Archive for the '1st Time Home Buyers' Category

New FHA Mortgage Increase

Caroline Ashe Your Source in Augusta, GA Real Estate March 28th, 2013

If you are a lender, a realtor or a buyer you have heard about the new FHA Loan increases for the loan’s PMI or private mortgage insurance. These new FHA loan increases begin April 1, 2013 so get ready, prepared and know the facts. Below I have added a few slides from a presentation I attended at Augusta Mortgage. Good stuff!

In straight talk the PMI on an FHA mortgage will be increased by 10 basis points on the annual premium term. What does that mean? I don’t really know because I leave that to the loan officers, but on a $100,000 sales price with a loan amount of $96,500 ($100,000 minus 3.5% down payment) the increase in payment is $7.97 per month which equals 2 less stops at Starbucks a month! Small price to pay for the American Dream.

I’ve been asked the questions WHY? is this happening… In order for the FHA mortgage to be available there must be so much capital in reserve, per the government policy. Well the FHA is in the negative and needs to raise money to keep the most affordable home loan on the market available to eager buyers looking to purchase a home! FHA mortgage requires the smallest down payment (3.5%) and is not as strict on credit scores. FHA loans are good for buyers, sellers and the general economy, as we’ve all seen how important the housing market plays in the overall health of our economy.

New FHA Mortgage Increase

New FHA Mortgage Increase

  

New FHA Mortgage Increase

The other BIG change is the length of time the annual mortgage insurance premium is collected on FHA mortgages. In the past after your FHA loan reached a loan to value of 78% or less the mortgage insurance would drop off and your monthly payment would decrease. Well…say bye bye to that with this new change that takes effect June 3, 2013.  For most FHA buyers, in my opinion, this will not have that much effect seeing as most buyers move every 5-10 years on average. The time for the loan-to-value to reach 78% or less is approx. 5 years. The change to remember is if you only have a down payment of 10% or less the mortgage insurance will be on the FHA loan for the life of the loan term. See the illustration below for explanation of 15 and 30 year mortgage terms.

New FHA Mortgage Increase

New FHA Mortgage Increase

 

Questions, comments, complaints? Connect with Caroline Ashe online at www.CarolineAshe.com or call 706-589-1360

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Reasons to Buy a Home

Caroline Ashe Your Source in Augusta, GA Real Estate February 22nd, 2013

Reasons to Buy a Home in 2012

The National Association of Realtors released the top reasons to buy a home. The below graph shows that the top reason to buy is  the desire to own my own home. This is for first-time buyers and resale home buyers. The American dream is alive a well!

Reasons to buy a home

Reasons to buy a home

 

Looking to buy or sell in 2013, let Caroline Ashe guide you! Connect with her online at

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I want to buy a house, but how does my real estate agent get paid?

Caroline Ashe Your Source in Augusta, GA Real Estate August 4th, 2012

How does my real estate agent get paid? I run into this question a good bit by first time home buyers. The technical answer is, it depends. The typical answer is it comes out of the sellers proceeds. When a seller lists a property with a real estate agent they agree to pay x% of the selling price or a set fee to the agent. This amount is deducted from the equity that the seller is paid. When the agent lists the property on the MLS (Multiple Listing Service) they agree to a portion of that percentage or set fee to the agent that closes on the property. I would guess in about 90% of transactions this will be the case.

The other 10% are for agents paid by the hour or if you should purchase a For Sale By Owner. There is a new thought on agents being paid by the hour. They can pull the money again from the agreed portion of the fee or they can charge the buyer directly. On the surface this might not seem like such a great deal for a buyer, but wait it has some perks for you. They will work as many or as little hours as you need them. If you know exactly what you are looking for in a home, find it, and buy it quickly, besides the phone calls and paperwork you might save yourself a couple grand that you can in turn use to negotiate the price of the home!

As for FSBO’s they have listed their property without an agent usually for a reason, either they want to save money on a commission or they do not have enough equity to pay a real estate agent.  In this case paying your agent can happen one of two ways, first they can negotiate for the seller to pay the commission or you can pay them.

Remember, unless your paying by the hour your agent only gets paid when you sit down together at the closing table.

It can be argued as well that the buyer always pays the commission. Think about it…who gets the new loan to buy the house? With all the numbers wrapped into the sales price the buyer pays it indirectly. Same with any other consumer product…the buyer pays for everything.

This formula of commissions has been around along time and like I said I would guess about 90% of homes sold have a fee for a real estate agent built in, so join the club!

Do you have other commission questions? I am happy to answer any questions you have, in detail.

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Homeowners Insurance Tips PLUS Quote Worksheet

Caroline Ashe Your Source in Augusta, GA Real Estate May 17th, 2012

Homeowners Insurance can make your head hurt! I’m not an expert on homeowners insurance, but I compiled a few helpful tips when shopping for a new homeowners  policy.

BONUS - Homeowners Insurance Worksheet attached below. Be prepared when calling for a quote.

Your homeowners insurance policy should provide protection for your property to include the dwelling, other structures, personal property and the loss of use. You should have enough protection to rebuild your home and replace it’s contents. The policy should also protect you from the liability to others, for example if someone is visiting your home and is injured. Other considerations should be disasters, flooding and vacant properties.

Top Ways to Save on Your Premium:

  • Consider Raising your deductible
  • invest in a home security system
  • update exterior locks and deadbolts
  • install smoke alarms
  • select an automatic payment method
  • monitor your credit rating
  • ask about multi-policy discounts

Homeowners Insurance and your Credit Score

Yourinsurance premium is calculated by many things including your credit score. Your credit score is used to determine how likely it is that you may experience a loss. Statistics show that the higher your credit score the less likely you are to have a claim and that indicates a low risk for the insurance companies, therefore you get a better rate.  That’s good news for those with a good credit standing.

 

 If you have any questions on homeowners insurance or just need a referral to a good agent, give me a call. I’m happy to help! Or you can always

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Be a Smart Augusta GA Home Buyer

Caroline Ashe Your Source in Augusta, GA Real Estate April 23rd, 2012

Tips For Augusta GA Home Buyers

  1. Be a Pre-Approved Buyer: A pre-approved buyer always has the advantage in an offer situation. Becoming pre-approved is very easy: you complete your loan application with a credit check prior to beginning your home search process. Pre-approval means that you have actually been approved for the purchase by a lender, which gives you the edge in home purchase negotiating.
  2. Beat The Competition to The Best New Listings: The search process can be both fun and trying. You will notice that some homes sell very fast and others hang around for long periods of time. The best homes at the best prices sell fast. Keeping on top of this is essential. Connect with me and I can set up automated NEW LISTING ALERTS or Click Here to set up your own. NEW LISTING ALERTS right to your email!
  3. Do The Research: Make yourself a “home value expert.” Investigate the areas and price ranges for the kind of home you are looking for. Get a good idea of the price ranges these homes sell for and how long the market time is for them. Your agent is a great asset here.
  4. Have Your Offer Presented in Person: Your agent represents you and your best interests. To adequately do this, make sure that your home offer is presented by them directly to the seller. The personal touch will give you the edge. Your agent also might pick up critical information during this meeting.
  5. Prove That You Are a Serious Buyer: The best way to accomplish this is with strong earnest money. This might mean that you put 5% or more down to get the sellers attention.
  6. Don’t Go Crazy: Even in a hot market, be cool and calculated with your decisions. A knowledgeable agent can really help you here. Your home purchase may be your single largest investment. It is important to make sure that you get the best deal possible. Overpaying now will make it harder to get your value back when you sell.

  7. Keep Your Offer Simple and Clean: Make sure that your contract to purchase is simple, clean and not bogged down with unnecessary contingencies, especially repairs. Keep the time frames of repairs and responses to a minimum. The cleaner your offer, the more interested the seller will become. This may help you purchase the property at the best price.

  8. Don’t Wing It Alone: What you need most in today’s complex marketplace is an experienced and professional real estate agent who represents your interests only. No matter how heated the competition or the negotiations, a professional agent will represent your best interests, keep you from paying too much and help you maximize your investment.

Are you looking for an agent to represent you and your best interests? You, the home buyer, pay nothing for a professional agent. Their fees are paid for by the seller. Click here to contact me today and find out how I can help you find the most house for the best price.

 

 

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6 Tips to Buying Bank Owned or REO Homes

Caroline Ashe Your Source in Augusta, GA Real Estate April 20th, 2012

The buzz words these days in real estate might be bank owned one day or foreclosure homes the next….OR if you are real savvy REO a.k.a Real Estate Owned and refers to property that a lender or investor acquires due to a repossession through foreclosure. Foreclosureis the actual process in which the property is acquired.

Search Augusta GA Area Bank Owned Homes HERE!

 

Helpful tips to buying bank owned property:

  1. Get pre-qualified, IT’S FREE and will save you hassle in getting your offer considered.
  2. If you are a cash buyer have proof of funds ready and available.
  3. Use a Realtor to represent you, like me Caroline Ashe.
  4. Work with your Realtor to locate bank owned homes in your area.
  5. Keep in mind lenders/investor price the home at market value taking into account condition, so many REO homes are priced well already for the current market.
  6. Be ready to make an offer when you see a home you like. There will most likely be multiple offers.

My personal tip – Be patient. There is more paperwork and you must do your due diligence because most bank owned homes are purchased AS-IS, but the benefits to getting a home at a ‘deal’ is worth it!

Search Augusta GA Area Bank Owned Homes HERE!

 

If you’d like to discuss the process further, plese let me know!

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