Fannie Mae Is Relaxing Some Student Loan Policies


If you have a student loan or are a cosigner on one, listen up. Fannie Mae just introduced three new rule changes that will affect those with student debt. 

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If you have a student loan or you are a cosigner on one, I have some good news for you. 

Fannie Mae, the nation's largest underwriter of mortgages, recently introduced three new rules that will affect those with student debt.

These new rules can make it easier to get a mortgage, and they can make it easier to pay off your (or your kids’) student loans.

The first change is for those on income-based repayment plans, where having a high debt-to-income ratio is the No. 1 reason for not being approved for a mortgage. 

Fannie Mae previously used a very conservative 1% of the total loan instead of the actual monthly payment. This can drastically lower your debt-to-income ratio and give you a much better chance of qualifying for a mortgage.

Some folks are lucky enough to have their student debt paid by their parents or even by their employer. The thing is, Fannie Mae didn't take this into account when calculating the debt-to-income ratio. That's the second new change.
If you can qualify for a mortgage right now, you definitely should.
If your employer or your parents have been paying off your student debt and you can show evidence of this for the past 12 months, then this debt won’t be counted in your debt-to-income ratio. This makes it more likely you will qualify for a mortgage.

If you can qualify for a mortgage right now, you definitely should. Rates are still at a historical low, and lots of great houses have recently come on the Vero Beach market.

Fannie Mae also makes it possible to refinance your mortgage for more than the value of your home. Normally, there is a 0.25% fee that applies to any cash you take out in this way.

The third big change is that Fannie Mae will now waive that fee when you use this cash to pay off a student loan. 

This applies whether the loan is yours, or you're a cosigner. If the mortgage rate is significantly lower than the student loan rate, it can make sense to refinance in this way, and the new rule makes it cheaper to do so. 

If you need help understanding these new guidelines to see whether they’re right for you, or you have questions about putting them into practice, get in touch with me at (772) 236-7862 or Kelly@KellyFischerTeam.com. I’ll be glad to help. 

I hope to hear from you soon!

Showing Tips for Sellers

There are certain topics you should avoid talking about with a potential buyer. Here are four of the most important ones to steer clear of.

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Selling a home isn’t easy. You might have to show it a dozen or more times in order to find the right buyer. We think it’s a good idea if you aren’t home during any showings, but that’s not always possible

If you do happen to be present at a showing, avoid these four topics at all cost. In fact, try to keep the talking to a minimum.
Don’t be present during showings in the first place
1. How much you spent on “Blank.” As soon as you start talking about what you spent on something, the buyer will get nervous about the premium you are going to ask in your sale price for it. Just leave it alone.

2. How perfect your house is. Nobody’s home is truly perfect. In all my years, I have only seen one perfect inspection. Every other home has had flaws.

3. Repairs you’ve been “meaning to get to.” What you’re really saying is that there are flaws in the home that you don’t like. Avoid pointing out any flaws to buyers. Let them find them on their own.

4. Anything related to price. Just don’t mention it. Let’s wait and see if they are interested before we start discussing any particulars.

Try to get out of the home during showings if you can. If you can’t, just make sure you avoid these four topics and you should be fine. If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I would love to hear from you soon.

What to Look for in a Vacation Home

Investing in a secondary or vacation home is a great way to make money and enjoy the Vero Beach lifestyle.

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Vacation and second homes are very popular in our area. Many people purchase a second home that they only use occasionally for the first few years, but eventually move into permanently. 

The Wall Street Journal and the National Association of Realtors reported that prices of vacation properties are very close to a level last seen before the housing crisis. Secondary homes appreciated 4.2% in 2016, following a 28% gain in previous years. 

There is no question that demand for real estate is up in Florida. Before you purchase in an investment property, there are a few things you should consider: 
  1. Budget: How often do you intend to use the property? What kind of income can be generated based on your usage and the seasonality of the population?
  2. Location: Most vacationers want to be close to the beach. The good news is that here in Vero Beach, most homes are only 15 minutes away from the shore.
  3. Entertainment options: Is there a pool on the property? What about golf courses, restaurants, or shopping nearby? Your guest will want plenty of things to do while they are here. 
  4. Activities: Stock up on kayaks, paddleboards, fishing supplies, and more so that your residents can enjoy their time here. 
Our little piece of paradise continues to attract vacationers and snowbirds alike thanks to our friendly, relaxed lifestyle. 
In Vero Beach, most homes are only 15 minutes away from the shore.
As the owner of a vacation home, you will enjoy more profit and fewer headaches by purchasing a newer home. Not only will you have less maintenance, but new construction aesthetics really appeal to vacationers. Condos and reasonable new construction properties are good options for you. 

Before you sign the dotted line, though, review the Homeowners Association documents and confirm that rentals are permitted. Beware of certain restrictions, like pet policies or the number of times you can rent out your unit. 

If you have any questions, please don’t hesitate to reach out to us. We would love to help you find that perfect vacation property!

Tips on Purchasing and Selling at the Same Time

Today I’m going over some great tips for buying your next home while selling your existing one.

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A lot of people, especially if they are out of state or if they currently own a home, are having a hard time buying homes. Luckily, there are a few tips I have that can help you win in this market. 

First, if you are someone owns their home free and clear, that’s fantastic. My suggestion would be to meet with a lender, set up a home equity loan, and be prepared to pay cash if at all possible. Not only will it make the process easier for you, it will also give you a competitive edge over all the other buyers.  

Second, if you own a home but don’t have enough equity for the first option, you should meet with a lender to find out if you are qualified to get a second mortgage. We do have some lenders here in town that can help you with bridge financing and help you buy your next home before your existing one sells. 
If you hire the right agent and price your home competitively, you should have no problem getting it sold.
Third, you could request an extended closing date in your offer. It’s a bit of a risk, but it has worked for a lot of people. If the seller isn’t in a rush to move, for example if they are waiting for their kids to finish school, you can ask for a four or five month out closing date. You do need to be prepared in case your home doesn’t sell during that time. However, if you hire the right agent and price your home competitively, you should have no problem getting it sold. 

There are a lot of things that need to fall into place in order for you to successfully buy and sell a home at the same time, but if you have the right agent, it can successfully be managed. We talk to a lot of people who were very nervous about undertaking buying and selling at the same time, but as long as you do things in the order that is best for your financial circumstances, everything should go smoothly. 

If you have any questions about buying and selling at the same time, or if you have any other real estate questions, please feel free to give me a call or send me an email. I look forward to hearing from you. 

Can You Sell Your Home on Your Own?

If you're thinking about selling your house on your own, it's not a question of whether you can pull it off. It's a question of whether you will get the most out of your sale by going solo.

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When looking to sell a house "For Sale by Owner," it's not a matter of whether people will or won’t list without an agent. People always consider selling their own houses to save some money. The real question is whether they'll get the best price for their house or even get themselves in financial or legal trouble along the way.

We know from statistics that over 95% of home sellers use a real estate agent, and there's a reason for it. In addition to getting a higher price and avoiding legal trouble, there's exposure. Most people who are qualified and ready to buy a home go to where all the homes are—actual listings via the real estate agent they're working with. 
Over 95% of home sellers use a real estate agent, and there's a reason for it.
As a seller, if you're thinking of selling your own home, you have to ask yourself the right questions. I can buy hair dye and color my hair on my own, but I can't so it even close to as well as my hairdresser can. I can do my own taxes, but it would be very painful and I probably wouldn't get all the deductions I would by working with an accountant. 

I believe you should let the professionals with experience handle these complicated transactions. It's especially true when it comes to your home, your biggest financial asset. It's not that you can't sell your home on your own, but you probably can't expect to get the best outcome.

If you're thinking about selling your house, we'd love to tell you more about how we can help you get the most out of it. Just give us a call or send us an email, we'd love to hear from you!

Don’t Get Caught With an Open Permit on Your House

Open permits can cause a lot of inconvenience for homeowners. Here’s why you should always check if the house you’re buying or selling has any open permits.

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Today I want to talk about open permits and how inconvenient they can make things as far as your home is concerned.  

One of the things our team routinely does when listing properties and working with buyers is check our houses for open permits. Any kind of replacement work done on a property typically requires a permit with the county and an additional final permit. 

The reason homes have open permits is once the owner(s) of that home paid the contractor for the work they did, that contractor never went back to the county to finalize the required permits. If you’ve had work done on your home, it’s very important that you check that your house doesn’t have any open permits, as having them can cause trouble down the road. I know from experience. 
If your home has an open permit, that leaves you with an open problem.
Recently, we were having some work done on our house and we assumed that the contractor we hired went through the proper channels to acquire the proper permit. Unfortunately, we were wrong. As the work was being done, the county showed up and issued a Stop Work Order. Our contractor then had to stand outside on our front lawn and wait for an inspector to arrive before he could continue working. I was actually glad this happened in a way because it saved me from having to worry about open permits down the road. 

If you’re having work done on your house and using licensed, insured contractors, make sure you’re using people who’ve actually pulled the proper permits. Also, never write that final check until you’ve been provided with evidence that those permits have been closed out. 

If you’re looking to buy or sell a home or need help finding out if you have any open permits on your home, feel free to give us a call. We’d be happy to help, and we look forward to seeing you next time!

Renting vs. Owning Your Own Home

What are the advantages of giving up renting to become a homeowner? Eric Intihar, one of our preferred lenders, is here to answer that for you.

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Today we’re very excited to have Eric Intihar from U.S. Mortgage of Florida here to talk a little bit about the mortgage world and the benefits of owning a home. 

First, homeownership is key when trying to build a financial base. In fact, when the average person retires, 65% of their wealth is tied up in real estate. 

However, building a financial base isn't the only benefit to owning a home. It also allows you to be a part of a community, gets you a tax break, and increases your equity. Overall, a homeowner will do much better than a renter. 
The advantages of owning a home far outweigh the disadvantages.
It’s true that owning a home comes with more responsibilities like having to repair things yourself instead of calling the landlord, but the advantages of being able to become a part of a community and helping yourself get rich instead of your landlord far outweigh the disadvantages. 

Right now, it’s almost like the entire real estate market is on sale. Rates are historically low, so now is a great time to make the switch from renter to homeowner. 

If you have any questions for Eric, you can reach him at (954-448-9829).

As always, if you have any questions about real estate, please don’t hesitate to give me a call or send me an email. I’m always happy to help! 

How Can You Price Your Home for the Market?

If you want to sell your home for top dollar, you need to price your home correctly. Here are three common pricing pitfalls to avoid.

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It’s natural for home sellers to want the highest price in the shortest amount of time. However, there are three issues that you need to avoid in order to make that happen. 

First of all, don’t rush your home onto the market. Take the time to properly prepare. Take care of any repairs, painting, or maintenance items that you might have overlooked in the time you’ve lived there. When the time comes to launch your home onto the market, you want to put your best foot forward. 
Price your home correctly right from the start.
Statistics show time and time again that when homes are priced correctly from the start, they will sell for the most money. The reason is that testing the marketplace with an inflated price diminishes buyer interest. Instead of the buyers and agents saying, “Wow, what a great house!” they say, “That’s a nice house, but it’s not priced correctly. It’s a little expensive for the market.” 

Finally, if you have been on the market for awhile and you’re not getting a reasonable number of showings (three to five a week), then it may be time to adjust the price of your home. Your home should be priced based on what has come on the market or what has recently sold. If buyers are choosing other similar homes over yours, then your home is not priced correctly. 

Once you realize that your home is overpriced, it’s incredibly important to have that conversation with your agent and reduce the price of your home. If you have any other questions, just give us a call or send us an email. We would be happy to help you!

What’s the Difference Between Using an Online Lender and a Local Lender?

When getting pre-qualified, you’re much better off using a local lender instead of an online one. Today I’ve brought in a mortgage expert to help explain why.

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We’re seeing a lot of people lately get pre-qualified over the Internet instead of through a local lender. Maybe that’s ok for some people, but for most it brings some unwanted surprises. To help explain why, I’ve invited Eric Intihar from U.S. Mortgage of Florida to talk about this subject. 

In Eric’s words, a mortgage isn’t a commodity—it’s a sophisticated financial product. That’s why it’s very important when evaluating what your mortgage options are that you deal with someone you know, trust, and can get ahold of when you need to. There will be a lot of questions you’ll have as part of the normal mortgage process, and you need someone with the experience and patience to address those concerns.
A mortgage isn’t a commodity—it’s a sophisticated financial product.
Unfortunately, Eric frequently gets clients who need his help to fix something that went wrong with an Internet pre-qualification. This is because online lenders have no real relationship to the client or Realtor, so you aren’t a top priority for them. That’s a lot of risk to take on for such a big financial decision. As a general rule of thumb, when you’re working with an online lender, you’re typically working with someone who’s not as experienced as other lenders. You could even go so far as to describe most of them as entry-level. 

In my experience working with Eric, older clients who might not be as tech-savvy can especially benefit from using a local lender instead of an online lender because local lenders can actually go to their house and help them navigate through the process. Like any line of work, customer service is key, and using a local lender means getting a personal touch. 

For more information on lending and the pre-qualification process, you can call Eric at (954) 448-9829. If you need to buy, sell, or invest in real estate in the Vero Beach area, don’t hesitate to give us a call. We’d be happy to speak with you! 

How Is the 2017 Vero Beach Market Doing?

How is the 2017 real estate market doing so far? We’ll take a look at the latest numbers from the Vero Beach market to find out.

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The first month of 2017 has come to a close. We had a great year last year but today, I want to tell you a little bit about the market stats in our area. 

As of today, there are a little over 1,500 residential homes available for sale. In the last 30 days, there have been 180 home sales. These numbers determine the absorption rate, which tells us how many homes are selling compared to what’s on the market. The absorption rate also tells us whether we are in a buyer’s market or a seller’s market. 

As of right now, we have eight months of inventory on the market, which means we are staying in a buyer’s market. That could be a trend or that could just be a blip; we’ll keep an eye on that for you. Since interest rates will continue to rise, we could be headed into a buyer’s market. If you’ve been on the fence about buying a home, it may be time to jump into the market and plunge into homeownership. 
If you’ve been waiting to buy a home, now may be the time to take the plunge.
In the year ahead, we are committed to helping you achieve your real estate goals. We have never been more committed and we have never had a stronger team. This week alone, we put six homes under contract, which is pretty cool, especially since the average agent will sell four homes all year long. 

Yesterday, we had the Sotheby’s award ceremony. Our team won number one in Closed Transactions for the fourth year in a row! We also won number one in Closed Transactions for Indian River County. We couldn’t do it without you. Thank you for working with us, and thank you for your trust and your referrals. 

If you have any other questions about our current market, give us a call or send us an email. My team and I would be happy to help you!

Why Is It So Important to Hire a Local Appraiser?

Today I want to discuss why, if you’re a buyer, you always want to hire an appraiser that lives and works in your area. 

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Today I’m joined by Shannon Pohl, a lender with Caliber Home Loans here in Vero Beach, to talk about how important it is to hire locally when it comes to appraisers. 

When you’re in a market that has appreciated as ours has over the last five years or so, issues can sometimes arise regarding appraisals. This is because an appraisal is looking back on closed sales, and sometimes the appraisal process has not yet caught up with the active listings currently going under contract. If you’re a buyer, you want to hire someone local to do your loan if you want a good chance at securing the home you’ve fallen in love with.
Local appraisers know your area far better than out-of-area ones do.
Shannon’s company has an appraisal panel to vet any appraisers they do business with to make sure they’re local. Local appraisers—the ones who live and work in your community—know the area and its nuances more accurately. An out-of-area appraiser could pull our 32967 area code and see neighborhoods like Vero Lago, Eagle Trace, Grand Harbor, and Vero Lake Estates, and not know that they’re all completely different from each other. This ignorance can easily screw up your appraisal. 

If you have any questions for Shannon, you can call her office phone at (772) 226-6300 or her cell at (772) 360-6030. You can also visit her on the web at www.caliberhomeloans.com

If you’re looking to buy or sell a home or just need some friendly advice about our local market, don’t hesitate to give us a call or visit us online. We’d be happy to help!