4 Pointers for Buying a Home During a Pandemic!

2020 was an extremely challenging year for everyone, with many feeling as though their lives were on hold. Continue reading “4 Pointers for Buying a Home During a Pandemic!”

7 Myths About Down Payments for Real Estate Purchases

There is a lot of misinformation out there regarding the process for real estate purchases, and this makes matters even more confusing for those that are new to buying a home. Continue reading “7 Myths About Down Payments for Real Estate Purchases”

6 Commercial Investments That Tend to Get Overlooked

What crosses your mind when you hear the term “Commercial Real Estate”? Oftentimes we think of a high-rise office building, shopping mall, or even an old grocery store building. While these Continue reading “6 Commercial Investments That Tend to Get Overlooked”

Study: Retailers, Commercial Real Estate Companies Optimistic About Strong Recovery in 2021

Close to 88% of shopping centers are being used to fulfill online orders, and 99% of retail respondents reported their stores fulfilled online orders to some degree.

Nearly 60% of commercial real estate Continue reading “Study: Retailers, Commercial Real Estate Companies Optimistic About Strong Recovery in 2021”

2021 Mortgage Rates Leading Many Homeowner’s Towards Refinancing

Mortgage rates were on a steady path of decline in 2020, allowing many people the opportunity to become Homeowners or adjust their current property loan values. These historically record low rates are being projected to stay low for at least the first few months of the New Year but are expected to slowly rise again towards the end of 2021.

What does this mean for current property owners? The ability to take advantage of record-low rates on their mortgages and to save funds that can be put towards other investments.

So, when does it make sense to go through with a refinance?

  • When it lowers your monthly interest rate and/or payment
  • If you can reduce loan term/remaining payments with minimal increase in monthly payment
  • If you can use debt consolidation from the refinance to lower overall monthly obligations
  • Using a cash-out refinance for home improvements or some other major purchase.

The most important thing to note is that a refinance may sometimes have costs associated with them. Homeowners should calculate their break-even point to see how long it would take to recoup the costs. The decision to start this process is solely in the hands of the property owner, and if the savings outweigh the initial costs then it may be a smart financial move.

Take advantage of great rates & have Premier Florida Title help with your title needs. As a property owner, you are allowed to select your own title company for the title work. Call us today so we can help guide you through this process!

A New Mortgage Refinancing Fee. Here’s What You Should Know!

As of December 1, 2020, a new refinance fee is now in effect. This comes at a time when we are having record-low mortgage rates, a great time to refinance. “The Federal Housing Finance Agency (FHFA) will begin charging a mortgage refinance fee that could impact the cost of your mortgage.”

What is the fee and how will it affect me?

The “adverse market refinance fee,” of 0.5%, will be added to any new refinanced mortgages beginning December 1, 2020. This new fee is designed to help Fannie Mae and Freddie Mac offset some of the COVID-19 related losses.

“In light of market and economic uncertainty resulting in higher risk and costs incurred by Fannie Mae, we are implementing a new loan-level price adjustment,” Fannie Mae explained in a letter announcing the fee.

The new fee could potentially increase the interest rate homeowners are quoted if they do not negotiate with the lender to waive the fee.

“On the whole, borrowers don’t seem too concerned about this fee because it’s baked into the rate they’re being offered by their lenders.” However, our team at Gulati Law, like our borrowers to be well informed of the potential increased costs on your mortgage.

Below are a few things borrowers should know:

  • Some Borrowers are exempt if they fall under the following:
    • If your principal is less than $125,000;
    • Borrowers refinancing VA or FHA loans; and
    • If you are buying a home and taking a new loan.
  • Lenders might find different ways to charge the fee.
    • The FHFA charges the fee directly to lenders. Some may role it into the interest rate, while others may role it into the closing costs.

This fee should not deter you from refinancing, as the rates are the lowest on record. This new fee may still be negotiated with your lender. It is advisable to discuss with your Real Estate Attorney, to make sure all fees charged by the lender are reasonable and if it is even worthwhile to refinance based on how much the borrower can potentially save.

The fee may not last, however, it is still here for now! Stay informed and discuss it further with an Attorney at Gulati Law.

Source: Forbes 

 

Why do I need a Lien Search?

Recently, the Gainesville Sun reported that a couple could not get a permit from the city when they wanted to put a screen enclosure on their back porch. That’s because there was an expired permit on the property that was 10 years old. The couple has owned their home since 2010 and had no idea  that was the case.

The Sun says the issue was that a roofer had completed a partial shingle re-roof without getting a final inspection from the county to close out the permit. Because the company was still in business, they were eventually able to resolve the issue.

It’s important to note that the homeowners were VERY LUCKY in this story. Because in many open/expired permit cases people have to spend thousand to close out permits. In a lot of cases, the permit was not closed out because the work was done incorrectly and the new owner has to pay for these corrections.

Pretty much one-out-of-four of our real estate deals have an open permit, expired permit or municipal lien issue.

I know firsthand that a LOT of title pro’s in that area will say that they don’t need to do these searches, but THIS is a prime example of how you can be mis-led to believe your property is “free and clear.” Always obtain a municipal lien search before purchasing your real estate.

New Land Trust Law

Source: Professional Lien Search

Purchased a New Property In Florida? Beware of Solicitations!

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As many of you know, the process of purchasing a new home, or commercial property involves quite a few important documents that you need to be familiar with. Title and Deed documents are given to you by your attorney. Usually, these documents are also accessible online via your county’s property appraiser’s website FOR FREE. In instances where you have purchased a new property, you may receive a letters in the mail that might look like an official county or state document which states that you will need to take additional steps to finalize documentation, or that you will need to order vital documentation that shows ownership of your property.

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This mailing will have your name, parcel number, and property address on it. What Record Transfer Services is doing might not be illegal; however, these services are usually already performed either before or at closing by a title company or real estate attorney. A title search is usually performed by a title company or an attorney, who researches the vested owner, the liens or other judgments on the property, the loans on the property and the property taxes due before the closing is done. If duplicates are needed or documents are misplaced from your records, these documents can usually be found via your county property appraiser’s website or you may contact your real estate attorney.

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Given that the letter includes a deadline for which to request for these documents, it appears to be an official document, however, make special note of the disclaimer in fine print at the bottom of the letter: “This product or service has not been approved, or endorsed by any government…” Generally, if you receive a solicitation asking for more money after your closing, it is not necessary and is rarely legitimate. If you are not sure or you would like more information, contact your Florida Real Estate attorney or title company as soon as possible.

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