How Do VA Loans Work?

VA loans are special loans made for those who served in the armed forces. There is different in paperwork and different procedures to obtaining a VA loan than there is for a traditional loan. Here we will use getting a VA loan in the state of Florida to explain how VA loans work.

What A VA Loan Actually Entails

One of the basic differences between a VA loan and a regular loan is that the loan is covered by the US government in the event that the veteran cannot meet the terms of the loan. The amount of the loan is generally between 36,000 and 60,000 dollars. VA loans in the state of Florida also do not have to have private mortgage insurance as well as no down payment. This is a sweet deal which makes it easy for a veteran who has served the country to buy a home to live the rest of their lives in.

How Do VA Loans Work?

If a veteran buys a home, there are great interest rates and they don’t pay the closing costs. There is however, a funding fee for the loan. How much that is will be determined by how much the veteran puts down, if they put anything down at all since it isn’t required of them in the first place. It is also contingent on if the veteran has used this program before or if this is their first time. VA loans in the state of Florida also take into consideration if they are in the National Guard or the Reserves. The amount of the funding fee can be up to 3% of the total price of the home and can be added into the loan if need be.

Steps to Obtaining A VA Loan in the State of Florida

First the veteran must apply for a VA loan the process is not automatic. They do this at the VA eligibility center. Along with the application, they have to furnish proof of service in the form of a document called the DD214. They go to a VA approved lender with proof of pay, bank statements and verification as well as verification of current employment to be approved for the loan.

Then a credit check and all the other traditional steps one would take to get a traditional loan. It is not necessarily easier to get a VA loan in the state of Florida. It is however, a better loan for the aforementioned reasons.

How Sellers Look at VA Loans

It used to be that sellers didn’t want to take VA loans. They used to take so much longer to close than a traditional loan. They have cleaned this issue up though. There was also a concern that due to the fact that veterans have only to pay a limited amount of fees that they would be stuck paying all the fees attached to the selling of the home. This can be easily made up by the seller in several ways. Some of those ways is adding the amount to the counter offer or asking the buyer to split the closing costs even though they are not required to do so. In a lot of these cases, the veteran is certainly flexible about the situation if they like the house and want it enough.

How Do VA Loans Work?

It is a blessed thing that veterans get a deal on buying their homes. They served their country well and they certainly deserve the perks on their basic needs. Getting a VA loan in the state of Florida is easier than you would think and well worth it.

Simple Ways To Prevent Foreclosure

Buying a home is an important investment but not only in a money sense— is it an emotional pull as well.

You make your memories in that house and you envisage having your family in it for life in some cases. So, when a circumstance strikes and you and foreclosure is imminent—this is a devastating blow.

Simple Ways To Preveny Foreclosure

Foreclosure is never easy but it can be avoided.

If you are thinking, reading or pondering anything that remotely resembles foreclosure then you are probably not able to pay your mortgage or you are just falling behind. There are so many reasons why this happens and it’s not always in your control.

Who is foreclosure good for?

The answer is simple it isn’t good for anyone at all—the lender is not wanting to take back a property due to a foreclosure. This is not a delight for them for a lot of reasons. It is a loss and an expense on their part and resale—depending on the value of the property is almost always a loss.

Call Your Lender

The first thing you need to do is not to wait. As soon as you have a life situation that you feel may result in a foreclosure—then call your lender. The sooner the better and the more polite, calm and up front you are the better off things will be. There is something to be said for communication. The lender wants to keep you in your home so there are a few things to do with their cooperation to give you the best chances of keeping your home.

Simple Ways To Preveny Foreclosure

As soon as you have a life situation that you feel may result in a foreclosure—then call your lender.

Make your Calculations

Make sure you know what if any amount you can pay and start there with the lender. If you believe this will be a permanent situation in your life then ask the lender if there is a compromise you can reach regarding making the payments that you are able to make until you are in a position to sell the property.

But, be forewarned that the lender will only want to work with you for a limited period of time and will want to see what you are doing to get it fixed or sell the home prior to any foreclosure actions taken. It just makes it easier on them and it is less of a loss for them as well.

Make Provisions

Get a second job or find some way to make a second home income. Make sure you are keeping in touch with the lender regardless of whether or not you are able to sustain your end of whatever deal you made. Communication is the key to your success with the lender. They will help you as long as you do not disappear and believe us when we say they can tell credit agencies things that can make it twice as hard to recover your credit for.

Foreclosure is never easy but it can be avoided if you keep continuous communication with the lender and nip the issue in the bud that’s causing it in the first place quickly.

What You Need To Know If You Want To Sell Your House Fast

The largest thing you will ever buy or sell in your lifetime, should you choose to is a home.

Choosing one is challenging enough but when you want to sell your house fast that is another ball of wax. It’s not something to take lightly at all and when you want to do it fast a whole plethora of possible issues could arise. So, here we will take a look at how to get everything you need together to organize your life so you can do this without much drama.

Sell Your House Fast

According to Kiplinger, a respected publication these are the most important five tips to selling your home faster. This is a result of a poll taken from homeowners that bought and sold multiple homes in their lifetime. This was also not during any housing boom because it was taken around 2012.

The Importance of Curb Appeal

One of the most important suggestions that were made by those polled was the curb appeal of their home. Many of the participants struggled even getting people to stay at the showing or come out of the car regardless of how great the inside looked. This was frustrating. Others experienced another situation that suddenly disappeared when they fixed up the outside. People would immediately want to lower the asking price. This stopped for everyone who experienced it once they did what they needed to do outside the property.

Sell Your House Fast

People reacted this way, not because of how much it would cost them to revamp the property but how much it turned them off to look at it. You see, this is all a psychological game in how to sell your home fast. Not all about dollars and cents. People have to be able to visualize themselves living in your home.

Every Repair is Necessary

Just as we stated in the curb appeal section—the same goes for your repairs. For instance a little chipped paint on the baseboard is no big deal but your buyer may. Again, not because of the cosmetic appeal but because once there is the impression of a home not being maintained—the buyer gets suspicious.

They are more apt to think that something else will come up in the home inspection that they will get lumbered with. This is not good for how to sell your home fast.

Staging To Sell Your House Fast

And just when you thought we couldn’t nit pick any deeper—we do. But it’s for your own good. So, it’s bad enough you have a situation where you have to sell your house fast—but now—you’re being told to stage it to appeal to buyers. This sticks in some people’s proverbial craw. This is because—in the poll taken—it is best to have neutral furniture and take all your personal family photos and such away. So, what does this do? Basically as we stated in the last two sections—the buyer must have a sense of what it’s going to feel like when they are living there. It’s easy to visualize where their furniture will go, where their kids stuff will be and what life will be like in general there. This will help sell a house fast. But, if it’s all about you and your family—all they will do is feel as if they are an intrusion on the years of memories you made there.

Sell Your House Fast

Conclusion

If you want to sell your house fast then keep these key things in mind. You may feel that your home was your baby and you want others to care for it like you did. But, the buyer very rarely finds comfort in that. It makes them feel as if they are intruding. So, follow the steps and keep it neutral.

 

Companies That Buy Houses As Is

You see them everywhere nowadays and especially during and after the housing crash—signs that say “We buy houses as is” or some variation of that. So, what are these companies and many wonder if they are even legitimate. Well, you may be surprised at the answer.

Companies that Buy Houses As Is—Are they Legit?

You may be surprised to know that most—not all—companies that buy your home as is are legitimate. Here we will expound on what they are and what and how they do what they do in comprehensive terms so you can easily understand the business end of it.

Facts About Companies That Buy Houses As Is

Basically they have been described as quick acting and low balling investors. If the buyer is larger than most you can look forward to a quick sale but they will also pay less than others. The smaller investors actually pay more in this game.

Who Uses these Companies?

Well, people use these companies for a plethora of reasons. These are not the usual house seller. These people have extenuating and not always good situations that make them need to sell their home quickly and cheaply.

Companies that Buy Houses As Is

Some of those situations could be a divorce, or someone that was brought into a really bad mortgage structure which has been the issue since the crash. They may own big back taxes and need to liquidate their property to pay what is owed. The most popular types of people are those that are attempting to avoid foreclosure and those that are selling inherited property and don’t want the added stress of keeping it up or it may be a distressed property that would be more hindrance than help.

Pros and Cons of these Companies

There are a lot of benefits to using companies that buy houses as is. They are fast, cheap and will pay most of the closing costs. This is essential to those in the aforementioned situations. There is a lot of argument for and against with most being for when they understand what they actually do. The first argument is that they convert properties into rentals and then they rent to bad people. This happens but not intentionally. They actually end up helping communities out by converting unkempt properties. Most pay about 65 cents on the dollar and they use special programs that tell them what a home will be worth. However; with the market as it is—condos may fetch 50 cents and some companies will try and determine what the equity in your home is and offer no more than that.

A lot of the larger investors will concentrate on older neighborhoods with older homes in the $100,000 dollar region and below. Nowadays while the housing market continues to drop, they are looking more at higher priced properties.

Companies that Buy Houses As Is

Either way, it never hurts to ask a company that buys your property as is what they can do for you. There are so many circumstances that can benefit from these companies that you may find it a saving grace to your own.

 

 

 

Top Tips To Selling Your House Quick

When it comes to selling your home—your biggest investment—and doing it fast you need to the advice of the pros.

This is not just your real estate agent who may not even know. Our research will clue you in to the six quickest and easiest tips for selling your house quick and not losing your shirt in the interim.

We will preface this by saying that you don’t have to lower the price of your home to sell your home quick. People will still invest in value. So, these tips are geared to sell your house fast and to make sure you have the best chance to get top dollar for it.

Stand out from the Crowd

You need to attract attention. This means standing out from the neighbors. Make improvements that your neighbors may not have. However; make sure that the improvements you make will actually raise the value of the home. Make sure that the additions or accents will compliment what you have. For example, it’s better to build a deck with a pool than on its own. Also, make sure you consult a design expert to ensure the appeal of whatever you do suites a wide audience.

Make sure you are making the most practical changes on your home. This way they are enhancing the value of the home both for you in the asking price and for the people buying.

In Selling your House Quick, Take the YOU out of the Home

Yep that’s right, the way to really make a splash on the market is to take the YOU out of the home. You may think that strangers walking in and seeing your warm atmosphere with family photos would draw them to buy but the opposite is true. So, if you are confused as to how to do this then hire a stranger to put it together. Maybe even rent some rather neutral furniture to sell it. It may seem like a lot but it will put more money in the bank and sell your house quick.

Make an Offer the Buyer Can’t Refuse

Offer to pay closing costs or partial closing costs. Offer to pay for a transferable home warranty. These days’ buyers are looking for any deal they can get. These bits and pieces are the best way to reel them in and stand out from other sellers. It may cost you a couple thousand or a few hundred and at the end of the day—it’s all worth it.

Mind the External Appearance

The first thing new home buyers notice is your entrance. You may feel that they can do what they want to it when it’s theirs but guess what? They are more likely to buy if it looks tidy and move-in ready.

Conclusion:

These are easy tips to selling your house quick. The key is to do it and gain from it so you aren’t in debt afterward which seems to be the pattern in a dwindling market.

 

 

Applying These Tips Will Make Your Mortgage Application Pull Through

Applying for a mortgage is not a hard thing to do.

What makes it time consuming is the fact that it takes a bit of research to do. Here we will discuss how to apply for a mortgage in Florida. This is a comprehensive and straight forward set of instructions that will have you in a new home sooner than you think.

Get a Copy of your Credit Report

Mortgage application

Your credit score is important—so important that one of the first things you need to do is get a report to see where you are at. If you have any issues, get them cleared up as fast as you can. Make sure any debt is paid for and if there is a lot—get into a debt repayment program quick.

Mortgage Application: Florida Fair Lending Act

The Florida Fair Lending Act is a law which protects the person going for a loan from bad lenders that prey on people who have bad credit. This is a rampant issue. Unscrupulous lenders will coerce a person with poor credit into a loan they know they can’t afford and will then foreclose on the home. This happened to countless people with their mortgage application, especially in Florida. Because of that, the law was instituted.

Research Mortgage Loan Options

Mortgage application

 

Research as many different mortgage lending institutions as possible—they should have a variety of options to choose from such as banks, private, online lenders etc…

Florida and Federal Programs

There are both Florida and Federal programs that offer first time home buyer programs as well as single parent programs and rural home buyer programs. This is just to name a few.

After you choose a program then obtain your loan. Once you know the amount you are good for then you can proceed with finding a real estate agent that you are comfortable with. Then all you need do is the fun part and that is to find the home that suites your needs and makes you comfortable. This is your roots and where your largest investment in life will be so enjoy it!

An FHA loan is a great idea for getting a lower interest rate.

FHA loans are quite different from traditional loans though—they tend to be more difficult to get. But, should you want to go through it and stick out the process—an FHA loan can make you qualified for a larger loan and a bigger house.

How To Get A FHA Loan In Florida

Closing costs are not payable by the buyer on a FHA loan in Florida. There are some closing costs that may be tough in certain circumstances.

In order to start the process you will need to first get certain documents ready. You will need several things.

• Social Security Card
• 2 Years of Employment History
• Proof of Gross Monthly Salary
• Bank Statements for all Accounts
• DD-214 for Military
• Documents on Open Loans
• Tax Returns for Previous Two Years

After those initial steps are fulfilled and the proper documents are secured and ready for presentation, the next steps are to be followed.

Mortgage Insurance:

If your down payment is less than 20% of the total purchase price you are required to have mortgage insurance. The insurance will protect your lender if you should happen to default on the loan. The premium of the insurance will be determined by the amount you put down. Once your mortgage reaches 15 years and acquires a value ratio of 78%—the mortgage insurance will be terminated. If you have a mortgage of more than 15%, the insurance is canceled after the value ratio reaches 89.99%.

Closing Costs:

For the most part, closing costs are not payable by the buyer on a FHA loan in Florida. There are some closing costs that may be tough in certain circumstances. The ones that are not allowed would be paid by the lender in the case of it being a refinance and by the seller if it is a traditional loan.

Allowable Costs:

• Lender’s Origination Fee
• Deposit Verification Fee
• Attorney’s Fees
• Appraisal Fee
• Inspection Fee
• Cost of the title insurance
• Home inspection fees not exceeding $200

The Debt Ratio Role for FHA Loans in Florida:

How To Get A FHA Loan In Florida

 

 

 

Each person must qualify according to a debt to income ratio. This is a good thing because it protects the buyer from being approved for a home they cannot afford.

How to figure out your debt to income ratio:

Take the total cost of the home and divide it by the gross monthly income. Your monthly ratio cannot exceed 29%.

How your credit affects your buying power:

You have to have at least 2 lines of credit to qualify for an FHA loan in Florida. If you don’t have that you may attempt a substitute form. If you are in chapter 13 or chapter 7 bankruptcy you should ask the FHA loan counselor what you need to qualify. There are specific guidelines that should be followed for each of them.

Conclusion

There are only a few absolute disqualifications. One is if you were ever foreclosed on and the other is giving a deed-in-lieu. If it’s the latter, you cannot qualify for an FHA loan for three years.

How To Sell Your House With or Without A Realtor

Whether you are buying or selling a home, you are in for one significant project. You are certainly going to have your work cut out for you. A home is the single largest investment you will ever make in your life. But, it’s not an impossible endeavor and nor does it have to be a crazy maker with just a little bit of organization. Here we will give you some simple tips on how to sell your house.

Be Prepared

One of the main decisions you need to make about how to sell your house prior to anything else is whether or not to use a Real Estate agent. If you use one it takes a lot off your plate. You don’t have to worry about the fine legal details on your own and you don’t have to have to show the home on your own which means not having to be home every time you show it or have to adjust your time schedule in order to show it.

 

Not having one may save you some money and you get the cash instead of the go-between. In order to help you decide, you may want to think about your situation and find out if there will be any complications attached to your home sale. If there are any issues with the deed or anything that may make it a bit more challenging for you then hire a Realtor. If you have people to help you then maybe you can pull it off yourself.

The Second Step

If you do decide to use a realtor then shop around some. Word of mouth is good in this case. Make sure they are passionate enough about what they do and they live in your area. Make sure they will make your home look as attractive as possible.

With or Without A Realtor

Make sure you are targeting a competitive asking price. Research how to sell your house with a price comparable to what is out there already. Make sure the house makes it to the MLS and online.

Sell Your House To A Real Estate Investor

Sometimes homeowners don’t realize that they can actually sell their home to a real estate investor. Here, we will tell you what the advantages are to doing that so you can make an educated choice about how to go about it.

The Two Types of Situation When you Would Sell to A Real Estate Investor

The two types of situation that are the most popular for selling to a real estate investor would be if you have a bad property that needs a lot of work done. Too much work for you to be able to afford and when this happens you may not even break even.

The other situation is when you have a bad personal situation and would have to relocate quickly say due to a divorce or other life change. This would be a great time to sell the home to a real estate investor who can deal with the fixing and flipping it later.

Selling A House To A Real Estate Investor

 

Advantage to Having a Real Estate Investor

Real estate investors are adept at taking care of properties to sell a house quick. They have people they contract to remove debris and do the work on the house that needs to be done. It is not the same as wooing a regular buyer the investor does not have to fall in love with the property. It narrows it all down to one decision and that is to sell or not to sell. You don’t have to worry about what the house looks like and you don’t have to put any extra money into it. You just have to sit and have the discussion.

Selling A House To A Real Estate Investor

Real estate investors are adept at taking care of properties to sell a house quick.

What the next steps are though are more common with a few small differences. A selling contract will be signed and a closing date will be set and agreed upon. In a normal sale—the closing date would be more like months but in the case of a distressed property sale it would be more like days. You also don’t have to pay real estate commissions which leave you with more.