If you haven’t looked into it recently, you’ll find that the real estate market has changed drastically recently. There is a real shortage of homes particularly in the lower cost single family market. When a good house goes up for sale, there are very often multiple full price offers submitted on that house in the first day or two. With this in mind, you will realize that you will be wasting your own and everyone else’s time if you are shopping for a house and you can’t prove your buying power. Refer the Huffington Post 11/2/2016.

Even though clients often like to look at houses when they don’t think they’re ready to move, when it’s time to get serious they absolutely must know where they stand.
As a potential home buyer, one of your first calls should be to a lender (if you need help, call your Realtor, she’ll have a few to recommend). If you want to be considered for that dream home, you’ve got to deliver a solid package to the seller in Denver’s highly competitive real estate market.

Pre-Approval vs Pre-Qualification -what’s the difference? Although the terms sound similar, one has power, the other doesn’t. In a nutshell, the difference between being “pre-approved” and “pre-qualified” is as follows:
A Mortgage Pre-qualification is a determination about whether the prospective applicant will most likely qualify for a loan within the lender’s current programs and indicates the amount of loan the buyer may be approved for. The pre-qualification is simply an estimate of your borrowing power so that you don’t waste your time shopping for homes that are out of your qualification price-point or your payment comfort zone.

A Mortgage Pre-approval is a much more formal process. Buyers will have completed a loan application, supplied their income data, W2’s, bank statements, and assets. The lender will also run your credit report and perhaps run the application through an automated underwriting process. With a pre-approval, your lender has done the work up front and can write your pre-approval with some certainty that you will qualify for a loan in a specific price range. For sellers presented with multiple offers, a buyer with a less secure pre-qualification letter may have their offer relegated to the bottom of the stack. Stronger offers get serious consideration so if the seller believes a buyer has gone through the trouble to spend time providing a good lender with the requisite information they know they are
a.) serious, and b.) the transaction is more likely to close smoothly.
Per the Federal Reserve’s definition, a mortgage pre-approval is a written commitment that’s issued by a lender following a comprehensive analysis of their overall creditworthiness. A pre-approval includes such factors as verification of income, verification of employment, available financial resources, as well as the evaluation of other areas typical of a credit evaluation process.

The loan will still have conditions to be met before it clears underwriting and funds for a purchase. Such as:
1. The identification by the buyers of a suitable property.
2. Continued creditworthiness, meaning there is no material change in the applicant’s credit score or debt-to-income ratio before closing (like… don’t go buy a car).
3. Additional terms and conditions may apply, things related to the transaction rather than the buyer. A clean title and acceptable title insurance binder is key and some types of loans require a home inspection, and of course, the appraisal.

The Pre-approval letter is about three steps closer to the underwriting process, and that makes your seller feel secure. As a Realtor, I work with both buyers and sellers. It’s in my client’s interest to get pre-approved with a reputable lender before we start the process… just like the “Big Girls” do. It’s not just a matter of being efficient with our time, it’s that in our super-heated Denver market, we may go power shopping on Saturday and need to get an offer in as soon as possible so as not to miss the window of opportunity. If your lender is skiing or spending the day on the golf course, it adds pressure trying to track him or her down. Submitting an offer without a lender letter weakens your position when your offer is on the table along with five others.

Realtors want to know that the buyer has taken the time to meet with a lender and has begun the process. Since nothing is certain in the real estate transaction, it’s good practice to mitigate unnecessary risk.

Neither pre-qualification or pre-approval letters are absolute, iron-clad loan commitments. Lenders and underwriters examine the file and circumstances can change from contract to close: buyer can lose their job, misrepresented something on the application (knowingly or not) or left out some pertinent information like a pending divorce. It is a fluid process.

Sitting down with a lender before you begin will help you time out your purchase. They will introduce you to the different options you have as a borrower, explain types of loans and work with you to find the program that works best for you. A lender meeting can also be helpful in finding any dings on your credit, reporting errors, or outstanding parking tickets that have gone to collections that you forgot all about. Planning your biggest purchase, your planning is key and though there are no guarantees, the process goes much more smoothly once you’re pre-approved.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.

If you haven’t applied for a mortgage before, you may have a lot of questions. Where do I start? Do I go to a bank? Do I go on line? I have heard of mortgage brokers

What is a mortgage broker?

Think of a mortgage broker as a middleman between you and potential lenders. The broker’s job is to work on your behalf with several banks to find the best mortgage lenders who offer the most competitive terms and lowest rates that best fit your needs. People often use “mortgage broker” and “loan officer” interchangeably but they aren’t the same.

In general, mortgage brokers are licensed and regulated financial professionals who have a well-developed stable of lenders they work with. They do all the legwork — from gathering documents from you to pulling your credit history and verifying your income and employment — and use the information to apply for loans on your behalf with several lenders in a short time frame.

Once you settle on a loan and a lender that works best for you, your mortgage broker will collaborate with the bank’s underwriting department, the closing agent (usually the title company), and your real estate agent to keep the transaction running smoothly through closing day.

How does a mortgage broker get paid?

Like most sales professionals, mortgage brokers charge a commission for their services. So what makes loan officers different from mortgage brokers? Loan officers are employees of a lender and are paid a set salary (plus bonuses) for writing loans for that lender. Mortgage brokers, who work within a mortgage brokerage firm or independently, deal with many lenders and earn the bulk of their money via commissions.

What are the benefits of using a mortgage broker?

For starters, a mortgage broker acts as your personal loan concierge and does all the work for you. The broker applies for loans with different lenders on your behalf, finds the lowest mortgage rates, negotiates terms and makes the approval magic happen.

Most mortgage brokers have relationships with several local, regional and even national lenders, and they can tap those connections to get some loan fees waived for you. A mortgage broker will give you accessibility and one-on-one attention you likely won’t find when working directly with a loan officer at a large bank.

Another perk: Some banks and lenders work exclusively with brokers, and that positions you to get qualified for certain loan products if your mortgage broker has a good relationship with those lenders.

You’ll also save time by using a mortgage broker; it can take hours to apply for different loans, and then there’s the back-and-forth communication involved in underwriting the loan and ensuring the transaction stays on track. A mortgage broker can save you the hassle of managing all those daunting details.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.

There is a shortage of homes for sale in the Clearwater Tampa Bay area. Quality homes are selling quickly, many on the first day they are listed. If you are shopping for a home, you need to be ready to move quickly. If a seller has multiple offers, for you to be competitive, you need to demonstrate that you can get the loan to buy the property.

What’s the difference between a prequalification letter and a preapproval letter?

Answer: While there are some legal distinctions, in practice a prequalification and preapproval refer to a letter from a lender that says the lender is generally willing to lend to you, up to a certain amount and based on certain assumptions.

There’s not a lot of difference between a prequalification letter and a preapproval letter. While there are some legal distinctions, in practice both terms refer to a letter from a lender that says the lender is generally willing to lend to you, up to a certain amount and based on certain assumptions. This letter helps you to make an offer on a home, because it gives the seller confidence that you will be able to get financing to buy their home. It is not a guaranteed loan offer.

Don’t worry about which word lenders use. Some lenders may use the word “prequalification,” while other lenders may call the letter a “preapproval.” In reality, lenders’ processes vary widely, and the words they use don’t tell you much about a particular lender’s process. The important thing is that the letter you receive provides enough information for sellers in your area to take it seriously. The best way to make sure that the letter you have will serve its purpose is to ask a local real estate agent.

Lenders usually check your credit when issuing a prequalification or preapproval letter. Many people wait to get a preapproval letter until they are ready to begin shopping seriously for a home. However, getting preapproved earlier in the process can be a good way to spot potential issues with your credit in time to correct them.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.

I think that it is the dream of most people to eventually have a home with a water view. There is nothing more peasant that sitting on your deck, looking out at the water, and watching the sun go down. If you are close enough to the water to be able to walk the beach, that really improves your quality of life.

Getting a mortgage for waterfront property presents some unique challenges. Your use of the home as well as the amount you plan to borrow will make a difference in which waterfront property mortgage makes the most sense. These are some of the options:

• Primary Residence – If you will live in the home full time you will most likely finance your waterfront property with a conventional mortgage. You may also qualify for a government loan, an especially good option if you have less than perfect credit.
• Second Home/Vacation Home – For a property that will be used on vacations as a second home you will need to apply for a second home loan.
• Investment Property – If you plan on renting the home either long term or as a short term vacation rental an investment property loan will likely be the best fit.
• Jumbo Loan – Because many waterfront properties are high value homes you may need to consider a jumbo mortgage, or even a super jumbo loan if the loan amount is especially high.

You should really consider discussing this with a mortgage broker who specializes in waterfront mortgages. Ruth Schoenherr is just that.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Belleair, Sand Key, Indian Rocks Beach, Indian Shores and the Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.

Refer Tampa Bay Times June 12, 2016. Home prices increased 16.1 percent to a median of $180,000 in the Tampa metro area in February and even higher in Pinellas County, where prices soared 21.6 percent to a median of $189,700 for a single family home.

Prices in Hillsborough County rose 13 percent in February, with the median price of a house at $200,000, Florida Realtors reported in its latest research release.

Inventory of homes available for sale stayed low last month, continuing a sellers market. Sellers in the Tampa-St. Petersburg-Clearwater Metropolitan Statistical Area received 95.6 percent of their original asking price.

Overall, Florida’s housing market saw increased median sale prices and some new listings in February, with closed sales about the same level as a year ago.

The median sale price for homes in the state was $200,000, up 11.1 percent compared to February 2015.

Statewide, home sellers got 95.3 percent of their original asking price, up 1.1 percent year over year, Florida Realtors reported.

“Realtors across the state are reporting great interest from buyers, but with inventory levels still tight for single-family homes, the search can take some time,” said 2016 Florida Realtors President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “New listings increased in February, which is good news for would-be buyers; for existing single-family homes, new listings rose 12.1 percent compared to a year ago; new listings are up 15 percent for townhouse-condo units.”

Florida Realtors Industry Data and Analysis rolled out several changes to its housing market data report. The new calculation method for new listings does not include listings for properties that were on the market, then signed new contracts within a couple of months to go back on the market.

If you are considering purchasing a home, first contact Ruth Schoenheer to discuss the financing. Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.

In USDA news, the rural housing biz is abuzz over the United States Department of Agriculture (USDA) announcing lower upfront and monthly fees for its home loan program, starting October 1. Those who offer the program know that this mortgage type is extremely popular with first-time home buyers since some of its program require zero down payment. And the Rural Development (RD) loan program, as it is also known, is a favorite because it comes with cheaper monthly mortgage insurance fees than do FHA loans.

USDA fees are about to drop even further by Halloween, and many believe the USDA loan will become one of the most affordable home loans available, second only to the veteran-exclusive VA home loan. And of course this will entice renters since a USDA home loan can make owning a home less expensive than renting one. As the housing market recovers, the USDA program costs less to operate and sustain. The savings are passed on to USDA program borrowers.

For those of you who don’t know, the purpose of the USDA mortgage is to promote homeownership in rural areas. But what is “rural?”  Many suburban neighborhoods are eligible for USDA financing. Buyers often use this program just outside of major metropolitan areas. The loan offers 100 percent financing, meaning no down payment is required. Some lenders may have overlays, but straight guidelines indicate that applicants with credit scores down to 640 are eligible.

Similar to FHA loans, the USDA mortgage requires two types of fees: an upfront guarantee fee and a monthly fee. The term “guarantee” simply refers to USDA’s loan backing that allows lenders to issue loans according to its guidelines. The upfront guarantee fee stands at 2.75 percent of the loan amount, and the “annual fee” is currently 0.50 percent, paid in twelve equal installments and included in each mortgage payment.

As mentioned above, however, we learned in mid-May the upfront fee will be reduced from 2.75% to 1.0%. And the monthly fee will also drop from .5% to .35%. Lenders who do rural loans know that the upfront fee is typically added to the loan balance so that home buyers do not have to pay it in cash. And the monthly fee rate is dropping to 0.35 percent annually, or about $30 per $100,000 in loan balance.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.

Going Once, Going Twice…Sold! Put Together an Offer the Seller Won’t Refuse

Submitting an offer on a home and waiting to hear back is one of the most stressful parts of the home-buying process. Since there is always room to negotiate when it comes to price, you want to be sure to put in an offer that the seller can’t refuse or you risk losing your dream home to someone with a higher bid.

While prospective homebuyers are often unaware of current trends in the real estate market, many typically rely on advice and guidance from their parents, friends and coworkers who don’t necessarily have a good pulse on the real estate market.

That’s why educated buyers who have spoken with their agent about an acceptable offer will have a better chance of hearing “sold” when the phone rings. Not only will a good agent offer valuable information, they can also help you buy the home you want at the price you want to pay.

Real estate agents have access to statistics and trend information that others don’t, so their advice is invaluable. But when it comes to submitting an offer, it’s important to keep in mind that it’s about more than just the money. In fact, there are several things you can include in the bid to help foster a successful deal.

When it comes to getting a bid accepted, first-time homebuyers often have a significant advantage over repeat buyers because their agent is instrumental in advising them to not only take the time to get pre-qualified, but to also be pre-approved for a mortgage before they even begin looking for a home. And since they don’t have to wait for another house to sell, their offer will be attractive to someone looking to sell a home.

Another thing to keep in mind is the fact that sellers are typically attracted to “clean” bids. A clean bid is one in which the buyer doesn’t ask for any contingencies, repairs or updates to be done. In the end, sellers are happiest when they can simply collect their money and move out quietly.

Buyers should also plan in advance to have funds available for a fast closing. Many agents will tell you that even if you’re not the highest bidder, your bid may still be accepted because you are willing to close right away.

Before making an offer, be sure to talk with your agent and decide what you’re willing to give up in order to have your bid accepted, as it could be the most important bid you ever place in your life.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.

Numerous factors should be taken into account prior to purchasing a timeshare. A review of the background of the seller, developer, and management company, along with a review of the current maintenance budget, will assist the prospective seller in making an informed decision. Local real estate agents, Better Business Bureaus, and consumer protection offices also are good sources of information. While many reputable builders do exist, purchasing an undeveloped property carries additional risks. One means of protection is to hold money in an escrow account in case the developer defaults. The commitment from the seller that the facilities will be finished as promised should be written into the purchase contract with a date certain.

Practical Factors
Timeshares provide the convenience of prearranged vacation facilities, but keep in mind that future circumstances may alter future planning ability. Timeshare plans typically do not include recession provisions for poor health or job loss. Vacationing tastes and favored activities may also change over time. These factors should be considered in evaluating a purchase.

Investment Potential

Timeshare resales usually are difficult and often sold at a loss to the seller. Therefore, timeshares are typically not considered an investment as a second or vacation home might be. There are many investment options in the property area, but investment should not be a major factor when purchasing a timeshare. Renting is also difficult and many time-share owners pay advance fees to rental agencies, which may not be able to find any renters for a given time frame.

Total Costs

Total costs include mortgage payments and expenses, as well as travel costs, annual maintenance fees and taxes, closing costs, broker commissions, and finance charges. Annual timeshare maintenance fees can be high depending on the amenities of the resort. The larger and more upscale the resort, the higher the fees. These fees cover all of the costs of operation but are typically several hundred dollars a year. These fees can and do rise over time. All of these expenses should be incorporated when determining the overall cost of purchasing a timeshare.

Purchase documents for any type of real estate transaction are binding legal contracts and should be reviewed by an attorney. The contract may provide for — and some states require — a set “cooling-off” period during which the timeshare purchaser may cancel the contract and obtain a refund. The contract may include a non-disturbance clause and/or a non-performance clause. A non-disturbance provision ensures continued use of the unit in the event of default and subsequent third party claims against the developer or management firm. A non-performance protection clause allows the purchaser to retain ownership rights, even if a third party is required to buy out the contract. All promises made by the salesperson should be written into the contract. If not, such provisions will almost certainly be unenforceable in a court of law.

Foreign Properties
Timeshares and vacation club memberships in foreign countries are subject to the law of the jurisdiction in which the timeshare is located. A contract outside the United States for a timeshare located in another country will not be protected under U. S. (federal) or state contract property laws.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.

If you’ve ever purchased a home, you may have also inherited the previous owners’ garden along with it. Rather than try to maintain unfamiliar territory and risk a lifeless landscape, get to know your garden with these three tips.

1. Knowledge
Make the transition to your new-to-you garden that much easier by taking stock of what the former owner planted. Ask for an inventory list and explanations for each, including special care instructions.

2. Safety
Tour the property and note any potential safety issues, such as dead limbs, drainage problems
or tripping hazards. Recognize what needs immediate attention and what can wait.

3. Patience
Be patient. Don’t try to tackle everything in the first year. Attempting to take care of everything all at once will make gardening seem more like a chore. Focus on any dangers found in your safety check, and take time to learn what your garden looks like from season to season.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.

The second home market has more ebbs and flows than the primary home market. Sales are iffy in a bad economy except, perhaps, on the high-end. That said, there is a growing trend toward the purchase of vacation homes. They are being bought for investment

purposes, enjoyment, as well as retirement. In the latter instance, some people are buying with the idea of turning a vacation home into a permanent retirement haven down the road, a move that puts them ahead of the game now.

Some of the tax benefits mirror those for a primary residence. Mortgage interest and property taxes are deductible, which helps to offset the cost of the home payment. And if you treat your second home as a rental property, you can fully depreciate it as well. But you are only allowed to occupy it for two weeks a year, or 10 percent of the total rented time, whichever is less.

Before taking the leap, ask yourself if you can afford to carry two mortgages, maintain two households, and pay the extra utilities and maintenance costs. Also, learn about financing requirements and options, which can differ slightly from those on a primary residence.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.