5 Reasons to Be Thankful for a Great Real Estate Agent

Not all real estate agents are created equal. Like all industries, there are plenty of terrific pros, but once in a while a bad apple rubs a buyer or seller the wrong way and spoils it for the rest of us.

If you’ve had a bad experience in the past, don’t let it happen again. If you aren’t comfortable with your current agent, stop everything. You can find wonderful agents in every market — don’t move forward until you have.

Once you find an exceptional real estate agent, you’ll discover plenty of reasons to be thankful for them. 

They’ll be there for you during the difficult moments

In the middle of a transaction that seems to be giving you more heartache than love? Maybe it’s not the “deal” you thought it was, or something just doesn’t seem right?

A good agent will take your call at 10 p.m., hear you out and support your decision not to move ahead. Buying or selling a home is a serious financial transaction — not to mention one with huge emotional and practical considerations.

Your agent should uncover any issues and, if it’s the best decision, suggest backing out of the deal before you even bring it up. They’ll be on your side, and looking to build a long-term relationship — not just make a quick buck. 

They’ll help get your house ready for sale in record time

A good listing agent doubles as a project manager, designer, and connector of all things quick and fast for home improvement.

Thinking of selling, but daunted by the idea of prepping your home, making necessary fixes or simply deep cleaning? Good listing agents take on the burden and alleviate unnecessary drama from an already stressful time in your life.

With your approval, your agent can muster up a team of painters, stagers, floor finishers, home organizers — and the list goes on. As the lead on prepping your home for sale, your agent will be your single point of contact and get the job done quickly. 

They know you’re juggling work, kids and all the other parts of your life

A real estate transaction can be so tedious. Someone always wants a random signature or a document notarized. Inspectors and appraisers need to get into the home, and sometimes one of the parties has a last-minute request that you can’t ignore.

A good agent realizes you have a life outside your real estate transaction. She’ll drive to your home late at night or catch you in the lobby of your office building in between your meetings for that important signature. He’ll open doors, get second bids, sometimes pull weeds and even walk your dogs.

Tasked with making your life easier and your transaction as smooth as possible, a good real estate agent is full service 24/7. And they love doing it. 

They’ll send you helpful data about your home long after you’ve closed

Some agents do their deals and move on, seeing your purchase or sale as transactional. But good agents know that their services continue long after you close.

Homeowners like to know what’s going on in the market and how their investment has fared over time. Agents see homes in person each week, and can take note of comparable homes and keep their past clients informed about the market.

 It’s true you have a lot of information at your fingertips already, but having an active agent keeping you in the loop, without even asking, is the best. 

They have the inside track because they’re well-connected and well-liked

Often, deals fall into place because of the strength of the relationships a good agent builds over time. Being well-connected with other agents, bankers, inspectors and deal-makers means they can help you find opportunities off the market, get the attention or time you need, or get your offer to the top of the pack in a competitive bidding situation. 

A truly great agent constantly has your interests, wants and needs in mind, and uncovers opportunities to find the house or the buyer of your dreams.

If you’ve found your dream agent, you have a lot for which to be thankful. If you haven’t, find a good agent and get them on your team. They can make all the difference.

Article by Foxbusiness.com

Courtesy of First Choice Title Services & Escrow, Inc.

First Choice Title Services & Escrow, Inc

3 SW 129th Avenue, Suite 202

Pembroke Pines, FL 33027

http://www.firstchoicetitleservices.com/

Phone (954) 433-7680

Fax (954) 433-7355

maria@firstchoicetitleservices.com

The Best Candidate For an Adjustable Rate Mortgage

Adjustable-rate mortgages (ARMs) offer borrowers a lower interest rate than a conventional fixed mortgage, but that rate doesn’t last forever, which means this mortgage product isn’t going to work for everyone. After all, adjustable-rate mortgages have been out of favour with many financial planners ever since the housing meltdown that ushered in an era of foreclosures and short sales. Back then, borrowers faced sticker shock when their ARMs adjusted, and their payments increased greatly. Many had to walk away from their homes because they couldn’t afford the new payment. Another knock against ARMs is low-interest rates. Interest rates have been hovering at record lows ever since the recession of 2008, leaving many wondering if they should go with an adjustable-rate mortgage at all. While all of this may send most home buyers heading for the hills, ARMs do make sense for a certain group of borrowers. Whether or not you are a good candidate for an adjustable rate mortgage depends on a lot of factors from the time you plan to stay in the home to your future earnings potential. (Read more, here: The Fuel The Fed The Subprime Meltdown.)

ARMs Are Attractive For Short-term Homeowners

One of the disadvantages of an adjustable-rate mortgage is that the interest rate you pay isn’t fixed for the entire loan like a conventional mortgage. When borrowers take out a fixed-rate loan, they know they will pay the same interest rate over the life of the loan. With an ARM, the interest rate changes over a period. Let’s say you took out a one-year ARM with a lower interest rate than a fixed mortgage. That would mean you get to enjoy that lower interest rate for a year and then the loan would reset each year to match the prevailing interest rate. That’s fine if interest rates are low as they have been for the last few years, but if rates go up, you are likely going to end up paying more than you would with a conventional fixed-rate loan. (Read more, read: Mortgages: Fixed-Rate Versus Adjustable-Rate.)

ARMs come in different terms from one year to as long as seven years, which is why an ARM might not make sense for someone who plans to keep their home for more than seven years. However, if you know you are going to move in a short period, or you don’t plan to hold on to the house for decades to come, then an adjustable-rate mortgage is going to make a lot of sense. Take this example to gauge your potential savings: let’s say you take out a seven-year ARM with an interest rate of 3.5%. A 30-year fixed rate mortgage, in comparison, is going to give you an interest rate of 4.25%. If you plan on moving and selling the home before the five-year ARM resets you are going to save a lot of money on interest, but if you ultimately decide to stay in the house longer, and rates are higher when your loan adjusts then the mortgage is going to cost more. Predicting the future isn’t easy to do but if you are purchasing a home with an eye toward upgrading to a bigger home once you start a family, or you think you’ll be relocating for work, then an ARM may be right for you. (Related reading: 6 Tips For Selling Your Home Fast.)

You Expect An Increase In Your Earnings Potential

A big reason people got in trouble with adjustable-rate mortgages is that when the interest rate reset, the loan payment increased a lot each month, and they could no longer afford to make their monthly payments. For people who have a stable income but don’t expect their income to increase shortly, a fixed-rate mortgage makes more sense. However, if you expect to see an increase in your income, going with an ARM could save you from paying a lot of interest over the long-haul. Let’s say you are looking for your first home and you just graduated from medical school, law school or earned an MBA. The chances are high that you are going to earn more in the coming years and will be able to afford the increased payments once your loan adjusts. In that case, an ARM will work for you. (Read more, here: When Is An MBA Worth It?)

You Plan On Paying Off The Loan Before Your ARM Resets

Taking out an adjustable-rate mortgage is very attractive to mortgage borrowers who have or will have the cash to pay off the loan before the new interest rate kicks in. While that doesn’t include the vast majority of Americans, there are situations where it may be possible to pull it off.

Take a borrower who is buying one house and selling another one at the same time as one example. That person may be forced to purchase the new home while the old one is in contract and, as a result will take out a one or two-year ARM while the borrower awaits payment from the sale of their home. Once the borrower has the money, they can turn around pay off the ARM with the proceeds from the home sale.

Another scenario in which an ARM would make sense is if you can afford to accelerate the payments each month by enough to pay it off before it resets. Employing this strategy can be risky because life happens and while you may be able to afford to make accelerated payments now if you get sick or the boiler goes, that may no longer be an option. (Read more, here: 5 Ways To Pay Down Your Mortgage-Without Going Broke.)

The Bottom Line

Adjustable-rate mortgages have gotten a bad rap ever since the 2008 financial crisis that resulted in record foreclosures and short sales. However, even in an environment where interest rates are near all-time lows, and people are much more risk averse, there is a place for an ARM. That doesn’t mean an adjustable-rate mortgage is the right product for everyone, but it is a good option for some. If you don’t plan to stay in your home for too long, expect to see a substantial increase in your earnings potential or you have the means to pay off the loan before it resets than an adjustable-rate mortgage may be an ideal option for you. To mitigate any surprise issues, before you take out an adjustable rate mortgage make sure you understand the terms of your loan, the interest rate and when the rate will readjust.

Article by Investopedia.com
Courtesy of First Choice Title Services & Escrow, Inc.

First Choice Title Services & Escrow, Inc

3 SW 129th Avenue, Suite 202

Pembroke Pines, FL 33027

Phone (954) 433-7680

Fax (954) 433-7355

maria@firstchoicetitleservices.com

How to Start Saving for a House

Want to purchase a home? Even with the housing market pretty much back from the doldrums of the 2008 Great Recession, real estate experts say that there’s still plenty of room to the upside if you purchase a home now.

But many first-time homebuyers underestimate the amount of money they will need up front to purchase their dream home. As a rough estimate, closing costs will run between 2% to 5% of the home’s value and at minimum, you’ll probably need 3.5% down. This rate is for an FHA loan, for lower income earners. However, those loans are harder to get than one at 5% down (see Score a Cheap Mortgage). On a $200,000 home, you will need around $16,000 when you close. This amount is the bare minimum, according to realter.com.

Next question: If you don’t have it, how will you save for it?

If you need the money now and don't have it, this is not the time to buy. You don’t want to cash in any of your retirement savings (see 5 Essential Retirement Savings Accounts). If you’re like most people, your retirement accounts are probably running a little low so you’ll need all the money you can get in there. You could ask family members for a loan, or if you have company stock or an investment outside of retirement, take the money from there. Otherwise, it's time to focus on buying a house in the nearest possible future. 

6 Ways to Afford That House 

Waiting e a year or more gives you many more options for assembling the down payment and cash for other moving expenses: 

1. Get a smaller apartment. Assuming you’re living in an apartment, consider moving to a smaller one or one in a cheaper neighborhood. This works particularly well if you’re single or living with somebody and have no children. Even better, live with your parents for a year. Getting rid of a $900 housing expense would save you $10,800. You may not need much more than that depending on the size of your home.

2. Don’t spend your windfalls. Did you get a company bonus? How about a tax refund or some other unexpected sum of money? Put all of that cash toward your down payment, assuming you don’t have delinquent or high-interest debt.

3. Find a part-time job. When you have to save a sizable chunk of money, it’s going to be inconvenient. Can you get a part-time job and put all of your paychecks into your house fund? Or can you freelance in a skill you already know? Don’t just look for ways to save, also look for ways to earn.

4. Save less for retirement. You might be well on track to reaching your retirement goals. If that’s the case, maybe scale back. If you’re matching your 401(k) up to the 6% company match (or however much your company matches), put the rest of your money into your house fund. But don't stop putting some money aside for retirement. Saving for your later years is more important than saving for a home, so don’t take money from your retirement for your home.

5. Little Things Add Up. Two fewer cups of Starbucks coffee a week plus eliminating going out for lunch twice each week can save you a lot of money over the course of a year. Let’s say that your coffee is $4 a cup and lunch is $10 per, that means an annual saving of $1,456.

6. Cut out expenses. Can you cut the cord on cable, get a cheaper cellphone plan, use the road for workouts rather than the treadmill at the high-priced gym? Nobody wants to say it out loud, but most people have plenty of places to skimp on or eliminate expenses. It won’t be convenient and you may miss not having them, but it’s necessary if you're serious about saving.

The Bottom Line

Ask yourself this question: Is my short-term comfort more important than buying a home? If your answer is no, live well below your means now so you can live better once you’re in your home. Saving more now means you'll have more for the down payment, which will lower your mortgage payment – sometimes by hundreds of dollars per month. It’s true that interest rates may rise while you’re waiting, but probably not enough to outweigh the costs of saving, more especially when you consider your total cost over the life of the mortgage.

Then, when you're ready, read Investopedia's tutorial How to Buy Your First Home. And be aware that there are sometimes special breaks for first-time homebuyers (see Credits for First-Time Homebuyers).

Article by Investopedia.com
Courtesy of First Choice Title Services & Escrow, Inc.

First Choice Title Services & Escrow, Inc

3 SW 129th Avenue, Suite 202

Pembroke Pines, FL 33027

Phone (954) 433-7680

Fax (954) 433-7355

maria@firstchoicetitleservices.com