Home Inspections

Posted on January 21, 2022 by

When you are buying a home, the realtor will usually recommend that you get a home inspection. The buyer has to pay the fee, and you may be tempted to skip the inspection to save the money. Don’t do it.

You may have your heart set on a particular house. But would you still buy it if you have to pay $20,000 for a new roof and $6,000 for a new air conditioner?

If you are looking at some major renovations, if you know about them up front, you might be able to include the cost of the renovations in the mortgage. If you wait until after closing, you are probably going to have to pay for the repairs out of pocket.

If your roof is a certain number of years old, your insurance company might all of a sudden require an inspection and then require you to replace the roof. They might say that if you don’t get the roof replaced, you can’t get insurance. If you have a mortgage, insurance coverage is required. Wouldn’t you rather know about that ahead of time?

Your air conditioner may work, and it might look OK to you. But it might be on it’s last leg. Wouldn’t you rather know about that ahead of time?

You may have defective duct work or a lack of insulation in the attic that might be resulting in huge power bills. Those bills might be so large that you have no choice but to get repairs. Wouldn’t you rather know about that ahead of time?

If your home inspection is part of your purchasing agreement, and you find a problem, it could provide you with a way out of the contract. A quality home inspection can reveal critical information about the condition of a home and its systems. This makes the buyer aware of what costs, repairs and maintenance the home may require immediately, and over time. If a buyer isn’t comfortable with the findings of the home inspection, it usually presents one last opportunity to back out of the offer to buy.

A home inspection can reveal whether rooms, altered garages or basements were completed without a proper permit, or did not follow code, according to Chantay Bridges of Clear Choice Realty & Associates. “If a house has illegal room additions that are un-permitted, it affects the insurance, taxes, usability and most of all the overall value. In essence, a buyer is purchasing something that legally does not exist,” she explains. Even new homes with systems that were not installed to code will become the new homeowners’ financial “problem” to fix (and finance).

A home inspection can be used as a negotiating tool. The home inspection report presents an opportunity to ask for repairs and/or request a price reduction or credit from the seller. Work with your realtor to understand what requests can and should be made to negotiate a better deal.

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 or call at 727 447-2418.

Fed Raising Interest Rates

Posted on December 20, 2021 by

We have all been told that when interest rates get high, we should raise interest rates to slow things down. Although it appears that they were a little slow to act, it appears that that is exactly what the Fed is going to do. See below from NPR Public Media December 15th, 2021.

“The Federal Reserve is paving the way for possible interest rate hikes next year, in an effort to contain stubbornly high inflation.

At the conclusion of a two-day policy meeting Wednesday, the central bank announced plans to phase out its large-scale bond-buying program faster than initially planned. The Fed started purchasing bonds during the pandemic as a way to keep borrowing costs across the economy low and to prevent any market disruptions.

Ending the bond purchases earlier would give the Fed more flexibility to raise interest rates sooner, if necessary, to keep prices from spiraling out of control. The central bank said previously it wanted to stop its bond purchases before considering raising interest rates.

The Fed is taking a harder line against inflation after consumer prices in November jumped 6.8% from a year ago — the largest increase in nearly four decades.

In a statement, the Fed acknowledged the rapid runup in prices. Although the central bank still believes inflation is largely driven by factors tied to the pandemic, which should ease when the health outlook improves, policymakers are no longer taking that as a given.”

First Time Home Buyer

Posted on November 20, 2021 by

It can be a real advantage to be classified as a first time home buyer. You qualify for special programs if you are classified as a first time home buyer. For example, Freddy Mac has a program where you can get a home loan for only 3% down. There are other programs that give special advantages. If you call our office, we can explain some of the programs that might be available to you.

You may be surprised to find that you might fall into this classification for loan purposes.

Here are the criteria that HUD lists for what constitutes a “first time homebuyer”:

An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers).
A single parent who has only owned with a former spouse while married.
An individual who is a displaced homemaker and has only owned with a spouse.
An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.
An individual who has only owned a property that was not in compliance with state, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure

So if you haven’t owned a home in 3 years, you are considered a first time buyer. There may be other programs that you are eligible for. You should call our office so we can discuss your situation with you.

Mortgage Loan Limit is Raised

Posted on October 21, 2021 by

I’m sure you are aware that home values have gone up. Home prices have increased recently possible at the fastest pace in modern history. One indication of the rise is that the loan limit for conventional home loans has been raised recently to $625,000. Not too long ago, it was $450,000.

If you need to borrow more than the basic loan limit, you have to apply for what is referred to as a “jumbo mortgage”. The requirements that you have to meet to get a jumbo mortgage are quite restrictive – so much so that the average person would have a hard time qualifying.

This might apply to you if your home has gone up in value and you want to refinance and draw some cash out of the deal to use for other purposes. This now might make more sense because you probably can avoid the “jumbo loan” situation.

According to the Federal Housing Finance Agency website, The Federal Housing Finance Agency (FHFA) announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2021. In most of the U.S., the 2021 maximum conforming loan limit (CLL) for one-unit properties will be $548,250, an increase from $510,400 in 2020.

According to Zillow, the typical home value of homes in Florida is $321,643. This value is seasonally adjusted and only includes the middle price tier of homes. Florida home values have gone up 22.2% over the past year.

Making an Offer

Posted on September 17, 2021 by

Getting ready to make an offer? Buying a home is a nerve wracking experience in the best of times, but it is particularly challenging these days, when it is a seller’s market. There are some things you should consider.

Obviously you need to be pre-approved before you start shopping. First of all, you need to know how much house you can afford, so you don’t get your heart broken shopping for houses outside your budget. Secondly, no intelligent seller is going to consider your offer if you haven’t been pre-approved, and you are just wasting people’s time.

You need to consider the closing costs when you decide if you can afford a house. Closing costs can add 2% to 5% to your price tag, so you need to be aware of that. You also need to consider the additional costs of maintaining your home, including home insurance, utility bills and other miscellaneous costs. Before making an offer, you should consider asking for additional information, such as to see the water and other utility bills from the past year, and factor those into your budget.

Make sure your realtor has checked out the comparable homes in your market to make sure that the amount you are preparing to offer makes sense, and that you aren’t over bidding on the property.

You might want to hold down the contingencies to be competitive. When your home inspection reveals things that need to be fixed, you might want to consider repairing some of the things yourself after you move in. If you are too demanding with the contingencies, you might make your offer uncompetitive when compared to other offers.

Can I Really Get a Mortgage at Less Than 2 Percent?

Posted on August 15, 2021 by

Yes, it possible. Mortgage rates are at record lows. People are getting them all the time. But you have to apply though a mortgage broker, since these deals are not available through conventional channels.

Loans with a 1.99 percent interest rate have low monthly payments, but those may be offset by very high upfront costs. After all, the average rate for the 30-year fixed mortgage is 3.10 percent, according to Bankrate’s weekly national survey of lenders, and that’s a record low rate.

The 1.99 or less is just not as attainable for most borrowers. You really need to stay at 2.5 or over to stay at decent costs,” she said. “2.99 at 1.666 points is a lot more reasonable.”

Would this be a good time to get a mortgage or a refinance?

Absolutely. Inflation is rampant and at rates we haven’t seen in 20 years or more. Politicians are calling for the FED to do something to slow inflation, and that can only mean higher interest rates.

If you are considering a home load or a refinance, what you really should do is have a meeting with Ruth Schoenherr. Ruth will tell you what is feasible in your situation

Government Backed Loans

Posted on July 24, 2021 by

Government backed loans are more popular since they every often offer features not

VA Loan Veterans Affair Concept

available through conventional loans. The rate may be lower. The down payment may be lower. It may be easier to qualify.

Government-backed loans are secured by a federal agency. Several federal agencies offer mortgage programs, including the FHA and VA.

or each loan type, the backing agency insures, or guarantees, the loan amount, which protects the lender in the event a borrower can’t repay the loan. This removes significant risk, making it easier for lenders to offer lower rates and lower-to-no down payment options.

Government-backed mortgage loans are different from conventional loans in that:
Conventional loans are not insured by a government agency.

They are riskier for lenders, so they tend to have stricter eligibility requirements.

Conventional loans are generally more popular and accessible than government-backed mortgage loans.

Government-backed loans have different cost structures than conventional loans, including upfront fees and mortgage insurance requirements.

Government-backed loans have eligibility requirements that you won’t see with conventional loans. For example, VA loans are reserved only for members of the military and their families.

Ruth Schoenherr can help you find an FHA mortgage, a VA mortgage or a conventional mortgage. Call today for an appointment.

Make Your Home Energy Efficient

Posted on June 19, 2021 by

Energy efficiency in the home provides numerous benefits to the homeowner, including driving down energy costs, increasing the property value and creating a cleaner, healthier living space.

Duke Energy offers a program where they come to your home and do an energy audit. The audit is free. in the audit, they identify specific things that y0u can do to make your home more energy efficient. We strongly recommend that you take advantage of this program.

In Addition, there are several steps you can take to boost your home’s overall efficiency.

Air Filters. Make sure filters in all appliances throughout your home are cleaned and replaced regularly, which can significantly enhance their effectiveness. The Energy Department noted that replacing your air conditioner’s dirty filter can improve its efficiency by up to 15%.

Transportation. Decrease the amount of energy your family uses by relying more on energy-efficient forms of transportation. That means carpooling, taking the bike and using public transit whenever possible.

Reduce, reuse, recycle. You can also make major strides toward reducing your carbon footprint by reusing and recycling waste products and other unused items. More than just chucking plastics in the recycling bin, you can also donate worn clothing, compost food scraps and sell used electronic equipment to the right IT companies.

Solar Panels. Finally, you can invest in renewable energy like solar. Solar panels don’t generate any emissions and gather their power from the sun, and they can save you more than $1,300 a year on energy costs.

Getting Pre-approved for a Mortgage

Posted on May 9, 2021 by

This is a real estate market like nothing else in many years. As you know, there is a huge shortage of homes, which means houses are usually sold quickly and there very often are multiple offers. If you are competing for a home, if you are not pre-approved for a mortgage, you are going to be at a disadvantage with the competition.

There are some advantaged to be pre-approved:

Going through the pre-approval process with several lenders allows a home buyer to shop interest rates and find the best deal.
A seller often wants to see a mortgage pre-approval letter and, in some cases, proof of funds to show that a buyer is serious.
The first step is filling out a mortgage application and supplying your Social Security number so the lender can do a credit check on you.
You’ll also need to provide extensive documentation of job history, assets and liabilities, income tax returns, and more. Self-employed buyers may need to provide additional documentation.
After reviewing your application, a lender will offer pre-approval or pre-approval with conditions, or deny pre-approval.

When looking at your application for pre-approval, the first thing they will look at is your credit score and your credit history. They will also consider whether you have too much debt. They will see if you are employed and how long you have had your been in your current position. They obviously will consider how much you make and what assets you have.

We’re Not Too Busy to Help You

Posted on April 18, 2021 by

There seems to be a frenzy of people moving to Florida. There seems to be a frenzy of people looking to buy houses. There seems to be a frenzy of people refinancing their homes while interest rates are still low.

As COVID-19 continues to affect the job market, it’s playing a totally different role on the housing market.

Mortgage lenders are staying busy with people flocking to refinance their homes. That’s mainly due to historic low interest rates allowing people to save money during these uncertain times.

Many, if not most banks still have their lobbies closed. Banks seem to have used COVID-19 as an excuse to give bad service.

Don’t be discouraged. You can still get good service from Ruth Schoenherr. When you call her number, you don’t get a corporate staff – you get Ruth. Ruth doesn’t work bankers hours. She goes the extra mile to help you get your mortgage on time. Call Ruth today to discuss your situation.