If you're thinking about putting your home on the market in time for the Vero Beach real estate sales season, you better move now! Not next month, not next week. Do it right now!
Spring is coming, and that is certainly driving a lot of the interest in Vero Beach real estate currently listed for sale. But there are other factors at play.
Incentives for Vero Beach Real Estate Buyers
Mortgage rates have declined over the past month and are currently trending back toward 4% for traditionally structured, well qualified loans. This is a significant development for buyers, as interest rates are a huge driver of home affordability.
For example, a traditional 30-year, $250,000 mortgage at 4.5% would have a monthly payment of $1267. If rates declined to 4.25%, the payment would change to $1230.
For Vero Beach real estate borrowers on the edge of qualifying for a mortgage, that $37 per month savings could make the difference between getting a loan approval or not. Over the life of the loan, that 0.25% difference saves the borrower $13,320!
The Urgency for Vero Beach Real Estate Buyers
For buyers, the time to buy low is quickly ending, creating a sense of urgency to buy now before prices rise too high or interest rates return to more historically normal levels.
According to CoreLogic and reported by Realtor.org, home prices in 2013 saw the largest percentage increase across the board since 2005, north of 11% as of December.
The spring selling season will be in full swing sooner than you think. Rates are low, there is urgency to buy now, and buyers are already coming out of their winter slumber. If you're planning to sell your Vero Beach real estate in 2014, you need to jump on the bandwagon right now. Don't miss out on the perfect, well qualified buyer because you waited a week or two too long.
For more Vero Beach real estate home selling tips, visit the Vero Beach Home Selling Tips section of our website to your right under Vero Beach Real Estate Categories.
The Vero Beach housing recovery appears to be on track, according to newly-released data, although not at the pace it once was. Home prices rose slightly more than expected in December, according to the S&P/Case-Shiller index.
David Blitzer, chairman of the S&P Dow Jones Indices Index Committee, called 2013 the best year for the index since 2005, but noted that gains are slowing from month-to-month. That's in line with the latest results from luxury homebuilder Toll Brothers, which reported a 52% jump in quarterly revenue but said demand has leveled recently.
Check out our other articles and tips pertaining to Vero Beach housing by clicking on the Vero Beach Real Estate link to your right under Vero Beach Real Estate Categories.
Vero Beach home buyers need to be sure they'll qualify for a mortgage before they sign on the dotted line to buy that home of their dreams.
Qualifying for a mortgage alone is not enough these days. Vero Beach home buyers also need to know they are getting the best possible rate they can, as well as shop around for closing costs, because these can vary from lender to lender.
5 Mortgage Tips for All Vero Beach Home Buyers
1 – Document Your Finances. Vero Beach home buyers should be prepared for extra scrutiny by lenders when qualifying for a mortgage due to new mortgage regulations that went into effect in January, especially the new rules that prove borrowers' ability to repay their loans. You should be prepared to show bank statements, tax returns, W-2s, investment accounts, and documentation of any other assets you own. You should also be prepared to explain any sizable deposits to your bank account—even a $500 check from a family member for Christmas. If you can't prove where the money came from, it can delay your closing.
2 – Lock In Your Rate As Soon As Possible. Mortgage rates are expected to rise in 2014 as the Federal Reserve continues to phase out its $85 billion per month bond-buying stimulus program. A rate lock is usually good for 30, 45, or 60 days, although that time period can vary among lenders.
3 – Know Your Credit Score. The best mortgage rates go to Vero Beach home buyers with credit scores of 720 or higher. While those with a credit score of 680 can still likely qualify for a loan, you may end up paying a higher rate or more closing costs.
4 – Shop Lenders. Vero Beach home buyers may have the upper hand in 2014. Lenders have lost a huge amount of their refinance business as rising rates discourage home owners from refinancing. Vero Beach home buyers are the beneficiaries of the refinancing cutbacks, as lenders become more willing to compete for your business. Vero Beach home buyers need to shop around for more than just the best interest rate on the loan, looking at points and closing costs as well.
5 – Watch What You Spend. Vero Beach home buyers need to refrain from going out and outfitting their new home with all new furniture—on credit—before closing on the home loan. Lenders will be carefully scrutinizing your debt obligations, such as credit cards and student loans. Borrowers are advised to keep their monthly debt obligations, including mortgage and property taxes, to below 43 percent of their income. And just because you have been approved for a loan doesn't mean the loan is guaranteed. It's customary for lenders to pull your credit report a second time, just before closing, to see if you have done anything to change the credit line they approved you on to begin with.
We post periodic updates about Vero Beach mortgage rates and the news that affects those rates at our Vero Beach Mortgage Info link to your right under Vero Beach Real Estate Categories.
If you own a Vero Beach home, your homeowners insurance doesn't have to cost you an arm and a leg. There are some ways you can cut down on the skyrocketing premiums many people find themselves paying, as outlined in this short video…
Be sure you're insured at the right value for your home's contents and for personal liability. Most homeowners insurance polices provide only actual cash value on contents. To get replacement cost coverage, you'll need to purchase an endorsement. If you have valuables not covered by your policy—silverware, jewelry, furs—purchase endorsements for those, too.
There may be other ways to reduce your homeowners insurance premiums, so contact your insurer and ask them what you can do to save some money. Because of the increased competition among insurance companies, they'll want to make sure they do everything to keep you as a customer.
For more articles and tips on Vero Beach homeowners insurance, check out our Vero Beach Insurance section under Vero Beach Real Estate Categories to your right.