How to Be the Most Attractive Home Buyer

Since markets are moving fast, experts recommend sellers have their loan pre-approved and down payment ready before starting their search. “The market is changing,” says Cara Ameer, broker associate and Realtor at Coldwell Banker Vanguard Realty based in Ponte Vedra Beach, Fla. “Inventory is low and demand is high—a buyer needs to know exactly what their parameters are. Multiple bids are becoming the norm, so be ready to compete and do your homework to seal the deal. The longer the negotiations, the more chance you could lose out to someone else who made a better offer, says Ameer. Be reasonable without being difficult because until an offer is signed, sealed and delivered, other buyers can bid on the property. While you have to compete in the current market, maintain your budget. “You don’t want to end up paying more for the house than it’s worth,” says Daren Blomquist, vice president at RealtyTrac. Experts warn against cutting corners like skipping the inspection or engaging in a bidding war. You don’t want to unduly stretch yourself just to get into a property,” says Blomquist. To help you become a homeowner in this competitive market, experts recommend the following tips for being the most attractive: Plan Ahead “You have to plan four months before you’re going to buy,” says Michael Corbett, Trulia’s real estate expert. Check your credit for accuracy and avoid making any big purchases or taking on any big debt during this time. “[Debt] brings down your credit score and increases your debt-to-income [ratio] which are two critical things banks look at when qualifying and preapproving you for a loan,” says Corbett. If your debt-to-income ratio is too high, experts recommend paying down as much debt as you can to lower this ratio. Set Your Home Price “Don’t look at a $300,000 home if all you can afford is $250,000,” says Ameer. Less supply on the market increases the likelihood for multiple offers, and you won’t be able to compete. “If properties are selling at 95% of asking price, don’t think you’ll get a deal at 85% of asking price,” she says. If you do spot a great deal on a house, don’t wait days to make an offer, warns Corbett. Since time isn’t on your side, learn how to spot a great deal by researching an area’s home prices. “Do a little due diligence and go to open houses—do your homework,” says Corbett. Being educated will help you negotiate and could prevent you from paying more for a house than it’s actually worth because you’re emotionally involved. Know That Cash Is King The more cash you have, the more appealing you are as a buyer. Putting 20% or more down makes you look more financially stable and gives sellers comfort that you’ll qualify for a mortgage, says Corbett. Cash can cover a multitude of problems when you make an offer, whether it’s difficulty with the mortgage process or a lower-than-expected appraisal. “A buyer can contribute more cash to cover the difference between the appraisal and offer price,” says Blomquist. If your appraisal is low, don’t expect the appraiser to come up in value, says Ameer. “Appraisers are under scrutiny with the banks and they have to justify everything they do.” They’re required to follow Uniform Standards of Professional Appraisal Practice (USPAP) guidelines, as well as lender guidelines. Appraisers use surrounding properties for comps, says Ameer, and if there are only foreclosures, that’s a bad hand to be dealt. You can always review the appraisal for discrepancies and suggest different comps but don’t expect the value to change. Get Pre-Qualified Before Your Search Getting pre-qualified for a mortgage gives a ballpark for what you can afford to buy and will streamline your search process. "Getting pre-qualified will also help you to compete with an all cash buyer, says Walter Molony, spokesperson for the National Association of Realtors. When you know what you can afford and are pre-qualified, you won’t be shopping outside of your price range." Get Pre-Qualified with the Florida Mortgage and Loan team Pre-Qualification This soft credit report is accurate and doesn't effect your score. Limit Your Contingencies Experts suggest having as few contingencies as possible to be an alluring buyer. “Don’t over-complicate your offer to the seller,” says Ameer. Certain contingencies based on your ability to get a mortgage, the appraisal and home inspection are standard, but piling on more could make the seller less inclined to work with your offer. Experts advise making an offer based on a satisfactory home inspection. “It gives you the opportunity to walk away if you find in an inspection that there are too many problems with the house,” says Corbett. Making your offer contingent on you selling your house first will make you a less appealing buyer. If you need to sell your house before buying a new one, then sell your home first and rent or move in with family or friends while you look for your new home, says Blomquist. “As a seller, you’ll sell that home quickly. Then as a buyer, you’re much more appealing than a buyer contingent on a sale.” Add A Personal Touch Corbett suggests sending a letter to explain why you want to buy that house. “You become a person who really loves and appreciates the home instead of just a number,” says Corbett. Sending a letter is just one extra little thing that will help level the playing field. Be Flexible With Closing Dates “Let the seller know that you would be flexible on the closing timeline,” says Corbett. Find out when the seller would ideally like to close on the house and see if you can match it. Connect with us on Social Media: Facebook Instagram LinkedIn

Fulfill your american dream

The purchase of a home is the goal of the vast majority of Americans.  That is why home ownership is often referred to as “The American Dream of Home Ownership.”   Two-thirds of Americans have taken advantage of the tax benefits, government programs and the economic benefits of owning to become homeowners.   

It is the mission of our company to foster this dream of home-ownership, using every resource available to help the average American reach their goals with as much knowledge and as little stress as possible.  One area that keeps many Americans from reaching this goal is their ability to qualify for a mortgage.  That is why our Florida Mortgage and Loan officers are expert advisors trained to help the average citizen get in the best position to purchase as possible.   

There are several areas that can help you get in position to qualify for a mortgage….. 

• Your credit score.  Today, a low score can be a cause of rejection or add to the cost of home ownership.  It is important to start by finding out your score and, if it is low, determining a plan of action to raise your score. Our website, MyFloridaLoan.com offers a free soft credit report that will not effect your score Pre-Qualify/Soft Credit. The good news is that anyone can raise their score with the right plan and this can help lower many of your costs.  If you don’t know your score or don’t know what your score means with regard to obtaining a mortgage, contact our Florida Mortgage and Loan experts.    andrea@myfloridaloan.com   

• Your monthly debts.  Many can’t purchase because they have too many debts. This problem also hurts in other ways as too many debts can help to lower your credit score and make paying a mortgage or rent more difficult. It is important to come up with a plan to lower your debts. Again, we can help determine how your debt load may be affecting your qualification for a mortgage as well as setting up a program to help you get your debts paid down.

• Cash reserves.  Most home purchases require a down payment as well as the payment of closing costs.  Florida Mortgage participates in many programs that may help you minimize your need for cash and building cash reserves which is important for qualification standards.

• Income documentation.  Many Americans do not keep good record of their earnings, especially if they are self-employed or have other sources of income that vary such as tips or commission. We can help you determine how to document your income to satisfy qualification requirements.  

For many who don’t qualify, this process may seem daunting. However, if you are truly committed to improving your long-term financial situation, we at Florida Mortgage and Loan are committed to partnering with you to make these changes happen. We want to be more than your broker. Those who are rich have experts that give them advice. Why shouldn’t the average American have the same advantages?  Contact Florida Mortgage and Loan to get started on your path to the American Dream.

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5 Things NOT to do when buying a Home

Buying a home in Florida is the biggest purchase most people will ever make, yet many go into it blind. Here are the most common, and costly, mistakes home buyers make: 

Not knowing your credit score. If you’re even toying with the idea of buying a home, you must find out exactly what your FICO score is. Go to our free soft credit pull.
This soft credit report is accurate and doesn't effect your score.
Pre-Qualify/Soft Credit Pull
If you find your score is less than ideal, wage a systematic campaign to raise it. Too many borrowers ignore this step and get surprised when they get interest rate quotes. 

The lower your score, the higher your costs of borrowing.

Buying a car before a house. Anytime consumers open new credit accounts — credit card, auto loan, etc. — their FICO score could drop, hence the admonition to not open other new accounts while your mortgage application is in process. 

A big purchase would use up a considerable proportion of a borrower’s total credit limit, which results in a drop in the score. Lenders often continue to check credit scores in the weeks before closing. The lender will likely slam on the brakes if the applicant’s credit scores have suddenly dropped below the minimum required for the requested loan rate. 

Skimping on the home inspection. It’s vital to find all the costly flaws before you buy.  Many homes on the market today are distressed   properties — foreclosures and short sales — and that only increases the importance of good inspections. 

A home inspection can find problems with the foundation, electrical, plumbing, roof, attic insulation, and heating and air conditioning. Often home buyers, who may be strapped for cash, stint on inspections and look for the cheapest way to go. That can lead to disaster. The cost of repairs far exceeds the cost of inspection.  

 No contingencies.  When signing a sales contract, buyers usually have to put up 1% to 3% in “earnest money,” which they don’t get back if they pull out of the deal except under certain conditions spelled out in the contract.  Sellers try to limit the grounds for canceling, and inexperienced buyers may sign contracts that don’t include common exceptions, such as uncovering major problems during the home  inspection, failing to obtain financing and failure of the house to appraise.  Failure to obtain financing is common these days because lenders have become very picky; underwriting is very strict. 

Even if your mortgage company is still willing to finance your purchase, the house itself may be worth less than you’ve contracted to pay for it, and the lender will pull its approval. 

With residential real estate markets still slow, sellers usually accept contingency clauses, but if they resist, it may be better to rethink the deal. Losing a deposit of $2,000 to $6,000 on a $200,000 home hurts. 

Not budgeting for insurance. Don’t underestimate insurance costs and fail to budget for them. Many home buyers don’t understand just what is — and what is not — covered. Standard policies pay for theft and wind, fire, lightning, hail and explosion damage. Not covered is flooding, earthquake damage or problems caused by neglect of routine maintenance. The most important thing  before you buy a home is to find out what it will cost to insure it, insurance needs to be calculated into the cost of owning a home. Unlike a mortgage you can pay off, you’ll be responsible for insurance costs forever. 

Our brokers at Florida Mortgage & Loan have the knowledge and experience and are happy to guide you through every step of the Florida home buying process.

Call us today! (772)807-9699
MyFloridaLoan.com

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House Plants for Cleaning the Air

Outside, the whole northern hemisphere is set to bud – springing to green. But, here you are inside, spring cleaning and finding your home a bit drab in contrast to the riot of color outside your window. The solution: bringing life to your home with common house plants.
If you don’t have the first clue about common house plants, this newbie starter list can help. The trick is to decide what you want from a plant, and then check out which flora can offer exactly that. From cleaning the air to healing your body, these greens will make a great addition to your home.

Good House Plants for Cleaning the Air

Though you can’t use them as brooms, certain house plants are great household cleaners. They filter the air you breathe by removing harsh chemicals and pollutants. Some plants are better than others, so here’s a list of the top green cleaners:

• Spider plant – Easy to grow and a fan of bright, indirect sunlight, spider plants are great for beginners and filter out formaldehyde and xylene from the air.
• Viper plant – This one is hard to kill, making it a real boon for beginners. These hardy plants filter out benzene, formaldehyde, trichloroethylene and xylene.
• Dracaena – With 40 different kinds, dracaena offer a spectrum of styles. They also help filter out benzene, formaldehyde, trichloroethylene and xylene.
• Ficus/weeping fig – This is another low-maintenance plant that filters out benzene, formaldehyde and trichloroethylene.
• Peace lily – It’s a small plant, but it effectively filters air by removing ammonia, benzene, formaldehyde and trichloroethylene.

Good House Plants for Adding Moisture to the Air

Living in a dry climate can wreak havoc on both your skin and lungs. Certain house plants transpire water, which adds moisture to the air. Transpiration means the plant will bring water up through its roots and release it via pores under its leaves or fronds. In essence, these common house plants act as a humidifier for your home.

• Areca palm – They’re low maintenance with a high transpiration rate. These plants are great humidifiers.
• Boston fern – The fern needs plenty of misting and watering to stay healthy (along with medium, indirect sunlight), but it will move that water back into your home’s air.
• Rubber plant – A variety of ficus, the rubber plant can grow quite high with partial sunlight and drier soil. So water it sparingly.
• Chinese evergreen – It’s a lovely plant with variegated markings. The Chinese evergreen needs well drained soil and lots of sunlight, but it will reward you with more humid air.
• Bamboo palm – Like most palms, this one thrives in sunlight and does a great job of humidifying and filtering the air in your home.

Good House Plants with Healing Properties

Not only can plants clean and humidify your air, many have healing properties. After all, that is the beauty of plant-based and herbal supplements.

• Aloe vera – It may have been grandma’s favorite, but that’s only because aloe vera soothes rashes, burns, inflammation and dermatitis thanks to its antiviral properties.
• Lavender – The scent can help you relax by lowering heart rate and blood pressure, as well as calming issues like toothaches, migraine headaches, sores, joint pain – even occasional sleeplessness.
• Peppermint – This is an ancient remedy for promoting healthy digestion, which is why you’ll often find peppermint infused into tea. But fresh peppermint is always good to have around, so you can throw it into your cooking and cocktails.

Even if you don’t have a green thumb, these common house plants are easy to take care of. They just need a bit of sunlight and water to survive.

Common House Plants to Avoid in Your Home

Now that you have a handle on some good house plants, don’t ignore the bad. There are some plants that will simply not get along with a pet or child – or anyone – with an affinity to chew things.

Poisonous Plants

If you have a pet, a child or a significant other who likes to taste-test all your home decor, avoid the following plants:

• Dracaena
• Aloe vera (poisonous to pets, not people)
• Philodendron
• Jade

Plants with Allergens

All plants catch dust, and that can leave you sneezing up a storm. However, some perfectly good house plants just need a half-hearted swipe with a half-damp wash cloth to clear the dust, while others require a bit more time and care. If allergies hit you harder than a two-ton hammer, avoid these plants all together:

• Ferns
• Ivy
• Fig (ficus)
• Palm
• Peace lily

This is just the beginning of where you can grow with your greenery. Start with this list, and you’ll quickly find the common house plants that are best suited for your home and family.