Calculating Your Monthly Mortgage Payments

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  • Posted by Naples Real Estate Team
  • Tuesday, September 25, 2012

    • Calculating Your Monthly Mortgage Payments


    One of the most important factors to consider when buying a new home is affordability. As a general rule, mortgage payments should not exceed 25-30 percent of your monthly take-home pay. The best way to know what you can afford is to determine the possible payment range by comparing the price of the home with other essential ingredients.

    Figure Out How Much You Want To Borrow

    Your first step to calculating your monthly mortgage payment is knowing how much you want to borrow. This can be determined by subtracting your down payment amount from the purchase price of the home, which will give you the amount that you will need to request from a lender.

    Know Your Rates

    The next step is to determine the current interest rates for the purchase of a home. Rates vary and may change often, so check with your lender for current rates. It's worth noting that the interest rates you receive will, in part, be based on your credit history. This means that knowing your FICO score and credit rating will give you a good idea as to how your interest rates will be calculated.

    Choose Your Loan Term

    Your monthly mortgage payments will be determined by a number of factors, including the term of your loan. If you were to borrow $250,000, your monthly payments would be less with a 30-year mortgage than with a 15-year mortgage. The reason is because it would take larger monthly payments to get the loan paid off quicker, which is why you will need to select a loan term before calculating your payments.

    Additional Costs To Consider

    Your total mortgage payment will include taxes, homeowner's insurance and possibly even private mortgage insurance (PMI) if you provide less than 20 percent down and your loan requires it.

    Just The Facts and Figures

    Now that you know how much you need to borrow, have chosen your loan term and are familiar with the current interest rates, it's time to calculate your payment. Most lenders offer a mortgage calculator on their Web site or you can get an estimate by speaking with your lender.

    If you still need help in calculating your potential monthly mortgage payments, don't hesitate to ask your REALTOR®, mortgage broker or lender.

    For more information see our full service real estate website at  http://naplesrealestateteam.com/

    New Office, Better Service, More Online Tools

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  • Posted by Naples Real Estate Team
  • Friday, August 3, 2012
    • This post is to let all my clients know I am in the process of changing offices from Realty Direct to Premiere Plus Realty. The benefits to you will include a better network of professionals to help with all of your real estate needs, as well as access to the best state of the art computer and online resources available anywhere, to peruse the South West Florida real estate market. In the next week or so we will complete the transition and let you know how you can take advantage of the new website. There will be no change to the dedicated, personal, professional service that I always strive for. Please feel free to call or email me with any questions. I look forward to serving all of you real estate needs with my new company Premiere Plus Realty.

    Scott Riddle, PA, ABR, SFR Premiere Plus Realty (239) 289-1849 http://naplesrealestateteam.com


    When Is The Right Time To Reduce The Price

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  • Posted by Naples Real Estate Team
  • Wednesday, July 18, 2012

    • When Is The Right Time To Reduce The Price

    Every homeowner must set an asking price when listing their home on the market, but what happens when you don't receive any offers?  Just as it's important to know when it's time to sell, it's important to recognize the right time to reduce the price.

    Supply & Demand

    If a lot of homes are currently listed on the market or your home is overpriced, it may be time to consider a price reduction if you hope to stay competitive.  If five different stores sold your favorite soda, what would motivate you to buy from one over the others?  If you are like most, the cost would be a leading factor.  The same is true with home buyers, who are looking to get the best value for their dollar.

    Hurry Up & Wait

    If your home has been listed on the market for what is considered to be a lengthy time for your area, it may be time to consider a price reduction.  This is especially true if you are in a hurry to sell, which may be the case if you are planning to purchase another house upon selling yours.  In some cases, a homeowner will make an offer on another house and that offer will be contingent upon selling their current home.  When this happens, the homeowner is likely to be in a hurry to sell so that they can honor the terms of their new agreement before it expires.  Real estate can often be a waiting game, but sometimes it may be necessary to hurry up the process, through a price reduction, if you need to complete the sale.

    Market Value Fluctuations

    We all know how the market fluctuates.  If you own real estate, property values can go up one year and fall the next.  If your house is currently listed and the property values have fallen, you may want to consider reducing the price in order to remain in the running with potential home buyers.  If your house is priced far above market value, most lenders would refuse to approve a loan for your asking price.  Having an appraisal would be one way to know how much your home is worth.

    REALTOR® Recommendations

    If you've hired a REALTOR®, you obviously trust him/her to guide you through the process of selling your home.  If your REALTOR® suggests a price reduction, it may be in your best interest to consider it.  Nobody knows the business like a real estate agent.  They know what buyers want and, in most cases, what they are willing to pay.  If you've trusted a REALTOR® enough to hire them, trust them enough to value their opinion. 


    See our website at http://naplesrealestateteam.com/ for more helpful real estate information and powerful search engines to help you find the home of your dreams.


    Home Selling Checklist: The Process Of Selling Your Home

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  • Posted by Naples Real Estate Team
  • Monday, July 16, 2012

    • Home Selling Checklist: The Process Of Selling Your Home

    Once you've made the decision to sell your home, it's time to think about what comes next.  Throughout the process, you may find it beneficial to have a checklist to help guide you in some very important choices that you will be making in the coming months.

    Interview Several REALTORS®

    A REALTOR® is a person who you will enlist to help with the selling of your home.  Just like no two homes are alike, no two owners are alike and each has different needs when it comes to real estate.  The REALTOR® that you ultimately choose will have access to your home at any time and will be responsible for marketing it to potential buyers.  As such, you should choose someone that you feel comfortable with and will do the best job for you.  The only way to know which REALTOR® this will be is to speak with more than one, ask plenty of questions and get a feel for how they do business.

    Get An Appraisal

    When you list your home for sale, an appraisal will be helpful for a number of reasons.  As the seller, you may wonder why you would need to have your home appraised, but here's why.  As a seller, you do not want to overprice or underprice your home.  If you ask for more than the home is actually worth, lenders won't likely grant a loan even if you find a willing buyer.  If you price your home too low, not only will you be taking away from your own profit, but potential buyers may wonder what's wrong with the home that it's priced so far below market value.

    With an appraisal, you can list your home with the knowledge that you need to make sure the price is right.  If you want to advertise the home as a bargain, sell it somewhat below the appraised value.  Buyers will know they are getting instant equity in the home and lenders will see the investment as a good one.

    As a final thought to choosing an asking price, note that your REALTOR® will require a commission and possibly other fees in connection with listing your home on the market.  It's perfectly acceptable to ask the REALTOR® for a written summary of these fees, as opposed to just a mention of them in the contract, and how much they will be.  With this information, you will know exactly how much money you will have left in your pocket from the sale of your home.

    Decide How Quickly You Want To Sell

    Believe it or not, your schedule could greatly impact the listing price.  If you are in a hurry to sell, you may find that a competitive asking price will help you to get the cash you need much quicker.  A price that reflects the higher end of a buyer's budget may take some time to sell, so consider these factors when pricing your home.

    Make Time For Updates

    Your REALTOR® will offer advice as to what needs updated, repaired or changed in order to maximize the potential of your home.  When a buyer looks at a house, they are looking at the cost, needed repairs or upgrades, decor, etc.  Once your REALTOR® does a walkthrough and explains what, if anything, needs updated, you will commit to an asking price and sign the listing agreement.

    Field Offers

    As a seller, you are probably already aware that potential buyers will make an offer that could be less than your actual asking price.  Most REALTORS® will tell you that if you ask for 'X' amount of dollars, buyers will probably offer you 'X' amount instead.  That's the name of the game, and you will need to decide whether or not your asking price is firm or negotiable.  If an offer comes your way, you will always have the option of making a counteroffer or simply rejecting the deal altogether.

    As a final thought to the negotiation process, keep in mind that buyers typically offer less than they are actually willing to pay initially.  Most offers are time sensitive, which means you may have to make some quick decisions.  Of course, your REALTOR® will be there to guide you through every step of the process and will likely offer an opinion as to whether or not an offer is fair in the current market.

    Close The Deal

    When the price is right and you agree to the terms, it's time to say goodbye to your former home and hello to a brand new life.  Letting go is not always easy, but moving forward is a part of life.  If you still live in the home, most contracts will require that you move within 30 days.  If you no longer live in the home, most buyers will want to move in immediately. 

    See our website at http://naplesrealestateteam.com/ for more helpful real estate information and powerful search engines to help you find the home of your dreams.

    Pricing Your Home To Sell

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  • Posted by Naples Real Estate Team
  • Friday, July 13, 2012

    • Pricing Your Home To Sell

    In addition to location and condition, the asking price of a home is at the top of the list of important considerations.  When a potential buyer is looking for a property, they want to get the best possible value for their dollar.  This doesn't mean that a home should be priced too low, but it does mean that knowing how to price your home is a must.

    Know The Value

    Regardless of whether you are in a buyer's market or seller's market, it's important for every seller to know the actual value of their home with the help of an appraisal.  With this information, you will be able to choose a listing price that does not exceed the home's value.  At the same time, you will know how to react to various offers that a potential buyer may make.  If you can select a price that is affordable to a range of buyers, you may receive multiple offers thereby sparking a possible competition among the interested parties.

    Do Your Homework

    The asking price that you choose should not be based on an appraisal alone, but rather a combination of factors.  One such factor is that of recent selling prices for comparable homes in the area known as “comps.”  Important comparisons include construction year, square footage, views (if applicable), interior upgrades and additional features that make the home unique.  While you're doing research, check out current listings and the asking price for each home available in your area.

    Set A Realistic Timetable

    In researching the sale price for other comparable homes in the area, you should also note the length of time a particular house has been on the market.  Some homes practically sell overnight, while others may remain on the market for months without being sold.  If you want to sell your home quickly, you should consider this when setting a price.  A bargain will obviously move quicker, but it's important to make enough from the sale to feel good about your choice.  If you aren't in a hurry to close, talk with your realtor about a fair starting price that's at or near the appraised value of your home.

    Ask Your REALTOR® For Advice

    While you hold the key, so to speak, to your house's actual asking price, most sellers will ask their REALTOR® for their opinion.  After all, real estate is their business and they will be working with you through every step of the process.  If you choose a REALTOR® that you trust, give great consideration to the advice they offer.

    See our website at http://naplesrealestateteam.com/ for more helpful real estate information and powerful search engines to help you find the home of your dreams.


    What A REALTOR® Can Do For You As A Buyer

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  • Posted by Naples Real Estate Team
  • Tuesday, July 10, 2012
    • What A REALTOR® Can Do For You As A Buyer

    When we think of selling a home, the services a REALTOR® can provide usually seem worth the cost of their commission, but what about as a buyer? What can a REALTOR® do for you as a homebuyer, and is the commission worth the services they can provide? Here are five great reasons you should hire a REALTOR® when you are in the market for a new home!

    REALTORS®Can Help You Determine Your Budget-With a few simple pieces of information, a REALTOR® can help you pre-determine what kind of budget you may be looking at for your new home, and can match you with potential lenders that are right for you.

    REALTORS®Have Access To Resources You Don't-While a lot of real estate listings are available online, there are still resources and listings that are only available through a REALTOR®. If you are looking for something very specific, having their insider knowledge may be crucial to finding that perfect home.

    REALTORS®Can Read Between The Lines Of Listings-There are a lot of catchy phrases that often appear in home listings, and your agent can tell you what they really mean.

    REALTORS®Increase Your Negotiating Power-A REALTOR® cannot only increase your ability to negotiate things like price, they can also give you advice on things like contingency contracts and required paperwork.

    A REALTOR® Can Help You Navigate Through The Closing
    Process-The closing process can be a complicated process, and a REALTOR® can make sure all the details are addressed and that you are making a good financial investment.

    Purchasing a home is a huge financial investment, and having a professional REALTOR®looking after your interests through the process is important.

    See our website at http://naplesrealestateteam.com/ for more helpful real estate information and powerful search engines to help you find the home of your dreams.

    Top Ten Home Showing Tips

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  • Posted by Naples Real Estate Team
    • Top Ten Home Showing Tips

    Showing your home is essential in the real estate business. After all, who would purchase a property sight unseen? When a potential buyer stops in, here are ten recommended tips to follow when showing your home:

    Tip #1: Welcome Your Buyers

    If you are still living in the home while it's being shown, graciously greet your potential home buyers and invite them to look around. Make sure that you instruct them to take their time and to ask any questions that they may have. It may be a good idea if you leave the home for a short time to allow the buyer to look without feeling restricted by your presence. A potential buyer is less likely to voice any concerns in front of the current owner, which is why it's better to leave your buyers with the REALTOR® and announce that you will be returning in 30 minutes. This should allow plenty of time for your potential buyer to speak candidly with the REALTOR®.

    Tip #2: Be Flexible

    Many home buyers are on a tight schedule, whether it be work, school or other commitments. Time is tough to come by,so try to be flexible about allowing potential buyers to tour your home. If you are still living on the premises, it's especially important that you be ready for last-minute visits.

    Tip #3: Climate Control

    When a buyer comes into your home, they do not want to feel cold in the winter or overly stuffy in the summer. If you know that your REALTOR® is bringing a potential buyer to tour the home, make sure that the temperature is comfortable. Otherwise, your buyer may not spend as much time in the home as necessary in order to form an accurate opinion. The last thing you want is a buyer who's in a hurry to leave.

    Tip #4: Quick Cleaning

    If you have enough time before the buyer shows up, run the vacuum over the floors and make sure that any clutter is cleaned up. A clean home appears larger, while a cluttered one gives the appearance of being too small. If you really want to impress your potential buyers, place a plate of freshly baked cookies on the dining room table. When they walk into your home, they will be greeted by the wonderful smell.

    Tip #5: Animal Control

    If you have pets, remove them from the home temporarily or place them in a contained space, such as a kennel, exercise pen or carrier. This will allow buyers to tour the home without being distracted by a nervous animal which could result in a nervous buyer.

    Tip #6: Light The Way

    Your home should appear open and bright, even if it's a winter day, so open the curtains and turn on the lights throughout the home. Buyers will not likely be drawn to a dark,dimly-lit house.

    Tip #7: Educate Your Buyers

    When someone is looking for a home, they are looking for more than the perfect floor plan. If you have recently had the home appraised or inspected, place copies of each report on the dining room table. Purchasing a home is a big step, and buyers will be drawn to a home that has everything out on the table, so to speak.

    Tip #8: Communicate With Your REALTOR®

    If you want certain aspects to be pointed out during the home tour, tell your REALTOR® what they are. For instance, good neighbors are a big plus to any home, but it's not something that potential home buyers will see simply by looking at the rooms in your house. If you have wonderful neighbors,ask your REALTOR® to point this out. If you live in a family-oriented neighborhood, let it be known.

    Tip #9: Curb Appeal

    An important part of showing your home is making sure that the outside looks just as appealing as the inside. When a potential buyer drives up, you want them to be eager to see what else is in store for them. You can do this by paying close attention to your curb appeal. In addition to having a freshly cut lawn and properly maintained flower beds (if applicable), the outside of your home should be free of any clutter and any shrubs should be groomed.

    Tip #10: Ask For Feedback

    Once the potential buyer has completed their tour, invite their feedback by placing comment cards in the home. The information provided could be potentially helpful during your next home showing, and it will make the potential buyer feel as though you value their opinion.

    See our website at http://naplesrealestateteam.com/ for more helpful real estate information and powerful search engines to help you find the home of your dreams.

    Getting Your Home Ready to Sell

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  • Posted by Naples Real Estate Team
    • Getting Your Home Ready to Sell

    You would never dream of inviting guests to your house without making certain preparations, so don't invite potential buyers without first making the necessary updates by preparing your home to sell. If you are like most sellers, you want to get as much as possible for your home and you want to do it as quickly as possible.

    Letting Go

    After you've lived in a house, it becomes much more than four walls and a ceiling. It's a home and it has a lot of good memories. Your first step to preparing your home to sell is to realize that you will take these memories with you wherever you go, but you won't be taking the house. It can be difficult to let go, but the task will be much easier if you start to think of it as a new beginning rather than an ending.

    Cleaning House

    An important part of getting your home ready to sell is in staging the decor for potential buyers. When you stage a home,you create an environment that is free of any personal items, such as photos and/or anything that stands out as being customized for you or your family. When a potential buyer walks through your home, they need to envision their belongings and decor without being distracted by yours. While these items may be special to you, they could possibly prevent the buyer from being able to imagine their own style complimenting the home.

    In addition to removing any personal items, make sure that you remove any clutter from the home. A clean home seems larger and more inviting, whereas a lot of stuff lying around could give the impression that the home is too small or cramped for storage. Pack up any knickknacks, remove your children's drawings from the refrigerator and clean up your counter space in both the kitchen and bathrooms.

    Staging Your Home

    Now that your house is clean, it's time to put the finishing touches on the staging process. A solid, neutral shade in a tablecloth should be selected for the dining room table. Depending on your decor and wall coloring, a solid white, sand or ivory covering will work well. In the center of the table, a vase with fresh cut flowers (or silk, if you have allergies) will add a nice accent. Did you know that the kitchen and bathroom are two of the main selling points to any home? Keep this in mind when preparing your home for potential buyers.

    The living room should have one focal point, whether it be a fireplace or breathtaking view of the outside world. If you have too many features screaming out at potential buyers, they may feel overwhelmed, so focus on one aspect and make it shine. If you have a mantle, line it with three candles that match your decor in color. Place a large candle in the center with one smaller one on each end,which will be reminiscent of a perfectly matched bookend set. A home with a stunning view should have window dressings that accent the positive, instead of hiding it. If your furniture has a design of any kind,mask it with a solid slipcover to compliment the flooring or wall color. Some homeowners also add a fresh coat of paint to their home, which will bring life back into a fading color. Turn on the lights and open the blinds and draperies to create a bright and inviting environment throughout your home.

    Where To Store Your Stuff

    Now that you know how important it is to remove any clutter and over sized or bulky furniture, you need to know where to put it. If you already have a new home, you can simply move it there. Otherwise, you can put it into storage until you are ready to move. It's important to leave some essentials in your former home for potential buyers to see, such as a dining room table, a sofa and chairs, bed, etc. Any additional furnishings that seem to interrupt the flow of your home, or make it feel cramped, should be removed. You do not want potential buyers to feel as though the house is too small.

    Details,Details, Details . . .

    As a final strategy to prepare your home to sell, make sure that you have any carpet stains removed, windows cleaned, fresh linens placed in the bedrooms and bathrooms, etc. You would be surprised how many people pay attention to even the smallest of details, so be sure to fix any small repairs that could be a turnoff for buyers. Last but not least, make sure your home looks just as good on the outside as it does on the inside. This means that your lawn should be cared for, flower beds must be maintained and any outdoor clutter must be removed.

    See our website at http://naplesrealestateteam.com/ for more helpful real estate information and powerful search engines to help you find the home of your dreams.

    Choosing The Right Listing Agreement

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  • Posted by Naples Real Estate Team
    • Choosing The Right Listing Agreement

    When listing your home with a REALTOR®, you will be required to sign an agreement. This document will outline all of the agreed upon terms, including the asking price of the property, the REALTOR'S® commission, length of the agreement, cancellation policy (if any)and other details that will govern how the listing is handled. As a homeowner, it's important to choose the right listing agreement to fit your needs.

    Evaluate Your Options

    Whenyou decide to sell your home, talk with several different REALTORS®. Speak with them over the phone, meet with them in person, ask for references or do anything that you can to get a feel for how they do business. In real estate, punctuality is a must. The REALTOR®that you choose should return your calls, answer your questions and should provide a listing agreement that coincides with any verbal agreements that you may have had regarding the listing. For instance, if you tell your REALTOR® that you only want to list your property for six months, make sure the listing agreement reflects six months and not one year or longer. In addition, make sure that your asking price is the same in the agreement as you agreed upon in earlier discussions.

    Exclusive Right-To-Sell Real Estate Agreement

    This contract is the most common in the real estate industry. With this agreement, the REALTOR® will earn a commission regardless of whether they sell the house or you sell the house yourself. Always make sure you understand what you are signing.

    Open Real Estate Listing Agreement

    This type of contract allows a homeowner to list with more than one REALTOR® in anon-exclusive manner. The agent responsible for presenting a buyer who purchases the property will receive the commission, which means REALTORS® will compete to see who can sell the house first. If the owner eventually sells the home without the help of a REALTOR®, they are not required to pay anyone a commission. An Open Listing Agreement is not common with REALTORS®, but it is one option to consider.

    Exclusive Real Estate Agency Listing

    This type of agreement requires that the homeowner list their property with only one real estate agency. Unlike an Open Listing Agreement, where the homeowner can list their property with multiple REALTORS®, an Exclusive Agency Listing entails only one agency being granted permission to list the home.

    Read The Fine Print

    Before signing any type of contract, homeowners must read over every detail to ensure that it represents the full agreement between themselves and their REALTOR®. Some things to consider include the length of the contract. Some REALTORS® prefer to have a minimum of one year to list a property, but the homeowner will have the option to negotiate. Some owners prefer a shorter term, such as one to six months.

    Every real estate contract should outline a cancellation policy, which will provide details surrounding a release and/or fees and penalties. Some agents will offer a cancellation policy that allows the homeowner to cancel the contract by providing a 30-day written notice at any time.

    See our website at http://naplesrealestateteam.com/ for more helpful real estate information and powerful search engines to help you find the home of your dreams.

    Buying A Home With Past Credit Problems

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  • Posted by Naples Real Estate Team
  • Monday, July 9, 2012

    • Buying A Home With Past Credit Problems

    Buying a home can be both exciting and stressful but, for those with past credit problems, the process may also seem intimidating. The good news is that many lenders have adapted to the idea that many hopeful homeowners simply need a second chance, which means that past credit problems no longer have to define your future.

    Credit Blemishes

    When life unexpectedly takes a turn for the worst, it's not always possible to come out without a few bumps and bruises. Every day, people are faced with late or missed credit card payments, mortgage foreclosures, bankruptcy proceedings, auto repossessions and even civil judgments that will affect their credit reports for years to come. Whether it's from a job loss, injury or just a simple case of temporary hardship, credit blemishes are often a part of life. The good news is that they no longer have to prevent you from becoming a homeowner.

    Give Yourself A Little Credit

    After experiencing a credit problem, most lenders will want to see an attempt to rebuild your credit through a steady payment history with a new account. This can be accomplished by applying for a credit card and maintaining a responsible use of the account. If you aren't approved for an unsecured card, you can always apply for a secured credit card. Either will rebuild your credit over time and will help to show lenders that your past credit problems are just that - in the past.

    Clean Up Your Credit Report

    Before applying for a home loan, make sure that you check your credit report from each of the three major credit reporting agencies. Every 12 months, consumers can request a free copy of their credit report from Experian, Equifax and TransUnion. If anything is incorrect or found to be inaccurate, filing a dispute with the credit reporting agency can help to get the information corrected before speaking with a lender.

    When you apply for a home loan, the lender will access your credit report for the purpose of determining your creditworthiness. In an effort to ensure that you have the best possible chance at being approved for the loan at the best possible interest rates, making sure that your credit report is accurate is a must.

    Save Up For A Down Payment

    Some homebuyers often qualify for a mortgage with down payments as low as five percent (three percent for FHA loans), but those with past credit problems may be required to shell out up to 35 percent or more for a down payment on their new home. A buyer who pays a larger down payment obviously has more vested interest in the home and may, thereby, be less likely to default on a loan. If you have past credit problems, check with your lender about specific down payment requirements and start saving!

    Creative Financing Options

    If you've exhausted all of your conventional efforts and are still turning up empty, don't give up just yet. Alternative financing is an option that many homebuyers use to purchase a home. Your REALTOR® can provide you with details regarding any lease purchase and/or owner financing properties, which may require no credit check, no bank qualifying, a low down payment and competitive interest rate options.

    Please see our website at  http://naplesrealestateteam.com/ for more information and powerful search tools, to help you find the home of your dreams.

    How To Buy A Home With A Low Down Payment

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  • Posted by Naples Real Estate Team
  • Monday, July 2, 2012

    • How To Buy A Home With A Low Down Payment

    Purchasing a home with a low down payment is important for a number of reasons, including the buyer's ability to have extra cash left over for closing costs, decorating expenses, upgrades and/or other essentials needed to turn their new house into a home. Thanks to the level of competition between mortgage lenders, it's now easier than ever to buy a home with a low down payment.

    First-Time Homebuyers

    There are a lot of perks to being a first-time homebuyer, including the ability to get in the door with a low down payment. Many lenders will ask for a down payment as low as five percent (three percent for FHA loans) to those looking to purchase their first home.

    A first-time homebuyer is someone who has rented their previous home(s) or has never purchased a house on a permanent foundation. Individuals who have owned manufactured homes may also be eligible for a first-time homebuyer loan, but the final decision is up to each individual lender.

    FHA Loan

    This type of loan is guaranteed by the Federal Housing Authority (FHA) and allows for a smaller down payment than many conventional loans. In addition to offering down payments as low as three percent of the total purchase price, FHA loans often carry lower interest rates and are easier to qualify for. This type of loan is ideal for first-time homebuyers, individuals with past credit problems or even those who wish to purchase a second home.

    Provide Your Land As Collateral

    If you own the land that you intend to build on, many lenders will use the land in place of a down payment. In other words, you build a house on the land that you already own, and the lender gets both if you default. This is why individuals who own land often choose to build, while using the lot in place of a big down payment. In addition, many lenders are more willing to approve a loan if the land is already owned by the buyer.

    Owner Financing

    When a seller lists their home, they have the option of considering owner financing. In this situation, a buyer provides a down payment to the seller and signs an agreement to pay for the home (plus interest) over a preset number of years. Owner financing typically requires a lower down payment, which can be any amount that the buyer and seller agree to. Because there is no bank qualifying and no credit check, a seller can extend the offer on any terms that they wish.

    Please see our website at  http://naplesrealestateteam.com/ for more information and powerful search tools, to help you find the home of your dreams.

    The Benefits Of Home Ownership

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  • Posted by Naples Real Estate Team
  • Thursday, June 28, 2012

    • The Benefits Of Home Ownership


    The decision to purchase a home is exciting and a major investment for your future. Because there is only so much of it to go around, real estate is the top choice for many investors and the desire for most families. This article is designed to highlight some of the many benefits of home ownership and how buying a home can often turn the American Dream into a reality.


    One of the most profitable markets in real estate is rentals, which means that many families are paying to live in a home that isn't their own. In some cases, renting a home is necessary. For all others, the money that would be spent on rent could instead be used to pay a mortgage. In fact, monthly rent payments often exceed that of a typical mortgage payment. One of the greatest benefits of home ownership is putting money into something that you can call your own and knowing that the monthly payments are going toward your home's equity.

    Speaking of equity, many properties experience a growth in value as more development moves into the area or the economy strengthens through an increase in job opportunities. If this happens, home values soar and owners can bask in the glory of their newfound profit. When you purchase a new car, it depreciates the moment that you drive off of the lot. When you buy a home, however, it has the potential to appreciate year after year. There are few things in life that can offer you a return above and beyond your original purchase price, but a home can.

    When you own a home, you will enjoy the freedom of decorating and making any changes that you choose without needing the permission of a landlord or property owner. In addition, you may even be able to use your home's equity to finance some needed improvements and/or repairs. In some cases, these changes may even increase the value of your home. An upgraded kitchen or bathroom, hardwood flooring or an additional room are examples of changes that could result in added value.

    Another advantage of home ownership is the tax benefits that are available. The interest paid on a home mortgage as well as most property taxes paid are tax deductible. For additional information on deducting mortgage interest and property tax, consult the IRS or a tax professional.

    In addition to providing yourself and your family with a feeling of stability and permanence, home ownership can also help strengthen your credit profile through timely mortgage payments and a steady financial history.

    Please see our website at  http://naplesrealestateteam.com/ for more information and powerful search tools, to help you find the home of your dreams.

    Things You Need When Applying For A Home Loan

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  • Posted by Naples Real Estate Team
  • Monday, June 25, 2012

    • Things You Need When Applying For A Home Loan


    Congratulations! Now that you have found the perfect home, all that's left is getting the perfect mortgage. In order to do that, you will have to know what your lender needs from you in order to get your loan application approved.

    Property Description

    When applying for a home loan, you will need to provide the lender with detailed information regarding the property that you intend to purchase, including a physical address, what type of loan you are requesting and how you obtained the funds to be used as a down payment.

    Borrower & Co-Borrower Information

    All persons named on a home loan must be able to provide their name, date of birth, current address, former address (if within the last two years), marital status, current and former employment information, telephone number and social security number.

    Most lenders require tax returns for the two years preceding the loan application, along with current paystubs or, if self-employed, a year-to-date profit/loss statement.

    Current Mortgage Expenses

    An important part of every home loan is affordability, which is why your lender will need to know how much of your income is available to pay for a new home. If you have a current mortgage, be ready to provide a detailed list of expenses that you pay each month in relation to the property. This includes a mortgage payment, real estate taxes, mortgage insurance, homeowner's association dues, utilities, etc. If you plan to sell the home, let your lender know so that they will understand you are simply replacing one debt with another.

    Yes Or No

    Almost every loan application asks both the borrower and co-borrower (if applicable) to answer a few simple yes and no questions on the application. Questions pertaining to outstanding judgments, bankruptcy filings, foreclosures, lawsuits, alimony, child support and citizenship status are standard and should be expected when applying for a home loan.

    Statement Of Assets & Liabilities

    When applying for a home loan, both the borrower and co-borrower will be required to disclose all of their current assets and liabilities. An asset is property, either real or personal, that is owned and is of value. A liability, on the other hand, is a financial obligation for which one is liable.

    A loan application will request information relating to assets and their current market value, including automobiles, real estate, stocks, bonds, life insurance (cash value), business net worth, personal property, etc. If any amount of money is owed on these properties, the lender will request information relating to the unpaid balance in order to determine the actual equity that the borrower has in any given property.

    Please see our website at  http://naplesrealestateteam.com/ for more information and powerful search tools, to help you find the home of your dreams.

    Buying A Home With Bad Credit

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  • Posted by Naples Real Estate Team
  • Monday, June 18, 2012

    • Buying A Home With Bad Credit

    When it comes to buying a home, having bad credit is not the end of the world. Your future doesn't have to be defined by your past. Whether you have suffered from a bankruptcy, foreclosure or some type of financial hardship that resulted in late or missed payments, there are lenders who specialize in financing for those with less-than-perfect credit. You will likely have to produce a larger down payment and/or pay higher interest rates than someone who has good credit, but the important thing to know is that buying a home is an option for you.

    Bankruptcy & Foreclosure

    If either a bankruptcy or foreclosure is on your credit report, it could take some time before you can qualify for a good interest rate on a mortgage. FHA loans, which are especially desirable for those with past credit problems and first-time home buyers, are backed by the government and offer a low down payment and interest rate option for those who qualify. Although the notation remains for up to 10 years, individuals with a bankruptcy or foreclosure on their credit report may qualify for an FHA loan after two years. Some mortgage lenders may approve a loan sooner, but the interest rates will be higher and the required down payment may be as much as 35 percent of the purchase price of the home.

    Cleaning Up Your Credit

    Even if you have bad credit, it's important to check your credit report from each of the three major credit reporting agencies - TransUnion, Equifax and Experian - before applying for a loan. If anything is inaccurate, file a dispute with the reporting agency and request a correction. You can request a free copy of your credit report every 12 months.

    In addition to correcting any inaccuracies on your credit report, it's important that you know what can help or hurt your chances of obtaining a loan. You can start improving your credit by avoiding the temptation to apply for new credit right before submitting a mortgage application. Multiple inquiries will cause your FICO score to drop, and lenders will rely on this information when deciding whether or not to issue your loan and how to calculate your interest rates. With past credit problems, most lenders will want to see that you have rebuilt your credit history with 1-3 major credit cards and timely payments over a two-year period.

    Money Matters

    When it comes to obtaining a home loan, a healthy bottom line will help the lender to see you as being creditworthy. It's important that you have sufficient income, along with the ability to prove steady employment for at least one year (longer is better) preceding your loan application. Most lenders will request a copy of your tax returns for the two most recent years, along with current pay stubs. If you have money for a down payment, this will also work in your favor.

    Creative Financing

    In some cases, a conventional mortgage loan may not be available no matter how hard you try. Owner financing is one way that individuals, who may not otherwise qualify for a traditional mortgage loan, can purchase a home. This type of financing is offered by the owner and may include interest rates comparable to other loans, flexible down payment options and no credit check. Your REALTOR® can assist you in finding homes that offer alternative financing options.


    Please see our website at  http://naplesrealestateteam.com/ for more information and powerful search tools, to help you find the home of your dreams.

    MAY PENDING SALES UP 10 PERCENT

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  • Posted by Naples Real Estate Team
  • Friday, June 15, 2012






    •  

    FOR IMMEDIATE RELEASE


    MAY PENDING SALES UP 10 PERCENT
    Activity Remains Strong


    Naples, FL (June 15, 2012) - Pending sales increased 10 percent overall in May 2012 compared to May 2011, according to a report by the Naples Area Board of REALTORS® (NABOR), which tracks home listings and sales within Collier County (excluding Marco Island). They increased by double-digit percentages in all price ranges, except in the under $300,000 category which increased a respectable 6 percent in May 2012 compared to May 2011.

    "The market seems to be on track right now," said Cindy Carroll of Carroll & Carroll, Inc. "Current inventories in many market sectors mirror levels we saw in 2003/2004.  This is further evidence that we are returning to a balanced and stable market."     

    Mike Hughes, General Manager of Downing-Frye Realty stated, "Inventory is down by almost 1,000 units over the last three months and we have experienced five straight months of positive momentum. Those are indicators of a potential strong summer for home sales."    

    John Steinwand, President of Naples Realty Services stated, "With the reduced overall inventory of 9 percent, properties are selling at higher prices than a year ago."

    Coco Waldenmayer, Managing Broker at Engel & Voelkers, agreed, "Our current overall inventory of 6,679 hasn't been this low since NABOR® began tracking the statistics in January of 2007 when inventory was 10,864."

    Phil Wood, President of John R. Wood Realtors said, "Things are improving. We are starting to see homes sell within three days, and there has been an increase in the sale of teardowns. During March, April and May traditional sales have increased, and the condominium market is especially strong as shown by May condominium sales in the $300,000 to $2 million range up 28 percent."

    The May report provides annual comparisons of single-family home and condominium sales (via the SunshineMLS), price ranges, geographic segmentation and includes an overall market summary.

    The May sales statistics are presented in chart format, together with these overall (single-family and condominium units) specifics:  
    • The overall median closed price increased 8 percent from $175,000 to $189,000 for the 12-month period ending May 2012.
    • Overall pending sales increased 11 percent in the $300,000 to $500,000 category, and 20 percent in the $500,000 to $1 million category for the 12-month period ending May 2012.
    • Overall inventory dropped by 13 percent, from 7,705 in May 2011 to 6,679 in May 2012.
    • Overall closed sales increased 15 percent in the $500,000 to $ 1 million category, from 781 units to 901 units, and rose 15 percent in the $1 million to $2 million category from 349 units to 403 units for the 12-month period ending May 2012.
    • The average days on the market decreased 11 percent in the $300,000 to $500,000 category, from 208 days on the market in May 2011 compared to185 in May 2012.
    • Overall pending sales in the Naples Beach area increased 15 percent from 1,690 to 1,943 and closed sales increased 16 percent from 1,493 to 1,727 for the 12-month period ending May 2012.
    "Single family home sales remain strong," remarked Jo Carter, President of Jo Carter & Associates. "Pending sales activity in the $2 million plus category is up 50 percent, from 18 units in May 2011 compared to 27 units in May 2012. In the single family $1 million to $2 million category in closed sales there was a 100 percent increase from 19 units in May 2011 compared to 38 units in May 2012."
       
    Phil Wood reflected, "Now that the market is improving we have seen local residents make the decision to sell their current homes and move into their dream home. With saleable houses, interest rates at historic lows, and affordable prices, it is the ideal time for many to finally buy their dream home."

    The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 4,000 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.

    The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribe to its strict Code of Ethics.


    For more market reports see http://naplesrealestateteam.com/naples_market_report or call Scott directly at (239)289-1849 with any questions you may have about the current market conditions in South West Florida.

    Scott Riddle, PA, ABR, SFR
    Realty Direct
    (239) 289-1849
    Www.Naplesrealestateteam.com


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