Navy Fellas Realty Group

Real Estate, Residential sales and purchase

Escrow And Your Mortgage: The Most Important Points To Know

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Escrow And Your Mortgage: The Most Important Points To KnowThere are many complicated terms thrown around regarding your mortgage, and one of them is an escrow account. You will probably hear that your lender will collect some additional money every month for escrow payments. If you take a look at your mortgage statement, you will see your interest, your principal, and your escrow. What does this mean, and why do you have to pay additional money that isn’t going toward the balance of your loan?

The Definition Of An Escrow Account

An escrow account is an extra account that your lender opens on your behalf to make sure certain expenses are covered. Because your mortgage investor has a lien against the property, the mortgage company has an interest in making sure your property does not fall into foreclosure. That means that you need to stay on top of all of your expenses, including those beyond your mortgage. 

What Escrow Accounts Will Cover

Generally, your mortgage company will open an escrow account that is used to cover your home insurance premium and your real estate taxes. Generally, real estate taxes and home insurance premiums are only billed once per year. If you get a large bill for several thousand dollars, you might not be able to cover it. If you don’t pay your real estate taxes, the government could foreclose on your house. Instead of asking you to pay thousands of dollars at once, your mortgage company will open an escrow account for you, collecting small amounts of money every month to make sure you stay up to date on your home insurance taxes and premiums.

How The Balance In Your Escrow Account Is Determined

If your mortgage company is collecting additional money every month, that means there is less money for you to spend. Therefore, your mortgage company is careful only to collect as much money as required. Your escrow account balance is determined by your property taxes and insurance premiums. During an annual escrow review, your mortgage company will see if the account has a surplus balance. If it does, you will get a refund for the surplus balance. Keep in mind that if your real estate taxes or insurance premiums go up, your mortgage company may collect more money in the future. 

The Right (And Wrong) Reasons To Buy A House

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The Right (And Wrong) Reasons To Buy A HouseThere are many people who dream of owning a home, but you need to purchase your home for the right reasons. Simply purchasing a house because other people are doing so is not a strong reason to make such an expensive purchase. What are some of the reasons why you should purchase a house? What are some examples of bad reasons to buy a home?

The Right Reasons To Buy A Home

There are several strong reasons why you should consider purchasing property. If you have children, you may want them to attend a specific school. Therefore, you might be interested in purchasing a house in that school district. If you plan on being in a house for several years, you may be able to financially justify this purchase.

You may also want to purchase a house because you have relatives who want to move in with you. For example, many people like to take care of their parents as they get older. If you believe you can keep your parents out of an assisted living center by allowing them to move in with you, purchasing a house might be a smart move.

The Wrong Reasons To Buy A Home

On the other hand, there are wrong reasons to purchase a house as well. For example, if you believe you should purchase a house because the value of a home is always going to go up, that is not necessarily the case. Just like other financial markets, the real estate market can rise and fall, and there is no guarantee that your house is going to go up in value.

You should also try to avoid purchasing a house just because you feel guilty about renting. If you feel like you are approaching the home purchase process with some misgivings, you need to pause and think twice. Just because you are tired of renting doesn’t mean you should purchase a house.

Think Carefully Before Making A Decision

Purchasing a house is a big decision, and you need to review the benefits and drawbacks carefully before you decide to move forward. Do not hesitate to reach out to an expert who can help you figure out if purchasing a house is right for you. 

 

How Can You Increase The Safety And Functionality Of Your Home?

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How Can You Increase The Safety And Functionality Of Your Home?What do you need to do if you want to improve the safety and functionality of your home? You may not think that your home has a lot of safety hazards, but you might be surprised at how many people get hurt at home every year. Particularly if you have older people in your home, or if you have people in your house with disabilities, you need to pay close attention to your safety and functionality. What are a few tips you should keep in mind? 

Target The Lights In Your Home

If you have an older home, it may have incandescent light bulbs in it. Pay attention to the lights in your home, and make sure they maximize the light in every room. If the bulbs are too dim, it may be a challenge for you to see where you are going, particularly when the sun goes down. Consider swapping out the lights for LED light bulbs. You can not only make it easier to see but also reduce your electricity bills.

Remove Trip Hazards

You should also try to remove trip hazards from your home. Falls are one of the most common reasons why people get hurt, so try to remove objects that you might trip over. For example, if you have area rugs, you may want to tuck the tassels underneath. That way, you have a much lower chance of tripping on them.

Install Grab Bars In The Bathroom

You may also want to consider installing some grab bars in the bathroom. Bathroom floors can get wet, making it easier for people to slip and fall. This is particularly true in the shower and bathroom. By installing some grab bars, you have an extra way to stabilize yourself when you are bathing. This can reduce your chances of falling and striking your head, shoulder, or hip.

Make Your Home Safer And More Functional With These Tips

From time to time, you should do a comprehensive evaluation of your home to see how you can improve your house’s safety and functionality. This can make a significant difference in the value of your home while also reducing the chances of someone falling and getting hurt. 

 

To Stay or to Go: Should You Hang Around During Your Open House?

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To Stay or to Go: Should You Hang Around During Your Open House?Are you thinking of listing your home for sale? Whether this is your first sale or you have been through the process a few times, you are probably aware that you will need to host at least one open house. Welcoming strangers in to tour your home can range from delightful to irritating, but it is all part of the selling process. So, should you stick around or disappear when potential buyers are viewing your home? Let’s explore your options.

The Best-Case Scenario

For almost every buyer, the ideal situation is that they are viewing a clean, vacant home which is empty of all furnishings. It can be challenging to visualize your family in your future house when you are trying to see past the current tenant’s clutter and furniture. Depending on your circumstances, this might not be possible. 

Are You A ‘People’ Person?

Would you consider your family welcoming and extroverted? Or are you more of the private, inclusive type? If you aren’t really ‘people’ people, then it is probably best if you disappear during your open house. Your real estate agent will be working hard to ensure that your potential buyers start to feel ‘at home’ while touring through your home.

If your personality is more of the shy, quiet type, then you may find interacting with buyers awkward or even intimidating. If that is the case, you should find someplace else to be during your open house.

When In Doubt, Let Your Agent Answer

Finally, keep in mind that interested potential buyers are going to have a lot of questions. They will want to know the fine details about the condition of the home, if there are any surprises waiting to be found and if they can grind down the price. If you do decide to stick around, it might be best to let your agent give the answers.

As you can see, there are pros and cons to being home during an open house. If you are ready to move forward with selling your home, contact us today. Our professional real estate agent team is happy to meet with you, discuss your options and share how to get your home listed so it quickly sells for the best possible price.

What’s Ahead For Mortgage Rates This Week – November 28, 2022

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What's Ahead For Mortgage Rates This Week - November 28, 2022

Last week’s economic reporting included readings on new home sales and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also published. No economic data was published Thursday or Friday due to the Thanksgiving holiday.

New Home Sales Surpass Expectations in October

The Commerce Department reported higher-than-expected sales of new homes during October. New homes sold at a seasonally-adjusted annual pace of 632,000 homes sold.  Analysts expected new homes to sell at an annual pace of 570,000 sales as compared to the revised annual pace of 588,000 new home sales in September. The supply of available new homes rose by 1.50 percent between September and October and approached a nine-month supply of new homes for sale. Rising mortgage rates affected affordability for first-time and moderate-income home buyers, but average mortgage rates fell last week.

Mortgage Rates Fall, Jobless Claims Rise

Freddie Mac reported lower average mortgage rates last week as the average rate for 30-year fixed-rate mortgages fell by three basis points to 6.58 percent and the average rate for 15-year fixed-rate mortgages fell by eight basis points to 5.90 percent. Homebuilders reported rising costs and slowing home sales; some builders added or increased buyer incentives including mortgage rate buydowns and paying buyers’ closing costs.

Last week’s first-time jobless claims were higher than expected with 240,000 new claims filed as compared to the expected reading of 225,000 initial claims filed and the previous week’s reading of  223,000 new jobless claims filed.

Consumer sentiment fell to an index reading of 56.8 in November according to the University of Michigan’s consumer sentiment survey. November’s reading reflected consumer concerns about inflation and a potential recession and was markedly lower than October’s index reading of 59.9 and the October 2021 reading of 73.6. Consumer sentiment about economic conditions in the next six months was also lower at an index reading of  55.6. Readings over 50 indicate that most consumers have a positive view of economic conditions.

What’s Ahead

This week’s scheduled economic news includes readings on home prices, pending home sales, and inflation. Weekly readings on mortgage rates and jobless claims will also be released.

Do You Own an Income Property? Here Are Four Tips for Finding Great Tenants

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Do You Own an Income Property? Here Are Four Tips for Finding Great TenantsTrusting another individual with your property can be nerve-wracking because it’s difficult to gauge how well they’ll care for their home from a viewing and rental application alone. However, there are several steps you can take to help ensure that you select responsible tenants that will take good care for your property while they live there.

1. Make Your Home Desirable

When creating your rental listing, show your property at its absolute best and list its attractive features. The listing should be well written with proper capitalization and full sentences, even if it’s only going on Craigslist. Include plenty of photos that are staged nicely to show the full potential of the home both inside and out.

If you want the best applicants, strive to be the best property! You need to attract tenants who are looking for a home rather than a crash pad.

2. Have A Thorough Application Process

Don’t be afraid to ask for in-depth information from your applicants. The more you know about them the more you can assess what kind of a tenant they’ll be. An application should ask for:

– full name
– the applicant’s job & their supervisor
– their income
– current address
– government identification (i.e. a photocopy of their driver’s license)
– next of kin or an emergency contact
– previous landlord references
– any additional info you think is necessary

3. Check References

One of the most important things you can do when choosing a tenant is check their references. At least one reference should be a past landlord, and it’s great to contact a current employer as well. Favor applicants who can prove they’ve been a good renter in the past and who seem to have reliable employment.

When calling references have a prepared list of questions. For past landlords you’ll want to ask about their cleanliness, if there was any damage to the property, noise complaints, or missed rent. When speaking to an employer, make sure to ask how long they’ve been working there, whether they’re a reliable worker, whether they’re respectful, and if they can see them continuing to work there for the long-term.

4. Meet Them!

Always meet potential tenants in person. See if they have a pleasant demeanor, if they’re easy to talk to and are polite to you, and whether they seem to take care of themselves. Trust your gut, if you have a bad feeling about someone then it may be best to keep looking.

Need more advice on income properties? Contact a your trusted real estate professional today.