·:[ The Judy Niemeyer Team Blog ]:·
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Considering buying a newly built Mobile Eastern Shore home? Here are some things to think about.

ADVANTAGES:

• HOME WARRANTY: Generally this warranty is good for one year and covers heating, cooling, and electrical systems and plumbing. Some also cover appliances.

• INCENTIVE PROGRAM: Many builders use incentives, both large and small, to attract buyers. Examples include vacations or furnishing for your Mobile Eastern Shore home. Note: these incentives are often offered only if you use the builder’s lender.

• CUSTOM DESIGN: If you become involved with the builder early in the building process, you may have a say in the home’s construction–from customized features to flooring to colors.

• FASTER CLOSING. No titles to search.

• SAFETY/HEALTH: No worries about old wiring. lead paint, or asbestos.

• LESS MAINTENANCE: Materials used in the exterior of a new home do not require yearly painting.

• ENERGY EFFICIENCY: Less waste, and thus lower bills.

PRECAUTIONS:

• HIRE A BUYERS REAL ESTATE AGENT who is experienced in new home sales. A strong Realtor negotiating on your behalf can save you thousands!
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Just as fashion styles and automobile designs vary with time, so do house features most desired by potential home buyers. Current surveys concerning home trends indicate an emphasis on open space, use and function, size, design, and environment. The majority of these topics involve changes that go beyond the scope of home improvement projects and require actual remodeling of your Mobile Eastern Shore home.

Floor Plan

Probably having the greatest impact on a potential buyer is your floor plan. Open spaces which make the living area appear large, airy, and unobstructed are most desirable. Flexible floor plans feature an eat-in kitchen which opens up into the dining and family rooms, thus allowing for family togetherness and ease of entertaining. To achieve this sense of space and unity, you should provide multiple accesses to the kitchen and ensure an unobstructed line of sight and a practical traffic flow. Here are specific suggestions regarding these layouts.

While buyers are no longer clamoring for extremely large homes with excess square footage, they do insist on functional areas with both specific and multiple uses. Home offices are still in demand, but several smaller work stations spread throughout your Mobile Eastern Shore home are also in vogue. Dual office/bedrooms, large and plentiful storage spaces, and a children’s retreat for study and recreation have become popular, as have entertainment centers such as a bar, a home theater, or an exercise room. Of primary importance is the idea that no space is wasted and that the need for both privacy and togetherness has been considered throughout your home.

Going Green

In keeping with the “greening” of real estate, rooms which bring the outside in are valued by buyers. This effect can be achieved by a large expanse of windows overlooking gardens, a pool, or inviting landscaping and by carefully selecting eco-friendly paints. These should reflect the soothing colors of nature–from pastels to earth tones.

Of equal importance to a potential buyer of your Mobile Eastern Shore home are features which bring the inside outside. Today’s buyers want to extend their “open” atmosphere to a yard which has spaces, furniture, and equipment designated for specific uses–an outdoor cook/dining area, for example, a reading/relaxation corner, a children’s activity space, or a conversation area grouped around a fire pit.

Trends

You may also want to consider generational home buying trends as you plan your remodeling. According to the National Association of Home Builders (NAHB), both young buyers and the over 50 set are “driving the demand for smaller, smarter homes designed to function more efficiently with no wasted space and plenty of room for storage.” The Boomers desire “high-tech features, an open floor plan, and spaces to enjoy outdoor living.” (NABH Builders’ Magazine, July 2009, “Brave New World.”)

What’s your Mobile Eastern Shore home worth?

This third portion of your guide to homeowners insurance gives you information you hope you’ll never use–dealing with damage to your Mobile Eastern Shore real estate. Most likely your policy will explain how to file a claim, but here are the basic steps:

1. If a crime has been committed, report it to the police. You should get a copy of the police report.

2. Contact your insurance agent or company immediately.

3. If necessary, try to protect your property from further damage. Save your receipts.

4. Don’t dispose of damaged items until the adjuster has seen them.

5. Prepare a list of damaged items. Take pictures of the damage. (Now aren’t you glad you made an inventory list/video?)

6. Get the appropriate claim forms and fill them out completely. Return them within the time limit.

Resolving Issues

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Judy Niemeyer of Ashurst and Niemeyer presents:

The Mobile Eastern Shore Real Estate Podcast

June 2010: This month’s edition covers Mobile Eastern Shore real estate market activity and then and we’ll promote the value and importance of home inspections as the summer selling season approaches. Features special guest Terri Murphy of US Learning. Program length: approximately 8 1/2 minutes

The prospect of relocating to a new place can be somewhat unsettling as you face emptying your present house and filling up your Mobile Eastern Shore home. Not only must you deal with the onus of packing and the logistics of your physical move, you also find yourself a bit anxious–and possible sad– about leaving a place where you’ve grown comfortable. No wonder so many people dread making a move!

There is, however, a painless way to lessen the angst and allow you to cope well (maybe even enjoy) the relocation process–and that is organization. While you may be proficient at researching and hiring a moving company and finding a reliable Realtor to sell your current residence and help you find the perfect Mobile Eastern Shore home, there are numerous “small” steps you can take to eliminate unpleasant surprises later on and to make the process go more smoothly.

FINANCES:
To alleviate any concerns you may have about the financial ramifications of living in a new city, you can compare the cost of living in two places by visiting HomeFair.com. This site will help you calculate how far your salary will go in your new location.

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Judy Niemeyer of Ashurst and Niemeyer presents:

The Mobile Eastern Shore Real Estate Podcast

May 2010: This month’s edition covers Mobile Eastern Shore real estate market activity and then we’ll promote responsible upgrades and the tax credits available for home owners who invest in energy-efficient systems and improvements. Features special guest Terri Murphy of US Learning. Program length: approximately 7 1/2 minutes

The federal governments’ Section 203 (k) program is designed for the rehabilitation and improvement of single family properties and is viewed as a tool for neighborhood revitalization and expanding home ownership. In the past, when a Mobile Eastern Shore real estate buyer wanted to purchase a home in need of repair or modernization, he/she had to first obtain financing to finance the dwelling and then find additional financing to do the rehabilitation work. With the 203 (k) plan, however, the buyer can get just one mortgage–at a long-term fixed or adjustable rate–to finance both the purchase and the repair of the property.

USES AND APPLICATIONS: This program can be used in various ways:

1. To purchase a home and its land for rehabilitation

2. To purchase a dwelling at one site and move it to another mortgaged property for rehabilitation

3. To refinance existing secured loans on a home for rehabilitation

4. To convert a one-family dwelling to a two, three, or four family residence OR

5. To convert a multi-family dwelling to a one-family home.

ELIGIBILITY:

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A simplified guide for Mobile Eastern Shore home buyers.

To a home loan shopper, there may seem to be an endless–and confusing–array of mortgage types. Of course you want to choose the option that is best suited to your current and future financial situation, but understanding the terminology, types, and monetary ramifications is not always easy. Mortgages generally fall into four categories (fixed rate, adjustable rate, step, and balloon) according to the interest rate and duration of the loan.

Basic terminology;

• Fixed rate–The interest rates do not change during the life of the loan, thus allowing you to know the amount of your payments.
• Adjustable rate (ARM)–the interest rate is tied to certain indexes plus a margin and can fluctuate up or down, thus affecting each payment,
• Step–the interest rate and monthly payment remain the same for a specified period of time. After that the interest will change to the prevailing rate and will remain there for the duration of the loan.
• Balloon–a loan payment that expands after a certain amount of time. Basically it functions similarly to a fixed rate mortgage in the earlier months/years with a delayed steep increase at the end,

The following information outlines the type of mortgage, the loan characteristics, and the situations most appropriate for each one. If, for instance, you plan to live in your Mobile Eastern Shore home more than 10 years and desire stability in payment amounts, then a fixed rate mortgage is for you. If, however, your finances are currently strained, but you know that in 5 to 10 years your monetary situation will improve or that you will most likely move within 10 years, then an ARM or balloon mortgage may be better for you. Being familiar with these options allows you to discuss them intelligently with your real estate agent and/or lender and then select the type which best fits your circumstances.

Fixed rate mortgage (30, 20, 15, 10 years)*

• Interest rate & monthly payment remain the same for the entire term of the loan
• plan to live in property more than 10 years
• like total payment stability

0/1 year adjustable rate mortgage1

• Interest rate & monthly payment remain the same for 10 years
• Starting the 11th year, interest rate adjusted every year, so payment is subject to change every year for remainder of loan
• plan to live in property more than 10 years
• like initial payment stability, can accept later changes OR
• plan to move within 10 years
• want loan to remain in force in case plans change

7/23 (2-Step) or ‘30 due in 7′ mortgage

Interest rate & monthly payment remain the same for 7 years

• Conversion option: On the 8th year, interest rate adjusted to reflect prevailing interest rates, resulting payment will remain the same for remainder of loan
• plan to live in property more than 10 years
• can tolerate one payment adjustment OR
• plan to move within 7 years
• want to remain in force in case plans change

7/1 year adjustable rate mortgage

*Interest rate & monthly payment remain the same for 7 years
*Starting the 8th year, interest rate adjusted every year, so payment is subject to change every year for remainder of the loan
*plan to live in property more than 7 years
*like initial payment stability, can accept later changes OR
*plan to move within 7 years
*want loan to remain in force in case plans change

7 year balloon mortgage

• Interest rate & monthly payment remain the same for 7 years
• At the end of 7 years, loan is due in full. Borrower must refinance into new loan at prevailing interest rates
• plan to live in property more than 7 years
• are willing to refinance at prevailing market rates OR
• plan to move within 7 years
• like payment stability

In addition, there are variations of the ARM, step, and balloon mortgages which differ primarily in the duration of the loan and of the planned residency.

Another good source of information for first-time Mobile Eastern Shore home buyers is the Department of Housing and Urban Development (HUD), an agency which oversees FHA loans. This type of loan is particularly useful if you have little money for a down payment, less than great credit, or large monthly bills. An FHA loan requires as little as 3% down (and it can be a gift from a relative or friend). In terms of your credit rating, the FHA is primarily concerned that for the past two years you have paid bills in a timely manner and have been steadily employed. With FHA you have to wait only two years after declaring bankruptcy, and your debit-to-credit ratio can be higher than for a conventional loan. You can qualify for an FHA loan if your monthly payments are no more than 43% of your income, and, as with conventional loans, you can choose from many types.

Of course, there are some negatives to consider before taking on an FHA loan. Interest rates generally run about 1/8 of a percentage point higher than conventional rates, but the real disadvantage of an FHA loan is that the borrower must pay an up-front insurance premium of 1.75% of the mortgage if the down payment is less than 20%. This cost can, however, be added to your total loan amount.

So there you have it–an easy-to-understand guide to mortgage types. As always, you should feel free to contact me anytime with questions. I am glad to recommend a number of outstanding mortgage lenders if you are interested in talking with one.

Search all Mobile Eastern Shore homes for sale.

A simplified guide for painless purchasing of your Mobile Eastern Shore home.

Be patient. You’re getting close to the finish line and will soon be the owner of your first Mobile Eastern Shore home. Just a few more steps to go…

1. Homeowner’s insurance policy

Adequate homeowner’s insurance is a requirement of all lenders, and it is certainly in your best interests to protect the investment you’ll be making in your Mobile Eastern Shore home. To find the policy that is right for you, you should shop around for the best value. Check online for quotes from at least three reputable agencies. Be aware that some companies offer a discount of 30%-40% if you buy online. Other possible discounts can result from insuring both your home and the contents or by insuring your home and your car with the same company. Check to see if you need flood insurance, as many properties in the Mobile Eastern Shore  area do. Know the replacement value of your home, taking into consideration any unique features. Think about probable inflation increases at renewal time. Will your insurance agency automatically adjust your coverage, or will you have to request a change?

2. Preparations before closing

As the settlement date approaches, check with your lender and your closing attorney to make certain all necessary documents are in order and are being prepared. You will also want to contact utility services such as gas, electric, water, cable, and telephone to set up service in your name. Be sure to ask your real estate agent about the type of acceptable payment (usually a certified check) and amount to bring to the closing for any unpaid fees. It is also a good idea to gather all paperwork associated with your purchase (estimates, contract, proof of title search and insurance, home appraisal, and inspection reports) to take to the closing in case a question arises.

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A simplified guide for painless purchasing of your Mobile Eastern Shore home:

Okay, you’ve made your lists of: must have” and “would be nice” features, and you’ve identified desirable neighborhoods with the schools and amenities that meet your needs. Now it’s time to seriously shop for your first-time Mobile Eastern Shore home.

Before you even step outside to begin the search, your agent will email to you listings which meet your criteria, and you can “visit” many of them online via a virtual tour. Once you have narrowed down your choices, your agent will arrange for you to look at–in person– your selected properties. A few bits of advice here:

1) Take notes on each home you tour. Too often individual details blur after you’ve seen four (or more) houses in a day.

2) Look past the owner’s furnishings and décor. Concentrate on the features you have identified as important and try to picture yourself actually living in the space.

3) If you have decided that you don’t need a “move-in ready” residence, look at the potential of the property. Would simple cosmetic changes make a considerable difference?

4) Listen to both your head and your heart. Sometimes a property really does “speak” to you, and you know you have found your new home.

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