Looking Like A Great Christmas in Tampa

It looks like the Charity bug has bitten a lot of people in the Tampa Bay area. Metropolitan Ministries is experiencing a groundswell of support at the eleventh hour, right when they need it most. They have always been one of my favorite charities and most years the food, money and toys for the kids are in very short supply, this year as our local Fox affiliate reports, thing are going great. So I want to do my part by letting everyone know about this wonderful opportunity to help your neighbors in need, to see the article just click the link. http://www.myfoxtampabay.com/dpp/news/local/hillsborough/metro-ministries-getting-needed-help-122310. This does not mean we we are done for the season, please contribute what you can.

For Those Less Fortunate

With the economy in stand still state, many out there are wondering if they can pay their rent or put a meal on the table. While others fret over "only" being able to spend $500 on each kid this year. Let's get real about this, Christmas is the time for giving, so, let's keep our most needy neighbors in mind when making our last minute purchases. Toys for tot's comes to mind at this time of year, buy an small toy for a deserving child and place it in a bin around town, the Marines will be sure and pass it on and make a child's Christmas special. Remember, the little one's still believe in Santa, so give him a helping hand.

Count Down to Christmas

I'm still hanging around at my Daughters house in Southern California. Lot's of cookies, a trip to Universal Studios, all the usual holiday stuff. And I am still working on a short sale negotiation. I have been working on this since August, that's when it went to contract. To all the Consumers who are reading this, just to let you know, this is not a cake walk by any stretch, it is a infuriating, agonizing and very frustrating process. There is a place for this type of transaction, but should not be under taken by anyone in a hurry. I have recently switched to a new negotiating company and will let all of you know how it works out. Well back to the cookies and lattes.

Holiday Shopping

The economy is in the dump, congress is spending all you tax dollars on Pork projects,and the top ten companies in the US are sitting on 1.3 Trillion Dollars, and not reinvesting or creating jobs. I just watched ABC news and boy do you want to get depressed. But wait, there is a silver lining, Real Estate prices are low and so are interest rates. So why are so many people just sitting around waiting for something to happen, it's happening right now. An economic windfall like this comes around every thirty or forty years and the peaches are hanging low and are ripe for the picking. Time to do some real Holiday Shopping and find a great home at a great price with an interest rate that your Grandparents would be lucky to get. So let's get out there and spur on the economy and make yourself a great long term investment,

First Time Home Buyers / Tampa / Recap

Well that's about it for the Home Buying process. All of the steps are in order, you can use all of them or most of them. The down payment assistance portion is optional, if you have the down payment to complete the transaction, you be in the best position to make a purchase, remember all closing costs paid by the Seller on your behalf comes off the Sellers bottom line. so you have to think of a Seller contribution in the terms of, whatever the Seller will contribute is actually money that the Buyer is financing in order to obtain the loan. If you have any questions or comments about this series, be sure to let me know at tampageorge2@gmail.com, I will be happy to help you in any way.

First Time Home Buyers / Tampa / The Closing Part 2

As we discussed in the last blog, hopefully the funding number camethrough in a timely manner and we are going to finish up the closing. One thing I did not adress, is the deposit. If you left your deposit with the closing Title Company, they already have the deposit, if it is being held elsewhere, your Realtor will bring it, or have it wire transferred to the closing Title company. The balance to close must be brought to the closing by the Buyer, you will be notified by the closer as to the amount needed, and funds must be in the form of bank or certified funds or wire transfer. When everyone is done signing and all the funds are dispersed, that's it, we are done. You get the keys to your new home. In Florida you receive immediate access to your property and you can start moving in.

First Time Homebuyers / Tampa / Funding the Loan

Well the closing portion has taken quite a bit longer than I anticipated, but, closings sometime take much longer than we expect. In the old days, (a couple of years back), the bank would send the check for your purchase, and closings went pretty quickly, now days in the digital age, funds are sent by wire transfer, one would think this would speed things up right? No, now we have to wait for a funding number, this means, after all the paperwork is done and everybody is ready to leave, and you want to go to your new house, we have to wait and wait while someone in some office somewhere, takes the time to look at their e-mail and press a button to send the funding number. AND be aware sometimes, that person goes home and Never presses the button. What to do? Wait until the next day, when they show up at the office again and look at their e-mail. And God help you if it is a long weekend, all your stuff is packed up in the truck and you have, people coming to help you move.... Maybe we can find solace in the fact that some clerk in some office didn't have to inconvenienced by you, and got to leave on time. Sorry to say this is true, it happens all the time and the Banks don't really care. I know, I have complained to supervisors and was told, it is bank policy, to pull the plug at the end of business each day. I am so Glad that the American Taxpayers bailed out these noble institutions.

First Time Home Buyers / Tampa / HUD 1 Buyers Side

Well I ran out of room on my last blog and we need to address the Buyers side of the HUD. The Buyer is responsible for all of the closing costs attached to the loan. Also, the tax stamps on the mortgage and the intangible tax on the mortgage. You also need to pay your homeowner insurance and set up an escrow for your properly taxes. Do you see why I didn't just tack this on to the last blog? But wait, there's more, you also need to prorate the items that the seller has already paid, such as the prepaid ad valor um taxes and the lighting district and storm water. See why we need a HUD 1 sheet, there are a lot of figures that need to be addressed, and the closing agent will be happy to explain all of the numbers as we go down the list.

First Time Home Buyers / Tampa / HUD 1

Now that you have some idea of what goes on at a closing, I will give you an Idea of what a Hud 1is. When ever you do a transaction where money and property changes hands. You need a tally sheet in order to keep track of the money. The Department of Housing and Urban Development, decided it would be best if a standardized form was used for all Real Estate transactions, hence the HUD 1. Until you receive a recorded deed, this documentrepresents the final sale of the property from seller to buyer. It is also used as a record of all costs incurred for income tax purposes. You take all of the charges to the seller and put them in one column and the buyers in the other column. Then you put the sellers credits and the buyers credits in the next set of columns. Prorated items are next and after some basic arithmetic you have the amount the seller will receive and the buyer will pay, ( in most cases ). There is a lot more to it and i don't want to over simplify, but this is what the form basically is. Next blog. Buyer costs.

First Time Home Buyers / Tampa / The Closing

This is a long one so I am going to devote one blog to the closing and the other to the HUD 1 which is the balance sheet on which all of the numbers ar collected and tallied. The closing is held at a Title Company, all of the parties need to sign the papers to transfer the title to the new owners. Everyone does not need to be there at the same time, but everyone need to sign, that are signatories on the original purchase contract. In Tampa Bay the seller customarily pays for the Tittle Insurance policy and selects the Title Company. The Seller also generally pays the Real Estate commission. They then sign the deed, tranfering the property to the new owner. The Title Company needs the Drivers license of all the signers in order for the notary to identify them, other forms of Identification are also acceptable. All of the monies paid into the transaction are added to the HUD 1 for distribution. I will conclude this in my next blog.

First Time Home Buyers / Tampa / Final Walk Through

The day is finally here, all the inspections are completed and all the paperwork is at the Title Company. Only one last thing to do before we close,we need to take one more look at the property before we sign the papers. Usually the walk through is done right before the closing, but it can be done the day before, this is a good idea if the closing is scheduled early in the morning. When we arrive at the house a cursory inspection of the grounds is completed and we look at the exterior for any obvious changes since the home inspection. Inside we check to make sure the appliances are still there, turn on the water and flush the toilets. Basically we make sure the home is ready for the new owner, all personal belongings of the previous occupants should be removed and the interior should be broom clean. If anything is not up to standards, we can request an escrow from the seller to be held by the Title Company to insure that the seller complies in the repair, cleanup or removal of debris. The walk through does not include new discoveries of items may not suit you, andhave not been addressed prior to the walk through. After completion, you will be required to complete a Final Walk Through form, accepting the property or accepting subject to items noted on the form.

First Time Home Buyers / Tampa / Home Owners Insurance

Well we are almost to the finish line, but wait, your mortgage company won't let you close on your new home until you insure it. Sounds easier than it really is. In Florida there are several different kinds of Insurance you will need, specific to the Tampa bay area. First you need your basic Fire and Liability Insurance that most people around the country also need. But if you live west of I-75 you will most likely need wind insurance, because of Hurricane possibilities. Closer to the water you will need flood insurance, close to an existing sinkhole area, you guessed it, sinkhole insurance. and if you live on a lake lake wind insurance. This can really add up, so don't wait to the last minute to get a quote. Sellers disclosures usually give you information on what Insurance the current owner needs but with new flood maps being distributed, that is not always the end all to your insurance questions. so ask questions early in your house hunt, and get the right info from your Realtor and your insurance agent.

First Time Home Buyer / Tampa / Home Warranty

The inspections went well on you home, but the inspector noted that many of the items in your home are getting old and you should start budgeting for replacement of these items. Wow, what did I get myself into? There is a simple and relatively inexpensive way to guard against unexpected expenses. A home warranty is provided by several companies,  they provide repair or replacement of many of the appliances and systems in your home. They generally cost in the $300 to $500 range, for one year, with deductibles of $50 to $75. As an example, you turn on your shower and no hot water, no problem, call the warranty companies number and set up an appointment with a local plumber, they come and check out your water heater and the heater needs replacement, you pay a $65 service call fee, and get a brand new water heater installed right then and there. This is just an example, but waters heaters are one of the most likely repairs, since water heaters have a life of 6 to 10 years on average. If you purchase an older home, chances are a home warranty will pay for itself and provide much needed peace of mind.

First Time Home Buyers / Tampa / Inspections

lot of money, $300 to $500, to have an inspector look at your home, but remember, this may be the biggest investment of your life and if you get a house with structural problems, a bad roof, problems with the plumbing or electric, it can change an idyllic dream of home ownership into a nightmare. Let me also point out a Florida specific inspection that is included by most inspectors. It is called a five point inspection and is a requirement for many, if not all, Insurance companies in Florida. It addresses five important parts of the house that need to be up to a certain standard to be insurable. I will go into more detail in a future blog, but be aware that you need it, and if you don't get a home inspection, it can cost you $200 to $300 just for this inspection. So be careful and get everything looked at, it is money well spent.

First Time Home Buyers / Tampa / Escrow Deposit

Congratulations! They accepted your offer, now we need to give an escrow deposit. I find there is a lot of confusion about the deposit, so let me devote this post to this very important aspect of the home purchase process. When writing an offer for Real Estate, you include a deposit, this serves as a sign of good faith on the part of the buyer and is derived from contract law, which states that contracts should include a "consideration" to bind the contract. This money is generally held by a Title Company, Lawyer, Real Estate Broker or other financial institution. This money is applied toward your closing costs at closing. The amount of the deposit, can be anything from $100 to ten percent of the purchase price. You offer an amount initially and the Seller either accepts this amount or asks for more. If you walk away from the deal, the seller gets the deposit as liquidated damages, this does not mean, if your mortgage does not get approved, or other acceptable reasons, such as, to many problems stemming from inspections. The main purpose of the deposit is, to make all parties involved, feel secure that the deal will close as expected.

First Time Home Buyers / Tampa / Negotiations

Many buyers ask me," how much should we offer?" My answer, list price is always good, some take that advise, but truth be told, very few want to pay full price. So, Let's negotiate. Generally a good guideline is the MLS statistics, most homes in our area sell for 97.75% of asking price so, if you want to negotiate, offer 95% and you can meet in the middle and be just about perfect, statistically. Remember, you are the one making the offer, whatever you want to offer is worth considering, but realistically, you need to take into consideration how long a property has been on the market or if you hear something from the Seller like, "We need to be out so we can move to Memphis next month", this creates a good position for a lower offer. But this is an exception, not the rule. Remember, Realtors work both sides of this business, Sellers and Buyers, so as much as you want a lower price, the Seller wants a higher price, so we, the professionals work to get you to meet somewhere in the middle, that makes everyone happy.

First Time Home Buyers / Tampa / The Offer

Now, you found the house you want, it fits into your price range and has everything you are looking for in amenities and location. Now What? It's time to write the offer. An offer is just what it's called, an offer to purchase the property, in it you give a price and a closing date, these are the two most important items, and your Realtor will help you come to a fair price by going over the previously sold, "Like" properties. it is kind of scientific but, also requires a "Feel" for the market. When it comes time to make an offer, you will see what I mean. You also need to include financing terms, included personal items, inspections, time periods,seller responsibilities, buyer responsibilities and deposit money, among other things. If this seems like a lot of work, it really is. But after all, for most people, this may be the biggest purchase of their life, so let's dot all the I's and cross all the T's. This is a complicated process and needs an experienced person to go over all of the details. But with the right guidance, everything should flow smoothly and your new home will be closer than ever.

First Time Home Buyers / Tampa / House Hunting Part 2

Let's continue with our search, you have your down payment locked up, you know how much you want to spend each month on a home, we figure out how much house you can get for that payment. Now the most important choice you will make, where do you want to Live? Using the IDX feature we discussed in the previous blog, you can zero in on an area that has all the things you are looking for, such as, how close to work, how close to the parents, other relatives. What schools will the kids go to, (please disregard if you don't plan on having kids). How near is the grocery, library, local tavern, hey it takes all kinds. Many personal things enter into your final choice. Remember you can do almost anything to the house you buy, but you need to be happy with the Location. There is a quirky little saying about Real Estate, what are the three most important things? The Answer, Location, Location, Location.

First Time Home Buyers / Tampa / House Hunting

I almost forgot a major step in the process, the one that I am personally involved in, the hunt for your new home. After you do your counseling and talk to your lender to find your price range, I will assist you in finding the perfect property. Be aware that in this market, the perfect home may not be that perfect when you see it, with the proliferation of Bank Owned properties, a lot are in, what we call, rough condition. But if you go in with open eyes and are not afraid to do some cleaning and painting, you can find a fantastic buy. Your search can begin by looking on what is called, an IDX enabled website, this means you can search on the MLS just like a Realtor, if you would like to see a search like this, go to: http://www.realestateoftampabay.com and a do quick search.