Are You Ready?
One of the keys to making the home buying process easier and more understandable is planning.

But you heard that “The Market is Bad” and that “Tax and Insurance are High”

What’s “good”, “bad”, “high”, or “low” all depends on what your Financial abilities are and what you’re willing to pay.  I talk to lots of people who don’t realize that Taxes and Insurance vary SIGNIFICANTLY from one house to the next and from one neighborhood and city to the next, so before you assume that you can’t afford to buy anything, you need to investigate what’s available and THEN determine if there’s something that would be a great fit for you. In our current Broward County market (October, 2007), there are over 17,000 Single Family Homes for Sale and over 23,000 Townhouses, Condos, and Coops for Buyers to choose from, so Buyers have many choices!!!  Since it is no longer a Seller’s Market, since inventory is excessive and Interest Rates are low, there are many more opportunities to negotiate a lower selling price or to find an Owner who is at least willing to assist you with payment of closing costs.  THIS DOES NOT MEAN THAT OWNERS ARE “GIVING THEIR HOMES AWAY!”  Would you “give your home away?” When you are ready to submit an Offer for a Home, I will assist you with determining a fair market price to offer for the home by researching recent Sales prices of comparable homes in that area.

Do You Have The Money?
Homes and financing are closely intertwined. (Financing is the difference between the purchase price and the down payment, commonly referred to as debt or the mortgage.) Even if you’re buying 6 months – 1 year from now, you should complete Pre-qualification NOW through a Loan Officer in order to determine if you will qualify for a Loan and, if so, for what amount.  If it’s discovered that you do not qualify for a Loan right now, you will be advised as to what you need to do financially in order to prepare for future Home Ownership. 

Although not a final loan commitment, the pre-approval letter will be presented to Listing Brokers when we present an Offer on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. This information is important to Owners since they do not want to accept an Offer that is likely to fail because financing cannot be obtained.

Is Your Financial House in Order?
You should assure that every credit card bill, rent check, car payment and other debt is paid in full and on time.

Where will the money for the transaction come from?
You will need money for a down payment and closing costs.

The ongoing costs of home ownership
Maintenance, improvements, taxes, and insurance are all costs that you will be responsible for. If you buy a Condominium or Townhouse, a monthly homeowner's association or maintenance fee will be required.  Please note that some Associations require 6 months – 1 year of advance Association fees payable BEFORE you close on the purchase of your home.

Do You Know What You Want?
Whether you are a first-time homebuyer or entering the marketplace as a repeat buyer, you need to ask why you want to buy. Are you planning to move to a new community due to a lifestyle change or is buying an option and not a requirement? What would you like in terms of real estate that you do not now have?  Create a realistic idea of the property you'd like to buy. What features are most important to you? Make two lists: one of the items you can't live without and one of the features you would enjoy. Refine the lists.  Let me know what your home preferences are and I will e-mail listings to you that fit your criteria.  Reviewing listings online will assist you with comparing home features, prices, communities, and availability. 

When Do you Want to Buy?
When you complete pre-qualification AND pre-approval AND have decided that you are ready to purchase a home in the immediate future, I will arrange showings and we will drive to view selected areas and homes that you’re interested in purchasing

So You Heard that there are lots of good Foreclosure Deals out there

You first need to understand what types of Foreclosures are available in our current market.  In our current market, MANY of the Foreclosures are Homes that were purchased at the height of the market (when prices were highest) or Homes that were purchased many years ago but were refinanced excessively.  The amounts of the Mortgages remaining on these homes are typically higher than the home would be able to sell for in today’s market.  In these cases, even when their Lender accepts a Short Sale (an amount less than what’s actually owed on the Mortgage), the amount is still higher than the price of a comparable non-Foreclosure home.  Foreclosures can be quite risky as they are required by the Lender to be purchased “As Is” which means you will not be allowed to base your final acceptance of the Contract on the Inspection of the home.  It means that you’re willing to purchase the home regardless of condition (this could mean Termite damage or any number of other repair items).  There are also horror stories about Homeowners who inflicted extensive damage to homes after they became aware of their Foreclosure status.  Often the best Foreclosure deals are the “fixer uppers”, which are typically only purchased by Investors or a Buyer who intends to spend time completing repairs before moving into the house.  Many other Foreclosures that are good deals are never listed for sale. They are purchased “on the Courthouse Steps”, so to speak, and they are purchased by very experienced Investors who typically pay in full for the purchase of the property (Cash Purchases, not Mortgages).  Each Foreclosure purchase is different and each Lender has different requirements.  It’s a complex process, which I have only explained very briefly here.

Here are a few of the Benefits of Home Ownership

Smart investment
When you invest in a home, it offers the possibility for appreciation in value. The equity becomes yours when you’re still paying off your mortgage. You even get to live in it while your investment matures.

Tax advantages
Since both mortgage interest and property taxes are tax deductible, homeownership can save you significant amounts of money every year.

Planned housing costs
You decide how much you spend on your home. Unlike renters, homeowners with a fixed-rate loan can lock in their monthly housing costs.
 
Improvements to your taste
You can choose which improvements to make your own property, such as a deck, kitchen remodel, or new paint, instead of needing permission from your landlord or not being able to obtain permission from your Landlord.