The Whalen Team's Blog

Affordability & Leverage - It's Time To buy!!

Fri, 17 Dec 2010 03:00:00 GMT

Buyers looking to purchase a new home, town-home or condominium in Northeast Florida will be faced with challenging conditions. Short sales and REO or Bank Owned properties make up a large part of available real estate in the Jacksonville, Ponte Vedra and Orange Park real estate markets. These transactions can be very stressful and time consuming which is why it's very important to choose a real estate team that can help you avoid or overcome challenges that arise. The good news is that affordability and leverage are the two features of today's real estate market that make now a great time to purchase real estate despite these challenges.

Affordability is at a historic high due to low home prices coupled with historically low interest rates. You may not be aware of how much interest rates can change how much you pay for a home. Over a 30 year period you pay nearly $100,000.00 more for a $200,000.00 home when your interest rate goes from 5 - 7%. You could purchase a second home or an investment property for that kind of money. I think it’s important to know that interest rates averaged 7 – 9% over a 40 year period.

Leverage is another thing buyers have going for them during the winter months. It's already a buyer’s market but during the winter months there are fewer buyers in the market which mean the buyers who are able and willing to purchase real estate have more leverage due to even less competition.

Interest rates have already started to rise and experts say it’s likely they will continue to do so and more buyers will enter the market in a couple months. There is a good chance conditions will not be this ripe for buyers for some time to come, if ever.

The real estate agents at The Whalen Team are currently helping buyers negotiate very low prices on homes, town homes and condos that buyers typically compete over. Call or email today to get your free list of foreclosure, short sale and motivated seller listings. Let's get started on finding your great deal today!!

(904) BUY-HOME 289-4663 | www.TheWhalenTeam.com | info@TheWhalenTeam.com

Pre qualified and pre approved for a loan- what is the difference?

Sun, 12 Dec 2010 03:00:00 GMT

Whether you are a first time or repeat buyer, a few words of advice is to speak to an experienced mortgage originator prior to spending any time searching for homes. There has been many regulatory and institutional changes in the mortgage industry over the last few years. Experienced buyers have found that loans are not as easily obtained as they once were. Some buyers search for their home first, and secondly attempt to qualify for a loan. Soon after, they have found they're some obstacles to overcome and are unable to purchase the home. Unfortunately, many of these buyers realize this after they have spent so much time searching for and have become emotionally attached to a home.

To make sure you aren't let down by missing out on the perfect home, take the time to get fully approved for a loan prior to searching for your new home. There is a big difference between pre-qualification and pre-approval. To be pre-qualified means you have spoken with a mortgage originator who has reviewed your credit and collected information from you verbally. To be pre-approved means you have supplied the mortgage originator with documentation to support what you verbally conveyed to him. The mortgage originator then submits your credit report and ALL your documentation to a mortgage underwriter who verifies your qualifications. Once the underwriter verifies all loan requirements have been met, you are ready to start searching for that perfect home.

If you would like to begin the pre-approval process, click on the following link and fill out the form. One of our team members will contact you within 24 hours to complete the process. Mortgage pre-approval

Should I Buy a Home Now?

Wed, 03 Nov 2010 03:00:00 GMT

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Florida’s once-roaring real estate market went into retreat in 2008, spiking unemployment and draining much of the property-tax revenue cities and counties depend on to finance government. Residential property is leading the comeback – as feeble as it may be – with values for both homesteaded and investment property expected to gain slightly in 2011.

But still down: agricultural and commercial space, which will decline again next year, economists said.

Source: News Service of Florida

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.

Andrew C. Whalen, P.A.

The Whalen Team

(904) BUY-HOME 289-4663

Info@TheWhalenTeam.com