What to Know About Mortgage PreApproval? Having a mortgage preapproval has always been important, but now it’s become even more meaningful since the real estate market has grown substantially within the past five years.   Shopping in the current market for a new home, prospective homebuyers face the rapidly shifting real estate changes, characterized by low supply and growing prices. The house-hunting experience can be really exciting yet a little scary, kind of like the thrills and chills of a theme park ride... especially for First Time Homebuyers.   Despite the changes in the housing market lately, certain timeless practices remain relevant; one practice is securing a mortgage preapproval. Today, obtaining a preapproval is arguably more crucial than it was five years ago and even easier with today's technology, however the foundation of being financially ready before making an offer on a property is crucial.   What is a Mortgage PreApproval? Pre-approval is a lender's formal assurance of a buyer’s creditworthiness and states the maximum purchase price a buyer can borrow or is preapproved for. In the middle of a hotly contested real estate environment, it offers a competitive edge, often giving buyers with preapproval the upper hand against those without it.   What is the Difference Between a Prequalification and a PreApproval? A common misunderstanding mixes prequalification with pre-approval. The difference between a prequalification is an informal appraisal based on preliminary discussions with a lender, possibly excluding extensive financial records. On the other hand a pre-approval is a comprehensive assessment involving a deeper review of finance-related documents such as tax forms and bank statements. During the pre-approval process the lender will conduct a credit inquiry that includes a reporting of the three major credit bureaus; this credit report will verify the applicants' credit standing. How Do I Get A Mortgage PreApproval? Most mortgage lenders offer simple pre-approval services, and initiating the process is as easy as contacting a lender. A quick phone call or email to the lender will get the process started and it does not take the lender long to decide if a buyer qualifies for a preapproval, based on accurate and exhaustive financial documentation. Incomplete or wrong data can get in the way of the process or lead to disapproval.      How Long is My Mortgage PreApproval Good For? Considering how long the timelines are involving today's competitive housing market, it is important to understand that a pre-approval is not indefinite—it typically expires after 60 to 90 days, as indicated in the lender’s pre-approval letter. If a purchase is not made within this period, buyers must reapply for pre-approval. Am I Committed to The Lender Who PreApproved Me? It is important for buyers to know that receiving a pre-approval from a specific lender does not obligate them to borrow from the same lender. Buyers are free to explore and shop around different mortgage options even after an offer on a home is placed. Finalizing who your lender will be quickly is important to ensure that you meet the loan contingency period and close on the home on time. Key Take Aways… Other than deciding on the location and home, the Mortgage pre-approval is one of the most important elements of purchasing a home, especially when navigating a competitive market. It is a step that buyers should prioritize to enhance their chances of acquiring their desired home and also understanding what their purchasing power will be.    

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  Thinking About Buying A Fixer Upper? Taking the leap into homeownership is no walk in the park, and when you're on a shoestring budget, the challenge cranks up a notch. So, have you ever thought about the idea of a fixer-upper? Fixer-uppers are those diamonds in the rough that are easy on the wallet but need some elbow grease to shine and are typically good investments. Find a good real estate agent that can pull up comparables for you to make sure you're getting the best deal and allow the Realtor to negotiate for you.                                             Let's chat about what a fixer-upper is... Picture a place that's going for a steal because it's seen better days. It could be worn down or out-of-date, and depending on the shape it's in, you might still be able to live there while you spruce it up. But here's the thing: you've got to understand your finances, what you need from a place, and the kind of home you're dreaming of. Deciding to head into fixer-upper territory  Keep your feet on the ground. Expect hard work, more surprises than a surprise party, and a little chaos in your day-to-day life. Even if you decide not to live in your house that has become your new project, renovations will shake up your routine. And if you do decide to move in mid-renovation, brace yourself for the reality of living without some creature comforts for a while. Now let's talk nitty-gritty—the home inspection... Bringing a pro on board to take a good, hard look at your potential fixer-upper is a must. It'll give you the low-down on the makeover must-dos and how much they're gonna hit your wallet. You'll want this information before you make your move, trust me. Budget Time!  That post-inspection to-do list should be your guide. Sketch out what you can afford (and be honest with yourself), so you're not left with a half-finished reno job and a full-blown financial headache. And hey, stuff happens, so add in a little padding in that budget for the just-in-cases. Chances are, renovating a fixer-upper is not going to be pocket change. Loans might be your lifeline here, but don't expect a regular mortgage to cover a house that's more fix than up. You'll need to find the loan that fits just right for your soon to be new home.                                          Finding The Right Loan For example, the FHA 203(k) loan is like a swiss army knife—it lets you buy and renovate under one mortgage. Handy, right? If home sweet home is already yours but could use some TLC, it lets you refinance, folding renovation costs into your new loan. Fannie Mae's HomeStyle Loan is the classic choice for renovation-ready homes. Buy a place with potential or refinance to crank up your current home's curb appeal. Just make sure your contractor's estimates are in black and white. Freddie Mac's CHOICERenovation comes to the rescue if combining home buying and reno costs makes sense for you. It's also a go-to post-natural disaster when you need to patch up. VA renovation loans...  They allow veterans and their spouses to roll repair costs into their loan, but remember, VA-approved contractors only.  What upgrades give you the most bang for your buck? Focus on what makes a house a home without blowing your budget. Pay special attention for trouble areas in a potential fixer-upper. Run for the hills if you see signs of structural woes, shaky foundations, ancient plumbing, or old wiring. Fixing these can cost a pretty penny and put a serious dent in safety.                                         Before you dive into demo day, get familiar with permits Depending on where your new home is, you'll need the right paperwork for everything from structural changes to new fencing. Is a fixer-upper a wise move for you?  Do a little detective work. Check out comparable homes, tack on your estimated renovation costs, and crunch those numbers. If your bank account isn't crying out in terror, a fixer-upper could be your golden ticket to making a budget-savvy, dream-come-true kind of place. Decisions, decisions... Choosing a fixer-upper can make you feel like you're stuck on a rollercoaster. But with patience, solid research, a realistic budget, and a sprinkle of courage, a fixer-upper might just be the perfect canvas to create the home you've been dreaming of. Bonus: You will save money on property taxes since you will have paid a discounted amount for the home, therefore you will also have a lower mortgage payment. If you live in the Central Florida area check out our Foreclosure and Special Sales listings on:  Foreclosures and Special Sales Properties In Orlando      

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How To Know If It’s The Right Time To Sell Your House Deciding to sell a house is a tough decision, often clouded by emotions and potential for drama that anyone who has indulged, or is familiar with, in real estate reality TV. But now you may be living the TV drama and realizing just how difficult a decision you face now… Often weighing the attachment to your home's quirks against the pull of a house that might better suit your needs and facilitate your new life may be difficult. Evaluating Your Home's Equity Removing the emotion in favor of facts is crucial. The first question is about your current home's equity: Have you been living in your house long enough to have acquired an adequate amount of equity, that selling becomes profitable? A minimum of three years is recommended though not mandatory. While it isn’t required that you have equity to sell your house, you could be required to pay the remaining balance on your mortgage and the closing costs if the price you sell your house for doesn’t cover the entire amount. In this situation, you’d end up owing money, which isn’t ideal, especially if you want to buy another house. To determine your home's equity, take the current value and subtract the balance of your mortgage amount. For instance, if your home's market value is $400,000 and you owe $250,000, your equity is $150,000. If you’re not sure how much your home is worth, compare recently sold homes in your area that match yours in age, size, and location. If you’re still not sure how much your home is actually worth, consult with a real estate agent who can provide comprehensive insights using the MLS data to give you the most up to date, accurate information available. Review Your Finances Not only do you need equity in your home, but also financial preparation is necessary: repair costs, home staging, closing expenses, possible buyer concessions and real estate commissions are all parts of the mix. You will also need to plan for the potential of a higher mortgage payment in your new home. These should be comfortable within your budget, and tools like mortgage calculators can be helpful in these evaluations. Use the PropertiesInOrlando.com mortgage calculator to help you determine what your preferred price range should be.                         Understanding the Local Real Estate Climate Before listing your property, understanding the local real estate market's state is important. Whether it's a buyer's or seller's market significantly affects your strategic timing. Examine how many other homes are for sale nearby, and how quickly homes are selling, which indicates the market's nature. The ratio of available homes to recent sales can offer insight—as a general rule, if the figure is over seven, it's a buyer's market; under five, a seller's market. If you’re still unsure if you’re in a buyer’s or seller’s market, take the number of houses for sale in your area and divide it by the number of homes that have recently sold. For example, if you find four houses currently for sale in your neighborhood and two that have recently sold, the result is two. Any result over seven means you’re in a buyer’s market, and any number below five is a seller’s market. In the above example, you’d be in a seller’s market. You can also look at how long houses stay for sale. If they are slow to sell, it indicates a buyer’s market. If they sell fast, it indicates a seller’s market. If you want more information, contact a local real estate agent and ask about your local area. If you do not have a preferred agent, contact us and we would be happy to assist or refer you to a fantastic local agent in your area. Since markets fluctuate regularly, an agent can help you navigate the ups and downs of local real estate for your benefit. Is Now a Good Time to Sell? In addition to the current market, you’ll want to consider the time of year. Pumpkins, scary-monsters, and witches make October a fun month full of sweets, but it could be scary to try and sell your home during this time of year. And while December may be merry and bright, trying to sell during the holiday season might make you feel like a grinch. However, it’s important to stay positive since many serious buyers are out searching for homes during this time. You may experience less home showing requests but keep in mind the ones you do have are typically more serious buyers. When staging to go on the market, during holiday time it is highly recommended to avoid decorations, just in case you are still trying to sell your house in January, you do not want to have holiday pictures of your house reminding buyers how long your property has been on the market. While fall and winter can (not always) be the worst times to sell your house, late spring and early summer are the best times. If it’s April, then it’s a great time to start preparing your house to sell since May through July are considered the best months for home-selling. With that said, a lot depends on where you are in the country. If you live in the South, for example, snowy weather isn’t an issue for winter home buyers as much as it is for people who live in colder climates. If you live on the coast or a place where tourism is popular at certain times of the year, it might benefit you to sell your house before the influx of tourists hits since potential buyers will likely include those wanting an investment property that they can have ready to rent out when the season begins. It might be a good idea to talk with a real estate agent that specializes in investment properties and vacation homes. Take a look at PropertiesInOrlando.com for agents that specialize in this type of market in Florida and have relationships with other agents globally that you can be referred to, in order to learn more about local investment trends and the best time to list a house where you live. When you list is crucial because the longer your house sits on the market, the less you’ll be able to get for it. In addition to what time of the year you sell, consider where you are in your life personally. For example, are there certain personal, family obligations or a major event coming up? If you may have to soon care for an aging parent, have surgery, send a child off to college, pay for a wedding, or welcome a new baby to the family, you might want to review your finances to make sure you can handle the cost of the event and the expenses that come with selling and buying a house. Consider what else might change. How stable is your job or your significant other's job? Or perhaps you just started a new job... While it’s impossible to predict the future and job loss could possibly happen unexpectedly at any time, if you’ve been in your current position for some time and feel you do have job stability, or up for a raise, you’ll be in a better position to sell than if you’re not quite sure whether you’ll have a job a few months from now. Does Your House Still Work for You? Finally, think about why you want to sell.  What bothers you about your current house that you’re considering selling? Does the space no longer work for you? If you or your family has grown or become smaller recently, perhaps the house is suddenly too small or too big. Does the location still work? Perhaps you purchased your house because it was close to work, but now you work from home or you’ve changed jobs. Or maybe you bought the house without considering the school district, but now you have children and would rather be in a different school district. Things that can’t be changed, such as school districts, the overall layout and square footage or location, are good reasons to sell. But before reaching out to an agent to put your house on the market, make sure you can’t make the space work. Once you have an offer on the house and you accept that offer, it’s very difficult to change your mind. When considering whether to list your house, ask yourself the following questions: Am I using all the space I currently have, or are there unused or underused spaces? Could I repurpose any of my current spaces to make them more functional? Could I add on square footage? Could a renovation change how I feel about this house? Would I be able to handle a renovation right now, with my current lifestyle (both financially and personally)? If I do a renovation is my home worth the investment? (Look at the homes resale value vs. the potential renovation cost.)                                 If you need more help deciding, make a list of the pros and cons for selling vs. staying. An answer will reveal itself as you start writing things out. If you do decide selling is the best option, your next step is to find an agent. When looking for an agent to sell your house, ask plenty of questions. Make sure you understand how determined they are to sell your home and how they come up with the list price (this should include a comparative market analysis). Ask about their marketing plans and find out how much they typically spend on marketing. Inquire about their experience in the local market and how long they’ve been working in your area and feel free to reach out to us if you are in the Central Florida area as we are always happy to help! Also reach out to us for recommendations of expert agents in your local area on PropertiesInOrlando.com Selling a house is a big decision! If this will be your first time as a seller, if you've sold many homes before, or just want to refresh your memory about the process, check out our home selling guide, which walks you through the home selling journey one step at a time.  If you live in the Central Florida area we would love to work with you! Here's our link: Properties In Orlando  

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