Must-Read Tips on Buying or Selling Your Property
Apart from offering exquisite home listings, Grey Realty Florida, LLC also provides dependable service on property buying and selling.
We apply more than 30 years of experience and knowledge to guide those in St. Cloud, Orlando, Kissimmee, and adjacent areas in Florida.
How-To Guide for Buyers
Stress-Free Property Financing
Finding the right loan comes down to asking the right questions and knowing exactly what you need. Always select the best option that costs you less and saves you more money in the long run.
Options for Everyone
While having better qualifications can give you lower interest rates, it is important to know that there are a variety of mortgages available for almost everyone. These loans mostly differ in the interest rates charged or the down payments required.
Talk to Your Lender
Discussing a mortgage pre-approval with your lender is an important step to securing a loan. This will help you determine your monthly payments as well as the value of the home this translates into.
Never put yourself in a position where you will be paying more each month simply because your dream home requires it.
Explore Your Options
When applying for a loan, we recommend doing a deep dive into the types of mortgages available. This will help you figure out which option best fits you and your family’s needs. Try the following guide questions:
Creating a Home Buying Plan
Buying a home is one of the biggest personal investments any individual can make. By being organized and careful, you can secure the best home deal with the least amount of stress possible.
We suggest you identify the steps required to achieve your housing goal first. This way, you can create a detailed plan of action that will help you purchase any residence with ease.
Guide to Pre-Planning
Take some time to lay the groundwork for your decision‑making process. Ask yourself how much want to pay for your home. If you are still unsure of the price range you want, we recommend finding a lender and getting pre‑approved.
Mortgage Pre-Approval
Getting pre-approved helps alleviate the stresses of the home-buying process. This step will help you determine how much you can afford and guide you in finding a home that fits this price range. In this way, you know exactly what you qualify for and at what rate.
You can also get details on the amount of the monthly mortgage and down payments.
Identifying the Best Location
Ask yourself where you want your family to live. The following are some of the important aspects to consider:
Finding a Good Agent
The most important characteristic of a good real estate agent is that they are well‑connected to the real estate industry.
They should know the local market and provide information on the following:
Try Local Professionals
We also recommend finding an agent that is honest, assertive, and fully understanding of your needs.
Our advice is that you work with a local agent. Since these professionals are focused on a certain area, they will be more familiar with local market conditions, prices, sought-after properties, and much more.
The Lowdown on For Sale By Owner (FSBO)
“For Sale By Owner” is a way of selling your home without hiring a professional real estate agent or broker. The idea is that you will be able to sell your home yourself without having to pay approximately 6% on agent commissions.
While 6% may not sound like a lot, it can really add up. This is particularly true for more upscale residences. However, to get savings of this much, there must be a different kind of cost.
The Expense is Time and Effort
Selling FSBO can be very hard. Only about 10% of sellers that decide to do FSBO end up being successful. Not all FSBO sellers save money, either, since most tend to accept lower prices for their homes.
FSBO transactions can be very difficult to juggle with a full-time job. You need the time, capital, and know-how on real estate marketing, advertising, and much more. You will need to have your property inspected and complete different paperwork to accomplish the task.
This work also includes the many phone calls and showings that you will have to take on. There can even be potential issues buyers will want to discuss with you once the home is sold.
Need for Professional Resources
Professional real estate agents have an extensive network that allows them to find a buyer more easily.
They also have access to the MLS (Multiple Listing Service) and other popular resources. This includes websites where homebuyers and other agents can easily find your listing.
Adjustable Rate Mortgages
This type of loan is offered at an interest rate that fluctuates periodically. This is in contrast to a fixed-rate mortgage, which will always have the same interest rate for the entire duration of the term. Each ARM has the following basic components:
Index
An ARM’s interest rate is tied to one of many economic indices, which each move at different rates. These include the following:
As a seller, you should know the characteristics of the index used for your loan. You see, any changes in the index and margin will determine the changes to the interest rate for a mortgage.
Margin
The margin is the markup charged by the lender, which allows them to make a profit off of the loan. It does not typically fluctuate and is used to calculate the interest rate of an ARM.
This works by adding a certain margin from the index to the interest rate, such as adding 2% to the index. In this example, the 2% is the margin.
Adjustment Period
This is the scheduled amount of time during which the interest on a loan is adjusted.
Take, for example, an ARM with an adjustment period of 1 year. The borrower’s interest rate will be subject to change at the end of each year. The monthly payments will also be recalculated to reflect the change in the interest rate.
Interest Rate Cap
This is designed to protect the borrower from drastic changes in interest rates. It limits how much interest rates or monthly payments can change at the end of each adjustment period.
ARMs can have an interest rate cap that covers the entire life of the loan. For example, during the life of a loan, the interest rate can only be increased by 5%.
Initial Interest Rate
The initial interest rate is known as the start rate or introductory rate in ARMs. It is given at the beginning of the loan period and typically stays consistent within a specific amount of time.
Take, for example, a buyer who stay at the initial interest rate for 1, 5, or more years. This type of loan is called a hybrid ARM, wherein the initial interest rate is generally lower than that of a fixed rate mortgage.
Find Out More
To get further information on home buying and selling, reach out to our team today.