Mortgage Hurdles and How to Overcome Them

4 Annoying Mortgage Hurdles & How to Overcome Them:

As recently reported on Credit.com, there are some common stumbling blocks that borrowers encounter, and here are some suggestions for helping you to overcome them:

1. A High Debt Ratio: It doesn't matter how great your credit score is, or how much money you earn; your housing payments plus your credit obligations cannot exceed 45% of your monthly income! If you have debt preventing you from getting a home loan, one way to possibly overcome this is to consolidate debt into lower payments. Most loan officers can look at your finances and give you advice of what needs to be reworked in order to go forward in the loan process. It is definitely worth your while, if you are looking to buy a home, to work with a reputable lender, build a relationship, and review all options of reducing debt.

 

2. When the Solution to a Problem Creates a New Problem: Tell me this isn't frustrating? Imagine your lender requests your end-of-year pay stubs, but this year's income is less than previous years; so the lender creates another condition of the loan based on this information. A letter of explanation is required about "declining" income. In short, conditions brought on by mortgage conditions due to underwriting require more documentation. I'm here to tell you, resubmissions are normal. Most of the loans I deal with, even with the most meticulous borrowers require 3-4 resubmissions during the loan process.

 

3. Undocumented Funds: Even if it's "your" money, you cannot use it if you cannot document it! Any deposits going into your bank account separate from your stated income need to be documented. Even if you are self-employed, lenders will require you to document your funds. Avoid depositing any monies in your bank account that you unprepared to document. In some cases gifts can be used in down payments. Check with your mortgage loan originator to see what programs allow gifts.

 

4. Business Expense Write-Offs: This is a big one...and your lender will not ignore this issue. Tax preparers will suggest writing off expenses as a way to offset a tax liability, but it could hurt your chances of getting a mortgage by reducing your income. Banks typically average two years of write-offs and subtract that from your income and use that figure when determining your income to debt ratio. Just because the IRS allows these deductions isn't always in your best interest. Again, check with your lender to discuss what is the best alternative for you when preparing to begin your search for a new home. In some cases buyers need to wait a year or two in order to meet the strict mortgage guidelines that are enforced today.

 

Even if you have a solid payment history, excellent credit, and low debt, there are factors on how you are "viewed on paper" that are important to understand when beginning your real estate process. Lending guidelines are meant to be used as a way to predict whether a borrower will default on a loan, it's just that simple. It isn't very likely that we will see these guidelines loosened up anytime soon, so I cannot stress enough the importance of working with a professional loan officer. The Harris-Peppe Team uses the services of Kelly Rebimbus at Sunbelt Lending. You can reach her at 1-239-273-5239 or you can apply online by clicking here: SUNBELT LENDING APPLY ONLINE

Although, the majority of the transaction in Naples Florida are cash sales, and our team closes approximately 75% cash transactions, many of today's buyers are considering financing because the rates are still so low. Please let us know how we may be of service to you. Our company is a full service real estate company handing both residential and commercial sales and leasing, mortgages, title and closing services, as well as vacation rentals. We are here to make your real estate transaction as stress free and convenient for you as possible! 1-239-370-0574

Thank you, and make it a great day!

The Naples Real Estate Blogger

Direct Gulf Access in Naples Florida

Wonderful Waterfront Opportunity

Truly one of the best waterfront opportunities in Naples Florida. The home features 3 spacious bedrooms plus a den, and has a formal living room as well as a casual family room which opens up from the beautifully updated kitchen. Custom details throughout include high ceilings, large closets, a fabulous laundry room, luxurious master bath, and pocket sliders leading out to the lanai. The southern exposure homesite is situated on a lovely tree-lined street and faces an oversize channel that leads right out to Naples Bay, The Gulf of Mexico and  The10,000 Islands! For additional photos and a virtual tour, click HERE: Naples Waterfront Best Buy

 

 

The backyard is amazing. The pool is screened in and leads to a wonderful deck, perfect for entertaining! The 40' dock comes equipped with a lift, and plenty of waterfront decking for extra seating and sunning! Imagine dining al fresco water side! Also, you are just minutes to Old Naples by car, or a short walk to The Naples Bay Resort shops and restaurants, making this one of the best locations in Naples! 

 

Call us today to preview this lovely home in paradise!

1-239-370-0574

 

 

Thank you! We look forward to hearing from you to answer all your Naples Real Estate questions.

 

Make it a great day,

 

The Naples Real Estate Blogger

 

 

Another New Listing in Naples Florida

Welcome Home to Colliers Reserve

This estates home has been impeccably maintained and features many custom upgrades and appointments throughout. The interior boasts 4 spacious bedrooms, a formal living room and a comfortable gathering room right off the gourmet kitchen featuring a gas stove and new granite. Tasteful Egyptian limestone flooring, Anderson windows and 8' solid wood doors are some of the many designs of this magnificent residence. Additionally, the home features a wonderful outdoor kitchen, golf-cart garage, custom heated pool with decorative fountain and lovely landscaping that enhances the view of the 4th fairway while ensuring the natural privacy and beauty that Colliers Reserve is best known.

The focal point of the formal dining room is a dramatic mural 

by renowned artist Don Kettleborough.

This is the ideal home for the avid golfer seeking a natural setting, an active club, and an intimate Naples community exclusively made up of single family homes. Click here for a VIRTUAL TOUR! For a private tour of this home, please call The Harris Peppe Team today. 239-370-0574

Thank you, and make it a great day,

The Naples Real Estate Blogger

Naples Homes for sale in Golf Course Communities

Why local real estate values are not just "local" to Naples in general, but also why each community and price point has its own trends based on supply and demand:

I've been showing property to a very nice couple who are looking to be in a golf course community in the Naples area in a single family home priced somewhere between $1 million to $1.5 million dollars. Of course, there are other particulars such as the number of bedrooms, view and exposure; and mandatory features such as all living areas being on one level and that there be a private pool. Keeping all things relative, I have found about 80 homes that meet their general criteria, but then narrowed down the search when considering the homeowner's handicap and course preference, club fees, and other amenities as well as the location of the country club and proximity to I-75, the beaches and downtown Naples.  I will be able to show a total of 10-12 homes to this particular buyer. Now, the one thing that I find interesting in this exercise is this: Even though across the board it would appear that inventory is greatly diminished, there are still neighborhoods that have over a one year supply in this price range! As an example: The Vineyards Country Club currently has 12 active listings that match this criteria, however they have only had 7 closings in the past 12 month in this category. A seller in this community might read the reports in the paper or online and think they can stay firmer to their asking price as the market leans more in their favor, when in actuality there is over a one year supply on the market which still favors the buyer. When considering the broad brush of Naples in general, with approximately 80 active listings and 67 closings year-to-date that match these search parameters, that equates to just over a 1 year absorption rate. This commentary is true in many communities, however, many communities have a shortage of inventory, while others are still struggling with an over supply.

Here is a list of the "Years of Supply" currently available in some of the golf course communities in the Naples area which only includes single family homes in these neighborhoods:

• Quail Creek currently has a 1.38 "years of supply".
• Grey Oaks has a 1.5 "years of supply", but had over a 4 year supply just 8 months ago. Wow!
• Quail West [Collier County only] has a 1.5 "years of supply", which is much improved from their market high in December of 2008 when they had over a 7 year supply!
• Pelican Landing has a 7.7 month supply! They have actually had a balanced supply since July of 2010!
• Bonita Bay currently has a 1.15 "years of supply", whereas both Copperleaf and Shadowood have less than a one year supply.
• The Vineyards presently has a 1.1 "years of supply".
• Pelican Bay has an 8 month supply! 
• Collier's Reserve has a 1.2 "years of supply".
• Imperial Golf Estates has a 5.4 month supply.
• The Strand has a 10.5 months supply.
• Wyndemere Country Club presently has 36 homes for sale and 12 closed sales in the past 12 months which equates to a 3 year supply.
• Here's one that is unbelievable: Eagle Creek has had 2 single family homes close in the past 12 months, yet there are 24 homes currently on the market in MLS. It will be a long time before that comes back to a balanced supply.
• Windstar currently has a 6 month supply of homes in their inventory!

If you can think of any other neighborhoods that you'd like me to cover, please let me know. You can reach me by sending me a quick email to: TheBlogger@NaplesRealestate.com

Thank you again for your time! I hope you are having a wonderful day!

The Naples Real Estate Blogger

*The data in this post is derived from SunshineMLS and a report called: A Reflection of Supply and Demand by Cindy Carroll of Carrol & Carroll State certified Residential Real estate Appraiser RD615

Naples Real Estate ~ Listing of the Week

Gulf Access ~ No Bridges

NaplesRealEstate.com is proud to announce their "Listing of the Week"!

One of Southwest Florida's premier boating communities, this Royal Harbor residence will satisfy the most discriminating buyer. It's all in the details in this Key West-style home which features wrap around porches and balconies overlooking the private gardens and tropical landscaping. The dream kitchen has Viking appliances and every imaginable 'must have' for the gourmet cook! The home boasts 4 spacious bedrooms plus a den and 4.5 luxurious baths. Beautifully appointed French doors, Bahama shutters, multi-terraced ceilings and crown mouldings, hardwood floors, two fireplaces, and a 650 bottle wine cellar are just a few of the other features. The outside entertainment area is fabulous and includes a wonderful pool & spa, plus two boat lifts and a lay-along dock!  Make an appointment for a private showing today!

Please call us if you would like additional photographs or a floor plan of this exquisite property. Being offered at $2,150,000. This is one of Naples' best newer home buys [built in 2008] on the water. 239.370.0574 If you would like a complete list of everything currently listed on the water, with direct gulf access, in Naples Florida, please let us know! Homes for sale in this neighborhood start just under $1 million dollars. It is our pleasure to assist you!

Thank you, and Make it a great day!

The Naples Real Estate Blogger



Top 10 Turnaround Towns

Naples Florida Makes the Top 10 List!

Wow! 8 of the 10 turnaround towns that made the CNBC.com list are in Florida, and Naples made its first ever appearance! Check out more of the story by clicking HERE! Data derived from Realtor.com, the official site of The National Association of Realtors, showed clearly that many of those cities that once led the downturn in the real estate markets nationwide, are now leading the way to a turnaround! The list weighs a comparison from the last quarter of 2010 to the last quarter of 2011 and tabulates which towns have shown the most dramatic improvements based on a number of statistics. Naples Florida ranked #7, Miami was ranked #1! The only 2 towns NOT in Florida [are] Boise Idaho and Phoenix Arizona. One of the most striking statistics about Naples that CNBC documented was the fact that the "year-over-year" inventory was down a remarkable 35.94%! To answer the cynics who believe there may still be a shadow inventory lurking out there that will curtail the current trend upward  I say, "based on the current actives, pendings and closed sales, the demand will quickly absorb this possible inventory." 

There has never been a better time to invest in Naples Real Estate than NOW! Purchasing a home or condo, whether it is as a primary residence, a 2nd home, or as an investment, at today's low interest rates, is the best place that you can put your money right now!

For information about the local Naples real estate market, or specific neighborhoods in Southwest Florida, please call a member of The Harris Peppe Team today!  239.370.0574

Thank you and make it a great day,

The Naples Real Estate Blogger

Naples Real Estate Update

May 2011 vs. May 2012

Well, here it is, the 1st of another month. Time flies when you're having fun! May has been a very good month all the way around. We took a few well priced, saleable new listings...we showed homes to some fabulous customers and wrote a few offers...negotiated a few sales...and managed a few days off, including presently being on our boat, bringing her home from the east coast of Florida via the keys.

I thought you would like a Naples Real Estate Update, so I did some general research and compared [this] May to May 2011. Here's what I came up with:

Closed Sales Comparison:

• In May of 2011 there were a total of 911 residential closings in Naples vs. 1,043 in May 2012. That's a nice solid increase considering listing inventory is way down.
• May 2011 approximately 14% of the closings were listed as short sales vs. 12% in May 2012.
• 43% of the closed residential sales in May 2011 were single family homes as opposed to condos and villas vs. 44.5% in May 2012. It is pretty typical that condo sales out number single family home sales, but that they usually run a little closer to 50/50...could be the diminished sfh inventory. 
• 64% of the closed sales in Naples in May 2011 were listed at or below $300,000 vs. 61% in May 2012.
• A little over 10% of the closings in May 2011 were listed at or above $1 million vs. 12.3% in May 2012. Luxury Real Estate Sales are up in Naples!
• The majority of the residential sold financing types, approximately 70% both years, continues to be Cash transactions.

Current Listing Inventory Statistics:

• Currently Naples has 5,346 active residential listings [single family homes as well as all condos and villas]. 
• Of the 5,346 listings, there are only 346 short sales, less than 7% of our inventory. 
• 40.3% of the current inventory is single family homes. 
• 42% of the current inventory is listed below $300,000. Compare that to the 61% of last month's closing being in this price range and it becomes very evident how diminished the inventory is in this price range.
• 17% of the current inventory are homes and condos for sale priced at or above $1 million. That also is just over a one year supply! A one year supply in any neighborhood or price point is a healthy market.

That's just a brief overview of today's Naples Real Estate Market. Please call a member of The Harris Peppe Team today to assist you with any questions you may have about our local market, or to assist you with any of your real estate goals and objectives.      

Thank you, and make it a great day,

The Naples Real Estate Blogger

*all data derived from the Naples multiple listing system: SunshineMLS and is deemed reliable but not guarenteed.