Thursday, March 19,2009
The Florida Real Estate Market is bouncing back in some counties, Seminole County is making good strides in the recovery of sales on single family homes.
Loan programs and guideline are determining the price range that is moving, buyer's needing loans above $417,000 will be paying higher rates. Conforming loans (Loans $417,000 or less) compared to non-comforming loans (Loans $417,000 or more) used to have .250 to .500% difference in rate, now we are seeing it to be 1.000 to 1.250% higher making buyer's think twice before buying with the higher rate.
Most lender's are still realizing we are in a declining market and are reacting to it by discounting appraisals by 5% or more, what this does is make the buyer bring more down payment.
Before you think of buying, get pre-approved for your exact dollar amount, know your rate, term, payment, and closing costs from your mortgage professional before you go to contract.
When your Realtor goes to contract for you, put a appraisal contengency in the contract, you can come back with another counter offer if it does not appraise or the lender determines the home is in a declining market. Ask to have a 30 day financing contengency, you and your mortgage professional need the time. Lock your rate in ASAP, this is not something you should gamble with, a .125% difference in rate is not worth the stress if rates jump a .500%.
After contract acceptance and during your contengency period, a home inspection is a must, focus on the four main points, roof, electrical, plumbing and A/C, call your home insurance professional to obtain a quote during this time frame, some homes cannot be insured. Do not buy anything on credit in this time period, most lender's pull credit again on the day of closing.
Day of closing, bring your photo I.D. and a smile to the closing table, enjoy your new home.
We all need a place to call home, let me help you to find yours today at www.ScottKingTeam.com
Best Regards,
Scott King
