Top 7 Questions I Am Asked By Homebuyers

1) Q: Should I get pre-approved by a lender before I start looking for a home?
A: Absolutely. Many real estate agents will not take you to look at properties without a  pre-approval letter. They want to know you are ready and able to purchase before they invest their time and money into showing homes. But more importantly, you want to be ready to make an offer when you find your perfect dream house. The market is hot right now and  nothing hurts like loosing the perfect house because it takes a few days to get pre-approved.

2) Q: How much home can I afford?
A: A lender can tell you the maximum amount you can qualify for with their institution. You may also find it helpful to use an online calculator to determine your payment. Please keep in mind, the payment may change with interest rates. Interest rates can not be locked until you find a home and start the loan process. Also keep in mind that just because you are qualified for a certain amount doesn't mean you need to spend that much. Find a price point that makes you comfortable and stick with it. Make sure you have enough left over to still enjoy time out with friends and family.

3) Q: Can I get an inspection of the home?
A: Yes, Yes, Yes! There are many types of inspections that you can choose from. I highly recommend that buyers hire a professional inspector. Much as we love our dads, uncles and aunts, they should not be our inspectors unless they are a licensed. One of the most overlooked inspections is the septic inspection. If your home has a septic, you should get it inspected. Not having it done, can be a both a smelly and expensive mistake

4) Q: I see on Zillow that a house is foreclosed. Why isn't it listed for sale?
A: The short version is that when a home is foreclosed upon, it doesn't usually get put up for sale right away. Banks and investors put the homes for sale when they are ready. It can sometimes take years for the property to become available. So the short short version is you most likely shouldn't wait around hoping it will come on the market.

5) Q: How much money do I need to buy a home?
A: This can be a very complicated question. It will depend on the type of loan program you choose. The old standard of needing to put 20% down is long gone. Depending on the type of loan program, you may only need 0%, 3.5%, 5%, 10%, 20%, etc. It will also depend on whether or not it is your primary home or an investment property. I recommend that you speak with several lenders to find the program that works best for you. In addition, there are special programs that help some buyers with down payment and closing costs assistance. Closing costs can be requested from the seller. However, the seller has the right to decline to do so. When many homes are going into a multiple offer situation, this can be a deal killer. Your lender is required by law to provide you with a Good Faith Estimate of closing costs within 3 days of loan application so you will know what these costs are long before the closing day.

6) Q: I just put in an offer. Now what happens?
A: Well there are 4 different responses you may get from a seller. 1) They accept offer as is. 2) They counter your offer. This counter may change the price, inspection period, or other items in the  contract. 3) They decline your offer. 4) They ignore your offer.

Acceptance and counter are the more common responses from a seller. Declined offers and ignored offers are less common. From my experience, ignored and declined offers usually are foreclosed homes or the seller was upset by what they felt was a low-ball offer. Remember folks, sellers usually lived in the home and can take those low ball offers personally. I have heard more than one buyer say well lets start really low and work our way up from there. I strongly recommend if you like the home to come in a reasonable offer price.

7) Q: What is an Ernest Money Deposit?
A: An EMD is money which is put into a escrow account to show the seriousness of the buyer. Remember, the seller is taking the home off the market while the buyer does inspections, etc. They want to make sure the buyer is really planning on purchasing the home. If the buyer defaults on the terms of the contract. The seller may keep the earnest money deposit.

If you have any specific questions you would like answered, please email me at Louisa.Sims@floridamoves.com.

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Winter Garden In the Spotlight

Central Florida Housing Update

Winter Garden in the Spotlight

"A charming little city with a juicy past."

Whether you are looking for a place for your family to begin, a vacation home, or a wonderful place to retire, Winter Garden has plenty to offer. It is well-known for its historic downtown area, fantastic recreation department, biking and walking trails, community garden, farmer's market, kid's splash pad, parks, community events, and shopping areas. It's the small town feel people desire within easy reach of all that Orlando has to offer.

Historic Downtown Area

The quaint, brick paved, historic area of plant street offers restaurants, small boutiques, The Winter Garden Theatre, The Heritage Museum, The Central Florida Railroad Museum, and the kid's splash pad.

 

 

Splash Pad

Had a Foreclosure or a Bankruptcy and Want to Buy a New Home?

Many Americans have suffered a foreclosure, bankruptcy, or a short sale or they know someone who has. As our economy improves, families are wondering when they will be able to revisit the American dream and purchase their next home. There is a certain amount of anxiety that people face when thinking about qualifying for a loan or speaking with a loan officer. Remember you are not alone there are others currently in the same boat. Every lender is different but many can qualify for a new home loan in as little as three years. If you are ready to move from being a renter into a home owner, it is important to realize that the first step is to locate a lender and apply for a loan. Many people are finding that they already qualify to take that next step into homeownership. Through our partnership with Sunbelt Lending, we have been able to help many families get their home wishes back on track. Now is a good time to buy as interest rates are still historically low and prices are climbing. And of course, it would be my pleasure to assist you in your search.

Love, Marriage and Real Estate

Today, more and more young adults are spreading their wings and enjoying life before choosing to settle down. The savvier have moved away from monthly rent and are taking advantage of the real estate market. As a result, it is not uncommon to see new marriages in which both the bride and the groom enter the union with a dowry that includes real estate! So, what to do with an extra house? Perhaps the first temptation is to immediately sell one and use the proceeds to fix up the other house or buy something different altogether. A good idea, and one that will set you up with a nice down payment when it is time to purchase a larger house for a growing family. This is not the only option for newlyweds with two homes. According to the professionals at Coldwell Banker Real Estate Corporation, another good idea is to keep one house as a rental unit. The tax codes allow you to immediately depreciate the value of the building over 27 years, and any taxes, insurance, visits to your property and fix-ups are all write-offs. With this approach, both homes are investments and you build equity in each. Or yet another suggestion is to sell one of the homes and buy a condominium to turn into a rental unit. No matter which option you choose, consult with a knowledgeable real estate sales associate before making any big decisions. A good realtor will know the market and be able to counsel you on the type of cash flow you may expect with a rental in your particular neighborhood or whether a straight sale is the better way to go. If you choose to rent, seek the advice of a good accountant to help you navigate the various tax advantages to being a landlord.