Parkland Parrot

Archive for the 'Mortgage Information' Category

Should Homebuyer Tax Credit Be Extended Yet Again?

Word on the streets is that the National Association of Realtors (NAR) is again lobbying lawmakers to extend the $8,000 first time home buyer tax credit until the end of 2010.

But, Senator Johnny Isakson, former real estate agent and last year’s advocate for the 2nd extension, is not on board.  Last November, Linda Goold, NAR’s director of tax policy practically told the public and Realtors that the second tax credit extension would be the last one.

Can the government afford to extend the tax credit for a third term?  Where are we getting all of this money since are deficit is at a record high level?

If the government extends the tax credit for a third time, it will help the real estate market.  But, when the credit was extended in November, many buyers went “back on the fence” knowing that they had more time to purchase and still receive the $8,000 tax credit.  Sales in November to February have been slow as buyers have more time to wait.

If the government announces that there will be no further extension, then there will be a strong urgency for potential buyers to purchase properties by the March 31st deadline!  Please read my article on the tax credit guidelines by clicking:  FHA Mortgage Guidelines Will Tighten In The Spring

As FHA mortgage guidelines tighten in the Spring and Summer of 2010, the tax credit extension could certainly help the market for the long run!  We here at the Parkland Parrot will keep you posted as soon as new information is supplied to the real estate community.

To stay updated with all of the current Parkland real estate home information, receive our blog posts directly to your inbox by subscribing to the squawk.

If you are interested in buying or selling a real estate property in Parkland, please give us a call at 954-609-0591 or send a note to the squawk.

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Buyer Demand For Renovation Financing?

I was reading Brian Brady’s blog Mortgage Rate Report, and he was discussing the new demand for renovation financing for buyers. Brady discussed the need for creative renovation financing, as mortgage rates will rise in the coming months.  As many distressed properties are on the market and coming on the market, perspective buyers are looking for ways to purchase these distressed properties at significantly discounted prices and finance the improvements needed in their loans.

Also, going green is also become extremely popular for homeowners.  Potential home buyers are looking for tax credits and special financing in order to make their homes more energy efficient.  The IRS is currently offering a partial tax credit for energy efficiency improvements.  Brady goes on to describe the 5 loan programs where buyers are financing over the purchase price for energy efficiency and other home improvements:

• VA Energy Efficient Mortgage permits the financing of energy efficiency improvements up to $6,000.
• FHA 203-K Renovation Mortgage allows the financing of larger renovation projects.
• FHA Streamline-K Home Improvement Loan allows homebuyers to finance their renovation project up to $35,000 over the purchase price.
• Fannie Mae Energy Efficient Mortgage permits the allowance of up to 115% of the purchase price of a resale property to be financed for energy efficiency. Newly built homes are permitted up to 105% of the purchase price for energy efficiency updates. 
  
• FHA Energy Efficient Mortgage, similar to Fannie Mae’s program, allows home buyers to finance up to 105% of the purchase price for energy efficiency improvements.

These loans will become even more popular as potential buyers continue to purchase bank foreclosures and short sales.  Many times, these distressed sales need many structural and cosmetic updating along with energy efficiency upgrades.  Remember, that financing over the purchase price means that the property must appraise for that price.  It is essential to work with a mortgage broker and Realtor that specialize in the above financing.  These are not the easiest loans to put together, so do your homework and work with true experts.

To stay updated with all of the current Parkland real estate home information, receive our blog posts directly to your inbox by subscribing to the squawk.

If you are interested in buying or selling a real estate property in Parkland, please give us a call at 954-609-0591 or send a note to the squawk.

Tags: 203k streamline mortgage, buying parkland, energy efficiency mortgage, fha 203k renovation mortgage, fha streamline k home improvement, michael citron, parkland home purchase, parkland mortgage, renovation financing, rosy baron

Buyers That Are Prequalified or Preapproved?

Should A Buyer Be Prequalified or Preapproved?

With banks becoming even tighter on their financing criteria, many Parkland sellers and their real estate agents MUST make sure that buyers are truly qualified to purchase a home before entering into a purchase agreement.

Prequalification is the process where a lender or mortgage broker pulls credit and looks at the complete credit report of the borrower, as well as the  buyer’s income and debts.  As a result, a lender will be able to use this pertinent information to determine how much mortgage the potential purchaser can really afford. But, there is no bank accounts or employment verified during the prequalification process.

Preapproval occurs when ALL employment and credit is verified and approved by the lender or mortgage broker.  During the preapproval process, the potential buyer provides more detailed information in order to verify their statements.  After this information is verified, then the mortgage is approved, subject to a home appraisal.  The final loan is approved after the property appraises, and the bank receives all documentation and satisifes the contingencies and conditions of the loan before closing.

It is important for all sellers and Realtors to understand that a prequalification letter does not mean that a buyer is 100% able to purchase the said property.  When receiving offers on our Parkland property listings, we ask that ALL buyers are preapproved for a loan.  I really do not understand why a buyer would not make sure that they are truly approved to purchase a property in a particular price range and understand their exact terms and conditions of the loan.  As a result, the “prequalification letter” is just a piece of paper.  I want the preapproval letter and still have questions from the buyer’s mortgage lender before I even present the offer to my sellers!

The moral of the story is that with the lending institutions tightening their financing criterias, it is essential that all buyers get preapproved before looking at properties or at least before submitting a formal offer!

To stay updated with all of the current Parkland real estate home information, receive our blog posts directly to your inbox by subscribing to the squawk.

If you are interested in buying or selling a real estate property in Parkland, please give us a call at 954-609-0591 or send a note to the squawk.

Tags: parkland buyer, parkland florida, parkland homes, parkland mortgage, parkland mortgage qualification, Parkland Real Estate, parkland real estate for sale, parkland realtor, prequalification vs preapproval

5 Reasons To Buy A Home During The Holidays

Tis The Season To Buy A New Home! As the holiday season approach, many potential buyers should have a new home on Santa’s wish list.  We all are looking for great holiday deals.  Well … Here are:

5 Reasons To Buy A Home During The Holiday Season

1. LOW Interest Rates: Interest rates and prices are at all-time record lows.  Historically, interest rates are usually at their lowest during November through January due to the slowdown in the market.

2.  Motivated Sellers: Many sellers are motivated to sell their homes before the end of the year for tax purposes.  As a buyer, you will have even more negotiating power to get a great deal!

3. Slower Market: With the buzz of the holiday, many people are traveling and busy gift shopping.  Typically, November and December are the slowest real estate months.  Savvy buyers will have less competition and be able to scoop up a great bargain from motivated sellers.

4.  Faster Closings: During this slow holiday period for real estate, lenders are NOT inundated with many deals to close.  As a result, your mortgage will receive more attention and be able to get done faster.  This will lead to less headaches and receiving the keys to your dream home more quickly!  Bank foreclosures are also easier to purchase during the holidays as there are less competing buyers.

5.  Tax Deductions: Many closing costs and taxes are tax deductible during the year that you close on your home.  Speak with your accountant.  You may be able to deduct the interest on your first mortgage payment from your taxable income.  Also, you may be able to deduct the points paid on buying down your mortgage rate.

It’s the most wonderful time of the year to go out and buy a home!  If you are serious about buying a property in the near future, NOW may be the best time to get the ultimate holiday deal.  I promise that you won’t have to sleep overnight for Real Estate Black Friday!

To stay updated with all of the current Parkland real estate information, receive our blog posts directly to your inbox by subscribing to the squawk.

If you are interested in buying or selling real estate in Parkland, please give us a call at 954-609-0591 or send a note to the squawk.

Tags: 5 reasons to buy a home during the holiday, buying a home during holidays, parkland fl homes, parkland homes, parkland homes for sale, Parkland Real Estate, parkland real estate agent, parkland real estate expert, parkland realtor

New Good Faith Estimates Debut January 1st 2010

The Department of Housing and Urban Development recently released the new Good Faith Estimate that all lenders will be required to use on January 1, 2010.  Before you start pounding your head against the wall saying, “Why, Why, Why?,” this new form is a dramatic improvement from what lenders have been showing borrowers in the past.  As a result, lenders and mortgage brokers will not be able to hide their fees and be able explain the entire good faith breakdown to their perspective clients.

The new Good Faith Estimate is three pages long and the new helpful sections include:

• Important Dates with the length of the rate and terms being offered and the terms of the rate lock.
• Summary of the loan including the rate, whether it is adjustable, negative amortizing, or subject to prepayment penalties Escrow Account explanation and information.
• Summary of Loan Charges set in black and white for easy explanation and understanding.
• Origination Charges that the lender is charging.
• Other Settlement Charges making clear third party fees not given to the lender.
• Instructions clearly stating which charges cannot be increased at closing.
• Trade-off Table displaying how the lender compares how interest rate (payment) and closing fees move in opposite directions for the same loan as the interest rate moves higher or lower than that quoted by the lender.
• Shopping Cart which gives the borrower an organized way to compare lenders possibly to shop for a better rate if possible.

This new Good Faith Estimate is transparent and can easily be understood by borrowers.  Gone are the days when a lender will be able to put a hidden fee on the closing statement.  Now, everything has to be disclosed and properly explained in detail to all potential buyers.  Our team works with mortgage professionals that are dedicated to their profession and are now using this new estimate guideline.  I am confident that this new standard will help the local Parkland real estate and mortgage business by now providing clear explanations of all of the fees before clients get to the closing table.  Our clients will be more informed as soon as they start the home buying process.  As a result, we, as Realtors, can now focus our efforts on helping our clients find the best homes on the market!

To stay updated with all of the current Parkland real estate information, receive our blog posts directly to your inbox by subscribing to the squawk.

If you are interested in buying or selling real estate in Parkland, please give us a call at 954-609-0591 or send a note to the squawk.

30 Year Mortgate Rates Under 5% Again?

More Positive Real Estate News:  Mortgage Rates Under 5% Again

With the local real estate market starting to pick up, more good news from the homefront that interest rates are down at record levels again!

According to James Venney, a mortgage banker with Gibraltar Private Bank and Trust, mortgage rates on 30 year fixed loans have fallen under 5%.  Even more exciting that jumbo rate loan (loans over $417,000) restrictions have relaxed recently. Venney also points that buyers can now put down 20% and get a rate in the high 5% range.

James Venney also writes a great mortgage blog for the local South Florida market called: Juicy Estates

As a result of the drop of interest rates and especially the relaxed jumbo rate loans, this is all GREAT news for the Parkland real estate market!

Parkland price points are higher than most Broward County cities where buyers in the past were having difficulty coming up with the high downpayment requirements to get  jumbo loans.  If rates stay in the low 5%, we will have a strong finish in 2009!

To stay updated with all of the current Parkland real estate information, receive our blog posts directly to your inbox by subscribing to the squawk.

If you are interested in buying or selling real estate in Parkland, please give us a call at 954-609-0591 or send a note to the squawk.

Tags: parkland home mortgage, parkland mortgage, parkland real estate update