Should I get a Home Inspection?

Another question that is asked quite often is whether or not they should get a Home Inspection, even when a home is fairly new. Now my answer is: Yes, You should always get an inspection.

There are times that homes look like things are ok, but sometimes things are suttle and you may not see it. An inspector can and will inspect every part of the home.

Home Inspections: Borrowers are encouraged to obtain a detailed home inspection of the property. Borrowers should research home inspector’s qualifications and designations to ascertain that they feel comfortable with the individual they hire. HUD does not maintain lists of approved Home Inspectors.

Jeannette Neerpat
Helping You Find Your Way Home!

Which Is Better: Fixed Rate Mortgage Or Adjustable Rate Mortgage?

People often assume that because adjustable-rate mortgages “share risk” between mortgage lender and mortgage lendee, they will be rewarded with a lower mortgage rate than if they chose a comparable fixed-rate mortgage.

The chart at the left proves that thinking false.

Three separate times since mid-September, 5-year ARMs priced worse than a similar 30-year, fixed rate mortgage.  It’s atypical, but it does happen from time to time.

And it’s also why locking mortgage rates is like running a Peyton Manning offense — you can’t call a play until you’ve stepped to the line and studied what’s on the other side of the ball.

Before settling on a specific mortgage plan, remember that mortgage markets change daily and mortgage rates change every 3 hours, 11 minutes.  A 5-year ARM may look cheaper in the morning, but by the afternoon, it could be losing out to the 30-year fixed and — all things equal — it’s better to take that fixed-rate mortgage at a lower rate if it’s available.

Jeannette Neerpat
Helping You Find Your Way Home!

Questions about FHA Guidelines

I was out with buyers this weekend and one of the homes they like had missing appilances. One of the questions they had is whether or not they would be able to put in an offer with this home considering it was missing them. I had been under the impression that you couldn’t purchase a home with an FHA loan without the appliances.

So I told them let me do a little research on it. And as it turns out I was wrong and I would be the first person  to admit when I am wrong. So I decided to go ahead and post the answer here, just in case someone else had the same question.

Now I have decided to go ahead for the next few days to post some question and answers to some FHA guidelines.

Appliances: The Valuation Protocol (page D-26 of Appendix D, Handbook 4150.2) requires the appraiser to note the appliances that are present in the home at the time of inspection and whether the appliance is considered personal property or part of the real estate. The protocol further directs the appraiser to treat non-functioning appliances/equipment as deferred maintenance in the valuation process.

The manner in which an appliance is attached to the dwelling would determine whether or not an appliance should be considered part of the real estate. In some real estate markets, it may be typical and customary for certain appliances to convey with the real estate. In these situations, those appliances should be considered real estate and treated as such in the valuation of the property.

In some cases, such as that of REO properties, all or some of the appliances may be missing and there may be damage to the floor, wall or ceiling finish as a result of the removal. Depending upon the magnitude of the damage, the appraiser is expected to treat the damage to the home as deferred maintenance and reflect such in the conclusion of value. Missing appliances must be addressed by the appraiser in the valuation process, particularly when the comparable sales included a full complement of working appliances.

In cases where appliances are missing and minor repairs may also be needed, lenders are encouraged to have the borrower take advantage of the Streamlined 203(k) loan product, which has no minimum repair cost threshold and is designed to cover such improvements/replacements.

Jeannette Neerpat
Helping you Find Your Way Home!

Florida Asbestos Awareness, Green Alternatives & Healthy Tips

                Florida Asbestos Awareness, Green Alternatives & Healthy Tips

 

 

When embarking in the home buying process, there are many things to consider. Many new homes may need to be remodeled or repaired. Many homes may need inspections, repairs or renovations, especially in areas that are susceptible to natural disasters. Having the assistance of an experienced and reliable Coral Springs, FL real estate agent can make this process easy and stress free.

 

It is important to take note of the consequences of older building materials whose qualities not only harm the environment, but can create health concerns. Building green will have profound impacts in many facets of life. The adaption of green building and alternative energy solutions will play an important role in the transformation to a healthier and sustainable world.

 

Asbestos

 

Highly utilized more than a century ago, asbestos is a fibrous mineral that was used heavily in building and construction applications. Its flame resistant and highly durable qualities made it an ideal choice for manufacturers. Asbestos normally appeared as insulation for piping, roofing, siding and flooring in homes. Many homes or buildings built prior to 1980 may still contain asbestos materials. This fact should not make you overly worried because exposure to asbestos can be easily avoidable by taking simple precautions.

 

Healthy Tips

 

It must be noted that not all asbestos poses health risks. Asbestos that is disturbed or damaged due to age is known as “friable” asbestos. This is a concern because its toxic fibers can easily circulate and become inhaled. If any suspected asbestos is located, the best advice is to leave it alone. If you are having home renovations, performed, do not panic. Again, asbestos that is left un-disturbed will normally pose no threat.

 

If asbestos needs to be removed, it should be performed by licensed abatement contractors. These contractors are trained in the handling and disposal of asbestos in public facilities and homes.

 

The inhalation of airborne asbestos fibers can result in the development of related illnesses such as asbestosis and mesothelioma. Diagnosis by doctors has been a difficult task because symptoms are so similar to other, less serious conditions. Mesothelioma compensation has become tough to predict for victims and their families because diagnosis can take 20-50 years. For this reason, many people refer to it as a silent killer.

Florida Going GREEN

Implementing green methods of building can have positive environmental, health and economic benefits. These include:

-          Conservation of natural resources

-          Enhance air quality and protect ecosystems

-          Energy sustainability

-          Increase property value

-          Improve quality of life

-          Improvement of pulmonary and cardiac health

-          Reduce waste

Environmental efficiency is on the rise because of technology and green sustainable methods progressing rapidly.  Not only will these methods produce a healthier lifestyle, it will save you money! The Department of Energy concluded that cooling and heating counts for up to 50-70 percent of all energy used in the average home in the U.S. In today’s state, this philosophy can also save natural resources.

Environmentally sustainable insulations are made from recycled materials including cellulose, polyurethane foam and cotton fiber.  Cotton fiber is made from recycled batted material and treated to be fireproof. A water based spray polyurethane foam, lcynene features no toxic components. The implementation of these eco-friendly products can reduce annual energy costs in the household by 25 percent annually.

Finding you a Rental…

There are a lot of agents out there who do not like to work with renters. To them its not worth there time. They don’t get much out of it.

I like working with them, with you. I don’t just see it as a Rental, I see it as something more, something in the future.

I got an email last week about a rental listing I had had in Riveral Isles in Miramar. They were interested in it for one of there employees and wanted more information on it. I had told them that it was no longer available but if they wanted I could see what I could find for them, all they had to do was let me know what there criteria was.

Sure enough I got an email reply back with everything they were looking for in a home. So off to do some research. I was able to find them 5 listings within there search criteria. I sent her an email and she send me back to name of the employee I was going to be working with.

I sent her the email and about an hour later she called me and told me that she was looking through the internet and sure enough the homes I had sent her were the same ones she just was looking at. That was it I was going to be her agent. OK never had I gotten that reaction with a renter before, but I will work with that.

We went looking and as it turned out she decided to buy instead of renting. Well we can do that as well, but I told her she needed to be sure that this is what she wanted. We can do the rental for a year and then maybe buy. Nope she is ready now.

So tomorrow we will be looking at 2 homes she likes and may just put in an offer.

Are you looking to rent? Let me know, I would treat you like any other buyer, with great respect and give you my time just like no other….

Jeannette

Florida is Set to help with Down Payments!

The state is looking to help with the Down Payments assistance. Which helps you with the purchase of your First Home. How much better can this get. So now instead of having to wait for the tax credit, you can use it as a Down Payment.

So with an FHA loan on a $250,000 you need 3.5%, that means you need $8750. So if you get the $8,000 then you are looking at bringing $750.00, plus your closing cost.

So what the government is trying to do, is lend you the $8,000. You still file it on your tax return for next year. Then when you get the return you payback the state. So you are not using your out of pocket money. Makes sense to me.

This article is out of the Sun-Sentinel.

“Here in Florida, rather than qualified buyers waiting to get the tax credit on the tail end of the process, in the form of a credit after they have filed the tax returns, it will allow them to get it upfront and let them use it for down-payment assistance and fees,” said David Hart, vice president of legislative and government affairs for the Florida Home Builders Association. He estimated that about five states are taking a similar approach.

The state’s program takes effect Wednesday, though the money isn’t expected to be available until later in July or August. The funds are being distributed through local government and nonprofit agencies that already provide down-payment help through the State Housing Initiatives Partnership, known as SHIP. Qualified homebuyers are entitled to $8,000 or 10percent of the property’s purchase price, whichever is less.

18 months to repay

Buyers who receive a down payment must file for the tax credit on their federal tax return next year and then repay the agency that lent them the assistance, according to the program, which was proposed by state Sen. Mike Fasano, R-New Port Richey. The program gives buyers who qualify and get funds 18 months in which to repay the state, which allows them plenty of time to realize the benefits of the tax credit, part of the federal government’s massive stimulus package, the American Recovery and Reinvestment Act of 2009.

To receive the state’s down-payment assistance, the buyer must close on a property by the end of November. Housing agencies are still working out the details of how to distribute the funds, and state officials caution that four or five months is a relatively short time in which to qualify, find a home, obtain a mortgage, close on the property — and use the money. Qualified buyers who do not take advantage of the state program may still take the federal tax credit, which is currently set to expire in December.

Jeannette Neerpat
9000 Sheridan Street
Pembroke Pines, Fl 33024
www.Neerpat.com

Would you like a Free Market Analysis? Visit www.Neerpat.com or call 954-993-4104.

Should I wait to Buy?

Some buyers are still on the fence to buy. They are waiting to see if the price will drop on the homes. Question is, how much will it cost you to wait?

Yes you might buy the house less, but what will it cost you in the long run? How much will your mortgage be, what interest rate will it be at?

Well those are the questions, now you have to answer those. But here are some numbers to better understand.

• Sale  Price                                         $250,000
• Down Payment    3.5%                   $8,750
• Mortgage              30 yr 5.25%      $241,250
• Payment                                           $1,332.19
• Wait to see if the home decreases             5%             $237,500
• Interest rate increases                                 1%
• Mortgage                    30 yr 6.25%                                 $229,188
• Payment                                                                             $1,411.15
• Monthly payment increases                                          $78.96  a month

So if you wait to buy your home for almost $20,000 you now have increased your monthly payment almost $100 dollars a month. So now tell me, is it worth waiting? You increase your payments and in the long run you pay more for the house.

I am not trying to pressure you to buying a house, but at the same time, I don’t want you to pay more for a house.

Jeannette Neerpat
9000 Sheridan Street
Pembroke Pines, Fl 33024
www.Neerpat.com

Would you like a Free Market Analysis? Visit www.Neerpat.com or call 954-993-4104.

Should I Buy or Rent?

You are wondering whether to buy or rent? Well let’s take a look at some numbers. Some people are visual. So here we go.

• Purchase Price $250,000
• Mortgage 5% for 30 yr                              $241,250
• Monthly payment (P&I)                                       $1,295.08
• Plus 1/12 annual tax and insurance                   $450.00
• Total Payment $1,745.08
• Less onthly tax savings                                         $332.95
• Less monthly appreciation                                  $625.00
• Less monthly principal reduction                      $296.61
• Net cost of owning $490.52
• Monthly rent for comparison                             $1600.00
• Less cost of owning                                              $490.52
• Monthly cost of renting vs. own $1,109.48
• Annual cost of renting vs owning $13,313.75

So now you can see how much of a differences there is between renting vs owning. Plus now you have the Tax Credit to help you out with down payment.

Jeannette Neerpat
9000 Sheridan Street
Pembroke Pines, Fl 33024
www.Neerpat.com

Would you like a Free Market Analysis? Visit www.Neerpat.com or call 954-993-4104.

You are Ready to Buy.. Now What?….Part 7

If you have been following along you know we have gone over several steps to the buying process. This is to give you a better understanding the process on how you buy a house.

Now we have gone over finding a REALTOR, mortgage lender, looking for a house and putting in an offer and getting accepted. Now we are sending the contract over to the Mortgage Lender and we also have to get the house inspected.

Now its not something you have to do, but something we strongly recommend it. Now this is really to make sure the house is in good standing order. Especially when the house is vacant and has gone long without an owner.

There are several inspection companies and I would strongly recommend you speak to at least three. Make sure they have a license and is insuranced. If anything goes wrong after you have closed and it should have been covered in the inspection then they will make sure its corrected. Now I have never run across this problem, but you never know.

Inspections can take anywhere from 1 to 3 hours depending on the size of the home. I like to attend the inspections to get first hand if there are any problems. Example: leaks and termites. This way I can call the Listing REALTOR and see if we can fix the problem up front.

This is something I do. Not every agent attends the inspections, but I like to, especially since most of my buyers are from out of state. Usually what happens is that they find there house while they are here, place there offer and once accepted they fly back home, and that’s why I am at the inspections. I would also be there for buyers who are right around the corner from me!!

Jeannette Neerpat
9000 Sheridan Street
Pembroke Pines, Fl 33024
www.Neerpat.com

Would you like a Free Market Analysis? Visit www.Neerpat.com or call 954-993-4104.

So You are Ready to Buy.. Now What? Part 6

So we now have a signed contract. Now that we have this, there are many things that need to get done.

• Funding
• Inspections
• Appraisals
• Title Company
• Insurance

One of the first things we will need to do is give the signed contract to your loan officer or bank that you got your Pre – Approval from. He will need this ASAP. His process takes the longest and you need to decide what kind of loan you are going with. Are you going with an FHA loan or Conventional loan.

You must understand the difference between the 2. Your loan officer can explain and I will post about the difference in another post.

You are going to need to be able to provide your loan officer with alot of documents. So be ready once you have your contract to fill out the loan application, give your pay stubs, W2’s, and more…..

Next up….. Inspections…..

Jeannette Neerpat
9000 Sheridan Street
Pembroke Pines, Fl 33024
www.Neerpat.com

Would you like a Free Market Analysis? Visit www.Neerpat.com or call 954-993-4104.

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