Do you think your ready to start your house hunt?

The Orlando area housing market has no shortage of homes to look at, if you don’t lead a focused search you could spend countless hours (or days, or weeks, or months…) and miles looking at properties that you will never buy, you should never waste your time looking at homes that aren’t right for you.

Ask yourself these home buying questions:

1. Have you connected with a knowledgable REALTOR?
2. Have you been pre-qualified for a mortgage?
3. Have you determined your targeted area?
4. Have determined your housing needs?

If you answered yes to these questions it’s time to hit the homebuying road.

A REALTOR is so much more than just the person who opens the door to what could be your next home, a REALTOR can help you save time and money.  Contact Debbie Summers to start your house hunt today @ 407-758-1020.

Mortgage Interest ads up…

The two graphics below are a simple illustration of the difference in the costs of a 15 year  and a 30 year mortgage.  The same house financed for 30 years in lieu of 15 years will cost you a whopping $76,368.60 more in interest [based on the factors below - for a home loan of $150,000 at an interest rate of 5%].  If you can think of a lot of things that you can do with $76K (other than pay it in interest) you may want to think twice about that 30 year term.

Call (407-758-1020) or write if you have questions about buying a home!

Lake Mary Home Buying Guide…

Buying your first home can be exciting. Getting ready to buy your first home takes time and learning as much as you can while you are getting ready to take the plunge into homeownership will help you make the best decision.

Below we have included links to articles we’ve previously published about buying a home in Lake Mary.  Please click the links below to view those articles.  If you have any questions or are ready to take advantage of the affordable home prices and low interest rates. Please contact Debbie @ 407-758-1020 or by email.

• Taking the Plunge?
  • Find Your Homebuying Lifeguard
• Step 1 in the Homebuying Process
  • Finding the right Mortgage Advisor
• Show me the money!
  • Upfront Expenses
  • Down Payment
  • Closing Costs
  • Your Mortgage Payment
• Your First Place
  • First time is the Charm
• The First Rule of Real Estate
• Location, Location, Location

What should this real estate motto mean to you?

You could approach just about anyone on the street and ask them what the one of the most important factors to consider when buying real estate and you are sure to hear the mantra “location, location, location”.  Why has this phrase become so ingrained in our thoughts about buying real estate and what does it actually mean?

This turn of phrase is referring to three most important factors when determining the desirability of a property.  I explain to clients that identical properties can have higher or lower values based solely on their locations. There are plenty of “identical homes” in the Orlando area, but their values are highly influenced by the neighborhoods they reside in.

What does a top spot in Seminole County look like:

• It’s zoned for highly rated schools – Seminole County has some of the most highly sought after public schools in all of Central Florida. Homeowners and homebuyers know that their property values are directly linked to the school grades that are published each year and the success of it’s students.
• It’s Close to shopping, entertainment & restaurants – You can’t put a price on convenience.  I live within walking distance to the grocery store, it’s made my life easier and if I’m lazy and don’t want to cook… I’m within 5 minutes of anytime of cuisine my little heart can desire, we have a standing date at Danny’s Broasted Chicken every Tuesday night☺
• It’s easy to get around in Central Florida from- Easy access to Orlando’s major roadways: Interstate 4 & The Greenway – time really is money. People will pay more to save time… I use Google Maps all the time to map commutes for time and mileage.
• It’s near the great outdoors –  State Parks, City Parks, Trail Systems, Splash Parks, Ball Fields, Sports and Recreation Facilities, Central Florida Zoo, Lakes, Riverwalks… Central Florida residents really do have “The Natural Choice” to enjoy everything that Seminole County has to offer.

If you are looking for your ideal location? Please contact Debbie Summers, REALTOR via cell/text @ 407.758.1020

Your Mortgage Advisor = Homebuying Success or Failure…

No one really likes to talk about their finances, well except for maybe Donald Trump, but that shouldn’t keep you from taking the first step in the home buying process and getting pre-qualified. Believe it or not, a quick phon call or email to the right mortgage advisor will get you started and I promise it won’t hurt a bit…

How do you find a great mortgage person? Ask your REALTOR® who they would work with if they were going to buy a home tomorrow. If you aren’t working with a REALTOR®, stop reading this post and click this link to see why you should be…

The right mortgage planner can develop a winning strategy for your homebuying success, provide you with options and help you determine the right path for you to homeownership.

5 things your mortgage advisor will ask for in order to get a mortgage …

1. Your Personal Information [Name, Birthdate, Social Security Number]
2. Your Tax Returns [Last 2 Years with your W-2's]
3. Your Recent Pay Stubs [Last 30 Days]
4. Your Bank Statements [Last 60 Days]
5. How much cash you have on hand for Downpayment and Closing Costs

Seminole County & Lake Mary Homebuyer Resources:

• Get connected with a mortgage advisor
• Handy Dandy Mortgage Calculator To Run Some Numbers

First Time is the charm…

Now that you have your homebuying budget and you’ve decided to take the plunge and buy your first home, it’s a good idea to take a little time to decide just what the right house for you will be.  A helpful hint I share with my clients is to write down what you are looking for in a home, you might want to ask yourself the following questions:

• Do we want a house with a yard or is a townhouse or condo more our style?
• Are we handy “do-it-yourself” types or are we looking for a place that already has been updated?
• What are your needs?
  • Number of bedrooms
  • Number of bathrooms
  • Garage
  • Number of floors [some people don't like stairs]
  • Fenced yard for the pooch
  • Close to work
• What are your wants?
  • Large kitchen / family room combo
  • Large closets
  • Master bathroom tub
  • Split bedrooms
  • Granite countertops
  • Gated Community

Taking the time to map out your homebuying plan can save you time and money. Discovering what you are really looking for will make your first homebuying experience an exciting adventure!

Do you have questions about buying your first home? Please call 407-758-1020 or email Debbie for a free homebuying consolation!

Homebuying 101 Articles you may find helpful…

Taking the Plunge – Finding Your Real Estate Lifeguard

Your Homebuying Budget – Upfront Purchase Expenses

Your Homebuying Budget – How much is the downpayment?

Your Homebuying Budget – Closing Costs

Your Mortgage Payment…  How much is it going to cost you?

In our last couple of “Homebuying 101 Articles” we talked about how much it would cost upfront to have inspections and appraisals completed, how much the downpayment for a home would be and how much you would need to bring to closing and revealing the mystery of closing costs.

One of the most important factors that go into your home purchase [once you establish that you have the financial ability to pay the upfront costs, the downpayment and closing costs] is your mortgage payment.

When you “get qualified” for a mortgage with a broker or lender they will tell you the maximum price of home you qualify for, which is very useful information, but more importantly you need to find out the payment for that loan amount [always ask for an estimate that includes principal, interest, property tax escrow and hazard insurance escrow].   Your home purchase price may depend more upon your monthly budget than anything else.  Being comfortable with your monthly mortgage expense is VERY IMPORTANT.

If you are considering buying a home in community that has a homeowner’s association or is in a townhouse community or is a condo, you also have to factor in Homeowner’s Association or Condo Association fees.  These fees are not part of your mortgage payment, but are typically due on a monthly or quarterly basis and will put a dent in your budget if you don’t consider them upfront.

If you are considering buying your first home, please contact me for a free “First Time Homebuyer” consultation… In about an hour, I’ll give you some helpful tips and a guide to get on the path to homeownership.  I’ll even throw in a cup of coffee! Please contact me text/cell @ 407-758-1020 or Debbie@MoveToLakeMary.com if you would like someone to walk you through the homebuying process.

Want to get pre-qualified for a mortgage or to talk to my “go to mortgage guy”? – click this link to “get connected”.

Homebuying 101 Articles you may find helpful…

Taking the Plunge – Finding Your Real Estate Lifeguard

Your Homebuying Budget – Upfront Purchase Expenses

Your Homebuying Budget – How much is the downpayment?

Your Homebuying Budget – Closing Costs

The expenses that make up your closing costs…

Origination Charges or Origination Fees are how a lender or mortgage company get paid for their services.  These fees are often negotiable, if you are comparing proposals from different companies this may be an area to save money on the cost of obtaining a loan.  Many of these fees are tax deductible, please check with your tax preparer to verify.

• Processing Fee
• Underwriting Fee
• Lender Fee
• Doc Handling Fee
• Funding or Courier Fee
• Origination Fee
• Credit Report

Hint: Lender fees vary and are based on the type of loan and loan amount. When considering any lender ask for an estimate of your closings costs and mortgage payment.  If a prospective lender will not furnish that information to you find someone who will.  At the time of loan application, a lender is required to provide you with a closing cost estimate in writing and it must be in writing. You should never make an offer on a property without an accurate estimate of closing costs and payment.

Advance Payments to pay for items that are due at closing.

• Homeowner’s Insurance Premium
• Mortgage Insurance Premium [if required]
• Daily Interest Charges [based on day of the month of closing]

Title Charges are paid to the title company that facilitates the closing, prepares and records the deed to the property and provides a title policy to the buyer insuring ownership in the property.

• Lenders Title Policy
• Closing Fee
• Flood Certification
• Endorsements
• Courier / Wire Fees
• Florida Form 9

Recording Fees are paid to the city/county/state governments and are based on either the sales price or number of pages of the document recorded.

• Mortgage Recording Fee – City/County
• Mortgage Recording Fee – State
• Deed Recording Fee – City / County

Other Fees are paid to vendors not directly involved in the closing, but who provide services related to the transfer of title.

• Survey
• Home Owner’ s Association Transfer Fee [should be disclosed prior to contract]
• Home Warranty

Escrow Reserves are monies that are required by a lender to be paid in advance to accrue in anticipation of the annual payment to be made by the mortgage company on your behalf.

• Homeowner’s Insurance
• Property Taxes

Helpful Hint: The Rule of Thumb that I use for homebuyers is a Convention Mortgage is typically 3 – 4% of the purchase price for closing costs and an FHA Mortgage is right around 6% [this loan requires an "up front" mortgage insurance premium].  These numbers are not set in stone, but are a useful tool to help you budget.

For more information about obtaining a mortgage in or budgeting for closing costs, please email Debbie Summers, Lake Mary REALTOR or call/text her at 407-758-1020, she’ll connect you with her “Go To Mortgage Guy”.

For more information about closing costs and how to save money… Check out this article from ABC News and Good Morning America:  Save Thousands on Closing Costs!

Your Down Payment…  How much $$$ does it take?

In our last installment of the Homebuying 101 series “Your Budget” we covered the upfront expenses [inspection fees, appraisal, escrow deposit, etc.] you will need to have on hand to purchase a home.  We’re moving on to downpayments and the different requirements of each mortgage product.

• FHA Loan:  Generally a borrower must make a cash investment of at least 3.5 percent of the contract sales price as required by the Housing and Economic Recovery Act of 2008.
• Conventional Loan:  If a borrower does not want to pay private mortgage insurance, a minimum of 20 percent of the contract sales price is required as a down payment.  Based on the borrower’s income, assets and credit worthiness a downpayment of less than 20 percent [15 - 5 percent] could be acceptable, but the loan would include a monthly mortgage insurance premium.
• USDA Guaranteed Loan:  If a borrower qualifies the loan covers 100 percent of the contract sales price. These loans are only offered in rural areas and are serviced by direct lenders that meet federal guidelines.

Homebuyer Resources:

• U.S. Department of Housing and Urban Development
• Request a free mortgage pre-qualification
• Request the phone # of my “Go To Mortgage Guy”

Are you getting ready to take the plunge and buy a home? Call or text 407-758-1020 or email me to meet for a free cup of coffee to discuss your homebuying plan.

One of my favorite movie lines of all time comes form ‘Jerry McGuire’…  Who can’t visualize Cuba Gooding Jr. asking Tom Cruise to scream “Show Me The Money”?  If you are getting ready to buy a home…  We have to talk about money.

One of the most important factors that can affect your home buying decision is how much money you are going to need. When I talk about “The Money”, I’m not just asking you to consider your monthly payment, but closing costs and upfront expenses as well.  Your homebuying budget needs to include the following:

1. Upfront Expenses:  Inspection fees, Appraisal & Escrow Deposit
2. Downpayment: FHA or Conventional Mortgage
3. Closing Costs:  Mortgage Insurance, Origination Fee, Insurance, Escrow Reserves, HOA transfer fees and more…
4. Monthly Payment: Principal & Interest, Insurance Escrow & Property Tax Escrow and HOA fees.

Upfront Expenses to anticipate when you are buying a home?

Inspection Fees

• Home Inspection:  *$250 – $500
• Termite / WDO [Wood Destroying Organisms]:  *$95 – $200
• Septic Inspection:  *$325 – $400
• Well Inspection:  *$100 – $250
• Mold Inspection:  *$300 – $500
• Radon:  *$225 – $400

Educating homebuyers on the types of inspection that they might want to consider when purchasing a home is something that I take very seriously.  The majority of homebuyers have a home inspection, which includes the overall functionality of systems in the home and a WDO inspection to protect against an active termite infestation or other wood destroying organisms.

If the property does not have sewer service, we encourage buyers to have a septic inspection even if it is not a requirement of financing and a water quality test performed on the well water.  Some types of financing require a well and septic inspection as a condition of financing.

Not as common are mold and radon tests, rarely a condition of financing, but often a request of homebuyers with respiratory issues.

Appraisal Fees

• Home Appraisal:  *$350 – $550

An appraisal is typically required as a condition of financing to confirm that the buyer is purchasing a home at or below market value and that the lender’s not loaning more money to the homebuyer than the property is worth.  The homebuyer typically pays this fee to their mortgage company at the time of service as the fee is due whether or not the home purchase is completed.

Escrow Deposit

• Negotiable – My personal rule of thumb:  1% of the Contract Price

The escrow deposit is also called “good faith money” – this money is typically placed with the title company that is handling the settlement/closing on the property.  This money is part of the cash that the buyer is to bring to closing and is being deposited to show the seller that the buyer is moving forward with the purchase in “good faith”.  If you are purchasing a home with a sales price of $150,000, a respectful good faith deposit would be $1,500.00.  If the home purchase does not get completed, the buyer requests his escrow deposit back and the seller must give their approval for it’s release.  I’ll be writing a future post regarding escrow deposit disagreements and remedies.

If you have additional questions about how much money you should budget for upfront expenses for your home purchase, please call Debbie @ 407-758-1020 or email her to talk about your home purchase…

*Estimate of inspections fees, fees are based on geographic location, type and size of the property - this is an estimate, please check with your local service providers for an exact fees.