Why Buyers Should Talk to a Lender First!

The home buying process can be daunting for many people.  To make it easier, Lauren Boger, Senior Mortgage Consultant with OnQ Financial, provides the following:

"The economic environment of today has proven how knowledge is paramount in making sound financial decisions. This is why we suggest that all of our buyers talk with their mortgage professional, or a mortgage professional that is recommended to them by a trusted source, so they can educate themselves on the current mortgage market. Each buyer should take the extra step to get pre-approved before starting the home buying, or shopping, process. This step ensures that the buyer is well aware of their personal financial situation including credit, debt, assets and most importantly, how much house they can actually afford.

In addition, there are several different types of home loan programs for which a single buyer could get pre-approved. Understanding the difference between the programs to recognize the most beneficial home loan program for each individual buyer is very important. For instance—a 2% interest rate may sound great but if a buyer doesn’t take the time to understand that in 3 years that rate would start adjusting upwards, therefore making their home less affordable, then they may end up getting themselves into a financially unsound situation.

Talking to a mortgage professional should not be intimidating but should be enlightening and helpful. With the right mortgage professional a buyer can become educated and aware of not only their personal financial picture and pre-approval, but they will also learn what to expect throughout the home loan process, preparing them to embark on the journey of Home Ownership!

Be prepared to give the following information to your mortgage professional for a pre-approval:

• Full legal names of all persons on the home loan application
• Social security numbers
• Dates of birth
• Residence (for the past 2 years)
• Employment (for the past 2 years)
• Gross Income (before taxes, breaking out commissions and bonuses)
• Estimated amount of cash assets"
  
  
  For more information on the Home Buying process or how to become pre-qualified for a mortgage, please contact Amanda Parmer, REALTOR®  910.545.0450 or visit www.AmandaParmerSellsHomes.com 
  
  

Should you rent or sell your home?

In an area as transient as Jacksonville, NC, homeowners are often faced with the prospect of moving.  It's part of the military lifestyle, right?  It should always be a discussion whether to rent or sell.  

Some people don't want to deal with the hassles of being a landlord.  Some people don't want to bring money to the table to close.  Whether you should rent or sell your home addresses the question:  how much can you sell your home compared to what you owe.  Regardless of what you decide, experts suggest knowing your competition to know how to price your home for sale or rent.

Becoming a landlord can mean a lot of work.  It’s a very subjective decision—there’s no formula.  On the other hand, owning a home costs money. Real estate is an investment and you have to put money into your investment and nurture it.

Since your current home could hamper your purchasing power of another property, experts suggest answering a few questions to make the decision process easier.

Question No.1: How much can you charge for rent?

If you owe more than what you can sell it for and you have to leave the house anyway, look at how much you can rent the house for. Consider whether the rent that you can charge will pay for the monthly mortgage payment, taxes and insurance or if you have to cover the difference every month.

Renting could work well for you if property values are rising.  Treat that rental property like its own company—any profit goes back into the property for repairs, maintenance and to pay down that mortgage.  Hold all profits in an emergency fund or reserve for the property to cover any unexpected expenses or to help pay down the mortgage.

If you do have a positive cash flow, it may be better to hold onto the property and become a landlord, says Daren Blomquist, vice president at RealtyTrac, but consider whether you want this responsibility. “If you’re counting on home price appreciation to get your investment back on that property and in the meantime, you’re losing money every month [from renting], it may be a good time to cut your losses and not wait out home price appreciation.”

Question No.2: Do you have to upgrade your property?

A tenant won’t put up with the problems that you did, so Blomquist recommends walking through the house and assessing what needs to be repaired or upgraded.  

If you decide to make substantial upgrades, analyzing every individual element isn’t an accurate portrayal of what you’ll get back. “When you do a few changes together, the kitchen, bath, painting and carpeting, all the sudden you’ve raised the level of the house to something nice,” says Corbett. “The whole is better than the sum of the parts.” Upgrades in strategic areas of your home create a lifestyle upgrade that could make the investment worthwhile.

While getting rid of clutter and painting can help sell your home, take a common sense approach to home improvements. Over improving your home won’t get you a return on your investment while improving your home to the neighborhood norm will get you more of a return. If you’re in a buyer’s market with plenty of inventory, you’re going to have to make that home competitive.

Question No.3: How much does it cost to maintain your property?

Rental properties have continuous maintenance expenses, especially when a tenant moves out. “You need to have a bit of a cash flow every month,” says Corbett.

Tenants can be just as picky as buyers and there are costs to turning a property, like repainting, cleaning carpets, replacing flooring, and repairing any damage or wear and tear. Landlords tailor rentals differently than they do their own homes.

Sometimes you have to decide if it’s better for you to sell and take a hold onto the property and rent it out for the long term knowing there are expenses with every new tenant.  You have to take care of these things otherwise you won’t get as much rent.

Question No.4: If you’re underwater, is a short sale worthwhile?

If your house is underwater, you may need to bring money to the table at closing. The amount you owe can determine whether it’s worthwhile to rent your home and take advantage of the housing recovery or pursue a short sale. Since home prices appreciate about 3% per year on average, it’s probably worth it to rent a home with an LTV less than 110%, says Blomquist. Doing a short sale could hinder your ability to buy another property.

For higher LTV homes, a short sale may be a good option because banks are willing to approve short sales even if you haven’t missed a payment, says Blomquist. Also consider that the law exempting homeowners from paying taxes on debt that’s forgiven expires in 2014, which may provide additional incentive to cut your losses.

Call Amanda today to talk about your real estate options!  910.545.0450

Farmer's Market Opening Day TOMORROW!

That's right!  Onslow County's Farmer's Market opens tomorrow, April 13, 2013 at 8:30 at the Highway 258 location.
They will be open on Tuesday and Saturday mornings until November 2nd.  You'll be able to find all of your favorite fruits and veggies, as well as homemade breads, jams, jellies, arts, crafts and even plants!

There will be a second location opening next Thursday (April 18th) at noon near the Commons at 100 Recreation Lane.
Visit either of the local sites to help support our local farmers and commerce!  It's a great opportunity to buy organic and fresh food, as well contribute to the Jacksonville community.

Time for Spring Cleaning!

It is time to start your spring cleaning! In order to help you, I have compiled a list of 13 things you should replace now!

Your Toothbrush

Technically, you’re supposed to get rid of your toothbrush every three to four months, but if you can’t remember the last time you changed out yours, now’s the time.

Batteries on Your Smoke and Carbon Monoxide Detectors

These are not the home accessories you want to go dead. Stick fresh batteries in now to ensure they don’t go beep (unnecessarily) in the night.

Eye Makeup

Your eye makeup is one big breeding ground for bacteria, and it’s not worth risking a massive infection to scrape every last bit out of your mascara tube. Change out your mascara and eyeliner especially, as those go closest to your eye and tend to have the shortest shelf lives.

Your Foundation

After a year, your foundation will likely be less than its best -- and may already be separating. For optimal color, swap it out for a fresh bottle now.

Your Sneakers

If you put more miles on your Manolos than your Nikes, you may not need to change out your sneakers just yet. But for most people, their sneakers see enough wear and tear that they won’t provide good support after a year of use -- which means you’ll set yourself up for joint and back pain down the road. So after you’re done with your spring cleaning, treat yourself to a new pair.

Your Kitchen Sponge

Sanitizing your kitchen sponge in the dishwasher or with a quick zap in the microwave will only take it so far. If you’ve just used your sponge to scrub every inch of your kitchen, it’s time to put it to pasture.

Baking Soda in Your Fridge/Freezer

Your baking soda helps absorb the odors from last night’s (or, ahem...last month’s!) leftovers. Spring for a fresh box to keep your fridge smelling good.

Your Pillows

Not to get too intimate, but odds are that after a year of use, your pillows are loaded with dried saliva, flakes of dead skin and those icky creatures they attract -- dust mites. Using a washable pillow cover beneath your pillowcase could help you keep your pillows for longer, but if you don’t use covers, change out your pillows every year.

Your Water Filter

Whether you have a stand-alone filter or one linked to your fridge, it needs to be replaced to help keep your water chemical- and contaminant-free.

Your Sunscreen

Once opened, your sunscreen starts losing potency. Most sunscreens do last for two to three years, but it might be a good idea to trade yours out now for better protection.

Cedar in Your Closets

Keep the moths at bay by freshening the cedar in your closets -- either by sanding the cedar blocks to refresh the scent, or by replacing them.

Your Toilet Brush

Even if you’re fastidious about disinfecting it regularly, it still has the grossest job in the house. Trade it in for a fresh one to minimize germ transmission.

Canned Goods and Bottled Water in Your Emergency Kit

Even canned goods won’t last forever -- so go ahead and use that soup and beans that you have stockpiled (or donate it to your local food bank) and swap in some fresh supplies.

FBI installing home security systems? SCAM!

A new scam is out there offering a free security system. The telemarketers are trying to trick you to install the new security system free of charge.

A telemarketer is offering a FREE install of a system, signs, and stickers. The system is automated and calling homes targeting the elderly it seems like.

Let's be logical here, the FBI is not in the security business. They are not even interested in residential crime. They deal with federal issues and are in the business of investigating.

Secondly, the security installation business is cut throat. The government would not get involved in home security, at least for now…

So if you have gotten a message offering this installation, just ignore it. It is just another person lying to try to get into your wallet.

Here's the news story about a lady in Virginia Beach who helped bring it to light.  Usually, when it sounds too good to be true, it is.