by Elsa Soto | Jun 5, 2018 | Buyers, Homes, Villas and Condos, Investment Property in Florida, Mortgages, News, Real Estate News
The 3 Most Boring Parts of the Home-Buying Process—and How to Deal
When all is said and done, buying a home is exciting—and a milestone to be celebrated. But if you expect each step of the process to be a thrill ride, we’re here to tell you you’re sorely mistaken. In fact, between the rush of the hunt for the perfect place and the extreme satisfaction of crossing your threshold as a new homeowner, the rest of the home-buying process can be a bit of a slog.
There are many unglamorous parts of buying a home—some of which many consider downright boring. Do the words “financial due diligence” make your eyelids feel heavy? Yeah, ours too.
But when you know what to expect and why, it’s a whole lot easier to deal. So pay attention to these three very mundane—but very important—parts of the home-buying process. We’ve outlined why they matter and how to get through them without losing your sanity.
1. Raising your credit score
Savvy home buyers know that a good credit score will allow them to lock in a good interest rate. But what if your credit score is in the gutter? Raising it can take some time—a year, if not more—but there are some strategies you can take to get it where it needs to be.
One of the easiest and most effective ways to bump up that credit score(besides paying all your bills on time, which you already do anyway, right?) is to avoid applying for any new credit—including personal loans, car loans or leases, and credit cards—for about one year before starting the home-buying process, says Shayan Jalali, an agent with Berkshire Hathaway HomeServices, in Boston.
“Your credit gets pulled each time you apply for a loan of any type, which negatively impacts your credit score,” he says. And that can translate to a less favorable rate when it comes time to get a mortgage.
2. Securing a mortgage pre-approval
Once you’re satisfied with your credit, it’s time to shop for a mortgage lender who will ultimately help you buy a home. We won’t lie: Shopping for a mortgage lender is not fun. It requires a number of steps and a lot of paperwork.
First, you’re going to want to inquire with different lenders to learn about their rates, programs, fees, and specials. You’ll also want to consider if you want to work with a mortgage broker, who will essentially shop home loans for you.
It’s important to take the time to discuss the ins and outs of the loan programs that are available, from conventional 30-year loans to adjustable-rate mortgages, to FHA loans.
Once you’ve settled on where you want your loan to come from, it’s time to get that all-important pre-approval, which is a commitment from your lender to provide you with a home loan up to a certain amount. That will set your home-buying budget, and also show sellers that you are serious about buying when it comes time to put an offer in.
But the pre-approval process takes patience.
“Lenders require a host of documents to get you fully pre-approved, and often it comes down to minutiae such as explanations of small transactions in or out of your account,” says Luke Loiselle, a real estate agent at Keller Williams, in Portland, OR. The plus side is that once you have your pre-approval, you can largely check tedious mortgage tasks off the list.
3. Reading the fine print
Spoiler alert: You are going to be bombarded with financial, legal, and technical documents during the home-buying process—and unfortunately, it’s your job to read through all of it. Even if that sounds about as exciting as trudging through “War and Peace,” don’t skimp on the time it takes to understand the contracts you’re signing.
The best way to get through all the painful paperwork is to know what to expect. Here are the three most important documents that are going to come your way:
- Your offer: Once you and your real estate agent have put together an offer, you have to look over the contract and make sure its accurate. In the age of digital signature technology, buyers often click to add their initials or signature without fully reading contract documents. This is especially common for buyers who have made multiple offers, as they all start to blur together. Its important to read every document for each offer to ensure that the contracts were completed correctly, including the offer price, earnest money deposit, and any contingencies, says Andi Costello, a real estate agent with Keller Williams Premiere Properties, in Vancouver, WA.
- Inspection report: Soffits. Fascia. Ductwork. We get it, the inspection report can be a snooze. In fact, if the roof isnt falling off and the sellers are not planning to remove that orange shag carpet, then you may decide you can just ignore the whole thing. But that would be a mistake. Even if youve received a verbal update after the inspection, you should actually read the report you paid for to ensure the inspector didn’t inadvertently forget to share any areas of concern,” Costello says.
- Closing documents: Get ready for a pile of closing documents about 2 inches thick. Its in your best interest to master all the intricacies of your mortgage and understand your closing fees, so make sure to look over your closing documents and have your lender explain any issues that you’re concerned about so you know what you’re signing.
While these few tips can help keep you in line when thinking of your home-buying process, we hope you do not go into this journey alone! Our agents specialize in retirement, vacation and investment properties in the Central Florida area close to Disney and all of the attractions Orlando has to offer. Do not let these tips talk you down from making your dream purchase. We are here to help you, every step of the way!
Source: Realtor.com
by Elsa Soto | May 10, 2018 | Buyers, Homes, Villas and Condos, Investment Property in Florida, Mortgages, News, Property for Sale in Orlando, Real Estate News, Uncategorized
WASHINGTON (AP) – May 10, 2018 – The key long-term U.S. mortgage rate held steady this week, providing a lure for potential homebuyers as the spring buying season goes forward.
Mortgage buyer Freddie Mac said Thursday the average rate on 30-year, fixed-rate mortgages was 4.55 percent, unchanged from last week. The benchmark rate rose steadily for most of April, reaching its highest level in more than four years. By contrast, the rate averaged 4.05 percent a year ago.
The average rate on 15-year, fixed-rate loans declined slightly to 4.01 percent from 4.03 percent last week.
Despite higher borrowing costs and home prices, demand for home purchases has grown in the spring buying season as the economic outlook has continued to improve and bolstered consumer confidence.
Homes sold at a solid annual pace of 5.6 million in March, the National Association of Realtors reported last week, even though the number of houses for sale has plunged. As a result, average home prices are rising at more than twice the pace of wages.
The tight job market, solid economic growth and restrained inflation have kept mortgage rates steady, Freddie Mac chief economist Sam Khater suggested. “As we head into late spring, the demand for (mortgage) credit remains rock solid, which should set us up for another robust summer home-sales season,” he said.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week.
The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. The fees on 30-year and 15-year fixed-rate mortgages were unchanged from last week at 0.5 point and 0.4 point, respectively.
The average rate for five-year adjustable-rate mortgages rose to 3.77 percent from 3.69 percent last week. The fee remained at 0.3 percent.
In your search for your Orlando Vacation Home, considering mortgage rates and fees play an important role. Be in the know with your Local Realtor at Bardell!! We are sure to keep you up to date with fitting properties for your situations and the best loan options to fit your budget. You are not alone in this journey! Contact us today to lock in your mortgage rate with a reputable lender and find your investment or second/vacation home today.
Source: Florida Realtors
by Elsa Soto | May 10, 2018 | Buyers, Homes, Villas and Condos, Investment Property in Florida, Mortgages, News, Property for Sale in Orlando, Real Estate News, Uncategorized
WASHINGTON (AP) – May 10, 2018 – The key long-term U.S. mortgage rate held steady this week, providing a lure for potential homebuyers as the spring buying season goes forward.
Mortgage buyer Freddie Mac said Thursday the average rate on 30-year, fixed-rate mortgages was 4.55 percent, unchanged from last week. The benchmark rate rose steadily for most of April, reaching its highest level in more than four years. By contrast, the rate averaged 4.05 percent a year ago.
The average rate on 15-year, fixed-rate loans declined slightly to 4.01 percent from 4.03 percent last week.
Despite higher borrowing costs and home prices, demand for home purchases has grown in the spring buying season as the economic outlook has continued to improve and bolstered consumer confidence.
Homes sold at a solid annual pace of 5.6 million in March, the National Association of Realtors reported last week, even though the number of houses for sale has plunged. As a result, average home prices are rising at more than twice the pace of wages.
The tight job market, solid economic growth and restrained inflation have kept mortgage rates steady, Freddie Mac chief economist Sam Khater suggested. “As we head into late spring, the demand for (mortgage) credit remains rock solid, which should set us up for another robust summer home-sales season,” he said.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week.
The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. The fees on 30-year and 15-year fixed-rate mortgages were unchanged from last week at 0.5 point and 0.4 point, respectively.
The average rate for five-year adjustable-rate mortgages rose to 3.77 percent from 3.69 percent last week. The fee remained at 0.3 percent.
In your search for your Orlando Vacation Home, considering mortgage rates and fees play an important role. Be in the know with your Local Realtor at Bardell!! We are sure to keep you up to date with fitting properties for your situations and the best loan options to fit your budget. You are not alone in this journey! Contact us today to lock in your mortgage rate with a reputable lender and find your investment or second/vacation home today.
Source: Florida Realtors
by Elsa Soto | May 4, 2018 | Buyers, Homes, Villas and Condos, Mortgages, News, Property for Sale in Orlando
Mortgage Rates Make a Temporary Move Downward
The 30-year fixed mortgage rates dipped after soaring to its highest level in five years last week, according to data released Thursday, a temporary reversal in a year that probably will bring steady increases.
According to the Freddie Mac report, mortgage rates were mixed: The 30-year fixed-rate average dropped to 4.55 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.58 percent a week ago and 4.02 percent a year ago. The 30-year fixed rate of 4.58 percent reported last week hadn’t been that high since August 2013.
The 15-year fixed-rate average rose to 4.03 percent with an average 0.4 point. It was 4.02 percent a week ago and 3.27 percent a year ago.
The five-year adjustable rate average fell to 3.69 percent with an average 0.3 point. It was 3.74 percent a week ago and 3.13 percent a year ago.
Despite the dip, “what is important is [the rates are] substantially higher than one year ago. We’re in a permanently rising interest rate environment,” Lawrence Yun, chief economist at the National Association of Realtors, said in a phone interview.
“The slight decline in mortgage rates is a window of opportunity for buyers to consider locking in those [lower] rates. The longer they wait customers are likely to encounter higher interest rates,” Yun added. “The ability to buy will be hindered because of rising home prices and rising interest rates.”
But Sam Khater, Freddie Mac’s chief economist, said in a statement that demand remains strong even as the rates trend upward.
“While mortgage rates have increased by one-half of a percentage point so far this year, it has not impacted home purchase demand, which continues to grow this spring,” Khater said. “The observed buyer resiliency in the face of higher rates reflects the healthy economy and strong consumer confidence, which are important drivers of home sales activity.”
“It’s also good news that first-time buyers appear to be having more success so far this year — despite higher borrowing costs and home prices,” Khater added. “Our data through April show that first-timers represent 46 percent of purchase loans, up from 43 percent over the same period a year ago.”
Meanwhile, mortgage applications dropped from a week earlier, according to the Mortgage Bankers Association. The market composite index — a measure of total loan application volume — decreased 2.5 percent. The refinance index fell 4 percent, while the purchase index slid 1 percent.
The refinance share of mortgage activity accounted for 36.5 percent of all applications, its lowest level since September 2008.
“Market sentiments about strong domestic growth and higher inflation in the US pushed the 10 Year Treasury to the 3 percent mark last week, the first time since 2014 that yields have hit that level,” MBA economist Joel Kan said in a statement. “As a result, the 30 year fixed rate in our survey increased 7 basis points to 4.8 percent, its highest level since September 2013. The increase in rates drove refinance activity 3.5 percent lower and further reduced the refinance share of applications. Purchase applications slipped 1.6 percent over the week but were 5.1 percent higher than a year ago.”
Source: The Washington Post
Though this slight dip in mortgage rates look enticing, they are not here to stay. In past years this slight shift in rates have proved their rise along with sales prices. Your local agent can answer any and all of the questions that may arise while starting this process. We understand how difficult and exciting this can be and we do not want you to feel alone in this. We are here, every step of the way!! Do not miss your chance to purchase your very own Florida Vacation Home near Orlando. Contact us today to get your home property search tailored to find your dream home.
by Elsa Soto | Apr 12, 2016 | Mortgages, Real Estate News
Low Mortgage Rates Entices Buyers
As the year moves along, Central Florida’s climate offers a competitive advantage over other travel destinations, along with lower than normal mortgage rates.
Average long-term U.S. mortgage rates slid this week to their lowest level since February 2015, luring prospective purchasers during the spring vacation home-buying season.
Mortgage buyer Freddie Mac said Thursday the average rate on a 30-year, fixed-rate mortgage fell to 3.59 percent from 3.71 percent last week. The benchmark rate was far below the 3.66 percent level it marked a year ago.
The average rate on 15-year fixed-rate mortgages declined to 2.88 percent from 2.98 percent last week.
A recent speech by Federal Reserve Chair Janet Yellen reaffirmed the Fed’s plans to move slowly in raising the interest rates it controls. That prospect has tamped down mortgage rates.
The signals on Fed interest-rate policy touched off a steep increase in prices of U.S. government bonds. The bonds’ yields, moving in the opposite direction from their prices and influencing mortgage rates, fell sharply.
The yield on the 10-year Treasury bond stood at 1.76 percent Wednesday, down from 1.83 percent a week earlier. The yield slipped further to 1.72 percent Thursday morning.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was unchanged from last week at 0.5 point. The fee for a 15-year loan also held steady, at 0.4 point.
Rates on adjustable five-year mortgages averaged 2.82 percent this week, down from 2.90 percent last week. The fee remained at 0.5 point.
With mortgage rates at an all time low, the decision to purchase your very own Florida Vacation home isn’t too far out. If now is the time for you and your family, do not hesitate to reach out to our office and one our experienced agents can answer any questions you may have.
Source: Florida Realtors®
by admin | Apr 7, 2016 | Homes, Villas and Condos, Investment Property in Florida, Mortgages, News, Real Estate News
2016 Housing Golden Year
2016 Housing Golden Year – Officials from mortgage giant Freddie Mac have made a bold prediction: This year’s housing starts and home prices will reach their highest levels in a decade.
The main reasons behind the bullish forecast: Low mortgage rates, an improving job market and a gradual increase in housing supply.
“Housing markets are poised for their best year in a decade,” says Sean Becketti, Freddie Mac’s chief economist. “In our latest forecast, total home sales, housing starts and home prices will reach their highest levels since 2006.”
The 30-year fixed-rate mortgage remains well-below 4 percent this year. This week it averaged 3.71 percent.
“Expect the 30-year mortgage rate to remain very attractive throughout the spring home-buying season, staying below 4 percent until the second half of the year,” according to Freddie Mac’s monthly Outlook for March.
Home sellers will enjoy more home price increases. “In 2015, house prices increased about 6 percent on a year-over-year basis,” Freddie notes in its outlook. “Expect house prices to continue to rise, but at a moderating pace, with annual price appreciation slowing to 4.8 percent in 2016.”
Also, gains in employment across the country will help to fuel hotter housing markets, according to Freddie Mac. The unemployment rate dropped below 5 percent recently.
That said, challenges remain for the housing market, particularly with wage growth. Wages remain “anemic, barely keeping pace with inflation,” Freddie Mac officials caution. “If wages and incomes do not start rising, then rising interest rates, home prices, and rents will squeeze households and ultimately slow housing markets.”
Despite some headwinds, officials remain mostly upbeat. The “nation’s housing markets should sustain their momentum from 2015 into 2016 and 2017,” the outlook forecasts.
Source: FloridaRealtors.Org
2016 Housing Golden Year According to Freddie Mac
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