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 When selling your home, there are many things that can cause stress that are out of your control. As a seller, you cannot control the market, the number of offers placed on your home, or how many other houses are for sale in your area. With so much out of your control, it becomes of utmost importance that you tip the scale in your favor by taking control of the things you can.
Controlling Your Home Sale
To control your sale, approach the following with care:
- Selecting Your Agent – When choosing your agent, don’t make a hasty decision. After all, this is the person that can truly dictate the success of your sale. They will have an influence upon foot traffic, marketing, and the pricing of your home. You need a qualified professional to advice you throughout the process so it leads to a positive outcome.
- Preparing Your Home for Sale – Insure that your home present itself well by cleaning up your yard, and decluttering your home in the very least. If there are obvious home repair jobs needed, complete the inexpensive ones that act as red flags. You do not want these things to tell buyers you take no pride in your home, or they may expect even bigger problems they can’t see. Your agent can also give you feedback on what areas of your home need attention.
- Your Expectations on Price – The market controls what your house will realistically sell for. You can control how open-minded you will be about the process. Be willing to bend (but not break) as having a random figure in mind will not be beneficial if it is not realistic to the market you are in. What you purchased your home for or what homes sold for a year ago play no role in what your home may be worth today. If you’ve chosen a qualified agent, they can give you up to date market data on what your home is worth and what you should ask for it.
There are a number of factors in a home sale that are left up to chance – don’t be a passive observer as you work to sell your home – take control over the things you can control!
 While the bond / stock markets are closed today in observance of Columbus Day today (re-opening tomorrow), this week will bring three economic reports that are of interest to the mortgage market along with the minutes from the last FOMC meeting and two important Treasury auctions.
New Data Released This Week
On 2:00 PM ET Wednesday afternoon the Fed will releases the minutes from their last FOMC meeting. These minutes have the potential to move the market depending on their content. If the minutes are perceived to be positive, mortgage rates could move upward, if the minutes are perceived to be negative, mortgage rates have the potential to move lower.
On Thursday morning the Trade Balance report for august will be released, followed by the and Retail Sales data and Consumer Sentiment on Friday.
There are also two Treasury auctions this week, 10-year Note sales will be held Wednesday and 30-year Bonds will be sold Thursday.
Economic Calendar for Week of October 10th, 2011
- Monday – US Holiday: Observance of Columbus Day
- Tuesday – none
- Wednesday – FOMC Minutes released
- Thursday – Jobless Claims, International Trade, Treasury Budget
- Friday – Retail Sales, Consumer Sentiment
Tags: consumer sentiment, Florida Mortgage Rates, market outlook, Mortgage News
 With minimum down payment requirements for the purchase of your first home, coming up with the funds can be a challenge. Many new home buyers find themselves in a position to afford the carrying costs of their home, but can’t seem to come up with the cash to put the required money down.
The specific amount required can vary from one lender to the next. It can also vary by state but the general range is between 5% and 20% at a minimum. What first-time home buyers may not know when they are struggling to come up with the money, is that it is possible to use ‘gift’ money if they have a family member with sufficient financial resources.
Gift Down Payment Guidelines
The specific regulations for the use of gift money do vary by state. However, the basic guidelines are as follows:
- Money can be provided to buyers by family or friends. However, it must truly be a gift and not simply money loaned. Often, mortgage lenders will require the person giving the gift to sign a notice guaranteeing the money is a gift. Sometimes, the source of those funds must be proven as well.
- The individual providing the gift does not have to pay taxes on the gifted amount, provided it is under the state mandated maximum.
- Often, the mortgage lender will require that the gift money be available to the buyer 30 days before closing.
Taking some or all of your down payment as a gift can help you get to the first rung on the property ladder. However, it is very important that you only use gift money when it is legitimately that – a gift. If you try to take advantage of this system and claim a loan as a gift, you are not only engaging in fraud, but you may find that you are in over your head financially even if you do obtain the loan.
Tags: down payment, Florida Home Purchase, gift money
 Mortgage rates have continued to slowly trend upwards this week from the record lows of last week. This means that there is still a great opportunity to lock in these near record low rates before they make their final move up. If you lock in your rate, that is. That is a big if, because there is market data coming out tomorrow which may move the market in a way that pushes up mortgage rates significantly.
Non-Farm Payrolls Report Data on Friday May Push Mortgage Rates Up
Tomorrow at 8:30 AM Eastern, the market will be waiting and watching as the Non-Farm Payrolls report otherwise known as the “jobs report” or “employment report” is released for September. This report can have a significant impact on mortgage rates and includes data about the U.S. unemployment rate, number of new jobs added or lost during the month in addition to average hourly earnings. This data helps market participants such as investors, banks and traders understand the health of the employment sector and can have a huge impact on mortgage rates.
Weaker than expected data could be positive for mortgage rates, while stronger than expected data could mean much higher rates depending on how strong the data is.
Keep in mind that since we are at a bottom, mortgage rates have a lot more room to move upward and are expected to move upward fast when they do move. This means that if you do not have a rate lock in, now may be the time.
The Low Rate Window May Be Closing
Have questions about a rate locks or the right loan for your scenario and goals? We can help you answer any questions you have in addition to locking in a low rate so that you are not at the mercy of the market! Holding off on your rate lock may mean the reality of much higher rates later.
Tags: Florida Mortgage Rates, mortgage rate locks, non-farm payrolls
 You may not know it, but the interest rate you’ll pay for your home loan depends on a number of different factors. Changing any one of these factors can help not only make you a better candidate for a loan, but also ease the financial burden that comes from a major purchase like buying a home. We’ve outlined some of these things below:
1. Your Credit Score
Your credit score plays a major role in the type of interest rate you’ll qualify to receive. While different programs have different credit requirements, the rate you pay may increase or you may be disqualified altogether if you do not meet a specific program’s minimum or preferred credit score standards. If you find that you are having trouble qualifying for a mortgage, you might qualify for federally supported loans from Fannie Mae or similar institutions.
2. Available Liquid Assets / Reserve Cash on Hand
The amount cash reserves you can show to the lender are also important. Cash reserves help show that in case there is a disruption in your income, you will be able to maintain your monthly payments.
3. Your Down Payment Options
Another aspect to consider when applying for home loans is your down payment. Different lenders will require certain amounts in order to agree to giving you a loan.The higher a down payment you can afford to make will not only help you in the long run, but give you an edge when applying for financing. Most financial institutions would prefer a down payment of anywhere from 10 to 20 percent in order to assure a good interest rate although this can vary by program. In difficult economic times, more and more banks are asking for the buyer to put more money down. Government-backed loans allow you to put less money down initially, but also carry higher monthly rates.
It’s important not to be discouraged if your credit score is lower than you anticipated, or if you can’t afford a large down payment. You can investigate other loan options, or even try to find ways to improve your credit. Improvement won’t happen overnight, but it can happen if you have patience. In fact, we can help you improve your credit score and help educate you on how to improve and maintain high credit scores in the future.
Tags: credit scores, Florida Mortgage Rates, Pre-Qualify, reserves
 Whether you have an FHA loan or a private mortgage from the bank down the street, the idea of paying off your loan is no doubt attractive. If you’re in a good place financially, there are ways to take your 30 year mortgage and pay it off in half, or even a third of the time, without breaking your budget.
1. Increase Your Monthly Payments
The quickest way to chip away at your mortgage is to increase the amount you pay each month. Even if it’s just by a little each month, you’ll be getting ahead of the game. If possible, try to make an extra full payment once in a while, thus reducing the number of payments you’ll owe. While this is often a money management issue, if you’ve been given a bonus at work, or added income to your home, consider devoting more of these funds to your mortgage payment and less to other spending.
2. Renegotiate the Terms of the Loan
Depending on your loan, you may be able to renegotiate certain terms in order to facilitate faster repayment. If you are able to get a lower interest rate, this will lower your monthly payment. The trick is to continue paying the same amount as before. This acts in the same vein as increasing the amount you pay each month. Additionally, speaking to a financial consultant can help you understand bank-specific tricks to pay off your mortgage faster.
Keep in mind, the goal of these tips isn’t to encourage you to live beyond your comfort level. Even if you can only afford to put a little more toward your mortgage each month, that’s okay, you’re still working to pay off your loan sooner rather than later. Working to paying down your mortgage earlier may just allow you to live with limited housing costs during your retirement.
 The mortgage application process can be daunting for first-time home buyers. Knowing what to expect can help them to prepare for it. The mortgage process should begin as soon as you start looking for a home and it does not end until you take possession of your new home.
Step One: Applying and Getting Pre-Approved for a Mortgage
In order to shop for a home, you need to know how much you can afford to spend. The mortgage pre-approval process gives you that estimate, but it also gets a lot of the legwork out of the way. You will need to bring proof of income, and other appropriate documentation when you get pre-approved for a mortgage. This is only needed once, so when you actually need to finalize your mortgage, your lender does not need to go through that part of the process again.
Step Two: Finding and Assessing the Home
Once you find the right home, there is a step in the mortgage process that must take place. Your lender must approve the mortgage and they want to ensure that the value of the home is worth their loan. This means that a property appraisal will be done. Depending on the lender, arranging it may be up to the home buyer or they may take care of it. In either case, the home buyer often has to assume the cost. Provided the home is valued as high as the bank is being asked to lend based on your offer price as a buyer, the loan should be issued.
Step Three: Closing On Your Home
If anything changes between the time you have put an offer on your home and closing, a lender can choose not to honor a loan. Substantial changes in income, major purchases and more can all be problematic if it may impact a buyer’s ability to afford the home according to lender’s requirements. Home buyers should be aware of this so they proceed cautiously with their finances before closing as nothing is final until that pen has been put to paper.
 Consumer Confidence Numbers Released
The Conference Board Consumer Confidence Index, remained essentially unchanged in September after declining sharply in August. The index data came in at 45.4 which is up slightly from 45.2 in August. In other words, the index is showing that consumer confidence is unchanged, which sounds about right.
Case-Shiller Home Price Index
The widely watched Standard & Poor’s Case-Shiller Home Price Index increased for the fourth consecutive month in July as the index rose 0.9 percent in July. The index data shows that 17 of the 20 metropolitan cities in the index posted gains from the previous month. This also indicates that home prices are currently in a sideways pattern, in the short term at least.
Economic Calendar for Week of September 26, 2011
- Monday – New Home Sales
- Tuesday – Consumer Confidence, Dennis Lockhart from the Fed speaks
- Wednesday – Durable Goods Orders
- Thursday – GDP, Jobless Claims, Pending Home Sales Index
- Friday – Consumer Sentiment
Mortgage Rate Update
Mortgage rates have come off their all time record lows of last week. This means that there is still an opportunity to lock in some of the lowest rates in history. There is a much greater chance of rates going up as opposed to going down, so if you are interested in learning about how you can benefit from the current market, we can help.
 Mortgage rates set record all time lows yet again this week on the back of more global fears about European debt default and general anxiety over the U.S. economy as a whole. While employment is an issue for many and economic data as a whole has been negative as of late, the levels that mortgage rates are currently at present a silver lining for homeowners and to be homeowners in the United States.
Fed Released Report on State of 2010 Mortgage Market
This week also marked the release of a report by the Federal Reserve about the 2010 Mortgage Market. Findings in this report can help shed light on some of the issues that borrowers might facing today.
According to the report, there would have been 2.3 million more refinances if not for stricter underwriting guidelines and borrower home equity issues. As borrowers have borrowed more against their homes and their home values have decreased, they are left with less equity, which may put them outside of newer refinance guidelines for home equity requirements.
From the Federal Reserve Report on the Mortgage Market in 2010:
“We estimate that, in the absence of home equity problems and underwriting changes, roughly 2.3 million first-lien owner-occupant refinance loans would have been made during 2010 on top of the 4.5 million such loans that were actually originated.”
The inability to refinance is especially a problem in states that were hardest hit by foreclosures, where home prices have declined the most, the report shows.
In Arizona, California, Florida, Michigan and Nevada, 6.4 percent of borrowers with credit scores between 680 and 719 were able to refinance in 2010. In other states, 9.7 percent of borrowers within the same score range refinanced.
Mortgage Rates in the Week to Come
The upcoming week has a a few relevant economic reports that may move mortgage rates. These include the August New Home Sales report, Consumer Confidence, Durable Goods Orders, Jobless Claims, GDP and more. We will be reporting with a full economic calendar on Monday.
The Window of Opportunity is Officially Open, Don’t Let it Close On You
This week presented a unique opportunity for homeowners on the sidelines that have not already taken advantage of record low mortgage rates. As with any window of opportunity, there may be a limited time in which you can get rates at their current low levels. We can help you understand which programs fit your needs the best and help you lock in some of the lowest mortgage rates in history.
 The Federal Open Market Committee (FOMC) concluded its two day meeting today with a 7-3 vote to leave the Fed Funds Rate (the rate at which lending institutions lend to each other) unchanged within its current target range of 0.00%-0.25%. This Fed press release sheds some light on the FOMC’s current observations of the market and how it will be adjusting its activities moving forward.
From the FOMC Press Release:
Recent indicators point to continuing weakness in overall labor market conditions, and the unemployment rate remains elevated. Household spending has been increasing at only a modest pace in recent months despite some recovery in sales of motor vehicles as supply-chain disruptions eased. Investment in nonresidential structures is still weak, and the housing sector remains depressed. However, business investment in equipment and software continues to expand. Inflation appears to have moderated since earlier in the year as prices of energy and some commodities have declined from their peaks. Longer-term inflation expectations have remained stable.
Since the Fed sets monetary policy and participates in other activities such as buying Treasury debt, their activities can significantly impact the mortgage rates and the economy as a whole. As the Fed has implemented various policies to help push the economy out of recession, maintaining these policies for an extended period of time can do more damage than good.
FOMC Meeting Takeaways
- Moving forward with “Operation Twist”: This economic policy may lead to even lower mortgage rates. In short, the Fed is purchasing more long-term securities in an attempt to keep downward pressure on long-term interest rates, which also affects mortgage rates.
- Unemployment “remains elevated”
- Investment in non-residential structures is “weak”
- Business Investment in equipment and software continues to “expand”
- Inflation appears to have “moderated”
- Economic growth “remains slow”
- The housing sector “remains depressed”
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