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Stuart, Florida Real Estate – Selecting a Mortgage Lender

In today’s brave new world of  South Florida real estate, getting a home loan is arguably the most stressful component of your transaction. On the one hand, the “big box” national lenders have frequently proven to be unreliable in just about every step of the funding process. With their thin staffs, poor communication and underwriting rules that seem to change on a daily basis, a Florida home buyer cannot rely on a successful closing. On the other hand, working with a mortgage broker may compound these problems since you are adding a middleman to the equation.

Going With a Stuart Area Direct Lender

For me, the best option for my clients is to work with a local direct lender. Our preferred direct lender is Group One Mortgage. With offices thtoughout the Treasure Coast, Group One offers skilled, personalized service coupled with the same programs offered by the national lenders.

Why a Florida Based Direct Lender Can Ensure a Successful Closing

1. Full Service – a direct lender processes your loan, underwrites your loan and funds your loan right in their office. This includes FHA loans, VA loans, 100% USDA loans, conventional and Jumbo loans.
2. Easy Access to Decision Makers – having the loan underwriter in their office allows your loan officer to communicate directly with the person responsible for approving and clearing your loan to close.
3. Direct Government Lender – a direct lender can provide in-house FHA, VA and USDA underwriting. As a direct Government lender Group One Mortgage has a DE (delegated endorsement)underwriter in their office. All FHA, VA and USDA loans stay in house and are not being brokered through middle men companies.

Please contact me with all your real estate needs. Or call Wayne Katz at Group One Mortgage (561) 791-0000 to get pre-approved for a mortgage today!

Eric Slifkin, Broker Associate
Keller Williams Realty
819 South Federal Highway
Stuart, FL 34994
(888) 288-1765

This post has been authored by Eric Slifkin, REALTOR® serving South Florida’s Treasure Coast. You can reach me at 888-288-1765, or visit my Web site at www.TreasureCoastHomeSales.com. As your resource for information on new or resale homes throughout the Treasure Coast, please be sure to contact me about any home you may find on the Web, yard sign or ad and I will research the property, arrange showings and handle all the details.

Common Closing Costs for Buyers

The myriad of fees associated with the buying or selling of a home are called closing costs. Some fees are automatically assigned to either the buyer or the seller while other costs are either negotiable or dictated by local custom. Your lender must provide a good faith estimate of all settlement costs prior to closing- the title company or other entity conducting the closing will tell you the required amount to bring to the closing. 

Typical Buyer Closing Costs

• Down payment
• Loan origination fees
• Points, or loan discount fees you pay to receive a lower interest rate
• Appraisal fee
• Credit report
• Private mortgage insurance premium
• Insurance escrow for homeowners insurance, if being paid as part of the mortgage
• Property tax escrow, if being paid as part of the mortgage.  
• About escrows – lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.   Note: when financing more than 80% (LTV), escrowed property taxes and insurance are required, which will increase your monthly mortgage payment.
• Deed recording fees
• Title insurance policy premiums
• Survey
• Inspection fees-building inspection, termites, etc.
• Notary fees
• Prorations for your share of costs such as utility bills and property taxes .  A Note About prorations – At the closing, certain costs are often prorated (or distributed) between buyer and seller. Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance.  The most common prorations are for property taxes.  This is because property taxes are typically paid at the end of the year for which they were assessed.  Thus, if a house is sold in June, the sellers will have lived in the house for half the year, but the bill for the taxes won’t come due until the following year.  To make this situation more equitable, the taxes are prorated. In this example, the sellers will credit the buyers for half the taxes at closing.  

Avoid Closing Delays 

Your closing can be delayed by a number of issues including:

• Clouded title
• A home not appraising for value
• Encroachments or other survey issues
• A rapid change in interest rates
• An undisclosed credit or income issue
• Inspection or repair problemsor one of countless other unanticipated issues.

Don’t buy your home without my assistance! I understand what it takes to help you through your closing and can handle much of the work involved throughout the transaction with the least amount of stress to you.

I have been asked by a number of clients about the new tax credit that was included in the recently passed economic stimulus bill.  The following overview will help to explain what the new credit is all about:

Qualifying For The Credit

1. 1. To qualify for the credit the home purchase must take place between 1/1/2009 through 12/31/2009.

2. The 2009 tax credit is an $8000 refundable tax credit or 10% of the purchase price.  This means that if the purchase price of a home is $80,000, then you will hit the maximum of $8,000. 

3. Refundable means that if you owe a tax liability of less then $8,000 the IRS will send you a refund of the difference.  If you do not have a tax liability that is larger then $8,000, you will get a cash refund.

Exceptions to The Credit

1.  There is a phase out range for this tax credit.  For Joint tax filers it is $170,000 and single tax payers it is $95,000.  If the home is purchased from a close relative such as spouse, parents, child, grandparents or grandchild, you are not entitled to the credit.

2.  The home is not a primary residence.  A primary residence is one where you spend the majority of you time (over 50%).  Condos, single family and town houses are acceptable.  No second or vacation homes.  For new construction, the purchase date must be prior to 12/31/2009.

3.  The recipient of the tax credit sells their home before the end of a full three years of ownership.  If the home is sold prior to the three years of ownership the tax credit must be repaid.

4. The tax credit can be claimed on your 2008 or 2009 Tax Returns.

5. Nonresident alien’s are not eligible.

6. A first time homeowner means that they did not own another primary residence at any time during the three years prior to the new purchase.  If they are joint tax filers they both must meet the above criteria to qualify.  This credit does not have to be repaid, which is different then the one passed last year.

Income Limits

1. Single filers $95,000

2.  Married filers $170,000

3.  The phase out for the income limit of $95,000 starts at $75,000 and for married at $150,000.  A phase out means that the credit is proportionately reduced between the $75,000 and the $95,000, and the $150,000 and the $170,000.

I hope that this helps to explain about the new credit.  For more information about the tax credit, first time home buyer programs or home loans please contact Wayne Katz, Senior Mortgage Advisor at Group One Mortgage, 561-791-0000 or contact me with any questions you may have about buying a home on the treasure Coast.