Cape Coral Florida's Real Estate Guide

WASHINGTON - Jan. 11, 2012 - The U.S. Department of Housing and Urban Development (HUD) announced that it would release $110 million in grants to transform public and assisted housing and to revitalize communities. Florida cities may apply for funds under the FY 2012 Choice Neighborhoods Implementation Program.

HUD made the announcement in yesterday's Federal Register.

"We make these funds available for communities that are serious about breathing new life into areas that have seen very little public investment over the years," said HUD Assistant Secretary Sandra Henriquez.

According to HUD, the Choice Neighborhoods Implementation Grants are intended to take community planning off the drawing board and put them into action. Choice Neighborhoods focuses on three core goals:

• Housing: Transform distressed public and assisted housing into energy efficient, mixed-income housing that is physically and financially viable over the long-term.

• People: Support positive outcomes for families who live in the target development(s) and the surrounding neighborhood, particularly outcomes related to residents "health, safety, employment, mobility and education."

• Neighborhood: Transform poverty neighborhoods into viable, mixed-income neighborhoods with access to well-functioning services, high quality public schools and education programs, high quality early learning programs and services, public assets, public transportation and improved access to jobs.

To receive the HUD grant, communities must have a comprehensive neighborhood revitalization strategy or Transformation Plan in place. This Transformation Plan must guide the revitalization of public and/or assisted housing units, and simultaneously oversee a transformation of the surrounding neighborhood.

Choice Neighborhoods Implementation grants are available for public housing authorities, local governments, nonprofit organizations, tribal entities and for-profit developers that apply jointly with a public entity.

Last August, HUD awarded its first-ever Choice Neighborhoods Implementation grants, a combined $122 million, to stimulate neighborhood revitalization in Boston, Chicago, New Orleans, San Francisco and Seattle.

Applicants have until April 10, 2012, to apply for FY 2012 Choice Neighborhoods Implementation grants. HUD anticipates awarding four to five grants with a maximum award of $30,000,000 each in December 2012. Applicants must submit their applications electronically through www.grants.gov.

© 2012 Florida Realtors®

NEW YORK - Oct. 10, 2011 - CoreLogic announced a new credit score service, CoreScore, which will give lenders greater insight into a borrower's outstanding debts and help to understand their credit worthiness. The new CoreScore credit report, which will be available to lenders and consumers, will include credit-risk information, as compliant with the Fair Credit Reporting Act.

It will not replace current credit reports but aims instead to fill gaps in current credit score reports.

The report will help "lenders mitigate risk by uncovering debt obligations, and increase new lending opportunities by identifying previously hidden credit behavior that could improve a consumer's credit profile," CoreLogic said in a press release announcing CoreScore.

According to CoreLogic, the reports will include buyer information such as:

• Properties owned (with and without debt obligations)
• Mortgage obligations with companies that may not report to traditional credit reporting agencies
• Property legal filings, such as notices of default
• Property tax amounts and payment status
• Estimated market values on all U.S. properties owned
• Rental applications and evictions
• Inquiries and charge-offs from payday and online lenders
• Consumer-specific bankruptcies, liens, judgments and child support obligations

CoreLogic will pull the information from its real estate database, rental information and public records.

The National Association of Realtors® has published a handout Realtors may give to buyers that explains credit scores. For more information or to download, visit NAR's website.

Source: "CoreLogic Launching New Borrower Credit Report," HousingWire (Oct. 3, 2011) and "CoreLogic to Act as Supplemental Consumer Credit Repository to Augment Traditional Credit Reports," CoreLogic (Oct. 3, 2011)

© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688

 When you feel the time is right to purchase your first home, it's tempting to let the excitement of the ordeal take over. We all know that investing in real estate is partially an emotional decision. This is especially true if you will be the one living in the home with your family. Sure, you need to be practical in order to make a sound property investment decision, but just like the purchase of a brand new car, there is an adrenal rush and wave of excitement that comes with the thought of putting down roots, decorating the rooms, and envisioning the family memories you will build in your new Cape Coral home.

Nobody wants to squash your dreams, or turn your new home purchase into a dry, business deal. After all, it should be a monumental event in your life! But, what I am going to do is steer you in the right direction so that you won't become an emotional wreck in the home buying process. By following the checklist provided below, I guarantee to make your Cape Coral home purchase a smooth and stress free event.

The Truth About Home Buying

Most home buying headaches come from a complete lack of preplanning. If you simply start out by window shopping every possible Cape Coral Florida property that is available, you are definitely in for disappointment. The remedy? Prepare yourself with preapproval. By obtaining preapproval from the beginning, you will have a huge amount of leverage. Not only will you be fully aware of your target price range, but you will have much more negotiation power with the seller. Sound like a dream come true? Let's look at the subject more closely:

Prequalifying vs Preapproval

Applying for a loan before shopping for your property is absolutely crucial. There are two ways you can go about this; by preapproval or by prequalifying. Being preapproved for a loan is far better than being prequalified.

What's the difference? Prequalification differs from preapproval because being prequalified by your lender is solely based on opinion. It may make you feel more confident when shopping for your new Cape Coral home, but you'll still have to go through the verification and approval process, which is generally the most lengthy part of the home buying experience.

When you approach your lender for preapproval, the decision is based on your complete loan application, information from all three credit reports, as well as employment and salary verification. Armed with preapproval, here are the advantages:

• Look at the right homes for you: You'll be able to save time by having your real estate agent  show you homes within your specific parameters. There's no "what-if's" or speculation involved. You have a solid number to work with. You won't waste time checking out homes you can't afford. This in itself helps you to avoid a huge amount of stress and disappointment.
• Spend more time on the details: Now that you've moved past the price point, you'll be able to spend more time with the homes that fit within your parameters and working out a pros and cons list of specific details that are important and unique to your family.
• Avoid disappointment: Armed with a preapproval amount from your lender, you won't have the stress of finding that perfect Cape Coral property and showing it to your family, only to experience an unwanted loan surprise after the seller has accepted your offer.
• Increase your negotiating power: The seller is looking for peace of mind, just as you are. If you come to the table with a preapproval letter and make your offer, the seller is much more likely to accept your offer, even if it is for less than list price. Remember, sellers have their own set of circumstances to deal with. Maybe they are crunched for time or have already dealt with several offers where the loan has fallen through. If you come along with a guaranteed sale, you have buying power.
• Speed up the closing process: If you have a preapproval letter, it's entirely possible to shave a week or even two off of the closing. Again, if the seller needs to move quickly and has several offers to choose from, guess what? Your offer moves right to the front of the line.

As you can see, there are ways to make the purchase of your Cape Coral property an enjoyable and stress free experience. At Best Cape Coral Realty, your success is our goal. Call us today and let us take you through a winning home buying experience.

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Shopping for a new home is an emotional experience. It's also time consuming and  comes with a myriad of details. Some buyers, however, caught up in the excitement of buying a new home tend to overlook some items. Their home purchase turns into an expensive process. These errors generally fall into three areas:

• Paying too much
• Losing a dream home to another buyer
• Buying the wrong home

When you have a systematic plan before you shop, you'll be sure to avoid these costly errors. Here are some tips on making the most of your home purchase:

Bidding without sufficient information
What price do you offer a seller? Is the seller's asking price too high? Is it a deal? Without research on the market and comparable homes, you could lose thousands of dollars. Before you make that offer, be sure you have researched the market. A professional realtor, can offer an unbiased opinion on the value of a home, based on market conditions, condition of the home and neighborhood. Without knowledge of the market, your offer could be too much. Or worse, you could miss out on a great buying opportunity.

Buying a mis-matched home
What do you need and want in a home? Sounds simple. Yet, clearly identifying your needs and bringing an objective view to home shopping, leaves you in a better position. Sometimes, home buyers buy a home that is too large or too small. Perhaps they didn't consider the drive to work, the distance to school, or the many repair jobs waiting for completion. Plan ahead. Use your needs list as a guideline for every home you view.

Unclear title
Before you sign any document, be sure the property you are considering is free of all encumbrances. As part of their services, a realtor can supply you with a copy of the title to ensure there are no liens, debts, undisclosed owners, leases or easements.

Outdated survey
Before the purchase is completed, an updated survey is essential. This report will indicate boundaries and structural changes (additions to the house, a new swimming pool, neighbor's new fence which is extending a boundary line, etc.).

Unexpected repairs
For $300 - $500 a professional inspector will conduct a thorough inspection of the home. This way, you'll have an idea of the cost of future repairs. Make the final contract subject to a favourable report.

Shopping without pre-approval
It only takes a few days to get financing pre-approval. When you are shopping for a home, this gives you more power. A seller is more likely to consider an offer from a serious buyer.

Getting a mortgage without perfect credit

WASHINGTON - March 17, 2010 - The government keeps promoting programs designed to help existing homeowners refinance their mortgages at a lower rate, as well as get perspective buyers into homes. In other words, Uncle Sam says he's here to help.

"Phooey," say homeowners and prospective homeowners, who keep complaining that it is ridiculously hard to get a mortgage or refinance one.

Can both sides be right?

Unfortunately, yes. But if you are willing to do a bit more work than in the past, it is possible to lower your mortgage rate to 5 percent or arrange to buy your first home. It is clear that there is pent-up demand to do both.

Seemingly qualified buyers keep telling me they can't get a mortgage. According to Credit Suisse (CS) and others, more than one-third of homeowners hold a 30-year conventional mortgage at 6 percent or higher. I will tell you what you need to do, but first we must understand what is going on in the marketplace.

A demanding lending landscape

Today it is unquestionably more complicated and difficult to get a home loan than it used to be. Burned by the recent housing meltdown they helped to create, lenders currently go over every requirement with a fine-tooth comb. They are looking for higher credit scores and more money down.

Still, the situation is far from hopeless: Loans at attractive rates are still available for those with less-than-perfect credit and minimal-to-no equity.

How should one negotiate the landscape? I checked with industry experts and here's what I learned: Banks and mortgage brokers can still get you a mortgage of $417,000 or less at the best rates through Fannie Mae (FNM) and Freddie Mac (FRE) programs if you have a credit score as low as 660 and can put 20 percent down. Jumbo loans, those greater than $417,000, remain more expensive.

What about more complicated scenarios? I checked on a number of specific situations - for example, people who can put 20 percent down but have a credit score of only 630, or people who have a score of 630 and only 10 percent to put down. I found these deals can get done but, not surprisingly, you will pay an additional quarter- or half-point. This means that instead of getting a 30-year mortgage at 5 percent, you would have to pay from 5.25 percent to 5.5 percent. Not too bad.

What about tougher scenarios, such as trying to buy or refinance with average credit, but zero to negative equity? According to expert Brian Fishman of Illinois-based DB Diamond Mortgage Group, the zero-down days are over, apart from incentives such as the soon-to-expire homebuyer credits.

Refinancing is possible, however. Freddie Mac has refinance opportunities for those with mortgages of up to 105 percent of their appraised value. Fannie has them for up to 95 percent. The lower credit and low-or-zero-equity deals will cost at least a point or more above published rates. But it might get done.

Don't assume your hands are tied

Believe it or not, even if your first and second mortgages total 125 percent of the appraised value, Fannie or Freddie may yet have programs that will refinance the first mortgage at a reasonable rate, as long as the second-mortgage holder doesn't object. Since every scenario is different, I'm not suggesting that you refinance this type. I'm simply suggesting you weigh all reasonable options vs. assume that you have no choices.

How can you determine which opportunities are available to you and which best suit your particular circumstances? I'm still a big fan of doing homework. I recommend that you consider seeking input from multiple sources, such as your current servicer, your local bank and your mortgage broker, and your local real estate professional.

To start, I'd suggest a reputable mortgage broker. While they are being paid a commission by lenders to help place you with them, they will often get you an equal or possibly better rate by shopping for you. You are also more likely to know where you stand among the various options before you get bogged down with paperwork.

In a nutshell, if you have credit scores in the low 600s or higher, 10 percent or greater equity in your home, and you're paying above 6 percent, you should be shopping to refinance. If you're in the market to buy a home, set these levels as your minimum standards, understanding that the better your credit and the more you can put down, the better your chances of getting the lowest mortgage rate available.

No matter what you do, remember that you have options and should do your homework. If you find that you're so far under water that nothing seems to make sense, maybe it's time to seek an alternative strategy, such as a short sale.

Copyright © 2010 The McGraw-Hill Cos., Marc Roth. All rights reserved.