In these challenging times it is easy to think that it is impossible to get a mortgage if you spend too much time watching the news. The truth of the matter is that there is still plenty of mortgage money still available, but the qualifying guidelines have changed somewhat. If you are considering purchasing property, but are wondering if you can meet the qualifying guidelines there are a few simple steps you can take to give yourself some confidence.
The first step for someone considering purchasing a new home and taking on a new mortgage is to consider the additional expenses they will be incurring. They need to determine the new Real Estate Taxes, Homeowners insurance, POA fees, and the mortgage payment. Once they have a reasonable estimate of this number they can evaluate for themselves if it is something they can handle. The best way to come up with this estimate is to work with a professional Realtor, like John Robinson, and a mortgage professional. John will help you figure out the taxes, insurance, and homeowners association fees, and your mortgage professional can help put together the mortgage numbers.
Once you have determined your proposed monthly expenses you can begin to pull together your financial documents to support your loan application. When you begin working with your lender they will review your information and be able to give you an idea if you are credit qualified. This means your credit score is acceptable and your income and asset document support enough income for you to mange the mortgage payments for the foreseeable future. If at this time you do not qualify, your mortgage lender will be able to help you identify the issues and help you make a plan to correct them.
In a nutshell, the most important thing for a prospective buyer is to know approximately how much their purchase will cost them. These costs need to be considered from multiple perspectives; funds at closing and monthly ongoing expenses. If the buyer is personally comfortable with these costs, they are most likely in a good position to qualify for a mortgage.
I had a client ask me this today and I thought I would share the answer with you.
On Hilton Head Island, South Carolina there are approximately 339 pended listings as of this writing. Of the pended listings, 242 are homes with an average price of $710,198, 56 are villas with an average price of $368,549, and 41 are lots with an average price of $404,129.
Because of this statistic, we can expect in the next 30-45 days there will be 339 more homes SOLD!
Today's buyer is savvy, smart and confident. They know the rule to ‘buy low and sell high'. Some people on the other hand know the cost of everything and the value of nothing.
These new buyers are educated on both cost and VALUE. They know that Hilton Head Island historically has some of the lowest priced oceanfront real estate on the east coast. They know that the town has protected over 1100 acres from development and they know that it cost the town $144,000,000. This new buyer knows when to take advantage of a great deal while selection is still inviting.
These buyers might be your neighbors, co-worker, clients, or family. This new buyer could be a couple preparing to retire, a young couple or family seeking to build wealth for their future and their family's future, while creating memories that will last a lifetime.
They are the people at the party that talk about what they have done in their lives, their experiences and travels. These new buyers would rather listen to a story about Spanish Moss and moon beams before a story about a stock certificate hidden away in a safe deposit box.
I guess a better question is, "Are you one of these people"?
Here are a few reasons why 39,000 residents call Hilton Head home and countless others have made it their primary destination to vacation and relax.
Did you know:
1) Hilton head was one of the first "eco-planned" communities in the country. Charles Fraser, the visionary developer of Sea Pines Resort, set the stage with his very aggressive approach to preserving nature for the entire Island.
2) 70% of our population is under the age of 60 years of age. The largest segment of our population (18.2%) is under 18 years of age and the median age on the Island is 35.4 years. Hilton Head is much more than a retirement community.
3) We have one of the best climates on the east coast. We have a semi-tropical climate with an average daytime temperature of 75 degrees and an average evening temperature of only 55 degrees. Our winters last only a few weeks.
4) Nearly 100,000,000 potential visitors live within only a 15 hour drive to Hilton Head and more than 1,000,000 enplanements and deplanements happen at the Savannah Hilton Head International airport.
5) You can get to everything you need including schools, hardware stores, restaurants, hospitals, theaters, dry cleaners and more in 15 minutes or less from anywhere on the Island.
Do you know why people come to Hilton Head Island:
1) 23 golf courses that are meticulously maintained including the famed Harbour Town Golf Links, home of the PGA's Heritage Golf Tournament.
2) We have hundreds of tennis courts. Four of our tennis resorts are listed annually in Tennis Magazine's Top-50 Resorts.
3) We have 12 miles of white sandy beaches.
4) Or maybe it is one of our many marinas on the Island.
5) Our Island has been preserved with the town purchasing and protecting nearly 1,168 acres at a cost of $144,000,000 or eliminating 4,000,000 square feet of commercial development and 1,365 hotel rooms and 4,210 residential and timeshare units.
6) We have 7 beach parks, 6 recreational parks, and 8 community parks. How many places do you know that have 21 parks for 39,000 residents?
7) Maybe it is because of the 100 miles of bike paths that encircle the island.
I guess the answer to "WHY" will be different for all of us but the place will certainly be the same HILTON HEAD.
Having trouble with your golf game or need a tune-up, but don't have the scratch to pay for a lesson?
Tradition National Golf Club at Tradition Hilton Head is hosting a complimentary golf clinic for all skill levels and age groups at noon Saturday, January 24.
The clinic will be led by David Wilding, Director of Golf at Tradition National Golf Club and a PGA Professional, and his staff. The session will cover all aspects of the game at Tradition National's new, state-of-the-art practice facility.
Special rates and winter promotions for rounds of golf will also be offered.
Tommy Fazio designed the new championship course, which has already hosted several tournaments, including the first-ever Under Armour College Golf Combine in July.
Space is limited, and golfers are urged to call Tradition National Golf Club at 208-5353 for more information and registration.
Recently, I've had the opportunity to answer a few questions for an article highlighting Hilton Head Island in an upcoming issue of Cincy Magazine which is an upscale Cincinnati business periodical.
I'd like to share the following questions and my answers with you.
1.Cincinnatians have many choices when it comes to buying vacation homes. In terms of location, what makes Hilton Head desirable? Obvious reasons include pristine beaches, manicured golf courses, immaculate tennis facilities, full-service marinas, fabulous shopping and a vast array of world-class restaurants. In addition, the Island offers a variety of communities including private & gated neighborhoods, townhome complexes close to the beach, villas, and golf course communities. I've driven to Cincinnati a few times and love your city! The drive to Hilton Head seems very straight forward and easy and I know a flight to Hilton Head or Savannah is very quick.
2. Why is now an ideal time to buy a vacation home in Hilton Head? As a buyer, there may never be a better time to buy a beautiful home or villa on Hilton Head Island. Inventory is abundant, prices have declined significantly, interest rates are at record lows, gas prices are not an issue, and sellers understand the need for qualified buyers in today's market. As a buyer, you have many choices and options that may not have been available 4 or 5 years ago.
3. What current market prices and interest rates can qualified buyers expect? It is always difficult to predict what market conditions will be like in the coming months, but we have been enjoying historically low mortgage interest rates over the last few months and they have dipped even further as 2009 has begun. These low rates have helped contribute to the outstanding affordability we are currently seeing. I have actually seen rates in the mid 4% range!
4. How do these market prices and interest rates compare to years past? These are the lowest rates I have seen in my career. So if you are looking at affordability from the perspective of monthly payments, we are looking at unprecedented levels. There are opportunities out there that buyers have not seen in years. It is somewhat like turning back the clock.
5. Given the current economic crisis, many Cincinnatians might be reluctant to spend money on a vacation home. What would you say to someone who is considering buying a vacation home but is worried about what the future might hold? If you're considering purchasing a vacation home or villa on Hilton Head Island, then I say 'congratulations!' There is no place in the world more charming and inviting than this beautiful Island. Consider your investment as a long-term proposition and you will be more comfortable as American real estate has always been a smart investment, especially in areas which are highly sought after and desireable. In fact, do as I do and consider your vacation home on Hilton Head Island as an 'investment with a sunset!'
I moved to Hilton Head almost 19 years ago when I was hired as a tennis pro at the Sea Pines Racquet Club right after college. As a tennis pro, Hilton Head Island was (and is) the premiere location in the United States as there are over 300 tennis courts with 4 tennis resorts included in Tennis Magazine's Top-50 Resorts list each year.
The ambiance of the Island coupled with the fact that so many happy people reside and vacation here make life on the Island very appealing. Aside from the miles of incredible beaches, the purest green fairways you can imagine, and the thousands of tennis balls smacked back and forth, one of my greatest and most comforting pleasures of being a resident is when I see a friend, customer, past tennis student, or acquaintance at the grocery store or post office. To live in a "big city" means rarely seeing folks that you know out and about, but on Hilton Head Island, it often feels like the small town of Mayberry with an international magnetism.
After 14 years as a tennis pro, I decided to take the next step in my life to pursue a career in residential real estate on Hilton Head Island, Daufuskie Island, Bluffton, Hardeeville, and Ridgeland, South Carolina. Hilton Head Island is truly the gem of South Carolina while Daufuskie Island is our version of Gilligan's Island with its unpaved roads, lush tropical climate and surroundings, and a unique exclusivity due to the fact that you can only get to Daufuskie Island by boat. You would be amazed at the oceanfront opportunities you'll find on Daufuskie Island!
Bluffton is a fast-growing small town which offers a tremendous variety of community styles, homesites, townhomes, villas, and new communities such as Tradition, Mill Creek, Hilton Head Lakes, and Abbey Glen just to name a few. Bluffton is also the proud host of several very exclusive gated country club communities such as Colleton River Plantation, Belfair Plantation, Berkeley Hall Plantation, Hampton Hall Plantation, Hampton Lake, and Hampton Pointe.
Hardeeville and Ridgeland are two sleepy small towns with healthy growth planned over the next several years and offer opportunities for large parcels of land at minimal pricing. This is appealing to many buyers as these two towns are within 25 miles of the coastline!
Over the past several years as a REALTOR, I have researched and learned a tremendous amount of vital information pertaining to Hilton Head Island and the Lowcountry including coastal insurance, property taxes, rental issues, construction materials, quality builders, and of course the ebb and flow of our local real estate market.
As a young tennis pro, many of my tennis students asked me "Where do you go on vacation"? My response has always been the same: my vacation is on-going and is part of every day on Hilton Head Island. If you have a tennis racquet and a can of balls, a set of golf clubs, a pair of walking or running shoes, a beach chair and sunscreen, a pair of sunglasses, a love for boating & fine dining, and an interest in experiencing the great outdoors, then Hilton Head will offer you a lifetime of vacation memories every day you wake up.
Because of my infatuation for all things Hilton Head, I feel very lucky to be a realtor on Hilton Head Island where my job requires me to assist future residents and/or investors in choosing their dream home.
I'd love to hear other stories of Hilton Head Island and what the Island means to you!
I had the pleasure and opportunity to attend the Floyd Wickman Program this fall on Hilton Head Island.
My broker at Dunes Marketing Group organized for a Floyd Wickman trainer (Robyn) to give our group of 100+ agents a presentation highlighting the Floyd Wickman Program. After the presentation, several agents and I registered for the course.
WHAT DOES THE FLOYD WICKMAN TEAM DO?
They help brokers and their agents increase sales by causing them to:
Master the art of Listing and selling real estate.
Build and maintain a Salable Book of Business.
Become and stay organized.
Value the benefits of Teamwork and Mentoring.
Live by 5 client- and company-friendly Core Values.
S.M.A.R.T. PROGRAM: 7 weekly sessions teaches agents how to prospect their sphere of influence and FSBO's; generate referrals; control the complete listing appointment; price the listing so it is salable in the toughest of markets; service the listing; convert incoming and Internet inquiries into office appointments; sell more properties; create a business plan and focus for achieving that plan; work as part of a mentor group.
Includes:
1. 8 CD's
2. 1 DVD
3. Course Manual
4. Online resources
CORE VALUES CLUB: 1 year follow-up to the S.M.A.R.T. program (no additional charge) designed to help the agent fine tune all of the listing and selling skills taught during the 7 weekly sessions; and, to master the personal success characteristics necessary to achieve long range success.
Includes:
1. 12 monthly audio messages
2. Online resources
THE MASTER SALES EVENT: A 3 day event during January, limited to Floyd Wickman graduates designed to recognize achievement and to create a business plan for the New Year. To help agents achieve at a higher level.
Ben Russ, Vice President of Hilton Head Mortgage sent me the following pertinent information regarding financing for a home on Hilton Head Island.
Pre-qualification is the first step in obtaining mortgage financing.
A potential borrower answers a few questions to provide the loan consultant with a quick snapshot of the borrower's income, existing debt, accumulated savings and whether or not there is a co-borrower. Signatures allow the loan consultant to run a credit report and begin to determine what loans are good candidates for this particular client. However, there are literally thousands of loan programs available.
It is important for the loan professional to know the long-term financial objectives of the prospective homeowner.
Pre-approval is a written documentation that proves the borrower has full support of a lender.
It means the form 1003 Uniform Residential Loan Application has been completed and reviewed by an underwriter. Based on the borrower's income, debt ratio and savings, the underwriter will provide a dollar amount this borrower is eligible for.
Now the borrower has the convenience of shopping for a home in the price range agreed upon by the lender.
Pre-approval allows potential homeowners to shop as cash buyers, and that means negotiating power. The seller will take an offer from a pre-approved shopper much more seriously and may even accept a lower bid because they know the financing is in place and the deal is secure.
For more information regarding the home-buying lending process on Hilton Head Island, South Carolina, or for real estate information, email me with your questions at HiltonHeadJR@aol.com.
A common way to protect your property from being taken away by the lender on account of non-payment of your mortgage is a deed-in-lieu of foreclosure.
Deed-in-lieu is a process in which the borrower failing to satisfy the loan obligation hands over his property to the lender. The lender may then sell the property in order to retrieve a part or whole of the amount borrowed from the sale proceeds.
What is the process all about?
When you go for a deed-in-lieu in order to avoid foreclosure, you need to sign legal documents such as the Agreement in Lieu of Foreclosure and a Warranty deed, quit claim deed or a grant deed.
The first document reveals the terms and conditions of the deed-in-lieu, and is signed by both the lender and borrower.
The second document, which is the deed, conveys legal ownership of the property to the lender.
The lender marks the borrower's note as "paid" and provides the latter with two forms - one which states that the debt is canceled and the other which refers to the waiver of the right to a deficiency judgment (the lender's right to ask for the unpaid debt amount if it is not recovered totally by the property-sale).
The agreement for deed-in-lieu is executed through an escrow company which receives the borrower's note (marked as "paid") from the lender. The escrow then records the deed used for transferring legal ownership of the mortgaged property and sends the note to the borrower. The borrower is thus released from the liability of the mortgage payments. Does a borrower need to pay tax in the process?
Once a borrower gets a release from the loan, he may have to pay deed tax provided he doesn't qualify for the tax relief under the Mortgage Debt Forgiveness Tax Relief Act applicable till the end of 2009.
As per the Act, one need not pay tax on canceled debt (unpaid loan balance which is forgiven by lender) resulting from deed in lieu. The tax is calculated on the basis of unpaid balance.
Now, even if the lender may not collect deficiency, the borrower may pay cash towards the unpaid debt to avoid a negative impact on his credit report. This extra cash serves to reduce the amount of unpaid debt which is the basis of the deed tax.
It may happen that the lender pays the borrower a certain sum of money in return for the deed-in-lieu when there is some equity in the property. In such a case, the cash offered to the borrower is added to the unpaid debt in order to determine the basis of the deed tax.
More questions? Contact me at HiltonHeadJR@aol.com if you need more information regarding foreclosures, short sales, etc.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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