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Cobblestone Realty Building a Pathway to Abacoa
In a time when most businesses are downsizing, Cobblestone Realty is planning for expansion. In preparation for the increasing real estate demand, the Jupiter based real estate firm moved its offices on Town Center Drive in Abacoa in early March.
The once small real estate boutique has exploded in growth since it’s opening in January, 2007 when the doors opened with two Realtors®. Today, there are over twenty Realtors® specializing in residential, commercial and investment properties in Jupiter, Tequesta, Juno Beach, Palm Beach Gardens and surrounding areas in Palm Beach County.
Offices in Abacoa allows Cobblestone Realty to better serve their customer base since most of their clients are in the Abacoa area. Occupying over 4,000 sq. ft. of space on Town Center Drive near J.J. Muggs, included in the facility is an internet lounge. The lounge is a separate, private room just off of the main door where people passing by can come in and search the MLS for homes to buy anytime during office hours. “We wanted to provide a place where people will feel comfortable enough to come in and perform their home search without the sales pressure in hopes that when they are ready to buy, they will remember Cobblestone Realty,” said Joe Quirk, Broker and President of Cobblestone Realty.
Joe went on to say, “Every detail in planning the office space was with the customer in mind. Our goal is to provide quality customer service by adding services and technology that will make the buying and selling process easier for our clients. A new title office will allow our Realtors® to work closely with title agents for a trouble free closing process for our clients. Our property management company will provide services for families here seasonally and investors needing tenant and maintenance services.” Future plans include the latest in technology that will make searching for homes even easier and more enjoyable for everyone passing by the office.
Cobblestone Realty said they have been successful in obtaining contracts with major employers in the area because of their attention to detail and their ability to be the local, small business with a large international reach. They have carved out a niche that differentiates them and allowed them to successfully compete with large franchises in the area.
Cobblestone Realty is a member of the Jupiter/Tequesta/Hobe Sound Board of Realtors® and members of the Northern Palm Beach Chamber of Commerce.
For more information, please call (561) 429-3340.
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.
Is FSBO the Way to Go?
Home sellers were living large in the peak of the real estate market. In Jupiter, Florida many home buyers were sleeping overnight on local builders’ doorsteps for a chance to purchase a home. Since that time, the market has taken a dive. Short sales are more common and foreclosures have not only permeated the market, but have contributed to the dramatic decrease in home prices.
Now many home sellers wonder if selling their home themselves is a more profitable option. I always tell people who ask to take a look at the facts and understand the amount of work involved to sell your home yourself.
Most Difficult Tasks for FSBO Sellers:
Getting the right price . . . 15% Understanding paperwork . . .18% Preparing/fixing up home for sale . . . 15% Attracting potential buyers . . . 9% Having enough time to devote to all aspects of the sale . . . 7%FSBO Methods Used to Market Home:
Yard Sign . . . 50% Friends/neighbors . . . 29% Newspaper ad . . . 31% Open House . . . 25% Listing on the Internet . . . 21%Typical Home Sold:
FSBO. . . $187,200 Agent Assisted. . . $247,000The most difficult task for FSBO Sellers is understanding the paperwork followed by getting the right price/fixing up home for sale. Your first option would be to hire a real estate attorney who can interpret documents and advise you on the rules and regulations for selling your home yourself. After the cost, consider the availability of your attorney. Questions arise at unexpected times and will you be able to get answers from your attorney quickly? The second option is hiring a REALTOR® (see my article Why Hire a REALTOR®). A REALTOR® is trained to understand paperwork, pricing your home and helping you to prepare your home for sale.
The largest and most time consuming part of the job is marketing your home. How will you get the news out that your home is for sale? The most used for FSBO’s is the yard sign. No question, it is a great marketing tool for us REALTORS®. However, using that alone may not get your home sold. Most REALTORS® use all of the marketing methods listed above and more including the MLS (Multiple Listing Service) a primary selling tool in real estate. The MLS alone markets to over 14,000 other REALTORS® in our area. It is a powerful
tool.
The most powerful statistic is the price of the typical home sold. In the above scenario, an agent assisted home sold for $59,800 more. In our area, the standard REALTORS® commission rate is 6%. Subtract that from your sale price ($14,820). You end up with $44,980 more than if you had sold the home yourself.
Source: 2007 National Association of REALTORS® Profile of Home Buyers and Sellers
Joe Quirk, Broker for Cobblestone Realty in Jupiter, Florida. He is also a real estate investor and has investment property throughout Palm Beach County. Contact Joe at (561) 427-9326, by e-mail, or visit our website www.CobblestoneFL.com to learn more.
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Top 3 Reasons Why Now is the Time to Buy Real Estate
Strong indicators show that we are in the best market to purchase a home. Whether you are interested in buying a home as an investment, as a first time home buyer, or to move up to a bigger home, it doesn’t matter. It’s still a great time to buy for everyone. There are many more reasons why, but to make things easy, I can boil it down to three main factors.
1. Housing prices are declining. The old saying, “buy low, sell high” applies here. There’s no need to wait it out for the lowest price. In fact, waiting it out could do you more harm than good. You will miss a lot of great deals out there waiting for the market to bottom out. Because real estate is for long term investing, your purchase will pay off even if you didn’t buy your home at the lowest point in the market.
2. Mortgage rates are at a low. CBS Financial Analyst, Ray Martin, appeared on the CBS Early Show saying, “Rates on a 30-year, fixed-rate mortgage are at a level we won’t see again in our lifetime.” Be full warned, when housing purchases increase, rates are going increase as well and historically they have increased rapidly.
3. $8,00 First-Time Home Buyer Tax Credit. Buy before December 31, 2009 and you’ll get an $8,000 tax credit if you’re a first-time buyer. Know the definition of a first-time home buyer! You can previously have been a home buyer and still qualify. The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law test the home ownership history of both the home buyer and his/her spouse. See First-Time Home Buyer Tax Credit.
Not sure how to proceed? I’d meet with your mortgage broker and find out what you can afford to buy. Credit score needs some work? No problem, a good mortgage broker can help you improve your credit score. Then, call me. I can help you find the best home at the best price.
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.
Push to Increase Homebuyer Tax Credit
Great news! There’s a big push from legislatures and businesses to increase and extend the current homebuyer tax credit. A number of bills have been introduced into the legislature. Some of the tax expansions include increasing the homebuyer tax credit from the current $8,000 to $15,000, extend the tax credit time frame from the end of the year, 2009 through to mid 2010, opening up the tax credit to all homebuyers and providing a $3,000 credit to homebuyers who refinance.
