Top 6 items an appraiser takes pictures of.

Curious about what items an appraiser takes pictures of?

As a result of the recession that occurred around 2007, and the impact on the real estate market, appraisal requirements have increased significantly. One of these requirements is an increase in the documentation appraisers are required to include in their appraisal reports.

Photographs are an important part of that documentation and a requirement that the lender has expanded over the years. It use to be that appraisers would only need to include pictures of the front and back of the property as well as street scenes, but now this has expanded to include much more. A comment on a previous post I wrote about why appraisers take pictures of every room in the house prompted me to explain a little further about what items an appraiser takes pictures of.

Today we’re going to discuss what photos the appraiser includes in the report, either as a requirement of the lender’s underwriting guidelines or as supporting documentation and support for the appraiser’s final opinion of value.

So what exactly does the appraiser take pictures of?

Any item that adds to or takes away from the value of your home is fair game to have its picture taken. The items an appraiser takes pictures of can vary from things within the house and outside of the house to things that are located next to your house. Let’s take a look at what I’m talking about.

Description of improvements

Appraisers take pictures of the various rooms in a house as a way to describe the property being appraised. Pictures can give the readers of the appraisal report, such as loan underwriters, a better understanding of what the various rooms in the house look like including their condition. Pictures, in conjunction with the floor plan sketch, helps to provide a more complete description of the improvements and provide support for the final opinion of value.

Special Features

If a home has special features such as a built in entertainment center or detailed crown moldings this can add value. Including pictures of these special features is the best way to document them and support conclusions that you arrive at within the report. Pictures can also help add support for quality adjustments between the subject and sales and can add credibility to the appraisal report.

Deferred Maintenance

Most appraisals are made with the property in “as is” condition and including pictures of items that require repair will paint a better picture of the property. Appraisers reconcile the final value of the home after making adjustments to the sales used in the report. The final value typically lies within this range and including pictures of where the home may need repairs can add support to the part of the value range that was reconciled. The more complete an appraisal is with written documentation and photographs the stronger it is.

Attic and crawlspace

Appraisers who perform FHA appraisals are required to perform at a minimum a head and shoulders inspection of both the attic and crawlspace. To prove this was done the appraisal must contain pictures of the attic and crawlspace. These pictures can show potential problems like prior fire damage in the attic or settlement cracks in the basement.

External Factors

External factors include things outside of the boundaries of the subject property. An example of this would be a property located adjacent to a factory that produced noxious odors that would have a negative effect on the marketability of the property. Including pictures of the factory helps to inform and educate readers of the report so they understand why the appraiser came up with the value they did.

Updates, renovations, or remodeling

Have you spent thousands of dollars on updates, renovations, or remodeling? If you want credit for it then you’ll probably be gung ho for the appraiser to take as many pictures as they want to add support to their final opinion of value in the appraisal report. Maybe the appraiser needs to make a larger than normal adjustment for an awesome renovated kitchen. Adding pictures can help the reader of the report understand why this was done.

Conclusion

When the appraiser takes pictures of your house it is because they are collecting evidence to support the final opinion of value they arrive at for the bank, or to support a value to set a list price as is done with a pre-listing appraisal. Don’t think of it as an intrusion of privacy since no one except for the lender and/or owner see the report. The more value related features your home has, either in a positive or negative way, the more pictures will probably be taken.

Source: https://www.appraisalbuzz.com/top-6-items-appraiser-takes-pictures/

DESTINATION PORT ST. LUCIE AND THE TREASURE COAST

When homeowners think about the biggest investment of their life, top of most minds is how safe an area would be to live in, as well as raise a family.  The same is also said for affordability and cost of living.  An analysis from Realtor.com® and 55place.com® has helped to compile the data, and all indicators point to Port St. Lucie, the Treasure Coast and surrounding areas as being the prefect place to live as well as retire.

Realtor.com® analyzed the 150 largest metro areas to determine which cities have the lowest crime rates. All the areas on realtor.com®’s list were also listed as affordable, with home prices below the $300,000 national median.  Port St. Lucie ranked #3 in the 7 safest, most affordable cities in America, with a medium home list price of $285,100 and a total crime rate of 19.16%.  Pittsburg, PA & Grand Rapids, MI topped the list.

Violent crime, such as homicides, assaults, and robberies, have plunged 49 percent nationwide from 1993 to 2017, according to FBI data.  The aging population is more active than ever and communities for retirees are thriving. But where are the most affordable cities in the US for retirement?

The analysis by 55places.com considered several factors including median home prices, cost of living, state tax laws, local health care options, availability of 55+ communities, and public transit; to compile a ranking of the 20 most affordable US cities for retirement.  9 Florida cities and areas ranked in the top 20, proving that Florida is the affordable living and retirement destination.

55place.com®’s research found that 77% of active adults need their next home to be affordable.  A home within a certain price point is only half of the equation and the surrounding area, whether or not an active adult community is of interest, plays an integral role in quality of life, and nearby attractions and available establishments greatly enhance that.

When looking for a primary residence, a 2^nd home or Investment property for future retirement, Port St. Lucie and the Treasure Coast should be top on your list for both safety and affordability, and Mortgage Master Group you first stop for all of your mortgage financing needs.  Check out the full Realtor.com® and 55place.com® lists below.

***7 safest, most affordable cities in America***

1. Grand Rapids, Mich.  –  * Median home list price: $280,000 * Total crime rate: 18.38%


2. Pittsburgh – * Median home list price: $173,000 * Total crime rate: 18.44%


3. Port St. Lucie, Fla. – * Median home list price: $285,100 * Total crime rate: 19.16%


4. El Paso, Texas – * Median home list price: $175,800 * Total crime rate: 20.48%


5. Syracuse, N.Y. – * Median home list price: $160,000 * Total crime rate: 21.4%


6. Hartford, Conn. – * Median home list price: $260,000 * Total crime rate: 21.97%


7. Fayetteville, Ark. – * Median home list price: $272,600 * Total crime rate: 23.21%

 

Source: “America’s Safest Affordable Cities … That Won’t Put You to Sleep,” realtor.com® (Jan. 14, 2019)

***The most affordable places to retire in 2019***

1. Sioux Falls, South Dakota


2. Ocala, Florida


3. Lakeland, Florida


4. Jacksonville, Florida


5. Daytona Beach, Florida


6. Gainesville, Florida


7. New Castle County, Delaware


8. South Bend, Indiana


9. Tampa, Florida


10. Waco, Texas


11. Birmingham, Alabama


12. Memphis, Tennessee


13. San Antonio, Texas


14. Ft. Myers-Cape Coral, Florida


15. Phoenix, Arizona


16. Melbourne, Florida


17. Grand Rapids, Michigan


18. Orlando, Florida


19. Wichita Falls, Texas


20. Indianapolis, Indiana

 

Source: 55place.com (by Steve Randall 28 Jan 2019)

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Top Home Projects in Port Saint Lucie -- and What You'll Pay

Interior Painting – $1,745 (Average Cost*) – Find Interior Painting Pros

Bathroom Remodel  – $9,766 (Average Cost*) – Find Bathroom Remodel Pros

Roofing  – $7,363 (Average Cost*) – Find Roofing Pros

Plumbing   – $304 (Average Cost*) – Find Plumbing Pros

Flooring   – $2,863 (Average Cost*) – Find Flooring Pros

Lighting – $314 (Average Cost*) – Find Electrical Pros

Tree Service  – $745 (Average Cost*) – Find Tree Service Pros

Heating & Furnace – $285 (Average Cost*) – Find Heating Pros

Carpet Cleaning – $175 (Average Cost*) – Find Carpet Cleaning Pros

Snow Removal  – $114 (Average Cost*) – Find Snow Removal Pros (OK if you say so…LOL ☺)

Find Top-Rated Service Providers – What service do you need help with?  –  Find Pros

 

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How to Get a Mortgage With Challenged Credit

You’ve found your dream home and made an offer. Now comes the hard part: getting a home loan to finalize the purchase.

Applying for a mortgage means putting your finances, including your credit score, in the spotlight. A bad credit score could add an extra wrinkle or two to the mortgage approval process.

“While getting a mortgage with bad credit is not always easy or optimal, it’s still possible under certain conditions,” says Daniela Andreevska, content marketing director at Mashvisor, a real estate data analytics company. A better question might be whether you should get a mortgage with challenged credit.

This guide breaks down everything you need to know about getting a mortgage with bad credit, along with tips on how to decide whether it’s the right move.

What’s Considered Bad Credit for a Mortgage?

What’s considered bad credit for a home loan can vary from lender to lender.

“It’s important to realize that different lenders have different guidelines on what constitutes bad credit,” says Jennifer Beeston, vice president of mortgage lending at online lender Guaranteed Rate.

Beeston says the typical base credit score allowed for conventional mortgages is 620, although some lenders may require a higher score. Knowing where your credit score lands on the spectrum can help you narrow down your mortgage options. FICO credit scores are the most widely used scores for lending decisions, including mortgages. These scores range from 300 to 850.

FICO Score Rating Score Range

• Exceptional 800 or higher


• Very Good 740 to 799


• Good 670 to 739


• Fair 580 to 669


• Poor 579 or below

What’s considered a fair or poor score according to FICO might be deemed bad credit by a mortgage lender, depending where you are in the range.

What Types of Mortgage Loans Can You Get With Bad Credit?

When you’re looking for a mortgage and you have bad credit, government-backed loans may be the best option. The government doesn’t make loans directly; instead, it insures loans offered to eligible borrowers.  Government-backed loans include Federal Housing Administration loans, U.S. Department of Veterans Affairs loans and U.S. Department of Agriculture loans. Each one is designed with a different borrower in mind and has different credit score requirements.

FHA

Designed For: Borrowers with a fair credit score and a down payment of less than 20 percent

Credit Score: 580 for a 3.5 percent down, 500 to 579 for a 10 percent down

VA

Designed For: Military veterans

Credit Score: None

USDA

Designed For: Low- or moderate-income homebuyers living in designated rural areas

Credit Score: 640

Beeston says borrowers with FICO scores of 620 or below may want to set their sights on an FHA loan if they’re not eligible for a VA loan . There’s one thing to note, however: FHA lenders aren’t required to make loans for borrowers with 580 credit scores. Some may raise the bar higher and require a 620 to 640 FICO score instead.

So where can homebuyers fnd these types of loans? The government guarantees loans from a wide network of lenders, both traditional and alternative mortgage lenders. The latter includes online lenders, some of which offer bad credit home loans and use nontraditional underwriting methods to get a sense of a borrower’s ability to repay a loan.

If you prefer to get a conventional mortgage not guaranteed by the federal government, you may be able to qualify. But it may be easier to qualify with a government-backed program, so it’s a good idea to investigate these options if your credit is less than ideal.

Again, the minimum credit score lenders look for can vary. And they can also impose different requirements on other factors, such as:

• The minimum down payment required


• The maximum debt-to-income ratio allowed


• The types of properties borrowers can use a mortgage for


• Minimum or maximum income allowed for a loan


• Origination and other lender fees

As with any large purchase, you should shop around and compare bad credit mortgage terms from multiple lenders. It also helps to do the math to see what getting a mortgage with bad credit might cost.

How Bad Credit Affects the Cost of Buying a Home

Along with other factors, such as debt, assets and income, mortgage lenders use credit scores to gauge risk. Credit scores influence not only whether a borrower can get approved for a loan, but the interest rate he or she will pay for a mortgage. The better your FICO score, generally the less you can expect to pay for a home loan.

For example, myFICO.com’s loan savings calculator estimates you’d pay a 4.139 percent APR if your credit score is 760 or above. So, for a 30-year fixed-rate mortgage of $300,000, you might expect to pay more than $224,000 in interest over the course of the loan. However, if your score is between 620 and 639, myFICO.com’s calculator estimates you’d pay a 5.728 percent APR.  So if you had the same mortgage, you’d pay nearly $329,000 in interest. And you can expect to pay even more interest if your score falls below that threshold.

These calculations don’t account for down payment or loan type, which can result in some variation in the total interest paid. But they do show how much of a difference a higher APR from a lower credit score can make in buying a home.

Tips for Getting a Mortgage With Bad Credit

When you’re planning on getting a mortgage and you have bad credit, there are things you can do to improve your odds of getting approved or landing more favorable loan terms. Andreevska says getting a co-signer is one path to consider.

“If you have a bad credit score, you might still have a chance to qualify for a conventional mortgage but not necessarily on your own,” she says. “You can get a family member or friend with a good score to co-sign with you,” which may help you get approved.

A word of caution about co-signers, however: “This is a major responsibility, as anything you do, such as missing a payment, will hurt your co-signer’s credit score, as well as your own,” Andreevska says.

Before reaching out to a potential co-signer, consider whether you’re in a strong enough position financially to keep up with the payments. And also think about how quickly you might be able to improve your credit score so you can eventually refnance the loan into your name only, releasing the co-signer of responsibility.

Making a larger down payment is also something to think about if you’re not comfortable with the idea of a co-signer.

“This will decrease your risk of default, so a lender might be willing to make a loan,” Andreevska says. However, “you should only put as much money down as you can really afford.”

If making a larger down payment would leave you with no money to cover expenses such as closing costs, fees, homeowners insurance or repairs once the home is yours, you may want to hold on to your cash. Alternatively, you could ask family members to gift you money to put toward your down payment.

Consider Improving Your Credit Score Before You Buy a Home

Getting a mortgage when you have bad credit is certainly possible, but if you don’t need to buy a home right away, you may want to work on raising your credit score first.

“If you know there are black marks on your credit, such as late payments or accounts in collections, start making serious credit repair efforts at least six months in advance of applying for a home mortgage,” says Glenn Brunker, mortgage executive at Ally Home, the direct-to-consumer mortgage lending arm of Ally Bank. “If you can wait a year before applying for a home loan, that’s an even better time frame to get your credit and finances into top shape.”

Brunker says the first thing to do is make sure you’re paying bills on time, “since payment history is the No. 1 factor that goes into a person’s FICO score.”

In addition to establishing a positive payment history, paying credit card balances on time could also improve your credit utilization ratio, which is the amount of your total credit limits you’re using at any given time. An ideal credit utilization ratio is about 7 percent, but anything under 30 percent could help raise your credit score.

Beeston says an easy way to stay on top of due dates is setting up automatic minimum payments from your checking account, then making sure you have the funds available in your account to cover the payment. Alternatively, you can set up alerts with your accounts to let you know when a due date is approaching.

Finally, while you’re working on your score, hold off on applying for new loans or credit lines.

“Consumers should avoid applying for a new credit card around the time they’re applying for a home loan since that requires a credit check, which can negatively impact your credit score,” Brunker says.

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The price is right in Port St. Lucie!

Anthony Bonna was born when I was a rising junior in college, which makes him a millennial and makes me… old.

Bonna, who served a stint as a St. Lucie County Commissioner last year, grew up (mostly) in Port St. Lucie; as a kid, he recalls “riding along a dirt road called Becker.” After college he returned to Florida, thinking maybe someday he’d return home.

If he could afford it.

That is, he and his wife “were very committed to living within our means,” said Bonna, 32. In most of our region, that might have meant a condo or an older, smaller home.

In Port St. Lucie it gave him the pick of the litter.

With a median home price of $225,000, Bonna and his wife easily found a home close to family and “just a 5-minute walk from my church, my gym, a Duffy’s, good takeout, and a Publix.”

What’s not to like? And indeed, homebuyers Bonna’s age like Port St. Lucie more than almost any other city in America.

In its 2019 ranking of “Where Millennials are Buying Homes,” the personal finance firm SmartAsset ranked PSL 10th in the nation, with a reported 53 percent of millennials who own their homes.

The city — which has actually topped the list in years past — would have ranked higher on the list but for the fact it’s long had a high rate of millennial homeownership; points were given to cities that saw big jumps.

For context, an Urban Institute study last year reported that in 2015, just 37 percent those between ages 24 and 34 owned their own home — far below the Baby Boomers and my generation, Generation X, at a similar point in their lives.

So why is Port St. Lucie bucking that trend? It’s all about the price tag.

According to the Realtors Association of the Palm Beaches, which covers St. Lucie County, the median sales price in Martin County was $360,000 in 2018, 60 percent higher than the Port St. Lucie median; the median in Palm Beach County was $345,000.

So what happens — and we see this in the traffic — is that people who work in those counties but can’t afford to live there buy in Port St. Lucie, which is bisected by U.S. 1, I-95 and the Florida Turnpike and makes for a (relatively) easy commute.

“We see a lot of teachers, police officers, firefighters,” said Jason Coley of the “Team Coley” Realty Group with Atlantic Shores Realty, headquartered along St. Lucie West Boulevard.

“Where else are you going to go and get new construction for $250,000?” said Coley.

Prices remain so low in part because so many new homes are being built; Mayor Greg Oravec said another 50,000 “dwelling units” that are “entitled” – as in, can legally be built.

“So even if there was political will to say ‘We don’t want any more development, the supply pipeline will continue for the foreseeable future,” he said.

But there are, he stresses, other reasons younger buyers flock to his city. It’s the safest large city in Florida, according to the Florida Department of Law Enforcement; the school district’s on the rise; there’s plenty of shopping and dining and lots to do.

Realtor Coley said the only complaints he hears are about traffic (of course) and the fact there aren’t a whole lot of high-paying jobs in town. But city officials are confident employers will eventually follow all the potential employees, perhaps along the Tradition “jobs corridor.”

Bottom line, said Oravec, is “we’re a place where the American dream is alive and well.”

And that dream would seem to be on life support in communities to the south.

For where younger homebuyers can put down roots, they invest not just in their own homes but in the community. They pay taxes, they get involved civically, they become the leaders that shape an area’s future.

That’s always been one of the worrying things about a Martin or a Palm Beach County; where “the future” can’t afford to live there, where’s that future going to come from?

And while Martin County’s environmental problems in particular make a strong case for keeping growth in check, by capping new residential construction you drive prices up.

That’s great for existing homeowners. It’s not so great in terms of a diverse community or a diversified local economy. It’s not great for service industry folks who can’t afford to live where they work.

So while other South Florida communities struggle to find answers to their affordable housing crises — Port St. Lucie doesn’t have one.

And that’s good both for young homeowners — and the city itself.

Gil Smart is a TCPalm columnist and a member of the Editorial Board. His columns reflect his opinion. Readers may reach him at gil.smart@tcpalm.com, by phone at 772-223-4741 or via Twitter at @TCPalmGilSmart.

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Link to original Article: https://www.tcpalm.com/story/opinion/columnists/gil-smart/2019/02/15/millennial-homeowners-flock-to-port-st-lucie/2862116002/

Housing Market Is Starting to Look Brighter

Real estate indicators are starting to shift in favor of home buyers as the housing market sets its sights on spring. Mortgages are getting cheaper, housing inventories are growing, and home prices are rising at a slower pace.

Mortgage rates have been holding steady for the last few weeks. The 30-year fixed-rate mortgage averaged 4.45 percent last week, according to Freddie Mac. Late last year, mortgage rates were nearing the 5 percent threshold, but several weeks of decreases have offered some relief to home shoppers. The five-year adjustable-rate mortgage has been averaging under 4 percent, landing at 3.90 percent last week, Freddie Mac reports.

Home buyers are responding to the lower rates. New mortgage applications of home buyers across the country surged to the highest level since 2010 during the week ending Jan. 11, according to the Mortgage Bankers Association. Applications were 9 percent higher than they were the week before.

Housing inventories have grown significantly in many markets too, offering buyers a lot more choices. That is helping to put a tighter lid on home price growth as sellers face greater competition. Homebuilders are reportedly lowering their prices in many areas too. A quarter of newly built homes saw a price cut during the last quarter of last year.

The decrease in mortgage rates is likely to boost home sales this year, compensating for the decline in sales recorded last year while pushing prices up modestly, says NAR Chief Economist Lawrence Yun. “With the return of homebuyers, home prices look to rise again in 2019, but with one big difference. For the first time in years, income gains of a projected 3.5 percent will outpace home price growth of around 2 percent. That is healthy and a turn toward better housing affordability,” Yun writes in a Jan. 24 opinion piece in the newspaper The Hill.

Certainly, for home sellers, lower prices may not sound ideal. But housing analysts say sellers need to set a realistic price up front to find a buyer as the market shifts.

“The good news here for sellers is that—with interest rates down and slowing prices—more prospective buyers should be encouraged to get off the sidelines, shop around, and consider making offers,” writes Kenneth Harney, a syndicated real estate columnist for The Washington Post.

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Source: “Housing Market’s Fundamentals Actually Turning Brighter,” The Washington Post (Jan. 23, 2019)

14 Valentine's Day Facts You Probably Didn't Know

1. It has some pretty dark roots.  Historians believe Valentine’s Day actually began in Ancient Rome as a pagan fertility festival called Lupercalia, which included sacrificing animals and whipping women with animal skins until they bled, signifying their fertility. So romantic.


2. In the 1300s, it officially became a holiday associated with love and romance.   The holiday was Christianized — no more animal sacrifices! — and was celebrated in mid-February because many believed that birds started their mating season on February 14, which is why doves are often associated with love.


3. Saint Valentine wasn’t just one person.  In fact, he might have been two or three. But the most common “founder” of Valentine’s Day was the Saint Valentine who defied Emperor Claudius II. At the time, Claudius had banned marriage because he thought it distracted young soldiers. Valentine felt a bit differently — he illegally married couples until he was caught. After he was sentenced to his death, young couples would visit his cell and give him flowers and cards. And the day he actually died? February 14. Allegedly. But there have been multiple St. Valentines throughout history, including one pope. (He only served for 40 days in 827 A.D.)


4. The first valentines were sent in the 15th century.  But not until the 17th century did people start exchanging cards and letters. And Valentine’s Day cards weren’t mass-produced until the 1840s.


5. Today, it’s pretty big business.  About 55% of Americans celebrate Valentine’s Day and spend an estimated $18.2 billion a year, including more than $1.7 billion on candy alone. On average, men spend $150 on Valentine’s Day. And the women? Just $74. Step it up, ladies!


6. Americans send 141 million Valentine’s Day cards each year.   That’s more than any other holiday except Christmas. And how sweet: Teachers receive the most Valentine’s Day cards annually, followed by children, mothers, and wives.


7. And nearly 9 million Americans will buy gifts or cards for their dogs.   Hey, furry friends need love, too.


8. The most popular gift on Valentine’s Day is flowers.  Followed by chocolate and then jewelry. Americans send more than 220 million roses each year, and as many as six million couples will get engaged on February 14. (February is the second most popular month after December for proposals.)


9. The first heart-shaped box of chocolates was introduced in 1868.   Today, more than 36 million heart-shaped boxes of chocolates are sold each year. That’s 58 million pounds of chocolate.


10. Necco Sweethearts — a.k.a. conversation hearts — were invented in 1866. Each box has approximately 45 sayings — including “True Love,” “Hug Me,” and “You Rock” — but you can personalize your own, too. And about 10 new sayings are added each year.


11. More than 8 billion conversation hearts are manufactured each year. And Necco has to start making them just days after February 14 to have enough in time for the next Valentine’s Day. That’s almost 100,000 pounds per day. But don’t worry if you still have last year’s box — they have a shelf life of five years.


12. Apparently, condom sales rise in February.  Sales are almost 20% to 30% higher around Valentine’s Day. And maybe not so surprisingly, more at-home pregnancy tests are sold in March than any other month.


13. Lace is commonly used in Valentine’s Day decorations.  It comes from the Latin lacques, which means to snare or to net, as in catch a person’s heart.


14. It’s celebrated differently around the world.  Many Latin American countries know the holiday as el día de los enamorados (day of lovers) or día del amor y la amistad (day of love and friendship.) In Japan, it’s customary for just the women to give confections to the men in their lives, with the quality of the chocolate indicating their true feelings, according to Fortune. On March 14, the men repay the favor by celebrating the increasingly popular “White Day.”

 

So now you’re In The Know ♥

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