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


    Types Of Home Loans

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  • Posted by Naples Real Estate Team
  • Thursday, June 14, 2012

    • Types Of Home Loans

    If you are in the market for a new home, it's important that you know what type of loans are available to you. Whether you have perfect credit, a few financial blemishes or are just starting out in life and want to own a home, understanding your options will prove to be invaluable during your house hunting excursion.

    Fixed Rate Mortgage

    A fixed rate mortgage is one of the most popular home loans and is commonly available as a 15 or 30 year term. Because it offers the borrower an assurance that both the principal and interest will remain the same throughout the term of the loan, a fixed rate mortgage is ideal for many.

    Adjustable Rate Mortgage (ARM)

    An adjustable rate mortgage, also referred to as an ARM loan, is one in which the interest rates adjust according to the current market. This means that interest rates can either increase or decrease at regular intervals, based on established market indexes.

    Interest-Only Mortgage

    An interest-only mortgage is one that requires the borrower to pay interest only payments for a preset number of years during the loan term. After that initial period, the monthly payments will then adjust to include both the principal and interest remaining on the loan.

    Balloon Mortgage

    A balloon mortgage is a loan that requires monthly payments that do not completely repay the loan. At the conclusion of the balloon term, a large lump-sum payment is due to pay off the balance of the loan.

    FHA/VA Loan

    An FHA and/or VA loan are mortgages that are guaranteed by the government. An FHA loan is easier to qualify for than a conventional mortgage, requires a lower down payment and is guaranteed by the Federal Housing Authority. A VA loan, which is for veterans only, is guaranteed by the Veteran's Administration.

    Construction Loan

    Construction loans are available for borrowers who are purchasing or building a newly constructed home. These loans, which are offered at either fixed or adjustable rates, require slightly more paperwork and inspections than a conventional mortgage.

    No Income/No Asset Verification

    A no income/no asset verification loan simply means that the borrower will not be required to verify their income or assets in order to obtain a mortgage. With this type of loan, the borrower typically must have excellent credit and may be required to provide a down payment that's equal to 20 percent or more of the total purchase price. Although this type of loan is called a no income/no asset verification loan, the borrower may be required to show proof of both, but the information will not be verified by any other means.

    Owner Financing

    Many homebuyers, especially those with a limited or poor credit history, prefer to seek owner financing when purchasing a new home. Because there is no credit check, buyers will not be judged for past credit problems. In addition, owner financing may offer a low down payment requirement and competitive interest rates.

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

    Understanding The Closing Process

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  • Posted by Naples Real Estate Team
  • Tuesday, June 12, 2012

    • Understanding The Closing Process

    Once your loan is approved, you will be ready to take the final step that will lead to the door of your new home. Many homebuyers are intimidated by the closing process, but it's not as complicated as you may think. In fact, finding the right home is much more difficult than closing the deal.

    Making It Official

    The closing process begins with the borrower and lender meeting in the presence of a notary public. This is a person who is authorized to oversee, create or certify contracts, deeds and other legal documents. At the conclusion of the signing, the notary public will provide their stamp and signature, which certifies the identification of everyone present and the signatures on the loan application.

    Handing Over The Cash

    When you meet with the lender to close the loan, you will be required to produce your down payment and, if required, the closing costs. Ask your lender about acceptable payment methods, which may include a cashier's check or other certified funds. If you have an account with the lender, a personal check may be accepted in some circumstances.

    Review The Loan Documents

    At closing, this will be your final opportunity to review the loan documents. You should make sure that everything is accurate and as promised, including the interest rates and loan term. It's also important that you confirm that the names and addresses are correct, along with other important information relating to the loan. If anything is inaccurate, now is the time to make changes. Never sign the loan documents until everything is perfect.

    Sign Here, Please

    Once everything is verified and the loan documents are approved by both you and the lender, it's time to sign on the dotted line. Believe it or not, this is one of the most nervous times for a homebuyer. If you've chosen the right home and are comfortable with your loan, however, it can also be one of the most exciting. Once the documents are signed, the notary public will affix his/her stamp and signature.

    It's A Done Deal

    The final step in the closing process is a simple handshake. Most lenders and homebuyers will extend their hands and, with a smile, the person who was just a homebuyer is now a homeowner. Now that's something to shake on! With the keys to your abode now firmly in hand, it's time to get moving and turn your new house into a home.

    See our website at  http://naplesrealestateteam.com/ for all the information and tools you need to buy and sell real estate in South West Florida. Or call Scott Riddle directly at (239) 289-1849 with any questions you may have.

    What Is An Earnest Money Deposit?

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  • Posted by Naples Real Estate Team
  • Wednesday, June 6, 2012

    • What Is An Earnest Money Deposit?

    An earnest money deposit, also known as a good faith deposit, is a specific dollar amount that a potential buyer pays to the seller in an effort to display their serious interest in a property. It's important to note that an earnest money deposit is not the same as a down payment.

    The Purpose Of An Earnest Money Deposit

    An earnest money deposit is used to secure a purchase contract, which means the buyer doesn't have to worry about the property being sold out from underneath them. Without an agreement, the seller would be free to sell the home at anytime. An earnest money deposit, however, secures the availability of the home as the potential buyer obtains an inspection, appraisal and financing for the purchase.

    How Much Good Faith Is Enough

    So, just how much of an earnest money deposit is required? Truthfully, it depends on a number of factors, including the home's purchase price, your location and the standard as set by other sellers. In most cases, the earnest money deposit is negotiable and the seller will be happy in knowing that the potential buyer is serious enough to offer their money in good faith.

    How An Earnest Money Deposit Is Used

    If the transaction is successful and the buyer follows through with the purchase, an earnest money deposit is most commonly refunded to the buyer or applied to closing costs. If the buyer defaults or is unable to obtain financing, the seller often has the discretion to retain the earnest money deposit as damages or as otherwise described in the purchase agreement.

    Using Your Dollars And Sense

    When it comes to an earnest money deposit, it's essential that buyers know who should receive the money and how to handle the payment. In most cases, the deposit should be made payable and presented to a licensed real estate broker, an attorney or escrow company. Your REALTOR® can assist in getting your earnest money deposit into the right hands. It's important to obtain a receipt, which should clearly outline the purpose of the deposit. The funds will be handled in accordance with the purchase agreement and/or as agreed upon by both the buyer and seller.

    Before handing over a good faith deposit, make sure that you have faith in the person accepting your money. Potential buyers should not give an earnest money deposit directly to the seller, nor should they give it to anyone who claims to be with a brokerage firm unless their credentials are verified.

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

    Buying Your First Home: Seven Tips

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  • Posted by Naples Real Estate Team
  • Monday, June 4, 2012

    • Buying Your First Home: Seven Tips For First-Time Home Buyers

    Now that you've made the decision to purchase your first home, a hearty congratulations is in order! Becoming a homeowner, especially for the first time, can stir up some feelings of anxiety and excitement. With the knowledge that you gain through individual research and the help of your REALTOR®, you will soon begin to feel like a seasoned house hunter.

    Tip # 1: Do Your Homework

    Did you know that there are a number of incentives available to first-time home buyers? Everything from a 3-5 percent down payment and interest rates as low as 5.75 percent are just a few of the ways that lenders help to make the dream of home ownership into a reality for many. An FHA loan, for instance, is especially appealing to first-time home buyers. The best way to find out what's available, in terms of down payment requirements and interest rates, is to do your homework by comparing offerings from various lenders.

    Tip # 2: Save Money

    Although many loans are geared toward offering lower down payments to first-time home buyers, it's important to save as much money as possible so that you will have enough to provide an earnest money deposit (if applicable), pay for closing costs and still have the funds to furnish and decorate your new home.

    Tip # 3: Get Your Credit Profile In Order

    When you apply for a loan, the lender will access a copy of your credit report and will use the information to determine your creditworthiness and/or interest rate. This means that you will want to make sure that the information contained in your credit report is accurate and up-to-date. You can do this by requesting a copy of your file from each of the three major credit reporting agencies - Experian, Equifax and TransUnion.

    In addition to past credit history, lenders will also look at your current debt ratio in order to determine whether or not you can afford the home. This means that you may want to consider paying down some of your existing credit card debt and avoid taking on any new debt before applying for a mortgage.

    Tip # 4: Start Your Search

    With the World Wide Web being what it is today, it's no surprise that many potential home buyers start their search online. A Realtor's Web site is designed to not only list real estate, but also to educate a buyer as they move through the process of searching for a new home. In addition, the internet offers a way for consumers to browse through color photos and virtual tours, both interior and exterior, along with information pertaining to the homes themselves. The convenience of being able to find a home that you like without having to wait is just one of the many benefits to shopping for a house online. When you are finally ready to meet with a REALTOR®, you will already have one or more prospects in mind.

    Tip # 5: Have Patience

    Perhaps you will find the perfect house this week, or maybe it will take a little longer. Some buyers find exactly what they are looking for right away, while others have to do a little more searching to find their dream home. As a first-time home buyer, it's a good idea to begin the process with an understanding that good things really do come to those who wait. You may see a number of homes, take numerous photos and may even make an offer or two, but patience may very well be the key to finding your new home.

    Tip # 6: Take Notes

    If you see a lot of homes, it will be impossible to remember the features of each. For this reason, you should consider taking a notebook and writing down each unique or defining aspect that you like or dislike about a particular house. This information, along with any photos that you take, will help you greatly when it's time to make a choice.

    Tip # 7: Don't Settle

    A home is a big investment and it could, quite possibly, be the largest you will ever make. For this reason, along with the fact that you will be living in the home every day, make sure that you get what you want. There could be an instance where you need to make some type of compromise, but you may want to avoid choosing something just because it's within your price range or you feel as though it's your only option. New houses are placed on the market every day and, as a buyer, the next one listed may just be your dream home.


    For a wealth of real estate information and great search tools for homes for sale, see our website at  http://naplesrealestateteam.com/
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