index measures several different economic factors, including goods-producing employment, personal and commercial bankruptcies, building permits, startup activity, unemployment insurance claims, labor force participation, and layoffs.

The national index score was rounded out to 100.0 in January as a baseline for comparison and it rose the fourth straight month in a row to 101.8.

Alaska, coming in at 89.4, represented the lowest score on the index due in part to the recent collapse in oil prices. In contrast, Wyoming came in with the highest score at 115.1. The full results can be seen in the map below.

Forbes Senior Editor Kurt Badenhausen explained why many states saw a boost in the index last month:

“The American Dream Index rose for the fourth straight month to 101.8 propelled by gains in goods-producing jobs and building permits, as well as declines in unemployment claims and mass layoffs.

Goods-producing jobs (manufacturing, mining, construction and agriculture) were up for the ninth straight month in May…Building permits rose for the fourth straight month compared to the prior year.”

Bottom Line

The American Dream, for many, includes being able to own a home of one’s own. With the economy improving in many areas of the country, that dream can finally become a reality.

Article by Keeping Current Matters – Click here for the original article

Pre-Approval Should Always Be Your First Step

In many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the amount of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.

Even if you are in a market that is not as competitive, knowing your budget will give you the confidence of knowing if your dream home is within your reach.

Freddie Mac lays out the advantages of pre-approval in the My Home section of their website:

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you with this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”

Freddie Mac describes the 4 Cs that help determine the amount you will be qualified to borrow:

Capacity: Your current and future ability to make your payments
Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
Collateral: The home, or type of home, that you would like to purchase
Credit: Your history of paying bills and other debts on time

Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.

Bottom Line

Many potential home buyers overestimate the down payment and credit scores needed to qualify for a mortgage today. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so as well.

Article by The KCM Crew on June 27, 2017 in First Time Home Buyers, For Buyers, Move-Up Buyers

June 27, 2017Buying, First Time Home Buyerbuyers, buying a home, first step, first time home buyers, pre-approval, Pre-Approval Should Always Be Your First Step, Real Estate, real estate agent, real estate buying[email protected]

Do you know about these homeowner costs when buying a home?

Budgeting for buying a home can be difficult enough when you’re just weighing mortgage options and a purchase price. But there are many other factors that go into the cost of home ownership. Some of them are one-time expenses that you’ll pay during the home buying process, while others will be recurring costs for as long as you own the home.

Closing costs

There are several smaller fees that add up to a rather large sum when you’re going through the closing process-loan fees, attorney fees, underwriting fees, and more. They typically add up to 2-5% of the purchase price. For a $300,000 home-roughly the national median-that’s in the neighborhood of $10,000, so be sure to budget for it.

Appraisal

Your lender will require an appraisal, and the appraisal fee (a few hundred dollars) comes out of your pocket. Inspection

The few hundred dollars you’ll pay for a home inspection is money well spent, but it’s something you have to keep in mind during the purchase process. You’ll have the peace of mind of knowing the house is free from any major issues, and you’re making a smart, solid investment.

Insurance

Although homeowners insurance isn’t legally required, it’ll almost certainly be required by your lender. Further insurance, such as flood insurance, may also be required (depending on your location).

Home Owners Association

If you’re living in a property or community with shared spaces, you’ll almost certainly have an HOA fee. This pays for things like trash removal, maintenance of common areas, and for recreational facilities like gyms and swimming pools.

June 27, 2017Buying, Moving, Pricing, Real Estate, Tipsbuying costs, costs for buying a home, Do you know about these homeowner costs when buying a home?, homeowner, homeowner costs, homeowners first home, south florida real estate[email protected]

How and Where Do I Begin When Buying a Home?

Beginning a home search can be a disconcerting task, especially for first-time buyers. Perhaps the biggest question is how and where to begin the process. Some people begin by looking at real estate listing websites, while others call real estate agents right off the bat. The process varies.

So, what is the best way to begin your quest for a new home? In truth, any way you begin the process is a good way, because the most important thing is to get started. You will learn a lot as you go along, so the idea at this stage is just to get moving.

Here are some things to keep in mind at this early stage:

Do the Proper Research

Buying real estate can be an overwhelming experience for the first-time buyer. But you can make the process much easier simply by understanding it. Start with the lingo. By learning the terminology associated with home buying and mortgage, you will make smarter decisions along the way.

Next, start learning the differences (and pros and cons) of the different types of home loans. This includes the key differences between fixed and adjustable-rate mortgages, as well as government-backed versus conventional loans.

Your third area of research is the local housing market. What are home prices doing in your area? What is the supply and demand situation? Are you in a buyers’ market, a sellers’ market, or somewhere in between?

Set Your Budget

Early in the home buying process, you should sit down and work out a monthly budget for your mortgage payment and other housing-related costs. Remember, there is a difference between the loan amount you can be approved for by the lender, and the amount you can actually afford. In the end, only you can determine your housing budget.

Establishing a budget will help “frame” your home search so you are only looking at homes within your budget range. Many first-time buyers fail to take this step and therefore waste time and energy looking at homes that are well above their budget.

You can find plenty of websites that offer mortgage calculators, and these tools are a good place to start when determining your budget. Just keep in mind that the one variable you can never predict in advance is the interest rate. Only by speaking to a lender can you get a full mortgage quote that includes the interest rate (based on your credit history and other factors).

Get Pre-Approved for a Mortgage

Pre-approval is when the lender reviews your financial situation to determine how much of a loan they are willing to give you. After completing this process, you’ll be able to show the seller your pre-approval letter. This gives them the confidence that you can buy their home, which is especially important when more than one buyer makes an offer.

Do not confuse pre-qualification with pre-approval. Pre-qual is an informal process in which the lender tells you how much of a mortgage you might qualify for. Pre-approval, on the other hand, is a more detailed review of your finances and is likely to reflect the actual loan amount the lender extends to you. In other words, the person selling the home will pay more attention to the pre-approval letter.

There are different ways to begin the home buying process. The list of steps offered above is a good place to start.

Getting Approved for a Mortgage: 5 Steps to Approval

If you’re like most home buyers, you probably have questions about the mortgage approval process that awaits you. This is only natural, given the size of the investment. The good news is that the approval process is usually straightforward and easy to understand. Here are the basic steps.

Mortgage Approval by the Numbers

In most cases, the approval process includes the following steps: Pre-approval, application, underwriting, property appraisal, and mortgage approval (if all goes well).

1. Pre-approval Process

This is a preliminary review of your financial situation. The lender will pre-approve you for a certain size of loan. Basically, this is a way for the lender to decide whether or not to move forward with the process. If this preliminary review goes well, you move one step closer to mortgage approval.

Among other things, the lender will want to know the approximate cost of the home you plan to buy (even if its hypothetical at this stage), how much money you need to borrow, the type of loan you want, how much money you earn each month, and your total recurring debts.

2. Mortgage Application

Based on the pre-approval process, the lender will have a general idea whether or not you’re a good candidate for a mortgage loan. If they feel you are a candidate, you will likely move on to the mortgage application itself. (Some lenders combine the application and pre-approval process, while others separate the steps. It varies.)

This is where you will have to make a final decision on the type of mortgage loan you want, and also lock in an interest rate for the loan. In nearly all cases, you’ll have to pay an application fee as well.

3. Underwriting and Documentation Review

Underwriting it the most critical part of the process, but also the most “mysterious” to home buyers. The lender’s underwriting department will closely review your documentation, credit score, employment documents, etc. If they find anything wrong, it could slow down the process or, at the worst, derail it altogether. If they find minor issues, they will give you a conditional approval, along with a list of conditions that must be addressed prior to final approval. If you’re lucky, you’ll sail through the underwriting process with no issues whatsoever.

4. Property Appraisal

One of the next major steps in the mortgage approval process is the property appraisal. This is where the lender sends a professional home appraiser out to evaluate the property. The lender wants to make sure the home is worth the amount you have agreed to pay for it. In the event that you default on the loan and can no longer make payments, the lender will have to take on the property and sell it. So they want to know what it’s worth, before approving the loan.

5. Mortgage Approval

If everything goes well up to this point, there is very little between you and your new home. You will attend the closing or settlement process, where you will have to pay all remaining fees and costs. This is also where you get the keys to your new home!

The Home Buying Process: 12 Steps to Success

First-time buyers typically have a lot of questions about the home buying process, and in particular the various steps encountered along the way. This article lays it all out for you, from start to finish. Here are 12 steps you should take when buying a home.

1. Check Your Credit

Credit scores have always been important for home buyers, but they are more important today on the wake of the housing crisis. According to industry experts, home buyers generally need a credit score of 600 or higher to qualify for a loan, and 720 or higher to qualify for the lowest interest rates. But these numbers are not set in stone.

So your first step should be to review your financial situation. Order your credit reports from Experian, Equifax and TransUnion, and check them for errors. Order your credit score (different from your reports) to see how you stack up against the national average. If necessary, focus on improving your score by paying down credit card balances, making all bill payments on time, etc.

2. Determine Your Budget

Don’t make the mistake of letting a mortgage lender tell you what you can and cannot afford, in terms of a monthly mortgage payment. In reality, the only thing a lender can tell you is the amount you qualify for — not the amount you can realistically afford. You should determine your home buying budget for yourself. There are a lot of free mortgage calculators online that can make this process easier for you.

3. Research and Choose a Type of Mortgage

Do you know the difference between a fixed-rate mortgage and an ARM? This is just one of the things you need to understand before applying for a mortgage loan. The key to success when choosing a mortgage is to consider your long-term plans and find a loan that matches those plans. To do this, you must learn the pros and cons of the primary loan types. Consider the differences between FHA-insured and conventional loans, as well.

4. Get Pre-Approved for a Loan

Pre-approval is a process in which the mortgage lender reviews your financial and credit history to determine your “creditworthiness.” When you get pre-approved for a certain loan amount, there’s a good chance you’ll receive final approval for that amount as well, when the time comes.

Having a pre-approval letter in hand also shows sellers that you are serious about (and capable of) purchasing their home. This can make a big difference in active real estate markets, where the seller may receive multiple offers from competing buyers.

5. Find a Real Estate Agent

If you are buying a home for the first time, or in a new city you’re not familiar with, it’s wise to hire a professional real estate agent. When you compare the amount of money you’ll pay for a new home with the size of the agent’s commission (which typically gets paid by the seller), you’ll see that it’s worthwhile to hire an agent. Choose an agent who specializes in helping buyers, as opposed to sellers.

6. Narrow Your Search

The neighborhood you choose is nearly as important as the house itself, because both have a direct bearing on your quality of life — not to mention future resale value. So research the different neighborhoods and communities in your area. Talk to people who live in them. Use the Internet to gather information. You’re not just buying a house; you’re buying the location as well.

7. Begin House Hunting

This is where you and your agent visit homes to find one that matches your needs. Here are some helpful tips. Take a digital camera with you to get pictures of each home. This will help you remember the details later on. Bring a notepad for the same reason. While you’re at it, you might want to bring a friend along for an unbiased opinion of each property — you know, that outspoken friend who calls it like it is.

8. Evaluate the Asking Price

It’s called the “asking price” for a reason. Just because a property is listed at $250,000 doesn’t necessarily mean it’s worth that amount. It might be wishful thinking on the seller’s part. This is another area where it helps to have a real estate agent. Most agents are experts at validating sale prices against recent sales in the area, and that’s the best way to find out if the price is realistic or inflated.

9. Make an Offer

Once you’ve determined that the price is fair and reasonable, you are ready to make an offer on the property. Always make the offer contingent upon the home inspection (see next item). That way, if the inspector uncovers an issue that you consider to be a deal breaker, you have a way out of the contract. Ask your agent about these and other “contingencies.”

10. Get a Home Inspection

Property inspections usually only cost a few hundred dollars. That’s a small price to pay for the peace of mind you get in return. A home inspector will review the structural and mechanical aspects of the house, including (but not limited to) the roof, foundation, electrical, and heating / cooling system.

11. Attend the Closing / Settlement Process

So, you’ve made it through all of the inspections and the process is still on track. Great! The next step will be the closing / settlement process (it goes by different names in different parts of the country). You can prepare for this process early by putting extra money aside. This is when the title to the property is transferred from the seller to the buyer. You’ll also be signing a lot of paperwork and paying any other fees that are due.

12. Tie Up Loose Ends

After your move, you’ll have a few more tasks on your list. Transfer your utilities if you haven’t done so already. Complete a change-of-address form with the post office (you can do it online these days). Get a safe deposit box for your home insurance policy and other important documents. Set up a mortgage payment schedule or an online auto-pay system. And give yourself a pat on the back … you’re now a homeowner!

April 11, 2017Buying, First Time Home Buyer, Important, Moving, Real Estate, Tipsbuy, gina villanell, Home Buying, house, Move, new home, Real Estate, south florida real estate, south florida real estate agent, southflorida, villanellsells[email protected]

Why Millennials Choose to Buy

kim Kardashian

April 11, 2017Buying, First Time Home Buyer, Important, Millennials, Real Estatebuy, buyrealestate, gina villanell, invest, Millennials, sells, villanellsells, why choose to buy, younginvestors[email protected]

7 Steps to Buying a Condo

Thinking about buying a condo? Great! It can be a very exciting process, and even more so when you know what you’re doing.

But when you don’t know what you’re doing, a condo purchase can be downright scary and costly. No need to fear though, because we’re going to cover the top seven things you should do when buying your first condo.

1. Get pre-approved for a mortgage.

When you’ve been pre-approved by a mortgage lender, you’ll have more leverage with sellers. Pre-approval means a lender has carefully reviewed your financial situation and found you capable of taking on a loan up to a specified amount. It doesn’t guarantee that you’ll get the loan, but it shows sellers you’re serious about buying.

2. Choose the right location.

“Location, location, location” is one of the most commonly used expressions in the real estate industry, and with very good reason. People often choose condo units over traditional homes with a certain lifestyle in mind. So be sure your condo’s location can accommodate that lifestyle. Experiment. Test out the drive from the potential condo to your work, school, shopping, etc. Does it offer the features and amenities you are seeking?

3. Conduct thorough research.

Condo life usually comes with a number of bylaws, association rules and other declarations. Be sure to get this documentation up front to avoid any surprises later on. You’re making a big financial investment, so you’ll need to obtain all of the facts about what’s permitted and what’s prohibited. While you’re at it, get to know the developer too. Find out their history and expertise. Talk to a few of the residents (when applicable) to get their input.

4. Ask about building services.

Condos often have “built-in” services that residential homes do not, such as recreational space. This can be part of their overall appeal. But don’t assume your prospective condo comes with a certain service. Find out to be sure. Is there a door man? Is there a maintenance man or building engineer? If so, what hours will they be available? What other facilities does it provide?

5. Learn about pre-construction pricing.

Developers will sometimes offer significant price breaks in the early stages of development. They do this to attract buyers during the pre-construction phase, when it’s harder to sell a unit. As construction begins on the new development, demand usually goes up. And we all know what happens to prices when demand rises! So if you take advantage of pre-construction pricing, you could save a lot of money in the long haul.

6. Remain flexible.

If you’re buying a condo during the pre-construction phase, give yourself plenty of flexibility with the closing date. Construction delays are not uncommon, so it’s important to consider this when locking in your interest rate, setting a closing date, scheduling a move, etc.

7. Take advantage of tax deductions.

Speak with your accountant to find out what portion of your assessment is tax-deductible. Other expenses that add value to your condo may also be tax-deductible. Get an understanding of these tax implications before making your purchase.

What Real Estate Agents Do for Home Buyers

What is the role of a real estate agent during a home buying transaction? If you ask a hundred different agents this question, you will likely get just as many different answers.

In truth, the primary role of a real estate agent when working with buyers is a simple one. Your agent’s primary obligation is to help you find a home that meets your needs, and to help facilitate the purchase. In exchange for this service, the real estate agent is paid a commission.

The Commission Earned

Traditionally, real estate agents have earned a six-percent commission for services rendered. The commission is typically split evenly, with three percent going to both the buyer’s and seller’s agent. The commission is usually paid by the seller involved in the transition.

These days, some real estate companies offer “stripped down” services at a reduced commission. For instance, they might only help with the paperwork and closing process, once you have already found a home. They charge a lower commission rate because they offer fewer services than what you would get from a traditional agent relationship.

The Duties Performed

The roles and duties performed may also vary depending on the agent. Some consider themselves selling agents, concentrating their efforts on assisting home sellers. Others consider themselves buying agents and focus their efforts on helping buyers primarily. The majority of real estate professionals assist both buyers and sellers (though usually not within the same transaction).

In the early stages of buying a home, the agent plays an important role. This person will (or should) serve as your guide on the quest to find a new home. He or she should listen to your needs and ask questions in order to determine what is the right kind of home for you, and where to find them.

Your agent should be able to compile a list of potential homes that may suit you. This list will point you in the right direction when you start the house hunting process. Once you find the home you are interested in buying, your agent will help negotiate the deal between you and the seller, serving as a go-between to make offers and counter-offers until an agreement is made.

The Process Delivered

Your agent should also keep the communication flowing and the process moving. This will be done through follow-up phone calls and emails, keeping tabs on paperwork, etc. He or she should keep you updated on a regular basis, and should keep an open line of communication with you.

During the pre-closing inspection (a.k.a. final walk-through), your agent should be with you in case you find any issues that need to be addressed, such as scheduled repairs that were never made. In these cases, your agent will attempt to negotiate some type of agreement regarding the damage.

Depending on the state where you live, your agent may also play an active role in the closing / settlement, or they may not be involved much at all. Either way, it’s helpful to have a professional on hand who is familiar with the transaction from start to finish, just in case additional information or negotiations are needed.

The role of the buyer’s real estate agent is an important one. For this reason, it’s important that you meet with prospective representatives and choose one you are comfortable with. You should be equally confident in their professional abilities and their communication skills. After all, the person you choose will be your direct representative through the entire home buying process.