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Which Mortgage is Right for You?

Wed, 23 Jul 2025 07:31:57 GMT

The most important thing to consider when buying a home (or any property for that matter) is what type of mortgage best suits your needs. The number of mortgages available is a lot larger than most people realize, and it is important to understand the differences between them, their advantages, and disadvantages. A couple of things to consider when looking into getting a mortgage are: the size of the loan, the interest rate and associated points, the cost of the loan, the Annual Percentage Rate (APR), the type of interest rate and whether it can change, the loan term (normally this ranges from 10 to 30 years), and whether the loan has other features that may not benefit you (this includes things like pre-payment penalties, a balloon clause, an interest-only feature, or negative amortization). Getting a mortgage isn’t always easy, but we’re here to help. Let’s discuss mortgages in detail so that you have all of the information necessary to make an informed decision about which type of mortgage is right for you!

What is a Mortgage?

A mortgage is an agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you’ve borrowed plus interest. Mortgages exist because homes are expensive, and most people don’t have the entire amount required to purchase a home out of pocket (especially when you include things like closing costs and home inspections). Mortgages exist as a way for home buyers to purchase a home. When someone takes out a mortgage, they are basically promising that they will pay back the loan within an agreed upon time frame known as the amortization period. The length of the amortization period is based on the mortgage that you chose.

Types of Mortgages

As we have mentioned, there are various different types of mortgages to choose from, we’ve listed ten here! Understanding the difference between each type will help you better determine which one is best for your specific needs.

1. Fixed-Rate Mortgage

A fixed-rate mortgage (also known as FRMs) has an interest rate that doesn’t change through the life of the loan. This means that the loan remains the same for the duration of your amortization period and your monthly payments will also stay relatively constant. This also means that if pay more than the minimum amount due, it will decrease over time as a result.

2. Variable Mortgage

A variable mortgage (or VRMs) has an interest rate that fluctuations frequently and is tied to the market conditions as well as your financial institution. The rate may change once, or more, times depending on your lender, but it will remain constant for the life of the loan. This means that if you borrow $100K at an interest rate of five percent, you will always repay $5000 in interest per year.

3. Hybrid Mortgage

Also known as HMs, these mortgages combine the best aspects of FRMs and VRMs. At first your interest rate will stay locked in for a set period, after which it becomes variable like any other type of mortgage. This provides homeowners with some stability while still allowing for potential savings down the line if the market rates go down, you also don’t have to worry about interest rates increasing and becoming unmanageable.

4. Interest-Only Mortgage (IOs)

In an IO, the amount borrowed remains constant throughout amortization, even though it’s paid off at a slower rate. It gives borrowers an option to pay only the interest on their loan each month so that they can reduce what they owe without actually reducing how long until own their home free and clear.

5. Federal Housing Administration (FHA) Mortgage

An FHA home loan is a government-backed mortgage for people who would otherwise not qualify with conventional lenders. This is possible by charging an up-front fee when you close your mortgage, however, they insure the lender against loss if you default on your payments and offer more flexibility with credit requirements than most banks adhere to.

6. Veterans Affairs (VA) Mortgage

This type of mortgage is also a government-backed mortgage for veterans and active military service personnel. Similar to FHA, it helps

people who may not otherwise qualify for other types of mortgages, by having up-front fees when you close your mortgage, and they insure the lender against loss if you default on your payments. Additionally, there is no down payment required with this loan.

7. Conventional Loan

Conventional loans don’t require any specific conditions for borrowers because mortgages are primarily based around the idea of placing a lien (a form of security interest granted over an item of property of secure that payment of a debt or performance of some other obligation) on the property.

8. United States Department of Agriculture (USDA) Loan

This type of mortgage is for people who want to buy property in rural locations, or less-developed areas. The loan charges an up-front fee when you close your mortgage like VA and FHA mortgages. They offer great rates because the US Government guarantees them against loss if you default on repayments. One thing to take note of is that this loan is not just for farmers and that any property located in a designated rural area is eligible.

9. Jumbo Mortgage

Jumbo mortgages are mortgages for borrowers who want to borrow more money that allowed by Fannie Mae and Freddie Mac (the government-sponsored entities which offer conventional loans). These mortgages have higher interest rates due to the added risks involved compared to what you would get on a Conventional loan.

10. Balloon Mortgage

Balloon mortgages only repay the interest and part of the principal on the loan for a few years, at which point you have to pay off the rest in one lump sum. This is more suitable if your income isn’t as stable as or you don’t expect any significant life changes.

After you’ve decided on a mortgage, get a mortgage preapproval letter to show that you’ve already begun working with a lender and er serious about buying and distinguish you from other buyers. Remember that it’s essential not to borrow money from a lender without understanding how it will affect your situation, at present or in the future. Do in-depth research on the mortgages that best suit you beforehand to prevent future problems down the line and ensure that you choose the best option for you in the long run.

The Unexpected Aspects of Selling Your Home

Wed, 11 Dec 2024 02:00:25 GMT

Selling your home can be an emotional process. You may be attached to your home and selling can bring up a lot of feelings, especially when buyer, real estate experts, and inspectors come in out and start making changes and negotiating the value of your home. It’s completely normal to feel overwhelmed, but we at Invictus want to prepare you for anything that may arise during the process of selling your home and alleviate as much stress as we can.

You’ll want to start by doing some research on the value of your home. This way you can decide on the listing price. The listing price needs to be reasonable for the area as well as for the house itself and it all depends on the overall market. The average market price for a home in Miami Florida in 2022 is just over $550,000, however in Ocala Florida, the average home value is just over $265,000. This is because the market in these areas is very different from one another. Remember that just because you renovated the home doesn’t necessarily mean that you can list the home with an incredibly high price, otherwise you may lose out on buyers.

Once you’ve established a listing price and packed a majority of your belongings, you’ll want to hire someone to stage your home. This can be either a professional stager, or your real estate expert. Once your possessions are in storage, they’ll come in and recommend changing paint colors, remove some more of your personal belongings, and even add in pieces, all with the intention of making the home look valuable. Remember how we mentioned how emotional the process could be? This is where those emotions boil. At this point in the process, the place you have called home is no longer your home, and it’s important to remember that when the stager is removing and replacing items. You feel uncomfortable and even possessive of the space, but justtry to take a step back and remember your goal of selling the house.

One of the most important things to be prepared for is living accommodations for yourself. Once your house is on the market there is no telling how quickly, or slowly, the process will take. If you’re selling your home because you’ve bought another house, you’ll want to be well within the buying process, such as during the inspections or final walkthroughs. However, if you aren’t that far in the process, like if you’re waiting to put in an offer, it’s okay, you’ll just want to know how your financial situation will look. In best case scenarios you’ll be able to leave your old home and immediately walk into your new one. In the worst-case scenario, you’ll have already sold your old home and you’ll need to stay at a hotel or temporary apartment. It’s important to consider both as a possibility so you aren’t surprised no matter which scenario you fall into, however most people fall somewhere in between the two extremes.

After the house is listed, and if the market is good, you should start receiving offers. Ideally, you’ll get multiple offers, but it is important to know that the highest offer may not be the best offer. Buyers have requirements that they may want met before they agree to purchase a house, and it’s important to read through the offers and carefully make a decision that is fair for the both of you. Once you’ve picked an offer, you may want to hire a real estate attorney to handle the paperwork, since this tends to be the most boring and confusing part of the process. It’s important that you are confident and comfortable with the decisions that you make. They buyer will also want to do inspections and walkthroughs of the property to ensure everything is ready to go and any remaining repairs will be brought up at this point. After that you can sign the final documents.

Congratulations! You’ve officially sold a home at this point. It’s a stressful and intimidating process, but you did it! Celebrate your victory, even if you haven’t bought a new house at this point because the emotional roller coaster involved is more than enough reason to be proud of yourself. Take your time appreciating the hard work you put forth and get ready for whatever the future holds for you.

Sources:

https://www.homelight.com/blog/what-to-expect-when-selling-your-home/ ,

https://www.redfin.com/blog/selling-your-house-timeline/ ,

What To Expect During the Home Buying Proce

Wed, 11 Dec 2024 02:00:25 GMT

Buying a home is an intimidating and stressful process, especially if you haven’t done it before. It can be a very emotional time because you may have your heart set on a home, only for it to be completely outside of your budget. Here at Invictus, we want to help! We consider our clients to be a part of our family, and we want you to have all the tools and support necessary when buying a home, whether it’s your first or if it’s you tenth! We want to walk you through the process of buying a home so everything goes as smooth as possible, and although you may not find your ten-bedroom Victorian mansion on the beach within your price range, we can help you get one step closer to your dream.

Financial Security

An important thing to remember when buying a home is that it is an expensive investment. You’ll need to assess your financial situation long before you can buy. Saving for a down payment and closing costs is just one step to the long process in financially securing a home. Be prepared to check your credit score. Your credit score is the numerical value of your financial health, and it is a way for lenders to make fair decisions on creditworthiness. Although you don’t need to have a perfect credit score to buy a home, it is important to note that a good credit score can save you money in mortgage and insurance rates. If your credit score is on the lower side, it may benefit you to spend some time raising your credit score so you can obtain some saving. (click here to read our article with tips on how to improve you credit score!) While saving financial and improving your credit, use the time to research the housing market in the area you want to move to. Things like average mortgage rates, location, school districts, crime rates, and unemployment rates all play a crucial factor in the value of a home and can tell you about how much money you should be saving. You can establish a budget and daily habits that can help you plan accordingly for you home buying experience.

Mortgages

Another important thing to expect when buying a home is deciding on a mortgage loan. You’ll need do research the different types of mortgages as well as establish which organization and lender will work best with your financial situation now and in the future. You’ll need to know things like interest rates, the APR (Annual Percentage Rate), and the loan terms and length before you agree to any mortgage. Once you’ve gotten a mortgage that you’re happy with, be sure to get a mortgage preapproval letter. This shows seller that you’re serious about purchasing a home and will help you stand out from other possible buyers (read our article on the different types of mortgages to help you start with your search). During this stage, you can also start finding a real estate expert to work with! Having a real estate professional, like a Real Estate Agent or Broker, makes the home buying process less stressful and less intimidating. You should never feel pressured to buy a home that is out of your budget, and it’s okay to speak with several different real estate professionals to find someone who you would be happy working with (read our article on the difference between real estate professionals).

Looking at Houses

This part can be fun but can still be very stressful. You’ve already given some thought as to watch sort of home you’re looking for, or which area or region that you would like to live in, but now you have to be open to comprise and be flexible. The housing market is very competitive, and depending on where you would like to live you may not find exactly what you were looking for in the area that you wanted to live in. Don’t give up! If you have time, be patient and wait for a home in the area. If you are in a time-sensitive situation, you’ll want to look at different areas where the competition for homes isn’t as competitive. Have your real estate professional research any property you are interested in so you have a clearer view of the value of the home. Listing prices are not always guaranteed, and you may have to offer more depending on if, and how many, other buyers are actively interested. If you have a strict budget, be ready to decline counteroffers for overpriced properties because you don’t want to secure a home that will only put you deep into financial debt, even if it seems like the perfect home.

Inspections

Once your offer is accepted, set up an inspection to make sure that the property is in acceptable and livable conditions. Things like serious structural problems can greatly impact the livability of a home and you don’t want to pay hundreds of thousands of dollars for renovations after only recently purchasing the home. Once the property is inspected, get it appraised so you can pay a fair price. Remember that the value of the home will determine your mortgage rate with the house being used as collateral in case you default on your loan. If the appraisal determines the house is worth more or less than you offer, that will affect your mortgage rate and whether you’ll need to renegotiate.

Closing

The last step is a walkthrough and closing on your new home. Although renovations aren’t done during this phase, minor repairs can be done, like fixing cabinets and doors to close properly, etc. Once everything has been approved, you’ll be able to get your keys! This is a time-consuming process and varies from person to person depending on a number of factors but communicating with your real estate professional and seller effectively will make everything run smoothly. Buying a home is a big decision that takes place in a competitive market. Invictus has real estate professionals that have done the research to find you the best home based on your requirements and can help you make informed offers based on our experience while also easing the burden of paperwork when preparing you for closing. Let us help you find the best home for you. Contact us to speak with a real estate expert today!

Advice For First-Time Home Buyers

Wed, 11 Dec 2024 02:00:25 GMT

Buying your first home is stressful. There is a lot of information to consider when looking into buying such as location, mortgages, insurance, and so. However, we’re here to help! This articles, and many others on our blog are here to take some of the stress and mystery out of buying a home.

Let’s Get Started!

If you’re thinking about buying a house, it is important to start doing research on mortgages, and what types of mortgages are best for you and your financial situation. Whether it’s a FRM (Fixed-Rate Mortgage), VRM (Variable Mortgage), HM (Hybrid Mortgage), etc, you’ll want to be familiar with the pros and cons of each and how they may play a role in your home-buying experience.

In order to qualify for a loan sizable enough to purchase a home, you need to have good credit and enough money for a down payment. Good credit scores show lenders that you’ll be able to pay off the mortgage while also helping you with your initial qualification. It can also help in getting you lower mortgage rates and even lowering your homeowners’ insurance rates! Buying a house can take years because you may need some time to save up for the down payment or to raise your credit score, but you should also plan to have additional fees after your actually purchase for things like closing cost, finalizing your mortgage, any immediate repairs the seller didn’t make, upgrades, or any other surprises, just in case.

Determining Cost

How do you save for a home when you aren’t even sure how much it will cost? One way is to consider the old mantra “Location, location, location!” . The location of the property and the value of the land that the home sits on is often thought of first when considering the value of a home. However, the location as a neighborhood and the local community, as well as the location of the home on the real estate market (the state and regional values) also play a role in the overall value of a home. These will give you an idea of a down payment, but not an exact number. This is because the cost can change once you put in an offer. It is important to do some research on what kind of home you want and what you’ll likely be able to afford. You’ll want to draft up a budget so you know about how much you’ll need to set aside and how long it will take to get the amount you need. There are often special assistance programs you can utilize that offer things like low-interest-rate mortgages and assistance with your down payment and other costs. Compare mortgage rates and fees, because they are not all created equal, and some lenders offer discounts and other incentives that could help. Once you’ve saved enough and you’re ready to start looking, get a mortgage preapproval letter to show you’ve already begun working with a lender and are serious about buying (not everyone does this and it can give you a distinct advantage and make you look good to sellers).

Buying Your Home

Once you’ve found your new home and explored open houses, prepare for a home inspection. This is to be sure that the house you’re buying is in good condition and to ensure that any issues that should be fixed by the seller are taken care of. It also gives you the opportunity to learn more about your new property and ask any questions you may have. Depending on the inspection and other factors you might be able to negotiate the price with the seller and save money, but in hot markets you also run the risk of losing the sale. However, you deserve to see if there are any significant issues with the house before you commit. Once the house is yours be sure to get homeowners insurance so if anything happens to the home, or your belongings, you won’t completely lose out.

Remember

Buying your first home can seem very intimidating, and although the process is complication, millions of people just like you have done it and you’re not alone. All of the work and stress is worth it in the end, and we have all sorts of experts you can talk to while making one of the biggest decisions of your life. We would love to help! Contact us to speak to an expert for more information!

Source:

https://www.nerdwallet.com/article/mortgages/tips-for-first-time-home-buyers

Ten Things to Do When Buying a New Construction Home

Wed, 11 Dec 2024 02:00:25 GMT

The process of buying a new construction home sounds very appealing to people because you have the opportunity to build your dream home from the ground up! Things like the layout, outdoor spaces, appliances, all the way down the paint color is up to you. However, depending on how elaborate your plan is the construction process can take many months to complete. It is not an easy decision to make and before you commit to a new construction home there are steps that need to be taken so everything will go as smoothly as possible.

Tips For Buying a Construction Home

Home construction is a rewarding process that can gives you a home you only thought possible in your dreams, but like all dreams, it takes time and dedication for it to come to fruition. Although our list seems long, it is important to consider that things are done properly and there are no shortcuts taken during the construction process because the end result will be worth it in the long run!

1. Decide on whether you would rather build a new home or buy and existing one.

Both options have their pros and cons, such as cost and building regulations, but its more important to think about your personal preference. If you want to make all the design choices, then you’ll probably prefer buying a brand-new construction home. However if

you have specific needs, like wanting more rooms than what your budget would allow for a new construction home, or if you would like something closer to schools or public transportation, then buying an existing home maybe better.

2. Before looking at construction homes it’s important to have a professional team in place. Agents, who specialize in new constructions homes, a lending institution that can help finance the home for you, and experts like architects, designers, landscapers, etc. should all be researched and selected prior to looking at construction homes so they are ready to start when the project is ready for them.

3. Construction homes are not a cheap process. The average cost to build a home in the state of Florida is between $240,000 to $350,000 , and although this is 5% below the national cost to build a home it is not unheard of for some of the higher-end homes to cost upwards of $525,000. This means that you’ll need to save money to meet costs.

4. You’ll want to create a detailed plan of everything that you want in your custom- built home. Things from paint color, room layouts, window designs, appliances, flooring, countertops, and so on. Your plan will be used by the construction company to guide them through each step of the construction process. It may seem tedious, but the more detailed your construction plan, the more likely you will be able to get the home you envisioned.

5. A critical factor to decide when constructing a home is the construction site. The size of the construction site, whether you prefer an open lot with plenty of space around it, or one that is more private, and if you want to construct within city limits, or in the suburbs, and where your children may be attending school, all play a factor in this decision. Make sure that you’re happy with the construction lot before committing to buying it. Read our article on location and the aspects the attribute to the value of your home for more information on the subject.

6. There are over 700 home builders in the state of Florida, but they are not all the same. It is important to research as many as you can before deciding on a company. Read reviews or try to find people who have experience dealing with different construction home builders to make the best decision for you. You will be working with and around these individuals for a while, so it is important that you are comfortable working around them throughout the construction process.

8. Keep track of every detail. Constructing a home is a big investment, so you shouldn’t be uncomfortable keeping track of the details of the process once it begins. Communication throughout each step of the process can help ensure that everything runs smoothly and without any major delays or mistakes. Stay up to date on all milestones, so there are no surprises, and so that goals are being met.

9. Conduct walkthrough with construction workers that you hired to ensure that everything has been done properly. This so that any issues that may have come up during the construction process can be fixed before you move in. This will offer you some peace of mind so that you can see how the home will look completed.

10. Before signing off on any construction projects, have an expert inspect the home. This is to be sure that the home has been built to code and everything is structurally sound for your enjoyment for years. This saves money in the long run.

Remember

Hiring qualified contractors, who specialize in construction work, should be one of your top priorities when buying a new construction home, or renovating an existing home. Allowing them to do their work without interference from family or friends can save you money and save the contractors time. Be willing to be patience and work with your team, and you’ll have the home of your dreams sooner than you think!

5 Common Reasons For Damage To Homes In Florida

Wed, 11 Dec 2024 02:00:25 GMT

5 Common Reasons For Damage To Homes In Florida: How Homeowner’s Insurance Can Protect You

Florida is more than just a travel destination. Seven of the top ten fasting growing places in the United States in 2022 to 2023 are located in Florida (including our very own city, Ocala), and based on the most recent reports from Florida Realtors, the Florida housing market is a smart investment for 2022! However, when looking in purchasing a home, it is important to look into protecting your investment. Homeowner insurance is a detailed policy that covers homeowners from natural perils, including fire and storm damage, or loss and theft of property.

Why It Is Important

Adverse elements are a concern for homeowners. Damages caused by uncontrollable conditions could result in property damage and even the loss of personal items. By properly insuring your home you minimize the potential delays in payment for your claims. Mortgage lenders generally require homeowners to purchase a basic homeowner insurance policy as part of the mortgage terms.

5 Common Reasons For Insurance Claims in Florida

Water and Flooding Damage

Much of Florida is at sea level, meaning that flooding in low lying areas, as well as properties located near larger bodies of water have the potential for flooding and water damages. Things such as excessive rain, busted pipes and crack in slab are common, and costly, occurrences, and it is essential that any homeowner in Florida look into insurance policies that cover water and flood damages, but especially for hurricanes.

Lightning

Lightning is a giant spark of electricity that can occur between opposite charges within a thunderstorm cloud (intra-cloud lightning), or between opposite charges in the cloud an on the ground (cloud-to-ground lightning). Florida is the lightning capital of the United States with approximately 83 lightning events per square kilometer every year! It’s unpredictable, and has resulted in 5,339 lightning damage claims in Florida in 2021, with an average of $16,552 cost per claim according to the Insurance Information Institute, so it is essential to protect your investment as well as your loved ones.

Wind Damages

Hurricanes bring more then just excess rain, violent storms can lead to high wind speed. High-speed winds can damage windows and roofs with their ability to lift debris, and with sheer power. Damages caused to your roof can remain undetected until further damages compound over time and tends to be upon the most complicated insurance claims to file and have approved.

Sinkhole Coverage

Although sinkholes can be found all over the world, in the United States, sinkholes are most common in Texas, Alabama, Missouri, Kentucky, Tennessee, Pennsylvania, and (you guessed it!) Florida. They form in areas where underground water supplies, such as the Florida aquifers, dissolve the sediments in the ground, typically limestone. Sinkholes are hard to predict, difficult to investigate, and extremely costly to repair. Florida property insurers are also required to provide insurance for “catastrophic ground cover collapse” as part of the standard homeowners policy.

Vandalism and Theft

Although vandalism and theft are different they are both referred to as property crime, and are known as “intentional injury or destruction of property”. Common forms of these damages are: graffiti, breaking windows, trash dumping, petty theft, burglary, removal of signs or ornaments, grand theft, and grand theft auto. It is always important to keep a record of ownership for expensive items and documents, in case of theft or vandalism.

Keep in Mind

This list is only a sample of the potential damages that can affect homes and homeowners, so it is important to meet with an insurance specialist to discuss the options best suited for your needs, and to ensure that you can your property/investment are properly protected. By failing to maintain a proper amount of insurance, you may be penalized when filing your claims. Check with your insurance company each year to keep up to date with their policies and procedures and read up on your policies before and after changing insurance policies or insurance providers. Policies differ between companies, and policies with different providers may not be covered at other providers.

Sources Found

1. https://learn.roofstock.com/blog/florida-real-estate-market

2. https://www.floridarealtors.org/sites/default/files/2022-08/July-2022-Fla-MSA-summary.pdf

3. https://www.nssl.noaa.gov/education/svrwx101/lightning/

4. https://www.tampabayclaim.com/florida-the-lightning-capital-of-the-united-states/

5. https://floridahomeclaim.com/residential-claims/vandalism-theft/

6. (https://www.iii.org/article/sinkholes-and-insurance)

7. https://www.iii.org/

The Benefits of Renting vs the Benefits of Owning

Wed, 11 Dec 2024 02:00:25 GMT

Choosing whether to rent or buy a home is arguably one of the greatest decisions that affects not just your life, but your financial wellbeing as well. Buying is not always the best option, and there is nothing wrong with deciding on renting over buying. Experts will tell you the substantial benefits of both and although many will argue for buying, it is entirely up to YOU to decide which is most suited to your goals and finances.

Before you decide to choose between renting or owning, you should ask yourself:

How long do you plan to stay in your area?
How much money have you saved, and how is your credit score? And,
Are you ready to become a homeowner?

Renting

The upsides of renting include:

Flexibility

If you are not planning on staying in the same area (whether for work, school, or any number of reasons) renting offers short term contracts. This flexibility allows you to make future life decisions with a lot more freedom, and your living choices aren’t nearly as restricted. It is significantly easier to break a lease than to sell a house if you are forced to relocate.

Less Money Upfront

Although renting does have more upfront costs including security deposits (one month’s rent), first AND last month’s rent, and application fees the averaging cost (approximately $4,107 in 2022 with an average rent being $1,369 a month for a three-bedroom unit) is still lower that a down payment and costing cost on a home purchase. And while monthly rent is usually more than a monthly mortgage, you are not responsible for the property taxes on the home.

Maintenance Isn’t Your Responsibility

As a renter, costly repairs are not your responsibility. These costs are covered by the property owner or leasing agents according to the contract established at the beginning of your rental agreement. In addition to this, you could also have others take care of routine chores! Things like mowing the lawn, painting, etc. can all be a part of your contract as well. It is important to ask what is all included in the rent during the signing process.

Financial Uniformity

When renting, you are more likely to have financial uniformity. Rent remains consistent (unless your lease renewal increases the rent) and some places may even include utility costs. This means you have more financial consistency, and this minimizes the impact of fluctuating monthly bills, unlike homeownership which has varied costs depending on the terms of your mortgage, interest rates, taxes, and insurance.

Owning

Upsides of owning include:

Mortgages Are Cheaper

As I mentioned before, renting offers more financial uniformity, but on average monthly rent payments are more expensive. Mortgage prices

are on average 30-40% lower than rental costs for similar sized homes; for example a three-bedroom home averages $16,428 (with no additional costs) to rent where as the monthly mortgage payment is $13,488 (the average mortgage payment in Florida in 2022 being $1,124 per month). Terms of a mortgage can also be more lenient in times of financial crisis, whereas property owners of a rental may not be as for giving.

Increases Credit Score

One of the most important factors of financial freedom is a good credit score. Of course, paying Auto loans and credit cards are beneficial and crucial to improving your FICO score, but as a homeowner, adding consistent, on-time mortgage payments can more rapidly increase your credit score. Mortgage agreements also reflect greater impacts to credit bureaus because of the financial value of a home.

Learn more about the importance of credit score and homeowning in our blog!

Building Equity

Every month that you make a payment you own a little more of the property and, in turn, building equity. Equity, in the simplest of terms, is the difference between your home’s worth and how much is owed on its mortgage. You are building value to a high value asset and the additional value of your home may increase based on shifts of the market. By building more equity, you can access more loans, upgrades, and improvements.

Family Stability

For some people, renting is only a short-term solution. The flexibility of renting is only valuable to those who are planning on moving and don’t plan on starting a family. It is argued that children in owner-occupied dwelling achieve better educational outcomes, including high school completion and college attendance (although the d irect effects of homeownership on education is still unclear), but more importantly, it allows you to control the schools that your child is zoned for, and in turn ensure your child is getting the best education possible in your area and budget.

Ultimately, it is important to take into consideration what works best with you and your current situation. If you are ready to start a family, or if you simply plan on staying in your area just because you like the community, owning a home may be the best option for you! Whereas if you love to travel and have no intentions of staying in one place for very long, renting would definitely be better for you in the long run. Just be sure that at the end of the day you budget out your living expenses and do what it best for you!

Real Estate: In-Person verses Online

Wed, 11 Dec 2024 02:00:25 GMT

Technology has been one of the key factors in the rapid change of the world. The internet has especially created greater opportunities for individuals and business to grow and expand. The Real Estate Industry is no exception. Real Estate Websites provide real estate buyer and seller the opportunity to browse listings, find properties, make offers, draft contracts, and even close deals all from your computer. It may seem that it would be unnecessary to hire a real estate agent, but like all things, there are ups and downs to working with an agent verses a website.

Real Estate Online

As we mentioned, technology is always changing to provide an easier and more convenient way for people to learn and grow, and in regard to the real estate market this means people are able to gather information on the real estate market in their area. People are now able to make more informed decisions based on current mortgage rates in their area and the location of their property. Buyers are becoming more realistic with their budgets, and sellers are more aware of the worth of their properties. Real Estate Websites gather all this information in a localized spot, making it easier for buyers and sellers to communicate in a space where the focus is buying and selling homes. The accessibility of websites also allows more buyers, sellers, and investors to participate in the actively changing market with ease. But accessibility isn’t the only reason a person would want to try Real Estate Websites. When doing real estate online brokerage firm may offer more commission fees. Commission rates, or splits, may be the single most important factor in the transaction, and should be considered in your decision in whether or not you want to use websites or not. Buyers and sellers are also able to have more control over their sales or purchases by using online services because it allows them to remove the middleman and the limited accessibility that an agent may have.

Real Estate Websites aren’t perfect, and it is important to consider the issues that come with working real estate online. Online listings can have enormous amounts of information that can be helpful, but they won’t tell you everything. Although online tours are convenient, they can’t show you any structural issues or small issues in corners and ceilings. Online sites and home sales also create an environment where scammers wait to steal personal information, and unlike with agents, you lose out on personal interaction. Real Estate Agents can provide insight and support that websites can’t. Local agents have access to the same information on websites, but their personal attachment to an area allows them to know things that a website wouldn’t be able to consider, things like changing zoning laws, economic shifts, and other local information which can influence your decisions.

Real Estate in Person

There are several different types of licensed real estate professionals to chose from. Real estate Agents, Brokers, and Realtors have all spend time obtaining various licenses that allows them to know the inner workings of the real estate industry and market and lets them make informed and thoughtful decisions on what would work best for buyer and sellers. (Read our article on the differences between the three here, and decide on which works best with your next purchase or sale!) It may seem like making real estate decisions online would have several benefits, but there are things that people can do that websites can’t. Licensed real estate professionals have the ability to focus on a community and are better at understanding the innerworkings of a local area than websites, including price points, schools, crime rates, unemployment, and future growth.

Real estate professionals are also able to maintain a network of connections, meaning that they are able to connect potential clients with locally owned businesses (such as plumbers, electricians, builders, etc.) who provide a certain set of skills, something that a real estate website couldn’t do. They also have the ability to act as a liaison between all parties involves in the buying and selling of a property. It is easy to have issues in communication and in order to ensure effective and efficient communication between buyers and seller, real estate professionals are the best for providing the best potential outcome. Their experience allows them to know the inner workings of the industry. They are very familiar with the selling and buying process, and that lets them work fast in helping you with your real estate decisions.

What Works Best With YOU!

Purchasing and selling properties is a complex process, but whether you decide to use websites or whether you decide to use a licensed professional depends on what works best with you! As we said before, websites are easily accessible and can provide the information needed to find sellers and buyers for your real estate market, but real estate professionals offer a personal touch that can’t be accessed on websites. We, at Invictus Real Estate , like many real estate professionals have adapted to the changes of the world around us. We offer both online and personal help in buying and selling properties as well as many other services that makes us stand out from other real estate personnel. Our mission is to ensure that your needs and interests are met at every moment. With us, you become family, and all of our available tools and assistance becomes a part of your experience. Contact us and speak with our real estate experts today!

“Location, Location, Location!” – More than Just a Mantra!

Wed, 11 Dec 2024 02:00:25 GMT

Location is one of the many things that home-buyers look at when deciding on a new purchase. “Location, Location, Location!” is one of known mantras of real estate agents, but it also holds value to investor, brokers, and developers. It holds a deeper meaning aside for the location of a home in regard to where it is located in a neighborhood. Here at Invictus Real Estate we look at the mantra as three separate components of the real estate dynamic. Each ‘Location’ has its own significance, meaning the phrase isn’t simply, “Location¹, Location¹, Location¹” but rather than “Location¹, Location², Location³!”. It is important to consider each of the three locations in your home purchasing deciding to help you determine things like cost and value, as well as lifestyle. Let’s break it down, one location at a time!

Location¹

This deals with the individual property. It is important for gathering information about the narrow scope of the property. This is where real estates agents start asking questions like, “Has the lot been properly prepared?” and “Does it comply with all local, state, federal codes?”. In Florida, important questions to ask is, “Is it a designated flood plain, or an area that is prone to flooding?” or “Is the home prone to septic, sinkhole, and foundation issues?” All of this is asked before the home is even built! The initial property pricing is grounded in the value of the land at the time of the purchase, construction cost, and secondary costs. Location¹ makes up the greaterpercentage of the homes value.

Location²

Now let’s widen the scope. We can now look at the location as a neighborhood. We’re now looking at the local community. Things like school districts with good test scores, high graduation rates, and high college entry rates attributed to the value of a home. Properties located

near parks, restaurants, entertainment centers, and grocery stores are seen as having more value than a home that is located further away from these amenities. Neighborhoods that are located near a city’s major transportation routes and that have more than one point of entry are also considered more valuable, since commuting to and from work is a big part of people’s day and traffic convenience is always a plus, however if the location of the property is in a heavy trafficked areas, places like congested roadways, heavily-used through fares, or even airports can reduce the value of a home. Corners in neighborhoods have more traffic so even this plays a role in the value of the home. If the property is scheduled for future development this can lead to major noise issues, similar to the noises you would hear in high traffic areas. Properties with lower value homes but quaint wooded preserves tend to have more value than homes that are next door neighbors with grocery stores or gas stations. Your own personal lifestyle should also be considered. Things to consider are if your neighbors enjoy large parties on the weekends, but you enjoy falling to sleep at nine in the evening, or if the neighborhood is under strict rule of a Homeowner Association Contract, but you plan to renovate and drastically change the appearance of your home. It’s important to think about these things before purchasing a home because of how closely it can affect your own comfort in your own home.

Location³

Now we have discussed location and relation to its initial costs, and location as a neighborhood, so the final location we’ll focus on the outlook of the real estate market, or the state and regional market location. This is essentially the property values as it rises and falls base upon the expected growth, or decline, in the region where you plan on purchasing your home. In Florida, you will often find that places like Tampa, Orlando, Miami, and Jacksonville make up some of the best real estate markets, but are they place that you would want to live. Of course, the price ins important, but as we’ve mentioned before, there are many more aspects to consider when buying a home. Things like the unemployment rate, property taxes, crime rates, and new housing development should all play a factor in your decision to buy a home. There’s a chance that you may fall in love with a location only to have it radically change in the future and effect your biggest financial decision.

Buying a home is a huge financial decision and it is important that you find something that you can be happy with. Things like paint color and appliances can be changed, but the home itself can’t be picked up and moved to a different location, so you want to find an area that is not only makes you feel secure about your choice, but that makes you proud to call it your home. We at Invictus Real Estate would be more than happy to help you find not only the best location for you, but the best home! Contact us for more information, or to speak to one of our experts!

Buying a Home? Your Credit Score Matters

Wed, 11 Dec 2024 02:00:25 GMT

Credit scores are a numerical representation of your financial health and play a vital role in obtaining low mortgage rates and lowering your homeowner’ insurance rates, as well with your initial qualifications. Although higher credit score suggest that you borrow and pay your loans on time you don’t need a perfect credit score to buy a home! A great credit score can lead to more benefits, but it isn’t impossible to get the things you need for a home purchase with a less than great FICO score. Knowing more about your credit and how to improve it, can open up many opportunities for you!

What is a FICO score?

FICO (Fair Isaac Corporation) Scores are used by over 90% of the top lenders when making lending decisions, because it is the standard for making accurate and fair decisions about creditworthiness. It is a three-digit number (ranging from 300 to 850) generated by five different factors:

1. Your Payment History

35% of your FICO Score is determined by your payment history. This refers to whether an individual pay their credit accounts on time.

2. The Amount That You Owe

30% of your score is based on the amount of money that you owe. FICO considers that ratio of money owed to the amount of credit available.

This means that even if an individual has a lot of debt, doesn’t necessarily mean that they will have a low credit score.

3. The Age of Your Accounts

15% is calculated through the length of your credit history. Generally, this means that the longer you have had credit, the better your score will be, but this doesn’t mean that an individual with a short credit history will have a low a score because FICO takes into consideration the age of the oldest account, the age of the newest account, and the overall average.

4. Credit Activity

10% of your FICO Score is determined by any new credit established. New credit refers to any recently opened accounts that a borrower has opened in a given time period. This means that if a borrower has opened a bunch of new accounts in a short period of time, it is labeled as a risk and lower their score.

5. Credit Combination

The last 10% is based on the variety of accounts that a borrower has. Individuals should have a mix of retail, credit cards, installment loans (like auto loans), and mortgages.

Improving Your Credit Score for A Mortgage

Like we mentioned before, you don’t need to have a prefect 850 credit score to get a mortgage for a new home, however the higher your credit score is the more likely you can receive benefits like lower rates. The first thing to do when improving your score is finding out your stance on the FICO scale. There are several different online sources that can show you your score for free, including www.annualcreditreport.com . If, or once, you know what your score looks like, and you wish to improve it, the best ways to start include:

Making On-Time Payments

As we mentioned above, your payment history contributes to a majority of your FICO Score. By demonstrating consistent, on-time payments to lenders, you are able to increase your score. Be sure to check lenders are correctly reporting your payments as well. Some take additional time to process payment and that can be reflected as late payments to the credit bureau.

Diversify Your Portfolio

Opening new accounts can also help build credit. If you only have an auto loan, it benefits you to also have a credit care, or a retail card. It shows that you have the ability to manage multiple types of loans and can contribute to boosting your score. Just be sure not to open several accounts in a short time period since this will contribute to lower your score rather than raising it.

Don’t Cancel Debt

Many people think that paying off debts and closing accounts will raise their credit score, but this could actually lower the score overall. It would be more beneficial to keep some of these accounts open, but limitedly use them. Set up direct payments of monthly subscriptions, whether it be video subscriptions or subscription boxes, to maintain credit and reduce the risk of account closures.

Credit is challenging, but it is important to not be intimidated by it. Don’t underestimate yourself if your credit score isn’t high enough to buy a home. Many loan programs are available and consulting a Home Loan Specialist helps towards your journey to owning your own home. However, the most crucial thing to remember is you are more than just a number!

Resources

1. www.annualcreditreport.com

2. https://www.investopedia.com/fico-score-vs-credit-score-5214435

Real Estate Agents, Brokers, and Realtors! Oh My!

Wed, 11 Dec 2024 02:00:25 GMT

Buying and selling homes is complicated. There are several steps and lots of boring and intimidating paperwork that has to be done to make the process go by as easy and smoothly as possible. Hiring an expert to take some of the stress off of yourself is the best way to simplify the process, but who should you turn to? Real Estate Agents, Real Estate Brokers, and Realtors have the knowledge and ability to make buying and selling a home easier and unless intimidating, and although each of these titles are used interchangeable, it is important to know the different between the three different positions.

Real Estate Agents

Real Estate Agents are licensed through the state and are professionals who arrange real estate transactions. Generally, to get a real estate license, a person must complete pre-licensing training, then take a written licensing exam. They put buyers and seller together and act as their representative in negotiations. They usually specialize in either commercial or residential real estate, but they perform various duties depending on whether or not they are working with buyers or sellers. Listing Agents are agents that work with seller, and they advise clients on how to price the property and prepare it for a sale. An agent that works for a buyer search for available properties within the buyers’ parameters by looking at data and helping buyers make bids. Real Estate Agents can work for both buyers and sellers, but state laws regulate whether an agent can represent both parties in a real estate transaction and an agent must disclose their representation so that buyers and seller are aware of any conflict of interest.

Real Estate Broker

In almost every state, a Real Estate Agent must work for or be in affiliation with a Real Estate Broker. A Real Estate Broker is a licensed real estate professional who hold expertise that can help people with real estate transactions. They take additional training, as well as their own exam, with coursework that covers topics like ethics, contracts, taxes, and insurance. This is because a Brokers main duties are to ensure that the real estate transactions between two parties are lawful, that paperwork is correct and completed, and that all funds are recorded and reported properly. Brokers have the ability to manage their own businesses because of this.

Realtors

A Realtor is a real estate profession who is a member of the National Association of Relators (NAR). The NAR is a national organization that was created to promote the real estate profession and foster professional behavior in its members. This includes Real Estate Agents that work as resident and commercial Real Estate Brokers, Salespeople, Property Managers, and other real estate professionals. Realtors must belong to both a local association or board and a state association. Being a realtor is a trademark, professionals who hold a membership must be licensed to use the trademark, and it is prohibited from being used as a part of the legal corporate name of members of the association.

Choosing Your Best Option

It’s important to note that no one professional is necessarily better than the other. Although Realtors and Real Estate Brokers have additional licenses that a Real Estate Agent doesn’t, they all work cohesively and offer the same serves with slightly different experiences. You may find that you prefer to work with a Real Estate Agent over a Broker because you get along with the agent you met. However, if you prefer individuals who have the realtor trademark because they have access to trainings, tools, and data that a real estate agent or broker doesn’t that’s also okay! Researching the different real estate professionals is a part of the buying and selling process and it’s important to find someone who makes you feel heard and understood. Contact us to speak to one of our experts and start the process of buying or selling your home today!

Sources:

1. https://www.investopedia.com/terms/r/realestateagent.asp

2. https://www.investopedia.com/terms/r/realtor.asp

3. https://www.investopedia.com/terms/b/broker.asp

4. https://www.realtor.com/advice/buy/whats-difference-real-estate-salesperson-broker/