Have you heard the great news?
-Mortgage rates for Aug. 2009 are at 5.25 percent, down from 6.5 percent the same time last year.
-Affordability remains favorable with the median mortgage payments requiring just 16 percent of the average income.
-Home sales are up 17 percent from July 2009, boosting the median home price for June up 3.6 percent to $181,000.
-Get more stats plus tips for making the most out of the buyers market from mortgage industry expert, Tommy Nelms in August’s This Month in Real Estate.
Click Below for a short informative video.
http://www.youtube.com/watch?v=6O-UFD5q-HI
Saturday, August 29, 2009
Tuesday, June 30, 2009
Best Buys! - Major Reductions!
Newer Homes! Just Reduced !
One was reduced $67,000!
Another reduced $53,950!
Another reduced $49,950!
If you're looking for a great deal, call me about these "Best Buys"!
Pam Culbreath - 888-596-2252
One was reduced $67,000!
Another reduced $53,950!
Another reduced $49,950!
If you're looking for a great deal, call me about these "Best Buys"!
Pam Culbreath - 888-596-2252
Tuesday, June 16, 2009
Bank Owned Homes
If you are looking for a great deal, check out the link on www.OcalaHomesOnline.com that is entitled "Bank Owned Homes". New listings were just added to this link on, June 16, 2009!
Real Estate - June, 2009
What is the Real Estate market doing in June, 2009?
Click on the link below for a short, but informative discussion
about interest rates, and the $8000. tax credit.
Just a reminder for those of you who have not owned a home in the
past three years; time is running out for your $8000. tax
credit. You don't want to push your time frame so short that
you can't close on time. My guess is lenders will be swamped
with people trying to buy homes at the last minute.
Now is the time to get pre-approved with a lender and start looking!
http://www.youtube.com/watch?v=_lnrH0WhCNo
Click on the link below for a short, but informative discussion
about interest rates, and the $8000. tax credit.
Just a reminder for those of you who have not owned a home in the
past three years; time is running out for your $8000. tax
credit. You don't want to push your time frame so short that
you can't close on time. My guess is lenders will be swamped
with people trying to buy homes at the last minute.
Now is the time to get pre-approved with a lender and start looking!
http://www.youtube.com/watch?v=_lnrH0WhCNo
Monday, May 25, 2009
Why Not "Lease with Option to Buy" ?
Many people in the current market place ask about leasing, with option to buy. There have been instances where this option has worked out very well for people in the past. However, in the current market place, there are some serious complications that can arise with lease/options, and I would like to bring an awareness to Buyers and Seller alike, of some of the pitfalls associated with lease/options.
First, let us look at a typical "Lease, with Option to Buy" sale.
A Tenant/Buyer finds a home and puts a contract on the home.
In the contract, they state:
- the price they are willing to pay;
- the period of time that they will be leasing the home;
- the date at which they plan to purchase the home;
(Typically, the lease period is one to two years, with the home being purchased at the end of that time period.)
- the amount of the lease/option deposit;
(Typically, $3,000 - $5,000. This deposit is to assure the Landlord/Seller that the Tenant/Buyer is seriously wanting to buy the home. If the home is not purchased, this Lease/Option Deposit is non-refundable.)
- the amount of the monthly payment; and
- the amount of the monthly credit that will go toward purchasing the home. Many Landlord/Sellers will not give a credit, but those who are motivated to sell the home, will offer credits. Many are in the $100. range.
Usually, with Lease/Option contracts, Tenant/Buyers are responsible for repairs to the home during the Lease/Option period.
Now, we will consider some of the negative possibilities for those entering into such contracts.
1) Value of the Home Decreases - If the home goes down in value, when the time comes for the Tenant/Buyers to purchase the home, they may not be able to get financing on the home.
(i.e. - If they signed a contract to purchase the home for $150,000., and at the end of the Lease/Option period the home is worth $130,000. a lender will not loan $150,000. to an individual in order for them to purchase a home that is only worth $130,000.)
Effects on the Tenant/Buyer - If unable to purchase the home, the Tenant/Buyers will loose their option money, all credits earned, all monies put into repair and upkeep of the home, and will very possibly have to move and start all over.
Effects on the Landlord/Seller - The Landlord/Seller will have to sell, or put the home back on the market at the current "lower price", rent the home, or consider other options. Lost revenue may occur due to the reduced price, and also vacancies while beginning the marketing process all over again.
2) Interest Rates Increase - If the Tenant/Buyer calculates that they can afford the home based on today’s interest rates, which are at historical lows, and those interest rates go up during their lease period, they may not qualify for the loan based on the higher interest rate, due to an increase in their monthly payments.
(i.e. $150,000 purchase price, with an interest rate of 5% for 30 years, results in a monthly payment of $805.00 for principle and interest only. If the interest rate goes up to 7% by the end of their lease term, their monthly payment of principle and interest would jump to approximately $1000.00) Obviously, interest rates could go much higher.
Effects on the Tenant/Buyer - If unable to qualify for the higher payments, the Tenant/Buyers will loose their option money, all credits earned, all monies put into repair and upkeep of the home, and very possibly will have to move and start all over.
Effects on the Landlord/Seller - The Landlord/Seller will have to sell, or put the home back on the market at the current price, rent the home, or consider other options. Lost revenue may occur due to vacancies while beginning the marketing process all over again. The Landlord/Seller could experience a loss or profit, when considering the value of the home, depending on the market. If home values have increased, the Landlord/Seller could benefit. As discussed earlier, if home values decrease, the owner of the home will most likely need to lower the price of the home, in order to compete with the current market.
3) Mortgage payments are not being paid - It is not uncommon for Tenant/Buyers to be paying their monthly house payments regularly, and discover that their Landlord/Seller has not been paying the mortgage payment. In such cases, the home is foreclosed on.
Effects on the Tenant/Buyer - The Tenant/Buyers will loose their option money, all credits earned, all monies put into repair and upkeep of the home, and will have to move and start all over.
In conclusion, those pursuing to "Lease, with Option to Buy" in this market, are putting themselves at a high level of risk.
The good news is that;
- historically low interest rates,
- a market place abounding with homes that are priced low, to sell quickly,
- USDA loans which allow people to buy with very little down, and
- an $8000 tax credit that is available to those who have not owned a home in the past three years,
are all available to those who are wanting to find a place to call "home".
The sad thing is so many people assume that they cannot buy and therefore, never even try, when a few quick phone calls, to a few lenders, could start them on the path that would lead them to home ownership in just a month or two. I say a few a lenders, because, if one lender says "no", it is always good to try someone else!
Take the first step, call a lender and tell them that you want to get "pre-qualified" to buy a home!
What do you have to lose?
(For my list of lenders, call 888-596-2252)
First, let us look at a typical "Lease, with Option to Buy" sale.
A Tenant/Buyer finds a home and puts a contract on the home.
In the contract, they state:
- the price they are willing to pay;
- the period of time that they will be leasing the home;
- the date at which they plan to purchase the home;
(Typically, the lease period is one to two years, with the home being purchased at the end of that time period.)
- the amount of the lease/option deposit;
(Typically, $3,000 - $5,000. This deposit is to assure the Landlord/Seller that the Tenant/Buyer is seriously wanting to buy the home. If the home is not purchased, this Lease/Option Deposit is non-refundable.)
- the amount of the monthly payment; and
- the amount of the monthly credit that will go toward purchasing the home. Many Landlord/Sellers will not give a credit, but those who are motivated to sell the home, will offer credits. Many are in the $100. range.
Usually, with Lease/Option contracts, Tenant/Buyers are responsible for repairs to the home during the Lease/Option period.
Now, we will consider some of the negative possibilities for those entering into such contracts.
1) Value of the Home Decreases - If the home goes down in value, when the time comes for the Tenant/Buyers to purchase the home, they may not be able to get financing on the home.
(i.e. - If they signed a contract to purchase the home for $150,000., and at the end of the Lease/Option period the home is worth $130,000. a lender will not loan $150,000. to an individual in order for them to purchase a home that is only worth $130,000.)
Effects on the Tenant/Buyer - If unable to purchase the home, the Tenant/Buyers will loose their option money, all credits earned, all monies put into repair and upkeep of the home, and will very possibly have to move and start all over.
Effects on the Landlord/Seller - The Landlord/Seller will have to sell, or put the home back on the market at the current "lower price", rent the home, or consider other options. Lost revenue may occur due to the reduced price, and also vacancies while beginning the marketing process all over again.
2) Interest Rates Increase - If the Tenant/Buyer calculates that they can afford the home based on today’s interest rates, which are at historical lows, and those interest rates go up during their lease period, they may not qualify for the loan based on the higher interest rate, due to an increase in their monthly payments.
(i.e. $150,000 purchase price, with an interest rate of 5% for 30 years, results in a monthly payment of $805.00 for principle and interest only. If the interest rate goes up to 7% by the end of their lease term, their monthly payment of principle and interest would jump to approximately $1000.00) Obviously, interest rates could go much higher.
Effects on the Tenant/Buyer - If unable to qualify for the higher payments, the Tenant/Buyers will loose their option money, all credits earned, all monies put into repair and upkeep of the home, and very possibly will have to move and start all over.
Effects on the Landlord/Seller - The Landlord/Seller will have to sell, or put the home back on the market at the current price, rent the home, or consider other options. Lost revenue may occur due to vacancies while beginning the marketing process all over again. The Landlord/Seller could experience a loss or profit, when considering the value of the home, depending on the market. If home values have increased, the Landlord/Seller could benefit. As discussed earlier, if home values decrease, the owner of the home will most likely need to lower the price of the home, in order to compete with the current market.
3) Mortgage payments are not being paid - It is not uncommon for Tenant/Buyers to be paying their monthly house payments regularly, and discover that their Landlord/Seller has not been paying the mortgage payment. In such cases, the home is foreclosed on.
Effects on the Tenant/Buyer - The Tenant/Buyers will loose their option money, all credits earned, all monies put into repair and upkeep of the home, and will have to move and start all over.
In conclusion, those pursuing to "Lease, with Option to Buy" in this market, are putting themselves at a high level of risk.
The good news is that;
- historically low interest rates,
- a market place abounding with homes that are priced low, to sell quickly,
- USDA loans which allow people to buy with very little down, and
- an $8000 tax credit that is available to those who have not owned a home in the past three years,
are all available to those who are wanting to find a place to call "home".
The sad thing is so many people assume that they cannot buy and therefore, never even try, when a few quick phone calls, to a few lenders, could start them on the path that would lead them to home ownership in just a month or two. I say a few a lenders, because, if one lender says "no", it is always good to try someone else!
Take the first step, call a lender and tell them that you want to get "pre-qualified" to buy a home!
What do you have to lose?
(For my list of lenders, call 888-596-2252)
Wednesday, April 22, 2009
Current Housing Statistics for Marion County
Many of us have heard that it is a "Buyers' Market". Basically, this means that those who are ready and able to buy, are buying at a good time!
Today I checked out the current inventory of homes, in Marion County, that are listed on the Multiple Listing Service (MLS). The MLS showed a large amount of inventory, which is a real plus for those ready to buy a home! The numbers listed were as follows.
Homes "For Sale" - 5,885
Homes "Under Contract" - 520
Home "Sold" in the last month - 224
A large inventory, low home prices, low interest rates, and an $8000 tax credit for those who have not owned their own home in the past three years are all great reasons to take advantage of this "Buyers' Market"!
Today I checked out the current inventory of homes, in Marion County, that are listed on the Multiple Listing Service (MLS). The MLS showed a large amount of inventory, which is a real plus for those ready to buy a home! The numbers listed were as follows.
Homes "For Sale" - 5,885
Homes "Under Contract" - 520
Home "Sold" in the last month - 224
A large inventory, low home prices, low interest rates, and an $8000 tax credit for those who have not owned their own home in the past three years are all great reasons to take advantage of this "Buyers' Market"!
Wednesday, April 15, 2009
How Much Money Do I Need to Buy a Home?
So many people who are renting a home, instead of buying a home, continue to rent because they believe that they do not have enough money saved to buy a home. Most are pleasantly surprised to know that the costs involved in buying a home can be very low.
There is currently a loan program offered by the government that is referred to as a "Rural" loan. Those taking advantage of this loan program can finance 100% of the cost of the home and also finance the closing costs. (Many Buyers also ask the Sellers to pay some of their closing costs.)
This does not mean that you do not have to pay anything when you initially purchase a home. You should be prepared to pay for an appraisal, (approximately $350), and a deposit on the home (usually $1000, but I have seen $500.). I highly recommend a professional home inspection, (usually about $375), although this is not required. Bottom line, for less than $2,000. you can stop renting and start owning your own home.
One other point that I do want to mention is credit scores. Most loan programs are requiring at least a score of 620. If you are already at 620 or higher, you are well on your way. If your score is lower, it is worth your effort to work at bringing up.
Also, for those who are "First Time Home Buyers", and those who have not owned a primary residence in the last 3 years, the government is offering an $8000 tax credit! For details about this great opportunity, read the article below.
If you are ready to stop renting and find a place to call your own, please give me a call.
(888-596-2252) It is a "Buyers" Market and interest rates are Low! (Allowing you to lock in lower monthly payments!)
There is currently a loan program offered by the government that is referred to as a "Rural" loan. Those taking advantage of this loan program can finance 100% of the cost of the home and also finance the closing costs. (Many Buyers also ask the Sellers to pay some of their closing costs.)
This does not mean that you do not have to pay anything when you initially purchase a home. You should be prepared to pay for an appraisal, (approximately $350), and a deposit on the home (usually $1000, but I have seen $500.). I highly recommend a professional home inspection, (usually about $375), although this is not required. Bottom line, for less than $2,000. you can stop renting and start owning your own home.
One other point that I do want to mention is credit scores. Most loan programs are requiring at least a score of 620. If you are already at 620 or higher, you are well on your way. If your score is lower, it is worth your effort to work at bringing up.
Also, for those who are "First Time Home Buyers", and those who have not owned a primary residence in the last 3 years, the government is offering an $8000 tax credit! For details about this great opportunity, read the article below.
If you are ready to stop renting and find a place to call your own, please give me a call.
(888-596-2252) It is a "Buyers" Market and interest rates are Low! (Allowing you to lock in lower monthly payments!)
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