All Entries in the "Buying" Category
5 Factors That Decide Your Credit Score
Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score:
1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.
2. How much you owe. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.
3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer’s oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.
4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.
5. The types of credit you use. Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.
For more on evaluating and understanding your credit score, visit www.myfico.com.
Housing Supply Shrinking Home Sales Increasing
The July residential statistics have been released from our regional Board of REALTORS® and shows our housing inventory in the local market has decreased by seven months since January. Covering Palm Beach County, Martin County and St. Lucie County, the association states that 12.6% more of homes were sold this year over last year. Leaving our current housing inventory for single family homes at 13.5 months for Palm Beach County, 6.9 months for St. Lucie County and 15.3 months for Martin County. Townhomes and condos were at least 4 months longer in inventory across the board in all three counties.
However, median sale prices decreased from 2008 to 2009. St. Lucie County suffered the biggest drop in prices at a -28.5% decrease from $144,000 to $103,000. Martin County decreased -20.7% from $290,000 to $230,000 and Palm Beach County a -16.5% decrease from $285,000 – $238,000. Personally, I like the sound of that. Prices are lower and demand is picking up. I see a potential for some sweet equity down the road. A great time to buy and a great time to invest.
It looks like Palm Beach County is strong with current real estate sales activity. As of July 2008 total number of units pending and contingent is a strong 3,394 single family homes versus St. Lucie County with 1,709 and Martin County with 450 single family homes.
Lets see what happens over the next few months. I’m hoping the tax credit is at least extended and sales continue. Without the tax credit extension, I predict sales will drop off. But, I just don’t see our government letting that happen. We’re headed in the right direction. UP!
Top 5 Mortgage Questions Among First-Time Home Buyers
Here’s what we did. We reviewed all of the questions emailed to the Home Buying Institute over the last six months. We made a list of the most common mortgage-related questions sent in by home buyers, and we answered them below. What’s the result? A must-read article for first-time home buyers!
So here they are, starting with the most common mortgage question we receive…
1. What credit score do I need to get a mortgage?
In the past, we did not get this question as much as we do today. Yet, it has quickly risen to #1 in terms of frequency. There are two reasons for this — economic recession and media coverage. The housing crisis of 2008 led to a full-scale economic recession in 2009. Long story short, it’s harder to qualify for a mortgage loan in the current economy. Lenders today are more strict with their lending criteria, including credit scores. There has been plenty of media coverage about all of this, and that’s why so many home buyers are asking this question. So let’s answer it.
First, you need to realize that the numbers I’m about to give you are only averages. Every lender has its own standards and criteria, and they vary a lot. Lenders will also review other criteria, in addition to your credit score (income, debt, affordability, etc.). In the current economy, you’ll probably need a credit score of at least 670 to qualify for a mortgage loan. In order to get the best rates on a mortgage, you’ll need a score of 750 or higher. Again, these numbers are not set in stone. They are merely averages taken from recent surveys.
2. How much of a mortgage loan can I afford?
The most important thing to understand is that you must answer this question for yourself. A mortgage lender cannot tell you how much you can afford to pay each month — they can only tell you what they’re willing to lend you. It’s possible to get approved for a mortgage that’s too big for you. It happens all the time, and it often ends up with a foreclosure situation. So you need to set your home buying budget early on in the process, before you start talking to lenders.
This is a relatively simple process. All you need to do is subtract your monthly expenses from your net monthly income (after taxes), and you’ll have a rough idea of what you afford to pay toward a mortgage each month. When you add up your monthly expenses, include everything but your current rent payments — you won’t have a rent when you buy a home. Be sure to account for entertainment / leisure expenses, retirement and savings contributions, and whatever debts you currently have. Subtract these expenses from your monthly income, and use that figure as a monthly limit for your mortgage. Do not exceed that maximum amount, even if a lender approves you for more. Stay within your budget!
3. How do I apply for an FHA loan?
Let’s start with a quick definition. An FHA loan is any home loan that’s insured by the Federal Housing Administration, which is part of the Department of Housing and Urban Development / HUD. The FHA does not actually make loans to consumers — rather, they insure the loans made by primary lenders.
These loans offer certain benefits to first-time home buyers. Lenders receive guaranteed repayment from the federal government, even if the homeowner ends up defaulting on the loan. This government backing makes it easier for home buyers to qualify for FHA loans. You don’t have to put as much money down (as little as 3.5%), and your credit score doesn’t have to be perfect. That’s the primary appeal of FHA home loans.
To apply for an FHA loan, you would need to start on the FHA website. From there, you can find a list of FHA-approved lenders in your area, and you can apply for the program directly through those lenders. You can actually start this process through either the HUD or the FHA websites. Here are the links:
After you submit an application with an FHA-approved lender, they will review your financial situation and tell you (A) if you’re qualified for the program and (B) what kind of rate / terms you might get.
4. How do I get pre-approved for a mortgage loan?
It’s wise to get pre-approved for a mortgage loan before you start house hunting. It helps you limit your search to the types of homes you can actually afford. Sellers will also take your offer more seriously if you have your financing lined up. Fortunately, it’s a straightforward process. Just contact your chosen lender and tell them you want to get pre-approved for a mortgage. They will set up an appointment and tell you what to bring (W-2 statements, bank statements, pay stubs, etc.).
Afterward, the lender will tell you how much they are willing to lend you, based on your financial situation. They’ll also give you a pre-approval letter with the same information.
5. Should I choose a fixed or adjustable-rate mortgage?
A fixed-rate mortgage keeps the same interest rate over the entire life of the loan. On the contrary, an adjustable-rate mortgage (ARM) has an interest rate that will adjust or “reset” every few years. These days, most ARM loans start with a fixed rate for a certain period of time, typically three to five years, and will start adjusting after that. During the initial fixed-rate period, an ARM loan will usually have a lower rate than a regular fixed-rate mortgage. This is why some home buyers choose ARM loans in the first place — to get a lower rate, and thus a smaller mortgage payment each month.
I generally recommend fixed-rate mortgages for people who are going to stay in a house for a long period of time, more than a few years. The only time I would even consider an adjustable / ARM loan would be a short-term residency, where I knew I would be selling the home within a few years. For example, I did my final military tour in Maryland, and I knew I’d be moving out of the state after two years. So I used an ARM loan to get a lower interest rate, and I sold the home long before the three-year point where it would start adjusting. This is the only type of situation where I recommend the ARM loan. For long-term residency, I recommend a fixed-rate mortgage for predictability.
You should learn everything you can about fixed and adjustable mortgages, and choose the one that best suits your needs. Once you learn about the various pros and cons of each option, and obvious choice will begin to emerge.
© 2009, Cornett Communications.
About the Author: Brandon Cornett is a consumer advocate and publisher of the Home Buying Institute. You may visit the author’s website at www.HomeBuyingInstitute.com to learn more about this topic.
Jupiter Named Ambassador City
WASHINGTON – July 16, 2009 – The city of Jupiter, Fla., has been named a 2009 Ambassador City by the National Association of Realtors® (NAR) and the U.S. Conference of Mayors for its “SOLD on Jupiter” program. The program offers potential homebuyers with information, resources and a tour of affordable homes.
The SOLD on Jupiter program was launched in 2007 and is an initiative of the town of Jupiter and the Jupiter-Tequesta-Hobe Sound Association of Realtors® (JTHS). The groups host two to four SOLD on Jupiter events each year and invite prospective buyers to tour affordable homes in several area neighborhoods.
“Realtors build communities and are committed to helping homebuyers achieve their dreams of homeownership,” said NAR President Charles McMillan. “The SOLD on Jupiter program should be commended for giving potential homebuyers a better understanding of the homebuying process and the resources available to help them achieve that goal. It also provides more awareness about Jupiter’s neighborhoods and the variety of homes available in their price range.”
The 30-minute parade of neighborhoods highlights affordable townhomes, condos and single-families homes priced from $70,000 to $300,000. During the tours, Realtors and community leaders are available to answer questions about the homes for sale as well as highlight the neighborhood’s amenities such as schools, parks and shopping.
At the events, housing counselors and lenders are also available to answer questions, discuss financing options and provide information on available homebuyer grants and subsidies. The events are free and open to the public.
At a reception yesterday, Realtor Len Ferber, 2009 chair of the Housing Opportunity Committee, joined Dustin Joyce, Council for the New American City, to present the Ambassador for Cities plaque and a $5,000 check to Anita McKernan, 2009 president for the JTHS Association of Realtors, and to Jupiter Mayor Karen Golonka.
The Ambassadors for Cities program was launched in 2003 by NAR and the U.S. Conference of Mayors, through its Council on the New American City. The program encourages cities and Realtor associations to form partnerships to promote homeownership and affordable housing opportunities.
This article is courtesy of The Florida Association of Realtors®.
First Time Home Buyers Tax Credit Time Constraints
The following Press Release is from the Florida Association of Realtors.
WASHINGTON – April 24, 2009 – If first-time homebuyers wait until November to sign a sales contract, it’s probably too late to get the $8,000 tax credit. To qualify, buyers must close before Dec. 1 – a signed contract is not enough. New construction should be started by mid-summer to qualify.
According to the National Association of Realtors, a “home is considered as ‘purchased’ when all events have occurred that transfer the title from the seller to the new purchaser. Thus, closings must occur before December 1, 2009 for purchases to be eligible for the credit.”
Noting that deadline, the National Association of Builders kicked off a campaign notifying buyers that if they want the tax credit, they should plan to sign a construction contact soon.
Mike Dishberger of Sandcastle Homes Inc. in Houston, Texas, says that building a home from scratch can take anywhere from four to six months depending on the floor plan and location. Assuming it takes the full six months, first-time homebuyers should sign a new-home construction contract no later than May 31, 2009.
While it’s possible to rush an existing-home sale and go from contract to closing in only a few weeks, that schedule could cause a problem for last-minute buyers who wait until November. If an onslaught of buyers hope to beat the clock, title agencies and others involved in the closing process could get backlogged during November, and the IRS does not consider “planned closing dates” for the tax credit – only actual closing dates.
To qualify for the tax credit, home buyers must have not owned a home for three years prior to the purchase and have a modified adjusted gross income (MAGI) less than $95,000 for single tax payers and $170,000.
Similar Articles:
First-Time Home Buyer Tax Credit Explained$8,000 Housing Tax Credit Now Available
What You Should Now Before Buying a Home Subscribe Now and receive Blogging Jupino by email or RSS Reader
Susanne Quirk is a Realtor® with Cobblestone Realty specializing in residential homes in Jupiter, Juno Beach, Palm Beach Gardens, Florida. Contact Susanne at (561) 386-0350, e-mail, or visit our website www.TheJunoBeachRealtor.com to learn more.
Town of Jupiter Hosts Turtle Trot 5K
19th Annual Town of Jupiter Turtle Trot
The Town of Jupiter is hosting the Turtle Trot 5k for the 19th year in a row. Over 600 runners from all over Palm Beach County are expected to participate. The marathon will start at Carlin Park, run along A1A through the Jupiter Inlet, return and end at Carlin Park. Free shirts will be given to the first 600 participants. Multi-Race will provide timing and scoring using the chip system. Prizes will be given to 1st – 3rd overall male and female and first three places for male and female runners in each of the 15 age groups.
The Parks and Recreation provide many quality programs and events for our community. Here’s one way to support our town by participating, volunteering or sponsoring the Turtle Trot.
You can register as a race participant by visiting the Jupiter Community Center at 200 Military Trail, Jupiter, FL 33458 or download an application from their website or at Multi-Race’s website or visit Running Sports in Juno Beach (561) 694-8125.
Related Articles: Sunfest 2009Subscribe now to get Blogging Jupino delivered via email or via feed reader.
Susanne Quirk is a Realtor® with Cobblestone Realty specializing in residential homes in Jupiter, Juno Beach, Palm Beach Gardens, Florida. Contact Susanne at (561) 386-0350, e-mail, or visit our website www.TheJunoBeachRealtor.com to learn more.
First-Time Home Buyer Tax Credit Explained
Here is a simple explanation of the home buyer tax credit for 2009. Kiplinger Editorial Director, Kevin McCormally, not only explains the tax credit for 2009, but also clarifies the “tax credit” for 2008.
Susanne Quirk is a Realtor® with Cobblestone Realty specializing in residential homes in Jupiter, Juno Beach, Palm Beach Gardens, Florida. Contact Susanne at (561) 386-0350, e-mail, or visit our website www.TheJunoBeachRealtor.com to learn more.
Abacoa Launches Trik Flix Film Festival
Abacoa’s first film festival will take place Saturday, April 25, 2009. The festival will provide an opportunity for filmmakers to present their action sports videos. Designed for filmmakers 25 and under, the festival will allow those breaking into the industry to display their work alongside the top filmmakers in the action sports world.
Throughout the day, fans and those in the industry can benefit from pro skate and BMX sessions, filmmaking workshops and big screen premieres of young local filmmakers.
Prizes include a $10,000 scholarship, Apple products, bikes, surfboards and more. Be full-warned, Trik Flix is expecting over 10,000 people to be in attendance. Admission is free.
Events:
| 2:00-2:00 | On-site workshop registration |
| 12:00-2:00 | “Food Fest†– screenings and lunch |
| 1:00-1:45 | 1st afternoon workshops series |
| 2:00-2:45 | 2nd afternoon workshops series |
| 3:00-3:45 | 3rd afternoon workshops series |
| 3:00-5:00 | Street skate clinics with the Pros’ |
| 5:30-6:30 | DJ/Band – Pro skate and bmx demos |
| 6:30-7:30 | DJ/Band – Pro Best Trik contest |
| 8:00-8:50 | Screenings of Film Submission Finalists |
| 9:00 | Awards ceremony |
| 9:00-10:00 | Feature film, followed by Q&A with Filmmaker |
Workshops Include:
Visit the workshop portion of the website to register.
FREE Internet Safety for Parents Media Works! Confidence Building & Media Preparation Define Your Film Style with Music Basic Techniques and Tips for Shooting Water Videography Lighting and Camera Technique Shooting Video for the Web Learn how to stream live to the web in minutes Top ten camera tipsTo compete in the film competition or for more information, visit TrikFlix.com or call (561) 568-1114. Trik Flix is raising awareness and money for the Surfrider Foundation and the Center for Autism.
Related Articles: Spotlight on Abacoa Abacoa Green Market Valencia at AbacoaEaster Fun in Palm Beach County
Updated Saturday, April 11
Time to celebrate Easter and we have compiled a list of Easter activities in Palm Beach County scheduled for this weekend. Have a wonderful Easter and go easy on the Peeps!
Abacoa:
Saturday, April 11, 2009 10:00 a.m. Abacoa Town Center in front of Amphitheater
Roger Dean Stadium:
Saturday, April 11 Easter Egg Hunt 4:00 p.m. Game 6:05 p.m.Jupiter Hammerheads vs. Palm Beach Cardinals
Jupiter:
Saturday, April 11th
9:30 – 11:00 am
Jupiter Community Center
210 Military Trail
Jupiter, FL 33458
For More Information
(561) 741-2400
Hunt begins promptly at 9:30am. Kids- Bring your own basket to collect eggs & candy. There will be egg hunt areas for ages 3 & under, 4-6, and 7-10. Immediately following the hunt until 11am, there will be additional activities including visits with the Easter Bunny, inflatables, face painting, and arts & crafts. Beginning at 10:30 am there will be a ballet performance of “Alice in Wonderland” by the Jupiter Community Center ballet classes. Be sure to be on time for the Easter Egg Hunts as they do not last long. REMINDER: Please bring a bag to put candy in and get there on time.
Palm Beach Gardens:
Egg Extravaganza at Gardens Park
9:30 – 11:00 am
Gardens Park 4301 Burns Road Palm Beach Gardens, FL 33410 For More Information Call (561) 630-1100
Age Groups: 3 years & under, 4-6 years, 7-10 years. Bring your own Easter Basket
9:00 a.m. – Face Painting
9:30 a.m. – Egg Hunt 9:45 a.m. – The Easter Bunny ArrivesWest Palm Beach:
April 11, 2009
9:00 a.m. – 10:30 a.m.
Event begins promptly at 10:00 a.m.
For more information, or to purchase tickets, please contact the Flagler Museum at:
(561) 655-2833 or via e-mail at mail@flaglermuseum.us
Each year the Flagler Museum’s Whitehall Society hosts an Easter Egg Hunt and Egg Roll on the South Lawn of Whitehall the Saturday morning before Easter. Children are encouraged to bring their own Easter Egg Basket for the Easter Egg Hunt on the Museum’s South Lawn. General admission for the Easter Egg Hunt and Easter Egg Roll is $5 for children and $15 for adults. There will be no admission charge for children and grandchildren of Museum Members at the Sustaining Level and above.
John Favole, News Anchor for WPTV News Channel 5, will be the Master of Ceremonies. Museum gates open at 9:00 a.m. for a visit by the Easter Bunny and Easter arts and crafts. The Easter Egg Hunt begins promptly at 10:00 a.m. Light morning refreshments will be available on the South Porch.
Proceeds of the event will help to underwrite the Museum’s Newspapers in Education program. Published in conjunction with The Palm Beach Post, the Newspapers in Education tabloid will be geared toward 4th and 5th grade students and will be made available statewide. It will help students understand the development of Florida and Henry Flagler’s essential role in that process.
