Navy Fellas Realty Group

Real Estate, Residential sales and purchase

Investor Thoughts: What Home-buyers Can Learn from a Real Estate Investor’s Stand-point

by

Investor Thoughts: What Home-buyers Can Learn from a Real Estate Investor's Stand-pointThere are plenty of things to consider when purchasing a home, from the size of place that you’re looking for to the amount of home you’re able to afford. While it’s certainly worth knowing what you want going in, here are a few factors that investors often think about when it comes to making or breaking the appeal of a real estate purchase.

Will The Location Last?

‘Location, location, location’ is a popular expression for a reason, and it’s among the first things that any person purchasing a property will consider when they think about long term-investment potential. It can be easy to think that a currently trendy community or beachfront property will always be a great investment, but trendy places go out of style and sea levels can rise. An investor will want a location that’s ideal, but they’ll also consider what the area’s future might hold.

Are You In A Bubble?

If you’ve found the perfect home to live in and are considering an offer, you may not be too worried about it’s selling potential a few years on. However, if you’re buying in a bubble, your price may be inflated, and this can cause problems if you want to make a profit in five years’ time. Real estate is on the up and up all over the world, so a true investor will consider if the market value will continue to rise or if it’s readied for a considerable economic setback.

Will It Survive The Trends?

The market for condos is certainly booming right now with the rising price of real estate, but many people are also choosing to move away from urban centers to buy a little bigger and start a family. Whether it’s an open concept or a sizeable townhouse, it can be tempting to buy the type of home that is hot right now, but these trends may not be so popular in the coming years. Instead of going for flash, consider what will always be in style or can at least be easily renovated.

The most important thing when purchasing a home is buying a place that you can feel good about, but real estate investors know that there are a number of important factors to consider. If you’re currently on the market for a new home and are weighing your options, contact your trusted local real estate professional for more information.

5 Documents First-time Home-buyers Need for a Smoother Purchasing Process

by

5 Documents First-time Home-buyers Need for a Smoother Purchasing ProcessWith all the work that goes into finding the kind of home you’ll want to put an offer on, it can be easy to forget about all the little things that happen after the deal has been made. While the paperwork involved in purchasing may seem like a long way off, here’s a quick review of some of the documents you’ll need when the time comes to seal the deal.

Your Credit Report

It’s important to review your credit before putting an offer in, so ensure that you request your credit report in advance and review it for any errors that may be present. If there are any discrepancies negatively impacting your credit score, you’ll be able to have them corrected before they can cause an issue with your real estate purchase.

Pay Stub Proof

In order to ascertain your ability to pay your monthly mortgage, you will need to provide pay stubs from your current place of employment. You won’t want to give away your originals, but a photocopy of your paychecks usually serves as adequate verification.

Recent Bank Statements

The number of bank statements required to prove your credit history may change depending on the lender you’re dealing with, but you’ll probably need photocopies from the last two to three months. This will be a means of proving your financial health as well as your ability to pay your monthly mortgage.

Tax Return Copies

Your federal tax returns will provide further proof of your employment and financial standing, so the last two years of these – complete with your signature – will need to be submitted. Keep in mind that any schedules you’ve filled out to complete your yearly returns should also be included.

Additional Asset Statements

In addition to recent bank statements, if you have any stocks and bonds, mutual funds, RRSPs or other investments, you should also provide statements of proof for these. While these accounts will only require your most recent statements, they will be beneficial in providing a more comprehensive picture of your finances.

There are many aspects of purchasing a home that can be time consuming, but having the documents you need beforehand can save a lot of stress when crunch time comes. If you’re planning on purchasing a home soon, contact your trusted local real estate professional for more information.

How the Truth in Lending Act Protects You When You Take Out a Mortgage

by

How the Truth in Lending Act Protects You When You Take Out a MortgageIf you’re planning to get a mortgage, it’s critical that you know your rights under the law. The Truth in Lending Act (TILA) is a piece of federal legislation that governs how mortgage lenders can and cannot operate their businesses.

So how does the Truth in Lending Act protect you, and what are your rights under this legislation? Here’s what you need to know.

Your Lender Must Give You A Timely Loan Estimate

A Loan Estimate (previously known as a Good Faith Estimate) is a document your lender provides you that details information about what kind of a mortgage you’ve applied for. Your Loan Estimate includes terms such as your estimated monthly payment, your estimated interest rate, and whether or not your mortgage balance is able to rise even if you make payments.

Under the Truth in Lending Act, your lender is obligated to give you a good-faith Loan Estimate within three days of when you apply for your mortgage. If your lender fails to provide your Loan Estimate within three days or fails to fix reported errors within 60 days, you can sue for damages and report the lender to the federal government.

Your Lender Must Notify You Of Rate Changes

The Truth in Lending Act states that your mortgage lender is required to give you an annual percentage rate estimate within 1/8 of one percent of government guidelines. Your lender must use the government-approved mathematical formula to provide your rate estimate.

If your estimated rate may be subject to change, your lender is obligated to disclose the first possible change you’ll see to your interest rate, and the maximum degree to which it may change. Your lender is also required to disclose the maximum possible changes for subsequent rate adjustments.

There Are Strict Rules About How And When Lenders Can Charge Late Fees

If your lender typically administers fees for late payments, TILA will specify that your lender must notify you – in advance – the date on which a late fee will be imposed and how much the late fee will be. TILA states that no late fee can exceed 4 percent of the amount past due, and a payment is only considered late if it is 15 or more days past due (or 30 or more days past due if you prepaid your interest). Your lender also cannot charge you a late fee on top of a late fee.

TILA is a powerful consumer protection law that gives would-be homeowners a great deal of power. By knowing your rights under TILA, you’ll be able to confidently negotiate with lenders and avoid any unnecessary problems. Contact your real estate professional to learn more.

3 Things You Need to Consider Before Buying That Fixer-Upper Home

by

3 Things You Need to Consider Before Buying That Fixer-upper Home

What Will It Cost?

If you’re going into a home expecting a few renovations costs, a minor detail here or there may not add up to much. However, if you’re not interested in spending the big bucks on making changes, you’ll want to estimate an approximate amount of how much the renovations you don’t want to live without will amount to. By including all the necessary labor and materials, you’ll be able to determine if the price-point of your offer will be worth it. Keep in mind that if there are any serious issues with the house, it may not be worth your while to consider the purchase at all.

Will Renovations Increase The Value?

In the event that you’re buying a home for its investment value, it’s going to be particularly important to consider if the renovations required will actually increase its market value. While adding another bedroom or upgrading a bathroom may not add significantly to a home’s overall price, certain more inexpensive improvements like painting, refinishing and new siding can actually add a lot to the look (and worth) of your home.

How Much Are You Willing To Take On?

It’s easy to think that you’re prepared to do the dirty work when faced with a fixer-upper, but getting down to brass tacks may not be so simple when the time comes. Before taking on a home that needs a lot of renovation, consider how much you’re willing to do so that you can determine if fixing it up will even be an economic boon after all the labor that may go into it. If you’re not a DIY kind of person, you may want to avoid a house that has a long list of repairs.

A fixer-upper can be tempting for those who want to invest or save on a home purchase, but you’ll want to carefully consider if it will be a good choice when it comes to selling time. If you’re currently perusing the market for a home, you may want to contact one of our real estate professionals for more information.

Worried about Your FICO Score? 4 Easy Strategies to Fix It Up

by

Worried about Your FICO Score? 4 Easy Strategies to Fix It UpIf you’re worried about your bad credit, you’ll want to do everything in your power to improve your rating as quickly as possible – especially if you have a major purchase coming up. Improving your credit rating can give you access to better interest rates on mortgages or even help you to get that job you’re after.

IMPORTANT! If you are currently involved in a home loan transaction, speak with your trusted real estate advisor before taking any action regarding your credit!

So how can you boost your FICO score quickly and easily? Here’s what you need to know.

Get Your Credit Report And Dispute Any Errors

Credit reporting agencies don’t always keep 100% perfect records, and there’s a good chance that your credit report contains at least one error. One recent FTC study found that 25% of consumers have an error on their credit report, and that in 5% of cases, the errors were actually severe enough to impact the loan terms that borrowers were able to negotiate.

You can get your annual credit report from all three credit reporting agencies for free. Carefully read over it. If you see any errors – if your name is misspelled, if they have the wrong address on file, or if there are late or unpaid charges that you didn’t make – you can dispute the items in question.

Still Overdue? Negotiate Payment Terms With Your Creditors

If you’re overdue on a payment, it will weigh heavily on your credit score. As your payment history makes up a full 35% of your FICO score, this is one area where you’ll want to invest a great deal of time and effort.

Contact any creditors you owe money to and ask if you can negotiate your bill. The ideal outcome for you is to have the creditor report your debt as paid in full, so see if you can secure that promise in writing in exchange for an accelerated payment schedule.

Try Maintaining A Lower Utilization Ratio

Your utilization ratio refers to the amount of credit you use at any given time. If this number goes beyond 30 percent, you’ll start to see your credit score drop. Ideally, you should aim for a utilization ratio below 10 percent – this will prove to your lender that you can responsibly pay for the credit you use.

Have Recurring Bills? Automate Your Payments

Automating your monthly payments can be a great way to boost your credit score. Whether it’s your mortgage, your credit card, or your student loan, a pre-authorized monthly payment will ensure that everything gets paid on time and give you a great credit history.

Your FICO score is a number that will determine your eligibility for mortgages and other loans. These are general tips to help with your credit score and improve the overall reporting of your credit.

4 Websites to Help You Evaluate the Safety of Your Future Neighborhood

by

4 Websites to Help You Evaluate the Safety of Your Future NeighborhoodWhen you’re just moving into a neighborhood, it can be hard to know exactly what you’re getting into. Certainly, you can see the sights for yourself and read about your new community online, but there are still things that may not be readily available. If you’re looking for the cold, hard facts on the safety of your neighborhood, look no further than the following websites for the things you’ll want to know.

Situation Alerts on SpotCrime

By simply typing your street address in at SpotCrime, you will get an instant report of all the criminal goings-on in your community from arson to assault. While SpotCrime is free and enables you to register so you can be alerted to situations in your community, you also have the ability to anonymously offer up information that will help others.

Crime Rates On Neighborhood Scout

A website that will give you information regarding the crime rate in a certain community, Neighborhood Scout offers much of its information free of charge to users to scope out future communities for their own interest. In addition to the per capita crime rate, you can also get a host of information about other communities around the country with similar crime profiles to your own.

Registered Offenders on Family Watchdog

The tranquility of a neighborhood is something that can be easily taken for granted, but Family Watchdog enables you to be aware of what might be going on under the surface. Committed to determining the location of registered sex offenders, this website will easily inform you if there are any offenders in or near your community so you can evaluate the safety of you and your family accordingly.

Situation Updates on CrimeReports

Along with SpotCrime, CrimeReports is another website that enables you to type in your address to instantly pull up a host of information regarding recent crime that’s occurred in your next neighborhood. Much like SpotCrime, it provides you with an easy to read map of crimes that have occurred and you have the option of signing up for alerts that will inform you of recent situations in your community.

There may be a lot of information about your neighborhood online, but the websites listed above can help you with the details on things that may not be commonly reported. If you’re in the market for a home and are wondering about ideal communities, contact your trusted real estate professional for more information.

Looking to Invest or Live in an Up and Coming Neighborhood? 5 Clues to Finding The Best Ones

by

Looking to Invest or Live in an up and Coming Neighborhood?: 5 Clues to Finding ThemMaking a home purchase in a neighborhood that is sure to boom in the coming years can be a great real estate investment, but guessing on the next trendy locale may seem fraught with risk. If you’re trying to determine which area will be up and coming down the road, here are some telltale signs that buying may be a benefit to your bank account.

Full Of Creative Energy

Many bohemian areas are popular because of their lower rental and purchase prices, but a locale with plenty of artists and cultural vibrancy is probably going to be on the upswing soon with the interest it will attract. While an investment may be economical in the short-term, it may see a significant spike in the years to come.

Community Restoration In Progress

There’s a good sign, whether it’s parkland or buildings, that if restorations and renovations are occurring in a community, it’s going to see an increase in purchasing prices soon. With a nicer area and better amenities, it won’t take long for people to flock to a revived area.

Close Proximity To Cool Locales

When development of one neighborhood has left little room for further changes, there’s a good chance that prospects will move into surrounding communities to capitalize on the popularity of the area. If you’re considering a neighborhood that’s close to somewhere trendy, it’s almost a sure thing it will see its star rise.

College Kids And Young Professionals?

Restaurants and bars tend to pop up in areas where students and young professionals abound, and as the area becomes more popular it will likely see a spike in its real estate value. With the establishment of many cool places, you can bet that an area full of young people will become the place to be.

Ask A Real Estate Agent!

There are few people that will be more informed about upcoming building projects in their city than a trusted, local real estate agent, so you may want to check in with one to determine the economic viability of an area you’re considering. An agent you can trust should be able to give you an honest answer about your potential investment.

From young people to community restorations, there are many telltale signs of a community that is likely to see a real estate boom in the coming years. If you’re looking to purchase in a new neighborhood and are curious about your options, you may want to contact one of our real estate professionals for more information.

Thinking About Buying A Waterfront Home? Check Out These Important Tips!

by

First Time Home Buyers: What You Really Need to Know About Buying a Beachfront HomeThe idea of an idyllic beachfront home is appealing for many people, but there are a number of factors involved in this type of home purchase that should be considered before getting serious. Whether it’s a home to live in full time, or a vacation property with investment potential, there are a number of issues to take note of. So, if you’re on the fence regarding waterfront property, here are some things you should keep in mind if beach life might be right for you.

The Ever-Shifting Shoreline

It goes without saying that the times are changing, and erosion of beachfront property is set to be a more pressing issue in the years ahead. If you’re planning on living in a house by the beach, you’ll want to research the surrounding area to ensure your investment will be sustainable over time. If significant shore erosion does occur, you could suffer a loss in regards to your most expensive asset.

In The Event Of Extreme Weather

Home insurance exists to cover you in the event of theft or fire, but if you’re planning on buying by the beach, it’s important to purchase an insurance package that will have you covered for many of nature’s calamities. Instead of leaving this to chance, double check that your home is protected against wind or water damage, as leaving this out could cost you a lot of money down the road.

Do Your Market Research

If you’re buying by the water and you’re looking to live there into the foreseeable future, it may not be necessary to do a lot of research, but if you plan on having renters it’s important to know that someone will be able to make your investment more feasible. If the market is down and people are not flocking to the beach during the months you’ll require renters, it may not be wise to invest huge amounts of money into a property.

Everybody Loves The Beach

It’s important to do research before you decide to invest in a beachfront home, but you will want to keep in mind that a home by the water will probably end up being more valuable than a home in the same town that doesn’t sit on a patch of sand. If you’ve done your research and everything looks good, this may be an investment well worth it.

Beachfront property has its own set of risks and rewards, but if you do your homework it can be an ideal investment. If you’re looking for homes in your area and are interested in waterfront property, you may want to contact your local real estate agent for more information.

Ready to Move in to Your New Home? Not So Fast! Take Care of These 3 Items Before the Big Move

by

Ready to Move in to Your New Home? Not So Fast! Take Care of These 3 Items Before the Big MoveWith the excitement involved in moving into a new home and all of the things that need to be done, it can be easy to forget a few important things before you load up the moving van. If the day of departure is drawing closer and you’re mulling over the final details, here are some items you may want to check off the list first.

Install A New Lock

One of the most important aspects of home ownership is the feeling of security it automatically provides, so you’ll want to change out the locks on the doors before you embark on the big move. As soon as you’ve received the keys to your new home, contact a locksmith who will be able to do the dirty work for you or, if time permits, you may want to take on this task on your own and save a little bit of money in the process.

Do A Quick Clean

With so many boxes to unpack and items to organize, the concept of cleaning the house you’ve just moved into might not be very appealing; however, this can be a necessary step in making you and your family feel more at home. It doesn’t have to be the kind of cleanup that will take 10 hours, but a quick dusting and wiping of cabinets and appliances, as well as a quick sweep and vacuum of the floor, may change the way you feel about your new home.

If Time Permits, Paint!

If the walls of your new house happen to be in immaculate shape, you can probably avoid paint; however, a prime up of the walls can add a lot to the sparkle of your new home and may make it feel like yours much sooner. Instead of going for boldness or deciding on a decorating scheme right away, choose a neutral color that will instantly brighten your room. If the walls are in particularly bad shape, you may even want to contact a professional who will be happy to sand and spackle away.

Moving into a new home is undoubtedly a time of great excitement, but there are some things you should do before you make yourself comfortable in your new place. If you’re curious about what’s available on the market and would like to know your options, you may want to contact one of our local real estate professionals for more information.

Buying a New Home? Learn How the ‘Conforming Loan Limit’ Might Affect Your Purchase

by

Buying a New Home? Learn How the 'Conforming Loan Limit' Might Affect Your PurchaseFrom mortgage to equity to debt-to-income ratio, there are many terms associated with home ownership that can be quite confusing if you’ve never been on the market for a home before. ‘Conforming loan limit’ may be a less familiar real estate term than the rest, but here are some things you’ll need to know about it and what it could mean for your biggest investment.

What Is The ‘Conforming Loan Limit’?

The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) are legally required to provide loans for balances below a specific amount, and this amount is what is known as the ‘conforming loan limit’. While the loan amount is determined by credit history and income amount, these conforming loans that are less than the specific amount are considered lower risk. If a loan amount is above the conforming loan limit, it is known as a jumbo loan and usually comes with higher rates.

How The ‘Conforming Loan Limit’ Is Determined

The Federal Home Financing Agency determines any adjustments made to conforming loan limits and the decided-upon amount is based on the home prices from October to October for the previous year. This amount is released annually in November and is enforced the following January. While this limit was continued at $417,000 through 2016, the amount for regions like Alaska, Guam, Hawaii and the United States Virgin Islands is significantly higher than the standard amount due to the cost of housing.

Going Above The ‘Limit’ And Combination Loans

While jumbo loans carry more risk, there are ways to avoid going above the conforming loan limit. There is the option of acquiring a conforming loan for $417,000, the amount established for 2016, and then utilizing a second mortgage for the remaining amount that will ensure you do not have to take out a jumbo loan; however, the rates for a second loan will likely be higher. In the event that you would like to avoid jumbo loans or a combination loan, you may want to consider putting more money down on your initial down payment.

The conforming loan limit changes each year, but it may have a significant impact on your home purchase if it falls below a certain amount. If you are curious about real estate terms because you’re considering a home purchase in the near future, you may want to contact one of our local real estate professionals for more information.