Navy Fellas Realty Group

Real Estate, Residential sales and purchase

First-time Mortgage Borrowers: Avoid These “Rookie Mistakes”

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First-time Mortgage Borrowers: Avoid These Many home buyers who are applying for their first mortgage will go to great lengths to research the options, learn more about loan terms and generally educate themselves about a process that they are unfamiliar with. Despite these common steps that rookie mortgage applicants make, they often make similar mistakes when applying for their first mortgage. By learning about these common mistakes, you can take steps to prevent making them yourself.

Not Focusing on All Costs of Home Ownership

Many first-time home buyers are overwhelmingly focused on setting up a mortgage payment that is affordable for their budget. While this is important, the mortgage payment is not the only expense associated with home ownership. For example, there are property taxes, insurance, repair and maintenance expenses, homeowners’ association dues and more. All of these expenses should be reviewed when you consider what mortgage payment is affordable for your budget.

Not Thinking About Short and Long-Term Plans

You should also think about short and long-term plans for your home ownership experience. Some will choose a long term or an adjustable rate to keep the payments low. However, they will not consider the fact that the payment will be in place until the home is sold or the loan is refinanced. It is not certain what mortgage rates will be in the future or if you may qualify for a great rate on a refinance loan in the future, so you should always ensure that you can maintain the payment structure for as long as needed.

Not Getting Pre-Qualified

It can be intimidating to get pre-qualified for a home mortgage. Some may fear rejection or denial altogether, and some may estimate an amount they may qualify for without actually getting pre-qualified. This can backfire for you. The pre-qualification process helps you to learn the maximum loan amount you may qualify for and the payment for that amount, and this is sound, valuable information that can help you to make a more informed decision when selecting your home.

As a first-time home buyer, you may be stressed about finding the right home to buy and researching the neighborhoods and schools. While these are all factors to pay attention to, you also need to focus heavily on your mortgage. Through these efforts, you can set up an affordable home loan that is comfortable for you to manage on your budget.

What’s Ahead For Mortgage Rates This Week – July 13, 2015

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Whats Ahead For Mortgage Rates This Week July 13 2015Last week’s scheduled economic events were few due to the Independence Day holiday. Freddie Mac’s weekly survey of mortgage rates brought good news as mortgage rates fell across the board. The Federal Reserve released the minutes of its most recent Federal Open Market Committee (FOMC) meeting and weekly jobless claims rose.

Job Openings Rise to Highest Level Since 2000

The Labor Department reported that U.S. job openings rose from April’s reading of 5.33 million to 5.36 million job openings in May. This was the highest reading for job openings since the report’s inception in 2000. Private sector job openings rose to 4.85 million, an increase of 16 percent. Government jobs rose increased by 511,000 open jobs from April’s reading of 430,000 job openings. Based on the Labor Department’s report of 8.67 million unemployed workers, there were 1.60 job seekers for each job opening in May as compared to 2.10 job seekers for each job available in May 2014. There were approximately 1.80 job seekers for each job available when the recession started in December 2007.

FOMC Minutes: Fed Issues No Firm Date for Raising Rates

On Wednesday, the Federal Reserve released the minutes of June’s FOMC meeting, during which nine of ten committee members indicated that they were not ready to raise the federal funds rate. One FOMC member indicated that they were willing to wait for another meeting or two to raise rates. While FOMC has hinted at the likelihood of raising rates this fall, committee members are wary of moving too quickly and cited developments in China and Greece as concerns that contributed to the committee’s current wait and see position. When the Fed does raise its target rates from 0.00 percent, consumers can expect higher mortgage and loan rates.

Freddie Mac: Mortgage Rates Fall, Jobless Claims Rise

Mortgage rates fizzled last week with Freddie Mac reporting average rates lower for all types of mortgages. The average rate for a 30-year fixed rate mortgage was four basis points lower at 4.04 percent and discount points unchanged at 0.60 percent; the average rate for a 15-year fixed rate mortgage was also four basis points lower at 3.20 percent. Average discount points for a 15-year mortgage fell from 0.60 to 0.50 percent. The average rate for a 5/1 adjustable rate mortgage fell by six basis points to 2.93 percent with discount points unchanged at 0.40 percent.

According to the Labor Department, weekly jobless claims rose to 297,000 new claims filed as compared to 282,000 new claims filed the previous week. There were no estimates for last week’s jobless claims due to the holiday.

What’s Ahead

This week’s scheduled economic reports include Retail Prices, Retail Prices Except Automotive and the NAHB Housing Market Index. The Commerce Department is set to release monthly readings for Housing Starts and Building Permits. In addition to Freddie Mac’s report on mortgage rates and the Labor Department’s report on new jobless claims, the University of Michigan will wrap up the week with its Consumer Sentiment report.

Boost Your Home’s Curb Appeal and Get a Quick Sale with These 3 Tips

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Summer's Coming! Boost Your Home's Curb Appeal and Get a Quick Sale with These 3 Tips Curb appeal is important in the home sales process, and this is because it will impact the overall first impression that potential home buyers have about the property. Some homeowners can easily spend a small fortune and a considerable amount of time improving curb appeal, but others may be looking for faster and easier results. The good news is that boosting curb appeal is easy and affordable to do when these three tips are followed.s

Spruce Up The Front Door

The front door and patio area are focal points for those driving by the home, and this area receives even more scrutiny by those home buyers who walk up to the home to take a tour of the interior. Re-staining or re-painting the front door can be highly beneficial to dressing up the look of this focal area, and this can give the impression that the home is well-maintained and stylish. In addition, consider replacing the front door mat and hardware on the door for improved results and added aesthetic appeal.

Power Wash The Exterior Of The Home

Beautification efforts for the front of the home would not be complete without spending time cleaning up the space, and one of the best ways to clean the exterior of a property thoroughly is by power washing it. Power washing the exterior may include cleaning the exterior siding material of the home, the patio, the driveway, the sidewalk and even the fencing. This can give the entire area a fresher and more appealing look.

Add Color To The Flower Beds

Some homeowners may not have funds or time available to fully revamp the landscaping, but showing the flower beds some attention can pay off. After weeding the flower beds, add some fresh, brightly colored blooms to the area to dress up curb appeal. Homeowners can finish off the look by spreading a new layer of mulch across the flower beds after the flowers have been planted.

Curb appeal is vital to selling a home quickly and for top dollar. Enhancing curb appeal can cost a small fortune and could take weeks to do, but even these small and affordable efforts can give homeowners great results with minimal time and money required. Homeowners who are thinking about selling their property soon can contact a real estate professional for personal assistance with their staging and home improvement efforts.

The Pros and Cons of Using Spare Funds to Pay Your Mortgage Down Faster

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The Pros and Cons of Using Spare Funds to Pay Your Mortgage Down Faster A home mortgage payment can be a large or even the largest expense in a person’s budget, and not having this payment any longer can be a life changing experience. Because of this, you may be dreaming about the day when you no longer have to make this payment.Some people may even actively make extra payments to their mortgage in order to pay the outstanding balance off more quickly.These may be funds from an IRS tax refund, cash received from the holidays or a birthday or some other windfall.

Before you make the decision about whether to use spare funds to pay your mortgage down more quickly, consider these pros and cons.

The Benefits of Making Extra Mortgage Payments

You can shave many years off of your home mortgage when you make even a single extra payment each year. This can help you to achieve long-term financial goals, build equity and avoid paying more than necessary in interest charges. Keep in mind that any principal that is removed from the outstanding balance now will not generate interest charges going forward. This can have a snowball effect on your home equity, and this is especially true when you make extra payments on a regular basis.

Why Extra Payments Are Not Always the Best Option

Clearly, there are some great benefits associated with making extra payments on your home mortgage. However, there are also some downsides to consider before you take this step. Your home mortgage may be one of your debts with the lowest interest rate.

For example, many mortgage interest rates today are below five percent while some credit card rates may exceed 15 or 18 percent. Over the long-term, you may benefit more from savings on interest charges by reducing higher interest rate debts. Even if you have no other debts besides your home mortgage payment, you may be able to invest the money for a higher return than the interest rate on the mortgage.

Each person has different short and long term goals as well as a different financial situation to consider. With how low mortgage rates are today, however, many will benefit from paying off high interest rate debts and making smart investment decisions with any extra money they have.

Understanding Home Appraisals and Why You Want a Real Estate Agent to Determine Listing Prices

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Understanding Home Appraisals and Why You Want a Real Estate Agent to Value Your HomeWhile there may be instances when a homeowner must sell a property and move regardless of market conditions, there are other times when the value of the property will be a deciding factor in whether a homeowner moves or remains in the home for a longer period of time.

Some homeowners will attempt to determine the current value of their home on their own or order an appraisal, but these values are not always an accurate representation of a realistic listing price. There are a few good reasons why it is best to request valuation services from a real estate agent to determine a listing price rather than to refer to an appraiser or estimate value through personal market research.

Appraisals Use Older Comparable Data

Some homeowners will contact a real estate appraiser for a valuation, but these valuations will not always  reflect a listing price that a real estate agent would recommend. One of the reasons for this is due to the fact that appraisals can sometimes use older comparable data, and some of these comps may even be six months old or older. In many areas, market conditions can change dramatically within a few months, so older comparable data will not provide a reasonable listing price.

Consumer Preference Is Important In Valuation

Appraisals are generally objective, and they take into account property age, size, room layout, and other physical factors. However, consumers who are in the market to purchase a new home will also take into account other factors like how desirable the location is, the style of the home and smaller designer touches that the appraiser will not typically take into account. This can all affect the actual listing price, and these are all factors that a real estate agent will take into account.

Properties May Have Special Features That Affect Valuation

Appraisers only have access to specific information when reviewing comps, and they therefore cannot take into account special features that a property has that may affect value. For example, upgraded appliances, a security system, a new HVAC system and other features may increase value, but the appraiser may not take these into consideration. A real estate agent will review all aspects of the home to help determine a fair and reasonable asking price for the home.

Valuation is an important factor in many homeowners’ decisions about whether to sell now or sell later. Those who are interested in learning about the value of their property should reach out to their trusted real estate agent for assistance.

House Hunting? Watch for These 5 Red Flags when Viewing Potential New Homes

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House Hunting? Watch for These 5 Red Flags when Viewing Potential New Homes From the sales price to the general layout of the building, there are numerous factors that buyers will consider when touring homes. While there are specific factors that buyers may be searching for in a new house, there are also a few warning signs that home buyers should keep their eyes open for. The following are among the top red flags that may serve as warning signs.

Signs Of Poor Home Maintenance

It is reasonable to expect all homes to have some signs of wear and tear unless they are new construction. However, it is also reasonable to expect that sellers have taken some steps to improve the condition and look of the property before listing it. When a home appears to be poorly maintained on a superficial level, home buyers should pause to consider what other aspects of the home have also been poorly maintained that are not visible.

The Grading In The Yard

When a yard grades toward the house, issues with erosion and even flooding may be concerns. Everything from a brief, torrential downpour to snow melt can result in water running toward a property when grading is a concern. Home buyers should take time to review the yard carefully to determine how water may flow when it rains or when snow melts.

A Foul Odor

It is common for sellers to try to make their home smell appealing, and different types of deodorizers may be used to mask everything from food smells to pet odors. However, it is important for home buyers to pay attention to the underlying smells in a home. Everything from a musky or mildew-y smell to sewage smells and gas odors should be warning signs.

Repairs To One Wall

Homeowners may repaint walls to make the space look cleaner, brighter and more appealing, so a fresh coat of paint by itself is not a warning sign. However, if the paint is on just one wall or if the area under the fresh coat of paint appears to have been recently textured or repaired, these are signs that water damage or other damage may have been addressed recently.

Signs Of Pests And Rodents

Another warning sign relates to signs of pests and rodents. Even if bugs and rodents are not visible during the initial tour, things like a can of bug spray, mouse traps and other related items may indicate that the seller has had an issue with bugs and rodents.

Some warning signs will be obvious during an initial home tour, but others may require more skill and experience to see. Because of this, it is best for all home buyers to consider ordering a property inspection to learn more about the condition of the home before finalizing their buying plans.