HAVE YOU ALWAYS WANTED A WATERFONT HOME?

If you have always wanted to own

a waterfront home in Maine... 

 

Now is a great time to purchase one.  

Prices are affordable and interest rates are at all time lows.

 





If you are considering purchasing waterfront property,make sure you are familiar with shoreland zoning in Maine.  

 

What is Shoreland Zoning?

 

 Land withing 250 feet of the normal high-water line of any great pond or river,

upland area of coastal wetland or defined freshwater wetland,

and within 75 feet of normal high-water line of streams.

Click here

 

Besides restrictions set in place by the State of Maine, each individual town may have additional shoreland zoning rules and restrictions, so make sure you do your homework if you are considering a waterfront home.    

 

Click here

A few things to consider when you are looking at waterfront property are:



Non-conforming structures

Expansion possibilities

Clearing trees and other growth

Minimum setback requirements

Lot Coverage

Flood Elevation

 

Click here

Your real estate agent can be a valuable resource to help you find the information you need to make an informed choice.

 

Click here

 

 

Call us at

784-3800

to find your dream Maine waterfront home today!

 

SHORT SALES - WHAT YOU SHOULD KNOW AS A BUYER

If you have been shopping for a house in today's real estate market,

you have probably come across some "short sale" properties. 

When buyers hear "short sale" the common reaction is to turn and run,

 but if you are prepared, purchasing a short sale can be a great way to purchase

 an affordable home with lots of potential for building equity. 

Before you consider purchase a short sale,

there are some things you should know:

• Timing - Despite the name, the timeframe for closing on a short sale is not short.  The current mortgage holder could take months to decide if they will accept or deny your offer.  Patience is key when purchasing a short sale. 

• Pre-Approval - Most banks will not consider a short sale offer unless the potential buyer provides a pre-approval letter.  Having that ready to go could speed up the process and help your transaction move along more smoothly.

• Financing - There are many types of financing out there.  Some types of loans are not suitable for purchasing a short sale.  If the property needs work, as short sales often do, they may not qualify for some programs.  Programs such as Purchase Plus Improvement Loans (203K) or Rehab Loans are perfect for short sales. Make sure you speak with your lender about the possibility of purchasing a short sale to make sure your chosen loan program will work for a short sale property.  Because short sales often take longer than other sales, you may need to update your information with your lender occasionally in order to keep your pre-approval. 

• Cash Purchases - If you pay cash for a short sale, you will usually need to provide a Proof of Funds letter from your bank showing that you have the cash available for the purchase before you offer will be considered.  Having this ready to go can be helpful in improving your chances of having your offer accepted. 

• Inspections & Repairs - In most cases your Real Estate Agent can help you write your offer so you can wait until the short sale is approved to do your inspections.  While inspections are important so that you know what you are purchasing, keep in mind that most homeowners are trying to sell as a short sale because of a financial hardship and probably don't have money to make repairs.  In most cases, you will be purchasing the property  "as is". 

• Other Offers - In many cases, the bank who holds the current mortgage will continue to accept other offers while they are considering your offer.  An Real Estate Agent who is experience in short sales can help you try to avoid this situation. 

• Foreclosure - Many properties that are being sold as a short sale are heading for foreclosure.  In most cases, an offer on a short sale home does not stop the foreclosure process. 

Basically, purchasing a short sale property takes patience and organization. 

If you are well prepared, understand what you are getting into,

want to build some sweat equity and have lots of patience...

a short sale could be a perfect way for you to purchase a house at a great price! 

If you have questions about short sales, please call us at (207)784-3800

or click below to send us an e-mail.  

 

KNOCK YEARS OFF YOUR MORTGAGE

Who wouldn't want to knock a few years off the term of your mortgage and save thousands in interest? 

You can reduced the principal of your loan

which will knock payments off the end of your mortgage

by making one extra payment each year. 

You don't even have to pay it all at once. 

You can divide your monthly mortgage payment by 12

and apply that amount to your regular payment each month. 

photo by Images_of_Money

If your monthly mortgage payment is $700...

          700 ÷ 12 = 58.33

Add an extra $58.33 to your regular $700 payment.  Pay $758.33 each month to add up to one extra payment for the year! 

You can also opt to make one extra payment as a lump sum...

maybe when you get your tax refund.  Any extra money you can send will make a difference,

 so if you can't make a whole extra payment, figure out what you can afford...anything helps!

Make sure you specify the extra money you send is applied toward your principal

and be sure to check with your mortgage holder

to make sure you don't have any pre-payment penalty. 

If you have questions, or would like more information about saving money on your mortgage,

 speak with your lender or contact us by clicking below!

WHAT IS AN ABSORPTION RATE IN REAL ESTATE?

Have you heard people talk about the absorption rate

when they are talking about real estate? 

What is an absorption rate...and what does it have to do with you?

 To find the absorption rate...the number of currently listed properties is divided by the average number of sales for a specific time frame. 

For example:  

In Lewiston/Auburn, Maine in the middle of January 2012

there were 367 single family residential properties listed for sale.  

On average 30.25 single family residential properties sold per month

 in the area over the past year.  

So if we divide the current inventory (367 homes) by the average sold (30.25 per month) we get the estimated time it will take to sell the current inventory on the market (Absorption Rate).

If there are no new listings and property continues to sell at the current rate,

there are roughly 12 months or 1 year of inventory on the market in Lewiston/Auburn.

WHAT DOES IT MEAN TO YOU?

The higher the absorption rate,

 the longer it will take to clear the current inventory from the market.

As a seller...if there is an absorption rate of 12.13 or roughly 12 months of inventory on the market, you will want to be more aggressive by not only pricing the home properly,

 but by staging and preparing your home  to get your property noticed and sold

 than if there is only an absorption rate of 3 or 4. 

As a buyer...you may have more bargaining power if the absorption rate is higher.  Sellers may be competing against higher inventory for buyers and more willing to negotiate. 

If you are interested in finding out the absorption rate for your area in Maine,

e-mail us for your FREE REPORT!

    

SELL YOUR PROPERTY FOR MORE WITH HOME STAGING

There has been a lot of talk about staging your home when you sell...

Do you wonder if staging can help you sell? 

Can staging help you get more money for the sale of your home? 

Check out this episode of YOUR REAL ESTATE SOLUTIONS with Brenda Fontaine

for some great information about staging...

Click here to view all episodes of YOUR REAL ESTATE SOLUTIONS with Brenda Fontaine

for more great information about today's real estate market!

REVERSE MORTGAGES - DID YOU KNOW?

In the past few years, there has been a lot of talk about Reverse Mortgages...so what is a Reverse Mortgage?

HECM - Home Equity Conversion Mortgage is what is commonly called a

Reverse Mortgage. 

A HECM is a non-recourse loan that enables homeowners 62 years of age or older

 to convert a portion of their homes equity into tax-free funds.

Did you know....

     Reverse Mortgages have been around since 1961.

     A Reverse Mortgage does not impact Social Security of Medicare benefits.

     You do not need to make monthly payments on your Reverse Mortgage.

     You do not give up title to your home on a Reverse Mortgage.

     You can only take a Reverse Mortgage on your primary residence.

     You can take the money from a Reverse Mortgage as a lump sum or a little at a time.

     You can use a Reverse Mortgage to purchase a home.

     You can use a Reverse Mortgage to pay off your current mortgage.

      Reverse Mortgages have both fixed-rate options and adjustable-rate options.

     The loan amount of a Reverse Mortgage depends partially on the age of the borrower.

     Reverse Mortgages can be refinanced.

        


Click here for a list of HUD approved Maine HECM lenders.
Click here for more frequently asked question & answers.

        

Interest Rates and Home Buying

If you have been waiting for the right time to buy a home...it might be time with today's low interest rates!

Why are interest rates such a big deal when purchasing real estate? A change of only 1/2% interest will not only change your monthly payment substantially, but can save you thousands of dollars over the life of your loan!

For example...if you took out a $150,000 loan for 30 years





Who couldn't use an extra $35.00 a month? And who would want to pay an extra $15,000?

It was only a few years ago that we thought a 6% interest rate was low. At 6% interest on a $150,000 loan your monthly payment would be $899.33.

$193.97 more than at today's 3.875% rate!

The bottom line is that not only have prices come down, but with today's lower interest rates, you can often get more for your money! So what are you waiting for? You could own a home and stop paying rent in just a few weeks!

Buying vs. Renting in Today's Market

Are you still writing those checks to your landlord every month to keep a roof over your head, but not accumulating any home equity? If you are still renting because you think you still need a fortune to get into your own home, you should investigate today's real estate market.

image by http://workingtaxcreditcalculator.co.uk/

Interest rates are still low, which means that mortgage loans are affordable, with payments potentially in the range of your current monthly rent. There are a number of government programs and mortgage packages which require small down payments. Think about it the next time you write a rent check.

Consider looking at "fixer-uppers". A property with incredible potential may be in a great location, have large rooms and a big yard, but it may also have dated wall paper & worn carpet. If you can look beyond the surface, you may see a house that could be transformed by a little "elbow grease", paint, and fresh flooring.

A house that is structurally sound with all the systems in good condition may be only a few cosmetic repairs away from being your dream home! Better yet, home that does not show well is usually priced accordingly.
Are you ready to stop renting and look into buying? Now is a great time!

Check Your Credit Report...for Free!

Photo by Alan Cleaver

You know your credit report and credit score are important when you are purchasing a home, but do you know how to check them? Did you know you can check your credit reports for FREE?

There are a lot of websites that claim to offer a free credit report, but the truth is that most of them are really trying to sell you something. Annualcreditreport.com offers consumers the chance to check their credit reports from Equifax, Experian & TransUnion once a year for free...without having to purchase anything! Each report will probably slightly different, so it is a good idea to check all three to make sure there are no mistakes. If there is a something incorrect on your report, checking it in advance will give you the time to have it corrected without holding up your home purchase.

Keep in mind your credit report and credit score can change on a regular basis so don't be alarmed if the information is slightly different when your lender checks your credit report.

Your credit score is usually not something you can look up for free, but you will have the option to purchase that information for a small fee.

Once you have spoken with a lender for your loan pre-approval, you should avoid taking out loans, moving around money or charging purchases. If your credit score changes drastically, it could jeopardize your loan approval.

Click here for more information about your credit and purchasing real estate!