5 Things to Keep in Mind That Can Prevent a Home From Closing

Many things can go wrong with your home purchase that can slow the closing process down. Today I am joined by Evan McDonough to give you five things that you should be aware of to keep your closing on track.

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I am joined today by Evan McDonough of Family Mortgage to talk about pitfalls that can prevent a home closing from happening on time and how to avoid these common missteps as a buyer.There are a few important precautions all buyers should take as they embark on their home search. Today I'd like to list five things, in particular, to keep in mind if you're about to begin this process yourself.

1. Maintain your credit score. Lenders will first pull your credit score during the pre-approval process, but will also monitor it throughout the transaction. So avoid taking out unrelated loans or making major purchases during the home buying process. It's important to keep your credit score consistent as you apply for financing for your future home. I recommend that you consult with your lender about the specific variables that could impact your score.

2. Maintain your current employment status. Believe it or not, you have to have the same job during your pre-approval as you do at your closing, so do not change your job. We have to verify employment within ten days of closing for every single client. Even if you get a new job lined up, do not quit your current job. Doing so will stop the loan process.

3. Make sure assets in your bank account can be verified. Do not put actual cash into your bank account, because where that cash came from cannot be verified. If you have cash in your home, do not put it into your account right before closing. Talk to your lender about how to verify your assets.

4. Read and sign the closing disclosure. Four days before the closing date, you will have to sign a closing disclosure. Making sure everything is in order with your closing disclosure is critical, because this will indicate whether you're set to close on time. While working with your lender, ask them if you are on track to have your closing disclosure signed, because that will indicate whether you’re on track to close on time. If you’re selling your current home before closing on the new one, make sure your lender gets your sale of home closing disclosure. If you have this document prior to or on the day of closing, make sure you give it to the lender. This will enable them to fund the purchase and give you the keys on time.

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Do not put actual cash into your bank account, because where that cash came from cannot be verified.

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5. Watch out for wire fraud.Wiring scams have become a significant issue in our market. You may receive false instructions via email from a scammer posing as someone legitimately affiliated with the transaction. Before wiring any funds, verify that the instructions are legitimate. Call your agent, title company, or lender to make sure they were truly the ones behind the email you received. Picking up the phone and having a conversation could help you avoid a mistake that could potentially compromise your home purchase.

At the end of the day, verify everything verbally. If you have any questions, pick up the phone and talk to your lender or agent to make sure before you don’t do anything to potentially compromise your major purchase.

If you have any additional questions for Evan about lending, you can contact him by calling (561) 625-2660 or by email at evan@familymortgage.com.

And, as always, if you are interested in buying or selling, please feel free to contact me by phone or email. I look forward to speaking with you soon.

Evan McDonough
Family Mortgage
(561) 625-2660
evan@familymortgage.com

An Oceanfront Property Awaits You Here in Florida

Whether you’re looking to rent, buy, or invest in a property here in Florida, now is the perfect time to do so.

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If you’ve ever thought about investing in a second home or changing your lifestyle and moving to a warmer climate, now is the perfect time to move to Florida.

Did you know that you can buy a property for $350,000 or less just a block away from the ocean? The cost would be even less if you would consider a condo, and many condominiums here in Jupiter allow rentals. Sometimes, you can rent up to five times per year. I know of one complex here that lets you rent on a monthly basis and another that lets you rent on a weekly basis, which would be the perfect Airbnb situation.

If you need a little getaway, Florida is the perfect place.

Where I grew up in the Northeast near the beach, you can’t find anything for $350,000 anywhere near the ocean. Keep that in mind the next time you’re thinking you might need a little getaway or you’re ready to revamp your lifestyle and move to a warmer climate.

Whether it’s renting, investing, or buying a property here in Florida, we’re ready to help you. If you have any questions or you’re thinking of making a move now, don’t hesitate to reach out to us. We’d be glad to help.

How to File a Homestead Exemption

Do you know what a homestead exemption is? Either way, we’ve got a few tips about it to share with you today.

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Do you know what a homestead exemption is? Do you know how to file one? If not, you’re in luck. We’re answering both questions today.

When you are a permanent resident of Florida, you are able to file a homestead exemption based on the assessed value of your taxes. For example, if you bought a $500,000 house and it was assessed at $500,000, it would be assessed at roughly $450,000 with the homestead exemption. This would save you roughly $68 per month in taxes.

If you bought a house in 2017, you need to file for your homestead exemption before March 1st. There are a few different ways you can do this. You can mail it in, you can complete the application online, or you can e-file it directly on pbc.gov.com/papa.

You can file your exemption in a few different ways.

If you’re choosing the final option, the process is really easy. Click the home button right on that page and scroll down until you see a link that says “File for an exemption.” Once you click “e-file," it will give you a brief description of what to do and you'll find a link to begin the filing process. When filling for your exemption, the following documents will be required:

• Driver’s license
• Social security number
• Vehicle registration
• Voter ID
• Proof of permanent residency if not a U.S. citizen
• The recorded deed

Once you’ve put everything in, click “pin request” and you’re done. It’s as simple as that.

Keep in mind that there might be other exemptions that you qualify for. If you have any questions about these or about anything else, don’t hesitate to give us a call or send us an email. We would love to hear from you.

The Costs Associated With Investing in Rental Properties

Is it worth it to invest in a rental property? The answer is yes, but only if you’ve looked at the numbers first.

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Just today, I took three calls about rental properties. Two of those calls were from individuals who aren’t making the money they need to cover rental costs, and the other call from someone who wanted to look into buying a rental property.

When it comes to rental properties, it’s all about the numbers. This house isn’t your primary residence, so it doesn’t necessarily matter what the house looks like. You need to be paying attention to the costs associated with this potential rental property.

When determining how much it will cost to run this property effectively and still make an income, you need to pay attention to additional costs besides the mortgage payment—like taxes, HOA fees, insurance, and other maintenance fees. You should also be including your vacancy rate when determining your bottom line, because your property probably won’t be rented every month out of the year.

Another thing to consider is if you’re going to run the property yourself or have a Realtor put it on the market to find renters for it. If you’re contracting a third party, you have to consider the cost of that as well.

Make sure you have money set aside in your account each month to cover the cost of unexpected repairs.

Are you budgeting money towards repairs? You need to make sure that you have a certain amount of money set aside in your account each month that will take care of any repairs if something breaks.

In the end, after you add everything up, you’ll be able to figure out your yearly net income. You take the total cost of your operating expenses, minus your gross income, and that will give you your net earnings for the year. In order for it to be worth the costs associated with it, your property should have a rental yield of 5% to 6% yearly.

If you have any questions about rental properties, how it works, and finding the correct numbers for a specific property, please give me a call. I can sit down with you and break everything down so it’s easy to understand and you can determine if this rental property is worth your time and money.

If you have any other questions or you’re looking to buy or sell a home in our area, please don’t hesitate to reach out. I’d be happy to help!

How Can a Homestead Exemption Save You Money?

If you’re a new Florida resident, you might not know about homestead exemptions. Today I’ll go over how they can save you money and how easy it is to obtain one.

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One of the few things that can save Florida residents money are homestead exemptions. Just in case you haven’t heard of them, I wanted to go over what they are and how they can save you money.

All Florida residents who own a home are eligible for a homestead exemption if they qualify, and to be a qualifying resident, the home you own has to be your primary residence.

A homestead exemption basically takes $50,000 and subtracts it from what your home is currently assessed at. So, say your home is assessed at $400,000 by the property appraiser. Instead of being taxed at $400,000, it would be taxed at $350,000 and your taxes would go down.

When you work out the numbers, you could save anywhere from $600 to possibly $1,100 a month depending on your county and tax rate.

If you bought a house in 2016, you have until March 1st to apply for a homestead exemption.

If you bought a house in 2016, you have until March 1st of this year to apply for a homestead exemption, and if you buy a house this year, you have until March 1st of next year to apply.

So how do you apply for a homestead exemption?

All you need to do is go to the property appraiser for your county, who will give you a few things to send in that prove the home is your primary residence. Once you’ve done that, you can fill out everything you need to online.

If you have any other questions, please don’t hesitate to give me a call or send me an email. I’m happy to help!