MEDIAN PRICES CONTINUE TO CLIMB FIVE MONTHS OF PRICE GAINS

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  • Posted by Naples Real Estate Team
  • Thursday, May 31, 2012



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    MEDIAN PRICES CONTINUE TO CLIMB
    FIVE MONTHS OF PRICE GAINS

    Naples, FL (May 25, 2012) - Prices and optimism in the Naples Area housing market continue to climb. For the fifth consecutive month, the overall median prices have increased. We are seeing several signs of improvement for the Naples real estate market, according to a report released by the Naples Area Board of REALTORS® (NABOR), which tracks home listings and sales within Collier County (excluding Marco Island). The median closed price increased 22 percent overall in April 2012 compared to April 2011. This coupled with the fact that inventory continues to decline reflects the strength of the Naples market.

    "Further highlighting the positive statistics is the fact that a remarkable 78 percent of closed sales were in the traditional transactions category," said Steve Barker, Supporting Broker with Amerivest Realty. "Traditional sales are at the highest level since we started tracking them in 2009."

    Mike Hughes, Vice President and General Manager of Downing-Frye Realty, Inc., agreed by stating, "The majority of business is traditional. In addition, inventory in all the geographic areas we track is down an average of 13 percent in April 2012 compared to April 2011."

    Dr. Shelton Weeks, Director of the Lucas Institute for Real Estate Development & Finance at Florida Gulf Coast University remarked, "The biggest thing about these statistics is the increase in traditional sales which has reached the high 70th percentile for April 2012. This is really big, possibly more important than price increase and stability in the market. It shows the market is clearing and healing itself."

    The April 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 April sales statistics are presented in chart format, together with these Overall (single-family and condominium units) specifics:
    •    The overall median closed price increased 22 percent from $185,000 in April 2011 to $226,000 in April 2012.
    •    Overall pending sales increased 20 percent in the $500,000 to $1 million category from 895 pending sales to 1,070 pending sales for the 12-month period ending April 2012.
    •    Overall inventory dropped by 13 percent from 8,214 in April 2011 compared to 7,130 in April 2012.
    •    Overall closed sales increased 14 percent in the $500,000 to $ 1 million category from 760 units to 869, and rose 13 percent in the $1 million to $2 million category from 343 units to 389 for the 12-month period ending April 2012.
    •    The average DOM (Days on the Market) decreased 30 percent in the $1 million to $2 million category from 345 days on the market in April 2011 compared to 241 in April 2012.
    •    Overall pending sales in the Naples Beach area increased 14 percent from 1,675 to 1,913 and closed sales increased 17 percent from 1,437 to 1,678 for the 12-month period ending April 2012.
    Jo Carter, President of Jo Carter & Associates, Inc. said, "The upper-end condos are selling, and selling faster. Closed sales of condos in the $1 million to $2 million category increased 28 percent and those in the $2 million plus category increased 20 percent for the 12 month ending April 2012 compared to April 2011. The average days on the market for both categories decreased 24 percent and 30 percent, respectively, for the 12-month ending April 2012 compared to April 2011."

    Ernesto Velasquez of United Real Estate remarked, "The majority of homes in foreclosure are being bought by investors at the under $300,000 range. Therefore, approximately three out of every four sales are traditional with only one being distressed."

    Cindy Carroll, of Carroll & Carroll stated, "Inventory in the $300,000 category and below is disappearing because rising value is pushing it up into higher price ranges."


    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.



    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.

    Finding Your Perfect Home

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  • Posted by Naples Real Estate Team
  • Tuesday, May 29, 2012

    • Finding Your Perfect Home

    As the old saying goes, real estate is all about location, location, location. But, there is a lot more to it than just plain geography when it comes to finding your perfect home. There are a lot of things to consider during the search because, for most, a home is the most significant purchase they will ever make.

    Choose A Good Area

    When searching for your perfect home, the obvious place to start is with the selection of a location. If you have children, you may want to choose a home that is close to good schools and is also located in a family-oriented neighborhood. Many people also look for a home that offers a short commute to and from work. If you are shopping within a specific price range, you can also narrow the choices by finding an area that offers the best value for your dollar.

    Select A Style

    The perfect home for you is one that has all of the elements that you want. Whether it's a garage, basement, extra bedroom or bath, a large kitchen, fireplace or open floor plan, choosing the style of home that you want is an important first step in finding the perfect place to hang your hat. You may also want to consider whether you prefer a single-level or two-story home. Many home buyers also factor in floor plans when searching for a house, including those that offer an open and flowing design.

    Get Pre-Qualified

    Now that you know what you want and where you want it, it's important to find out how much of a home you can afford. Pre-qualification is not the same as pre-approval. With pre-qualification, your lender will request specific information relating to your income and expenditures and will offer a possible price range for you to keep in mind while shopping. Pre-qualification does not guarantee that you will receive an approval, but it does give you a good indication of how much you can afford based on your current situation.

    Talk To A REALTOR®

    Nobody knows the real estate business like a REALTOR®, so let them help you in your search for the perfect home. They can answer questions relating to the neighborhood, recent inspections on a particular home and any needed repairs. Because a REALTOR® has access to a number of area homes, they have the ability to show you various choices within your preferred area and price range.

    Ask About Amenities

    One of the most significant concerns of any home buyer is what a home has to offer. Utilities, such as water, sewer, cable, phone and electricity are just a few of the things to consider. If the home is in a subdivision that requires the payment of association dues, how will these funds be used? What amenities does the home owner's association offer? These are all questions to ask your REALTOR® when shopping for the perfect home.

    In conclusion, you should know that the search for your perfect home is a journey. It may be either long or short and with or without some bumps along the way, but the greatest satisfaction will be at the journey's end and your future's beginning.

    Please see our website at http://naplesrealestateteam.com/ for a wealth of information and tools to help you find your perfect home. Or call Scott directly at (239) 289-1849.

    Home Buying Checklist

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  • Posted by Naples Real Estate Team
  • Thursday, May 24, 2012

    • Home Buying Checklist: The Process Of Buying Your New Home

    Once you've made the decision to buy a home, it's time to start thinking about what comes next. Every buyer needs a checklist that will guide them through the process of searching for the perfect home, evaluating their choices and making a purchase.

    Learn The Lingo

    When you set out to buy a new home, you will need to familiarize yourself with various real estate terms, conduct research on the market value of homes in the area in which you intend to shop and learn the art of negotiation. This information will help as you browse homes, talk with REALTORS® and get further into the buying process.

    Get A Free Credit Report

    Every 12 months, you are entitled to request a free copy of your credit report from each of the three major credit reporting agencies - Equifax, TransUnion and Experian. You should make this request before you begin looking at homes in order to allow yourself enough time to identify and dispute any inaccuracies in your credit file(s). When you approach a lender, you will need to make sure that everything is correct and up-to-date.

    Get Pre-qualified

    Pre-qualification is different than pre-approval in that it gives you a possible price range that you can afford, but does not guarantee you the loan. Pre-qualification is important because it will help you narrow your search to include only homes that you can afford. Knowing what you can pay beforehand will save you both time and disappointment in looking at homes that do not fit your budget.

    Speak With A REALTOR®

    Nobody knows the real estate business like a REALTOR®, so let them help you to find your new home. Based on your specific requirements, a REALTOR® can locate a home that will suit you at a price that's within your budget. When he/she finds one or more possible candidates, you will be invited to tour the home. At this point, you should take a camera for the purpose of later reviewing each house with visuals instead of relying solely on memory.

    Make An Offer

    Once you find the perfect home, make an offer that's less than you are actually willing to pay. This way, the seller can make a counteroffer that would hopefully still be within your budget. It's important to familiarize yourself with the art of negotiation so that can learn how to get the best deal without insulting the seller. If you have not yet been pre-approved, make sure that your offer is contingent upon your being able to obtain the necessary financing.

    Obtain A Loan

    Once you and the seller agree on a purchase price, you may be required to provide an earnest money deposit that will secure the home as you obtain a loan (if applicable). A lender will require a home inspection and appraisal for the property in connection with your loan application. In most cases, you will know within 24 hours whether or not your application is approved, but the actual closing will not occur until the inspection and appraisal are complete.

    Get Moving

    Now that the papers are signed and you have the keys to your new home, it's time to get moving - literally. Remember to decorate your new home and add all of those special touches that reflect your personality. After all, a house is only a house until you make it a home.

    What Is A Home Warranty Plan?

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  • Posted by Naples Real Estate Team
  • Monday, May 21, 2012

    • What Is A Home Warranty Plan?

    A home warranty plan, also known as a home protection plan, is a service contract that offers homeowners a way to safeguard themselves against possible breakage or a malfunction within the home. It's impossible to predict the future, which is why so many buyers look for that little extra peace of mind to comfort them when life unexpectedly throws them an unforeseen problem.

    Who Needs A Home Warranty Plan

    Basically, anyone who purchases a home and is concerned with the cost of repairs should consider a home warranty plan. This is especially true of first-time home buyers who may not be familiar with home maintenance.

    Factoring In The Cost

    When factoring in the potential cost of repairing a major appliance or other home component, a home warranty plan may not be a bad investment. The actual cost of warranty coverage will depend on the plan chosen and the items protected. As is the case with everything in life, it's best to shop around and compare prices.

    Who Pays For A Home Warranty Plan

    As a buyer, you can order a home warranty plan in conjunction with the purchase of your home. However, some sellers or builders may include this type of offering as an incentive to attract potential buyers. In this case, the plan is yours at no additional cost. Some REALTORS® may also offer a home warranty plan as a gift to customers who buy a home through their agency.

    What's Covered & What's Not

    Just like a car warranty, no two policies are the same. Coverage varies by location and issuer, and your REALTOR® can help you to choose a warranty plan that best suits your needs. Most basic plans cover a home's heating and cooling system, electrical system, plumbing, water heater and major appliances, including a dishwasher, range/oven/cooktop, garbage disposal, etc. Coverage does not apply to items that are misused or damaged, either intentionally or through negligence. Instead, most home warranty plans are designed to protect the homeowner from defects that result during the course of normal wear and tear.

    When considering the purchase of a home warranty plan, review the complete contract and familiarize yourself with exactly what's covered under your policy. If you want an upgraded policy, don't hesitate to ask your REALTOR® if one is available. Most companies do not require a home inspection and will notify homeowners when their coverage is about to expire. The good news is that most policies are renewable.

    What To Do If A Problem Arises

    If you are unable to satisfactorily resolve an issue with your home warranty plan, either due to denial of a claim or undesirable service, talk to the REALTOR® who sold you the home. If he/she refers a lot of business to this particular company, it may be possible for him/her to speak with them about reaching an amicable resolution.

    The purchase of a home is a big step and it's likely to be the largest purchase you will ever make, so be sure to consider all of the options available to help protect yourself from costly repairs. Ask your REALTOR® for more information relating to available home warranty plans.

    Home Buying Negotiating Tips

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  • Posted by Naples Real Estate Team
  • Tuesday, May 15, 2012

    • Home Buying Negotiating Tips

    When it comes to buying a home, the ability and willingness to negotiate is a must for both the buyer and seller. In general, sellers ask for more than they are actually willing to accept and buyers offer less than they are willing to pay. The trick is to find the perfect balance so that you, as a buyer, feel good about the purchase price without leaving the seller feeling insulted.

    Know Your Market

    Real estate is a business that either favors the buyer or seller, hence the terms buyer's market and seller's market. When negotiating a purchase price, it's important to know which of the two you are in. As the buyer, you will have the best chance at a successful negotiation if you research the price of other comparable homes in the area before making an offer.

    Make It Personal

    When you make an offer, the seller will see nothing more than a piece of paper with some numbers on it that represent the price you are willing to pay. If you really want the seller to take your offer to heart, let them know why you want to buy the home. You can do this by preparing a handwritten letter expressing your interest and the reasons you fell in love with their house. If you have a family, tell them about everyone who will be living in the home. Let them get to know you and allow them to picture the happiness that you can bring to their house. Believe it or not, some sellers actually look at the process like finding a good home for a lost puppy. They want quality people to buy their home, so do your best to show them that you are sincere.

    Nobody Likes Rejection

    Not every offer is accepted, so don't be disheartened if your first offer isn't a winner. In some cases, the seller will make a counteroffer for your consideration. Have you ever heard the old saying, "never take the first offer?" The same is true in real estate, and almost every seller knows it. Your first offer is likely to be less than you are actually willing to pay, which leaves you some bargaining room.

    Why Your Offer May Not Be Accepted

    There are a number of reasons why a seller may choose to reject an offer, including a feeling that the offer was just too low, the house is newly listed on the market or another offer may be higher than the one you created. In some cases, sellers may also reject an offer that includes owner financing or other requests that are impossible to meet. One example may be an offer that requires the house be available within a certain amount of time. Most contracts require that the seller move out within 30 days, but anything less would require negotiation.

    Read The Fine Print

    Before you sign anything relating to a real estate transaction, make sure that you read over every detail of the agreement. If you have any questions, ask your REALTOR®. After all, real estate is their business and they are there to help you through every step.

    In Recovery? Local, national experts say Collier real estate market on the rebound

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  • Posted by Naples Real Estate Team
  • Thursday, May 10, 2012

    • In Recovery? Local, national experts say Collier real estate market on the rebound

    • By Leslie Hale Williams -- Daily News Correspondent
    • Posted April 29, 2012 at 4 p.m.

    NAPLES — New normal. Reset button. Return of common sense.

    Talk to real estate insiders and experts about the market in Southwest Florida and these terms are bound to come up.

    "The downturn we saw ... it was unprecedented," said Bill Poteet, president of the Naples Area Board of Realtors. "Up until then, Naples had been pretty much bulletproof through most recessions."
    Everyone knows what happened instead. The rapid descent of Southwest Florida's housing industry into chaos has been well-documented, as has the flood of short sales and distressed properties that defined the market in 2009 and 2010.

    After a promising 2011-12 tourist season turned out even better than expected, local market-watchers are saying the real estate market in Collier County is officially back on the mend — save a couple of caveats. With a presidential election approaching, and uncertainty in gas prices and income tax rates — particularly among upper-income brackets — there remain factors that could slow the recovery of the real estate market.

    "It's a mini-recovery," John Tucillo, chief economist for Florida Realtors, said during an April 13 economic summit at NABOR. "And we have a long way to go."

    On a whole, however, Realtors in Southwest Florida sound decidedly more upbeat — and less reserved in their enthusiasm — this spring than in recent memory.

    "Yes, we feel very optimistic," said Phil Wood, president and CEO of John R. Wood Realtors. "The fact that unemployment is improving gradually all over the country, the fact that Naples and Southwest Florida usually lead the country out of the recession because it is such a desirable area — that all gives us reason for optimism."

    Michael Timmerman, a senior associate at the Naples arm of market research firm Fishkind & Associates, said median home prices are gradually ticking upward in Naples, after a seemingly endless couple of years scraping the bottom. Meanwhile, the volume of home sales is increasing, and, though standards are stricter now than five or six years ago, lenders are becoming more willing to grant loans.

    Data released by NABOR in mid-April showed that median closing prices for single-family homes increased 17 percent from the first quarter of 2011 to the first quarter of 2012. Meanwhile, inventory was down 13 percent.

    It all seems to point to this: the local market is on the upswing.

    "I think 2011 is best described as a strong year of recovery in the Naples real estate market," said Cindy Carroll, a principal at Carroll & Carroll, a Naples real estate appraisal and consulting firm. "It's the first year that we've seen stabilizing trends continuing through the whole year. When we got to the end of the year, we finally felt like we had a strong, improving trend under way."

    However, increased sales numbers have been somewhat uneven in some segments of the market, particularly among lower-end and distressed properties, and homes in the $500,000-and-up range.

    The first-quarter 2012 numbers released by NABOR indicate this trend may be evening out.

    Sales of homes in the $500,000 to $1 million range increased 55 percent from February 2011 to February 2012. Overall, from the first quarter of 2011 to the same period in 2012, the increase was a more modest 29 percent.

    Tucillo said the upper end of the market has been more active than normal, but, he added, normal is pretty slow.

    "We're looking at a snail that had a five-hour energy drink," he said. "We've got a lot of way to go to get back to normal. It's going to be a slog."

    Sales of homes in the $300,000 to $500,000 price range increased 14 percent from the first quarter of 2011 to the first quarter of 2012. Sales of homes in the $1 million to $2 million range also increased by 14 percent during that time period, according to NABOR.

    Meanwhile, speculators and flippers no longer seem to dominate the marketplace. That's a near-reversal from 2009 and 2010, said Brenda Fioretti, managing broker of Prudential Florida Realty in Naples and a NABOR director.

    "Sixty-five to 67 percent of our transactions at one point were short sales or foreclosures – in 2009," Fioretti said. "Now, we're down to under 40 percent. The distressed transactions are going away quickly."
    It means inventory has dropped to roughly the same levels seen in 2004, just prior to the rapid increases that preceded the burst of the real estate bubble in Southwest Florida. Figures released in mid-April by NABOR show there were 7,596 single-family homes on the market in the first quarter of this year, compared to 8,762 homes listed for sale at the same time last year. That's a 13 percent drop.

    Carroll said entry-level markets – in which most people buy their first home – are tightening.

    "Some of those areas have only a few months of supply," she said. "In our market, stability is classified as when you see one year of supply."

    While the falling inventory drives up prices, it could produce possible ill-effects.

    "As demand keeps increasing and inventory keeps falling, my concern on some of those is the developers that are jumping back into the market now may build some products that capture the existing market," Wood said.

    It's not necessarily bad on its face, Wood said, but "those other properties will be hard to sell."

    At the other end of the spectrum is concern that if inventory falls faster than new construction can keep up, prices will increase too rapidly.

    "If we have pricing increases of 1 (percent) to 2 percent a year, that's good," Timmerman said. "If we start increasing pricing at a rate of 10 percent a year, that's an indication that our market is imbalanced and we have less supply than we need to."

    For more market reports from NABOR http://naplesrealestateteam.com/naples_market_report

    Buying Verses Renting A Home

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  • Posted by Naples Real Estate Team
  • Monday, May 7, 2012

    • Buying Verses Renting A Home

    When it comes to a home, you have two options: buy or rent. What is right for one person may not be right for another, which is why it's important to know which is the best option for your individual situation.

    Why People Rent

    There are a number of reasons why someone may either choose or be forced to rent, including sporadic or unpredictable income, a high debt-to-income ratio, a bankruptcy or foreclosure within the last six months, unpaid collection accounts or judgments, frequent relocating for employment or the inability to save enough money for a required down payment on the purchase of a home.

    Maintenance Matters

    As a homeowner, you will be responsible for any maintenance or repair issues that arise. This is a big consideration when choosing whether to rent or buy. When you rent, the property owner is responsible for repairs and it may not always be obvious that these issues can be very costly.

    How To Know When It's Time To Buy

    If you have steady income with a good employment history, can provide a down payment of at least 5-10 percent of the purchase price and are current with all debts, it may be time to consider buying a home instead of renting. In some cases, the cost of rent may even exceed that of a typical mortgage payment.

    When deciding to buy, job stability is a big factor. If your job does not require frequent relocation and you plan to live in the home for at least 5-10 years, you may want to consider making the purchase. If you need to relocate after that, you may have enough equity from the sale to use as a down payment on another home.

    Home Buyer's Checklist

    If you can answer yes to the following questions, you may be ready for home ownership. Your REALTOR® can help you to find the perfect home based on your individual needs.

    Have you been steadily employed for at least one year, but preferably two years?

    Do you plan to live in the home long enough to build equity?

    Can you provide a down payment and still have enough money left to pay for closing costs, utilities and home furnishings?

    Are you current on all debts, including auto loans, credit cards, etc.?

    In addition to any current debts that you may have, can you afford a monthly mortgage payment which will likely include property taxes and insurance?

    Do you have the time to devote to shopping for a home and comparing interest rates from various lenders?

    Have you checked your credit reports for inaccuracies and disputed anything that needs correction with each of the three major credit reporting agencies?

    The decision to buy or rent is a very personal one that can only be determined after a careful evaluation of your situation. A REALTOR® can show you the perfect home and a lender can tell you whether or not you can afford it, but it's up to you to make the choice as to whether or not you are ready to make the move.

    How Much House Can You Afford

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  • Posted by Naples Real Estate Team
  • Thursday, May 3, 2012

    • How Much House You Can Afford

    There are a number of factors that can contribute to the affordability of a house and, as a potential homebuyer, it's important that you know what type of mortgage payments are within your budget.

    Debt-To-Income Ratio

    As a homebuyer, your first consideration will be the amount of your monthly mortgage payments. If you owe a lot of debt, lenders may consider you to be a high credit risk, which makes debt-to-income ratio a leading factor in determining how much of a house you can afford.

    Most lenders will discount any loans that you will have paid off within one year when determining how much of a home you can afford. As a general rule, your mortgage payment should not exceed 25-30 percent of your monthly take-home pay.

    Loan Term

    Although you will end up paying more interest in the long run, you will find that you can afford a more expensive house if you request a loan term of 25-30 years, compared to a shorter term of 15 years.

    Interest Rates

    When you look at an interest rate, all you see is a number. Hopefully, it's a single digit that's comparable with current market rates. Most homebuyers already know that their interest rate affects their monthly payment which, in turn, is determined by the borrower's income. Lower interest rates mean that you can afford a larger principal loan amount, which means a more expensive house.

    Credit History

    Because your past credit history will play a large role in determining your interest rates, it will also impact the affordability of a house. For instance, a buyer who pays six percent interest will save a considerable amount of money over a buyer who pays eight percent interest on their home loan. It may not seem like much now but, when averaged over time, the savings could be tremendous.

    Down Payment Amount

    Believe it or not, the amount of your down payment will not only show the lender how serious you are about buying a home, but it will also affect your ability to afford a particular house. For instance, if you were to qualify for a home loan of $200,000, but your dream home was currently listed for $250,000, a down payment in the amount of $50,000 would get you into the home.

    The above scenario is just an example, but it does show how a down payment can affect the price of the home that you are able to afford. Some lenders may only require a five percent down payment, but you are free to pay as much above that as you wish. A larger down payment can also reduce the principal loan amount, which thereby reduces the monthly mortgage payments.

    Things Needed After Purchasing A Home

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  • Posted by Naples Real Estate Team
  • Tuesday, May 1, 2012
    • Things Needed After Purchasing A Home

    Now that you've signed all the paperwork and your loan is approved, it's time to move in. But wait! Before you put your feet up, there are a few things that you will need in order to make your new house a home.

    Locks

    Regardless of whether you purchase a newly constructed home or one that was formerly owned by someone else, it's important that you have the locks changed. Everyone from REALTORS® and contractors to friends and family of the former owner may have a key, which is why getting new locks should be at the top of your list.

    Furnishings

    You can't hang your hat without a hatrack, so don't forget to add some necessary furnishings. Some homes may include appliances and possibly even some furniture, but most homeowners prefer to decorate their house themselves. After all, someone else's taste in decor may not necessarily be the same as your own. If you purchase from a furniture store, they will handle the delivery for you. Otherwise, you can hire a moving company.

    Appliances & Cookware

    Even if your new home is equipped with appliances, you may still need to add a few items into the mix. For instance, a coffee maker, toaster, microwave or blender may be items you want for your kitchen. You will also need flatware, tableware and a quality dish drainer to hold your dishes that require the handwash method.

    Tools

    When you move into a new home, there will likely be some things to do that require the use of tools. Whether you need to assemble furniture, a desk for your office or just need to tighten some bolts here and there, a good set of tools is a necessity.

    Personal Touches

    No home is complete without personal touches that represent the new owner's taste, so don't forget to include them on your shopping list. Pictures, paintings, special window dressings, accent pillows, plants, decorative throws, accent rugs and bedding sets will create a custom interior that's all about you. Other things to consider include portable air cleaners, water filters, an answering machine, wastebaskets and a bathroom plunger.

    Outdoor Décor

    If you like to entertain, equipping your backyard accordingly is a must. Patio furniture, an outdoor grill, landscaping tools and garden supplies are essential to creating an outdoor atmosphere that your family and friends are sure to love. Speaking of the outdoors, don't forget to purchase a lawnmower and trimmer unless you live in a subdivision where lawncare is included in the maintenance fees. If you live in an area that's prone to snowfall, keep this in mind when shopping for maintenance supplies.

    The best way to tackle a large list of necessities is to keep a pad of paper nearby and write down each item as you think of it. Think about each area of your new home and do a mental inventory of what is needed. There will always be new items to add to the list, but you will cover the basics with your handy checklist of necessary items for your new home.

    Step-By-Step Guide In Obtaining A Home Loan

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  • Posted by Naples Real Estate Team
    • Step-By-Step Guide In Obtaining A Home Loan

    Now that you've decided to purchase a new home, it's important to know what to expect throughout the loan process. With the right knowledge, the road to home ownership is just ahead.

    Choose A Home

    Some lenders may offer a pre-approval, but others require that you have a specific home chosen before they will discuss loan options. Therefore, the first step to obtaining a home loan is to first select a home. Some sellers may require you to provide an earnest money deposit, which secures the home while you obtain financing and have the necessary inspections completed in order to finalize the purchase.

    Check Your Credit

    Before you even think about applying for a mortgage, it's important to know where you stand from the lender's point of view. Checking your credit report is a good idea for many reasons, but it's an essential step in your journey toward buying a home.

    Every 12 months, you can request a free copy of your credit file from each of the three major credit reporting agencies - Equifax, TransUnion and Experian. Look for inaccuracies, outdated information or anything that requires your attention. If you spot anything, file a dispute right away to get the information corrected. A free credit report does not include your FICO score, which is available from the credit bureaus for a small fee. Most lenders use this number in determining your interest rates and creditworthiness, so it may be a good idea to check it out for yourself first.

    Gather Your Documentation

    When you apply for a loan, you will be asked to provide certain documentation and/or information relating to your current financial status, employment, assets (including both real and personal property) and liabilities. Before meeting with your lender, make sure to have your current paystubs, bank statements, tax returns for the two years preceding your application and information relating to any debts that you currently owe. If you are self-employed, you will also be asked to provide a year-to-date profit/loss statement, which is also known as an income statement.

    Meet With Your Lender

    Now that you have your documentation together, it's time to meet with your lender. At this point, you will complete a mortgage application and submit it for approval. Depending on the lender, it may take anywhere from several hours to several days before learning whether or not you are approved. In most cases, however, a lender can provide you with an answer within 24 hours.

    Last Minute Details

    If your loan is approved, it's time to move forward to the next step in the mortgage process. Your lender will order an appraisal and inspection to be completed on the property. This is just as much for your own protection as it is for the lender because it may reveal hidden problems within the home. The inspection and appraisal can take up to 30 days, at which point the results will be forwarded to the lender. If all goes well, you will close on the loan and get ready to move into your new home.

    See our website at naplesrealestateteam.com for all the information you need in your real estate search. You can also call licensed real estate agent Scott Riddle directly at (239) 289-1849 with any questions you may have.
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