All Entries in the "Buying A Home" Category
Open House Sunday, November 1 at Frenchman’s Reserve
517 Les Jardins at Frenchman's Reserve
Contact:
Vicki Copani, Broker Associate Cobblestone Realty e-mail: palmbeachestates@aol.com website: www.VickiCopani.com Mobile: (561) 301-1463Exceptional 5 bedroom, 5.5 bath, 3 car garage in beautiful Frenchman’s Reserve. This two story Carrington Model is located on a corner lot with beautiful Saturnia tile floors throughout, cherry wood cabinetry, granite counters throughout the kitchen and a gorgeous and inviting tropical pool. Custom window treatments throughout the home is included. This home was originally priced at 1,250,000 and is currently being offered for $875,000. Enjoy the golf and social amenities available in this luxury golf community.
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®.
Cielo Town Homes in Palm Beach Gardens
Cielo Townhomes - Palm Beach Gardens, FL
Stainless Steel Appliances
One of the sought after communities in Palm Beach Gardens has been homes for sale and rent in Cielo. Located in a gated community of over 150 - two and three level town homes. Each town home is elegantly designed with granite throughout the kitchen and baths, stainless steel appliances, tile and carpet and much more. Amenities include a clubhouse, pool and secured pedestrian path to the shops and restaurants at Donald Ross Village. Shops include, but not limited to, a Gold’s Gym, CVS, MedExpress, Hurricane Cafe, Grande’s Bella Cucina.
Two – two level town homes are available for rent starting at $1,950/month. Prices for town homes for sale begin at $264,000.
Call Susanne Quirk at (561) 386-0350 for more information
or
E-mail me to request to see properties available for rent or sale
Complete Specifications:
- Hurricane impact windows
- Raised panel wood cabinets
- Granite kitchen countertops
- 20′ porcelain tile on diagonal
- Large master bedroom with large walk-in closet
- Granite countertops in master bath with dual sinks
- Roman tub
- Two level town homes include a large loft area on second floor
- Covered patio with pavers
- Gated community with resort style heated pool and spa
- Secured pedestrian walkway to shopping and dining at Donald Ross Village
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.CobblestoneFL.com to learn more.
How Everything's Changed in Real Estate Finance
“Everything’s Changed!” My favorite line delivered by Holly Hunter in “Raising Arizona ” sums up what’s been going on in the mortgage markets. I started in the mortgage business just over 25 years ago and at that time the available options were Conventional, FHA, VA, & Private Money, that all were fixed rates. We’ve almost come full circle with the exception that there still are a few Alt-A and SubPrime programs available (for those borrowers that don’t meet the more stringent FannieMae, FreddieMac, Federal Housing Administration, or Veterans Administration guidelines). Gone are NoDoc loans where income, employment, or asset information was not required, gone is NoRatio loans where income information was not required, mostly gone are Stated loans where income is stated, but not verified. It’s pretty much if you can’t prove it, you can’t get it … not that that’s not the way it should be, but let’s admit it, there are very savvy accountants many self-employed people use, as well as there being a segment our economy that is cash. That’s where some of these now defunct programs came into play, but over recent years lower down-payments were permitted along with lower credit score thresholds, that turned to be riskier than thought.
The current state of our economy related to housing foreclosures and delinquencies was caused by a number of issues: the burst of the housing bubble and resulting decline in values, job loss or illness impacting peoples ability to meet their budgets, lenders creating products with fast and loose guidelines, homeowners not getting the proper type of mortgage or even the rate they really qualified for from who they trusted, and of course there has been outright fraud. Regardless of the causes, were are where we are now.
What are the options? VA loans permit 100% financing and a Funding Fee (comparable to Private Mortgage Insurance on conventional loans) is added to the loan, which remains for the entire term. FHA loanspermit 97% financing (soon to change to 96.5%) and have both a one time MIP (Mortgage Insurance Premiumcomparable to Private Mortgage Insurance) added to the loan amount as well as a monthly MIP fee added to the payment, these also remain the entire term. Both VA and FHA require “project approval” if the home or town home has a homeowner’s association, or if it is a condominium. Conventional loans technically permit up to 97% for special programs, but unfortunately here in Florida we are (along with many areas throughout the country) in what is termed a “declining market”, which reduces the percentage for loans. Here in Florida , at present the maximum loan for a single-family detached home is 90%, if it is attached (town house or villa) or a condominium then it is limited at 80%. These restrictions will undoubtedly be eased as our market recovers. Conventional loans over 80% require Private Mortgage Insurance, which is typically paid as a monthly fee in your payment.
WOW! What’s the good news? The good news is that mortgage rates are at historically low levels. On December 15th a Conventional 30 year fixed ratewas 4.75% … in my 25 years in business I only remember a day or two about 6 years ago when I was able to lock a few clients this low. Rates were over 12% when I started out in 1983 and for a long time if rates were in the 8’s, that was good. With rates available at or below the 5% range and the available choices in property on the market it is a great time to buy. Remember, interest rates can be very volatile and turn around faster than you think, much faster than real estate values move.
LaMarr Cromer is Broker/Owner of Cromer Mortgage Services, Inc. and has been a FloridaLicensed Mortgage Broker in Palm Beach County since 1983. Contact LaMarr at 561-594-4025, email at lamarr@cromermortgage.biz, or additional information can be found at www.cromermortgage.biz.
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Buying or Remodeling A Home with Asbestos
The following article is from Jesse Herman, Awareness Coordinator at the Mesothelioma Cancer Center. It is a great article on the dangers of Asbestos. Critical information for homeowners and buyers of homes built before 1980.
Abestos Removal and Greener Alternatives
There are many things to consider when remodeling or purchasing an older home. Homes built before 1980 have the strong likelihood of containing asbestos. Due to a steady progression of technology and green sustainable methods, there are many ways to ensure your home or property is asbestos free. If you are interested in saving money, remodeling and improving your carbon footprint, here is some information to get you on the right track.
Used in millions of homes throughout the last quarter of the 20th century, asbestos insulation can become a real dilemma for homeowners due to causing a variety of health problems, including Peritoneal
Mesothelioma and Malignant Mesothelioma. These types of cancer take the lives of thousands each
year.
Non-regulated asbestos material can be legally performed by homeowners, regular contractors, or licensed asbestos abatement contractors as long as the National Emissions Standards for Hazardous Air Pollutants(NESHAP) are not violated. Asbestos removal in public facilities, homes and workplaces must be undertaken
by a licensed asbestos abatement contractor. Once the removal is complete, green insulation options should be given serious consideration, such as: Cellulose, Cotton Fiber and Lcynene.
The United StatesGreen Building Council(USGBC), in a study conducted in 2003, estimated a savings of $50-$65 per square foot for well-constructed green buildings in the U.S. (see table below) during that year. The numbers continue to improve as more eco-friendly options become available, and those kinds of figures have finally begun to attract those who thought eco-friendly construction was just a bunch of hogwash.
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Will Remodeling Help Sell My Home? What’s Broken Now?Florida Template for Recovering Housing Market
We’re beginning to hear positive reports from the news media about the housing market. Especially here in Florida. Jim Cramer from The Street in a recent video was comparing real estate to stocks, he positions Florida as the “template” for how the housing market will unfold for rest of the nation. Florida was one of the first and worst states hit hard by the housing market. Now rebounding, Cramer credits the low housing inventory for its turnaround. Building ceased two years ago and purchases continued to help dry up the inventory.
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Refinance with Bad Credit
By Susanne Quirk
I was asked by Refinance.com to review their website. Before committing, I jumped over to Refinance.com for an initial review. I was pleasantly surprised with the depth of knowledge available about mortgages and refinancing. Considering this is a topic of interest to our readers and an opportunity for us to provide that information to you, I agreed.
Even a novice can easily navigate the site and find any information they need. There are a wide range of mortgage and refinance options available depending on your goals including Debt Consolidation, Refinancing and Home Equity Loans.
I wanted to focus on finding information on bad credit. The housing market has been hit hard with foreclosures and it is my hope that this information can provide another option for families in trouble. We discussed short sales in a previous posting which is not an option everyone. Even with bad credit, a mortgage refinance is possible.
For those interested in a home refinance with bad credit, you can read more about the subject by clicking on the Tools & Resources drop down menu and select the Bad Credit category where you can learn in detail about how credit categories are used to rank borrowers based on their credit history. Financial calculators are available to help calculate which loan you can afford as well as bi-weekly, refinance and amortization calculators.
There are many, many loans to choose from and each with a detailed description to point you in the right direction. Loan counselors are available via a toll free number to consult with you on the appropriate loan for your needs. They are trained to help those with bad credit to refinance their mortgages.
Other Articles of Interest:
Troubled Home Owners Look to a Short Sale for Financial Relief
