Angela Elliott, REALTOR® C21 Classic Properties ~ Gainesville, FL Real Estate

I receive quite a few inquiries from out of town buyers that are considering moving to the Gainesville area. What is most fascinating is the fact that these buyers hold interest for this area, yet they don't know much about it - much less what the area looks like. Most of these buyer's want to move to Florida and be in an area that has a University, which keeps the town progressive, eclectic and interesting. Others have read something on the internet (or heard on the news) about how Gainesville, FL has been ranked the #1 city in the nation to live for 2007 and want to see what is so great about us anyway! Other than currently having one of the lowest unemployment rates in the state and a relatively stable economy, A-rated schools, great food, and all the big town amenities with a small town feel, we have breathtaking vistas that are a sight to behold just on the outskirts of our fine city.

Regardless of the compass point you choose outside of Gainesville, beauty abounds. Alachua County is big on green spaces, we have wonderful State and community parks, and we've taken great care to avoid becoming a "concrete jungle" like many other places in Florida. My first installment of a series of slideshows I'll be doing focuses on the Alachua County countryside, from Williston Road to Alachua to Waldo Road and Lake Lochloosa Creek (an arm of the large Lochloosa lake which has great fishing) near the home of Marjorie Kinan Rawlings, Cross Creek. I will be adding to this slideshow over time, as I take more pictures! Also keep an eye out for my future slideshows for different areas of Alachua County!

Angela Elliott is a licensed Florida REALTOR® with Century 21 Classic Properties in Gainesville, FL. Please visit my profile for more about me and browse my Gainesville, FL real estate website for additional Alachua County information and listings. Your phone calls are always welcome at (352) 256-7038 as are your e-mails to angela.elliott1@century21.com.  A portion of all my closed sales will be donated to the Alachua Co. Humane Society (View my mission statement).

Link for Buyer's Guide to Survival Part 1

I know a lot of first-time home buyer's aren't sure how much money they are going to need in order to purchase a home, condo or townhouse. I have put together a handy guide to hopefully clear up some of the costs associated with buying a home. The figures I am using are ESTIMATES, so do not hold me to the penny. Furthermore, I am not a lender so the information regarding down payment and lender expenses is, again, estimated to give you an idea. When considering purchasing a property, you need to speak with a lender before you begin your search. They will give you a clearer understanding of the costs associated with the loan.

When not purchasing a property with cash, you will presumably be using a lender. Here are some expenses you will most likely encounter:

• DOWN PAYMENT:

The amount of DOWN PAYMENT you'll be required to put down will depend on your loan amount. For example, if you are using an FHA loan program (which is typically 96.5% financing) then you will need to basically come up with 3.5% out of pocket. There are all kinds of tricks with FHA about seller concessions, but to keep this example simple, let's say you'll need 3%.

**Please not that this guide was written prior to the FHA downpayment requirement being raised from 3% to 3.5% which took place in January 2009. The mathematical ESTIMATES given below will be slightly off with regard to the current downpayment mandated by FHA.

EXAMPLE: You want to purchase a home for $200,000. 97% financing = $194,000 and a 3% down payment would mean you need $6000 out of pocket.

If you are using a loan program such as the NO FEE MORTGAGE PLUS through Bank of America, you may have a 90% LTV (loan-to-value ratio). This means you would need to put 10% down. Based on a purchase price of $200,000, you would need $10,000.

The only way to REALLY know what you're looking at as far as a down payment is to get pre-qualified for a loan. For those of you that are eligible for 100% financing, you will not be responsible for a down payment, but will be responsible for other costs associated with acquiring real property.

FHA loans require a 1 time funding fee, which can be in the vein of 1% (or slightly higher) of the loan amount. This funding fee is NOT an out of pocket expense, but rather rolled on top of the loan.

EXAMPLE: $200,000 purchase price

97% LTV = loan amount of $194,000

One time funding fee at 1.5% would = $2910

$194,000 + $2910 = $196,910 = total loan amount

• OTHER EXPENSES:

There are other expenses associated with purchasing a home. This example is based on a newer home in good shape in Alachua County with a sales price of $176,000. Some of these expenses include (all amounts are approximate - different service providers will vary in cost!):

Estimated pre-paids:

• Homeowner's insurance premium cost for 1 year: estimated $1000

• Home appraisal: $350

• Credit report (for lender): $40

• Home inspection: $275

• Interest paid at closing: varies, (see below)**

Estimated closing costs:

Please see this link for an example of a Buyer's ESTIMATED expenses form that will showcase some of the closing costs, pre-paids and escrow items. Estimate is based on a real lender GFE (Good Faith Estimate) for a property I sold with the following terms:

• FHA loan, 30-year fixed interest rate of 6.375%, closing on 12/6 (**closing date is important as it affects the amount of pre-paid interest the buyer will have to pay for).
  

• Typically, as stated above FHA = 97% financing. In this example we were able to tweak it to approx. 97.38% LTV with an approx. 2.62% down payment. This means a core loan amount of $171,400 and a down payment of $4600.

• This example uses a funding fee of 1.5%, or $2571. Remember this fee is on top of the loan, not out of pocket.

• with a $1000 deposit (a.k.a earnest money or escrow money, used as a good faith deposit when making an offer to purchase real property)

• Estimated home owner's insurance of $1000 per year and Real estate tax estimate of $2592 per year.

Buyer Estimated Expenses link for the above example (you may need to print for best quality):

http://i263.photobucket.com/albums/ii158/gainesvillerealestate/For%20Buyers/Buyer_Expenses.jpg

Other expenses could include (at your request): a mold inspection, lead-based paint evaluation (for homes older than 1978), radon test, attorney fees (should you desire your attorney review things, etc.), roof test, water test, septic inspection, foundation inspection, etc. The above expenses included the estimated cost for a home inspection and termite inspection only.

Other things that can affect the amount you bring to closing:

1) Interest: Interest is paid in advance. At what point during the month you close will affect the amount of pre-paid interest you will be responsible for paying, as I mentioned above. If you close on December 15th, you will be responsible for interest between the 15th and 31st and December. If you close on the 6th of December (as in the above example), you will be responsible for 25 days of interest: the 6th-31st. Please consult a lender for further info.

2) Real estate taxes: Real estate taxes are paid in arrears. If you buy a property in March '08 and the tax bill doesn't come out until November 1st, 2008, the seller's of the property will not have paid their taxes in yet. If the closing date is March 31st, the real estate taxes will be prorated and given as a credit on the closing statement from the seller to the buyer and will apply to the tax bill for 2008. The seller will owe a credit from 1/1/2008 - 3/31/2008 as they occupied the property during this time. The lender will most likely will collect 3 months of tax reserves from your funds at closing. The credit from the seller to you will essentially even out. Consult a lender for more info about how many months they will require for reserves (they are all different and it also depends on the time of year).

Please leave comments or contact me directly with any questions you may have concerning expenses for a purchase. It is also important to note that some loan programs (such as FHA) allow a certain amount of seller concessions (FHA is up to 6%). Without complicating things too much, there is a way to ask for a credit toward closing costs and pre-paids from the seller, and then be responsible for a significantly smaller amount of expenses and your down payment only. You're welcome to contact me for more info. There is also a down payment assistance program which, if used in conjunction with the seller's paying your closing costs, could get you into a home with very very little out of pocket! Learn more about the AmeriDream program! : http://www.ameridream.org/

Angela Elliott is a licensed Florida REALTOR® with Century 21 Classic Properties in Gainesville, FL. Please visit my profile for more about me and browse my Gainesville, FL real estate website for additional Alachua County information and listings. Your phone calls are always welcome at (352) 256-7038 as are your e-mails to angela.elliott1@century21.com. A portion of all my closed sales will be donated to the Alachua Co. Humane Society (View my mission statement).

I work with a lot of first time home buyers that I educate to understand what they need to do in order to purchase a home. I figure there are quite a few people out there that are sitting on the fence as they don't really quite know where to start, what kind of money they need to save, and what it takes to get to the point of fully owning a home. I have put together a guide for the basic things you need to know in order to begin your home buying journey, and some basic home buying etiquette:

1) GET PRE-QUALIFIED:

Speaking with a lender is paramount if you're considering buying a home. There are hundreds of loan programs out there for you to choose from, and it is the lender's job to show you the best options for your budget and income. It is extremely important to know 1) IF you can qualify for a home (you may have credit issues that need to be addressed, etc.) and 2) HOW MUCH home you can afford. You can't begin looking at property just assuming what your price range is going to be. A mortgage payment is made up of PITI (if the lender escrows for and pays your property taxes and home owner's insurance). PITI = Principal, interest, taxes and insurance.

Once you are successfully pre-qualified, you can then begin the home search!

Some of the things you can expect the lender to ask for in the pre-approval process include:

• Full name
• Social Security numbers
• Dates of birth
• Two year living history (with addresses and phone numbers)
• Two year work history (with name of company, address, phone, salary and position)
• Asset account information, name of bank, account number and balances (checking, savings, 401k)
• Address of property that you are purchasing or refinancing.
• Pay stubs covering 30 days
• Last 2 years W-2s
• Most recent bank/asset account statements (2 months)

There are several GREAT programs for first time home buyers out there right now.

FHA is a wonderful 97% financing program. It allows up to 6% seller concessions (this is huge), which again can be used towards your closing costs or pre-paids. The HUD website has a wealth of information about this fantastic program: http://www.hud.gov/buying/index.cfm

Rural Housing Services program: Wachovia has a loan program that is up to 100% financing for buyers looking to specifically purchase rural property. At this time, there is no PMI (mortgage insurance that most lenders require on loan programs where the customer is putting less than 20% down) and no reserves. More information including guidelines and a reference map of potentially eligible property can be viewed here: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

This program can be used for manufactured homes and land as well, but ONLY if the manufactured home is BRAND NEW off the lot.

2) I'M QUALIFIED. NOW WHAT?!:

NOW you know how much you can afford, so you can begin trying to find a home. You may search the various resources on the internet for MLS listings or For sale by owner listings. Now, as a real estate professional, I at this time would go into a lengthy catalog of reasons WHY you should develop a relationship with a Realtor, but I'll hit a few highlights instead:

• Buyers use Real estate associates because properties listed in Alachua County on the MLS have the seller's paying for the commission. That's right, a source for you to use to help you find a home and assist you through the process for FREE. Let's do this!
  

• Your Real estate rep will assist you in finding a home by showing you listings that meet the criteria you give them, which includes scheduling any appointments necessary to get you into the properties you'd like to take a look at.

• Your real estate rep will compile all the necessary paperwork related to the offer once you find a property you'd like to acquire and submit it to the party representing the seller.

• Once you have a fully executed contract (you and the seller have had a "meeting of the minds" on the terms and price there-in), your rep will assist you with scheduling any inspections you wish to have done on the property. It is HIGHLY recommended that you have a home inspection, termite inspection and any other inspection (such as a mold inspection, foundation inspection, roof-specific inspection, septic tank or well inspection/water test where applicable, a lead based paint inspection for home built prior to 1978, a radon test, or any other test you could possibly want). You will be responsible to pay these service people REGARDLESS of if the deal actually closes.

• Your rep will compile a repair request for anything found on the inspections that can be asked for, according to your contracts terms if the home is not an "as is" sale and will submit that request to the seller's representative.
  

• Your rep will also assist with ordering the survey (if necessary).
  

• They will assist with ordering an appraisal if a lender is not involved or if the lender is not responsible for ordering it.

• And of course, your rep will be there for you as a well-spring of knowledge for any real estate related questions, concerns, or inquiries you may have and to (hopefully) keep everything running smoothly in your home purchase. They will need to be in touch with the lender to keep up to date on the progress of your loan and make sure things are on track, as well as send the executed contract over when it comes in.

• When you find a Realtor, either on your own or through a referral from someone you know, and they are someone you feel comfortable with and seem to be available for you (good communication and actively trying to find something for you in a timely fashion) PLEASE stick with that person. They are meant to be your "go-to" source if you are on the internet or driving around and see a property you'd like more info on on. Call your representative, NOT someone else. Some Realtors are respectful of others in that they don't try to "steal" customers from others. The customer often times doesn't know any better than to call someone other than their Realtor. The person you call may try to set up an appointment for you to see their listing and if you go and decide you want that home, THEY will most likely be the procuring cause and the other person that has been working hard for you may be cut out of the picture, without any compensation for all the time and effort they spent in assisting you with your home search. Please be loyal to whoever steps up to the plate and is really doing a good job for you. Also do not go to an open house unattended because your Realtor may not be able to assist you with the transaction any further!
  

Part 2 of this blog will cover potential expenses you may face in regards to closing costs and pre-paids if you are using a lender. Stay tuned and I hope this was helpful. Please feel free to post any questions you may have and I'd be happy to answer them!

Angela Elliott is a licensed Florida REALTOR® with Century 21 Classic Properties in Gainesville, FL. Please visit my profile for more about me and browse my Gainesville, FL real estate website for additional Alachua County information and listings. Your phone calls are always welcome at (352) 256-7038 as are your e-mails to angela.elliott1@century21.com. A portion of all my closed sales will be donated to the Alachua Co. Humane Society (View my mission statement).

I have frequent requests from out of town customers, who are thinking about relocating here, about where to play golf. I thought I would share some helpful links and locations for people interested in golf or even golf course communities:

Where to play GOLF in Gainesville?

Interested in purchasing real estate in any of these communities? Contact me and let me know what you're looking for; I'd love to send you listings in these or any of Gainesville, FL's communities!

Angela Elliott is a licensed Florida REALTOR® with Century 21 Classic Properties in Gainesville, FL. Please visit my profile for more about me and browse my Gainesville, FL real estate website for additional Alachua County information and listings. Your phone calls are always welcome at (352) 256-7038 as are your e-mails to angela.elliott1@century21.com. A portion of all my closed sales will be donated to the Alachua Co. Humane Society (View my mission statement).

The media is abuzz with tales of doom and gloom in the real estate market. So why do you want to buy NOW? When interest rates are at near historic lows, inventory is higher and prices have come down, we are in a buyer's market. There are fantastic loan programs right now for qualified first time home buyers with up to 100% FINANCING with a low, fixed interest rate for 30-years (The Florida Bond Program). FHA loans are available for owner-occupants and are 97% financing, only requiring a 3% down payment or less!

Gainesville has an incredibly low foreclosure rate. We have the University of Florida, Shands Hospital and the VA, all of which bring employment opportunities and shield our local economy from the same fate as some of the other areas in the country. Couple that with the fact that Gainesville, FL not only currently has the lowest unemployment rate in the state, but it was voted #1 city to live in the nation in 2007, according to Cities Ranked and Rated, and you must be curious about what all the buzz is about!

The real estate market can change at any time and there is no guarantee that property values will continue to appreciate or maintain, but it is my opinion that Gainesville will continue to be an area that does not succumb to the market woes that the media is shoving down everyone's throat!

There are a lot of great loan programs and options for first time home buyers as well. If you are new to the homebuying process, you may want to take a look at my Buyer's Guide to Survival, which talks about the steps to take and the costs associated with purchasing a home.

Please contact me for more information about why now is a great time to buy and I'd be happy to send you some homes that are currently available in an effort to educate you about "what you get for the money" in Gainesville!

Angela Elliott is a licensed Florida REALTOR® with Century 21 Classic Properties in Gainesville, FL. Please visit my profile for more about me and browse my Gainesville, FL real estate website for additional Alachua County information and listings. Your phone calls are always welcome at (352) 256-7038 as are your e-mails to angela.elliott1@century21.com. A portion of all my closed sales will be donated to the Alachua Co. Humane Society (View my mission statement).