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Issue # 92      
October 2015  
Dear (Contact First Name),  

Welcome to Optima Properties' monthly newsletter.  We strive to keep you informed of the real estate market and trends that may affect your relocation, investment, or purchase decisions.  

You have expressed an interest in properties or rentals in either South Florida or Western North Carolina in the past and these periodic newsletters will help to keep you current of what is happening in the real estate industry nationwide and locally.   
 
October 3rd will bring a new set of banking and lending regulations known as TRID (TILA/RESPA Integrated Disclosures).  The new requirements will further extend the time it will take a buyer to secure financing and close on a property. 
If you have previously bought or sold a home, you'll see two main changes: forms and closing deadlines.  If you plan on financing a home purchase in the near future, plan for a longer loan process. 
 
Please feel free to call me to discuss any and all matters relating to the real estate market in South Florida or Western North Carolina. 

Happy Halloween!

Contact Kim N. Bregman, Optima Properties
halloween


Lic. Real Estate Broker, FL & NC
REALTOR, MBA, ABR, NAEBA, FEBA 
 
In This Issue
Buyer's Guide  
 
Answers to common questions, resources, and tools.
 
 Finance Center

 

Articles, Calculators, Tools, and Advice  






 





Mortgage Rates:
As Of September 30, 2015 
 
Average RateAverage Points
30 year FRM3.86
0.7

15 year FRM		3.08
0.6
5/1 ARM
2.91
0.5
1 year ARM2.530.2
   




Fed Offers Buyers a Short-Term Reprieve, but Mortgage Rates May Rise before December
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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2012 Head shot 
Kim N. Bregman    

Optima Properties 

 Lic. Real Estate Broker, FL & NC, REALTOR, MBA, ABR 

The greatest compliment that I can receive is a referral from clients, friends and co-workers.  Thank you for your trust.   

 Florida:
17914 Foxborough Lane
Boca Raton, FL 33496
561-251-7170 Cell
561-477-0676 Office
561-892-0937 Fax

North Carolina: 
581 Tsalagi Trail

Maggie Valley, NC 28751 
828-400-7953 Cell
828-400-7953 Office
561-892-0937 Fax

kim@optimaproperties.com
www.OptimaProperties.com

 

 

 

 

 

 

 
In The News!
Home Sales Bounces Back From Seven-Year Low in July

RealtyTrac®, the nation's leading source for comprehensive housing data, released its August 2015 U.S. Home Sales Report, which shows single family home and condo sales through August were on pace for an eight-year high nationwide and in 110 out of 204 (54 percent) metropolitan statistical areas with sufficient sales data.

A total of 1,947,028 U.S. single family homes and condos sold through August in 2015, up 5.4 percent from the same time period a year ago to the highest total for the first eight months of the year since 2007, when there were 2,069,963 sales.

The 110 metro areas on pace for at least an eight-year high in home through August included Los Angeles, Phoenix, Dallas, Denver, Riverside-San Bernardino in Southern California, Detroit, Seattle, Tampa, Minneapolis and Portland.
Out of the 204 local markets, 58 (28 percent) were on pace through August to reach nine-year highs in home sales in 2015, and 22 (11 percent) were on pace through August to reach 10-year highs, including Denver, San Diego, the Florida markets of Sarasota, Naples, and Palm Bay, along with Grand Rapids, Michigan and Reno, Nevada.

"The continued strength in sales volume across a wide spectrum of markets in August indicates that shock waves from recent global stock market instability have not weakened the housing recovery and in fact there is evidence that the
instability has fueled more demand for U.S. real estate," said Daren Blomquist, vice president of RealtyTrac. "The share of cash sales nationwide in August bounced back from a seven-year low in July, and the month-over-month increase in cash sales share was more pronounced in markets that have traditionally been magnets for foreign cash buyers, including Boston, Las Vegas, San Francisco, Seattle and New York."

Miami, New York, Las Vegas post highest share of cash sales. 
All-cash sales accounted for 24.5 percent of all single family home and condo sales in August, up from a seven-year low of 23.6 percent in July but still down from 26.7 percent of all sales in August 2014 and down from a peak of 39.6 percent of all sales in February 2013.  Among metropolitan statistical areas with a population of at least 1 million, those with the highest share of cash sales were Miami (48.7 percent), New York (44.7 percent), Las Vegas (42.2 percent), Raleigh, North Carolina (39.6 percent), and Tampa (37.6 percent). "The South Florida market is more balanced and healthier today than in the past decade. With an abundance of financing options we are seeing strength in the first-time home buying market," said Mike Pappas, CEO and president of the Keyes Company covering the South Florida market. "The spike in home values has strengthened the move-up market and our international
buyers and investors weigh in heavily as cash buyers."

"Cash buyers are patiently waiting on the sidelines as inventory increases slightly and brings more selection to the market," said Al Detmer, broker associate at RE/MAX Alliance, covering the Greeley market in Colorado, where cash sales accounted for 17.4 percent of all home sales in August, down from 24.4 percent a year ago. "FHA loan limits hinder buyers over $272,000, while sellers at or below FHA loan limits select buyers that have more skin in the game with larger down payments."

 

Advice For Buyers!
TRID: What it means for you as a Homebuyer

On November 13, 2013, the Consumer Financial Protection Bureau issued a rule regarding changes to current early disclosure and closing documentation used on mortgage loan transactions. Anyone in the real estate or mortgage industry should understand that new regulations called TRID (TILA/RESPA Integrated Disclosures) and how they will have an impact on the timing and notifications required throughout the closing process.
 
But what does TRID mean for you as a homebuyer? If you have previously bought or sold a home, you'll see two main changes: forms and closing deadlines.
 
Forms. The Truth-in-Lending Statement and Good Faith Estimate will be replaced by a new Loan Estimate. The Final Truth-in-Lending Statement and HUD-1 documents will be replaced by the Closing Disclosure.
 
These forms have been changed to provide the buyer with a clearer picture of the costs involved with mortgage financing, and to give the buyer more time to review and accept these terms. These changes originate from the CFPB (Consumer Financial Protection Bureau) as part of the Dodd-Frank Act. The standard real estate contacts are changing as well to reflect the dates and timing of obtaining a loan.
 
What is most important is the impact on the time it may take to schedule a closing under these new rules. Buyers must receive and acknowledge their Closing Disclosure at least 3 business days prior to the closing. This will require more coordination and communication between agents, closing attorneys and lenders to ensure this takes place. It is very important to make sure you are working with an informed team of agents, closing attorneys and lenders in order for the process to go as smoothly as possible.
 
Keep these three primary areas in mind while preparing yourself for the home buying process if you are planning on getting a mortgage:
  1. The old forms are out.
The homebuyer will be receiving new disclosure forms from lenders explaining the loan estimate and loan closing. The Loan Estimate form combines the Good Faith Estimate (GFE) and the Truth in Lending Disclosure into a shorter form that should be easier to understand and explains the mortgage loan's key features, costs and risks at the beginning of the mortgage process.
 
Under TRID, a lender cannot impose any fee, except a reasonable fee for obtaining a consumer's credit report, on a consumer until the consumer has received the loan estimate and has indicated intent to proceed. This should make it easier for a consumer to shop for and understand interest rates, but it might take lenders longer to preapprove someone because they are going to be extra careful when collecting and reviewing borrower information.
 
The Closing Disclosure form combines the final Truth-In-Lending statement and the HUD-1 settlement statement into a shorter form that should be easier for the consumer to understand and provides a detailed account of the entire real estate transaction, including terms of the loan, fees and closing costs.
 
This disclosure might transform the closing table from a nightmare experience with piles of documents to review for the first time into a more manageable, slightly bad dream of reviewing the information ahead of time.
 
With more information provided by the lender before the closing date, the various roles held by the lender and title company at the closing table might change. Stay tuned.
 
2. The disclosures must be provided within a specific time frame - or else.
 
Lenders must provide the Loan Estimate form to consumers within three business days of applying for a loan - which means three business days after the consumer provided the lender with their name, income, Social Security number, property address, property value estimate and mortgage loan amount sought.
 
The Closing Disclosure form must be provided at least three business days before loan consummation (the time the consumer becomes contractually obligated to the mortgage, which is usually at closing).
 
Any significant changes to the loan terms (the annual percentage rate (APR) becomes inaccurate, the loan product changes or a prepayment penalty is added) will restart a new three-business-day waiting period. Both the Loan Estimate and Closing Disclosure forms can be delivered in person, by mail or electronic delivery.
 
3. The closing process will be impacted this in the months to come.
 
The TRID rules apply only to loan applications received after Oct. 3. Lenders will be extra careful and hesitant after this date, while providing mortgages so as not to be out of compliance with the new rules. This will most likely translate to longer timelines to get a mortgage and will delay closing dates.
 
This, in turn, will impact the tight timelines around moving into a home while consumers are also coordinating assets, move-in dates, time off of work and so on.
 
Plan for extra time to close while everyone tests out the new system and becomes familiar with new regulations and how to work together and train staff. If you are a Buyer, look for agents, attorneys and lenders that are using electronic disclosures and e-signatures. This will dramatically shorten the loan process by almost two weeks as compared with those that are relying on the US Mail.
 
Many common real estate practices that you have experienced in the past will be more difficult or even impossible after October 3. Critical issues like dates per the sale agreement and how changes to the deal will impact timing may cause delays because of the three-day rule and the requirement that lenders now prepare the CD. The need for Title companies and real estate agents to submit information much earlier in the process will definitely add more hurdles to jump over to close a transaction.
 
In my opinion, CASH transactions, will carry a much higher level of negotiation leverage for the next several months until this process becomes the norm.
 


 
For More Homebuyer Advice
Vacation Rental
Looking for a Luxury Home Vacation Rental in the Western North Carolina Mountains?

Soaring Eagle Retreat 2011
Come to the Mountains this Autumn and enjoy all the mountains have to offer!  

NC Fall View
Horseback riding at Cataloochee Ranch, whitewater rafting at several area locations, visit eclectic Asheville,  hike in Smoky Mountain National Park and Pisgah Forest, see the Cataloochee Elk, gamble at Harrah's Casino, drive on the Blue Ridge Parkway and visit Cherokee.
 
Soaring Eagle Retreat, Luxury Log Home in
Waynesville/Maggie Valley available for rental. Just 15 minutes from the Cataloochee Ski Resort and Ranch 30 minutes from the National Parks and 30 minutes from Asheville and Cherokee.
 
 
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Optima Properties has beeen working as Exclusive Buyer Agents for 25 years. 

We service customers specifically looking for properties in South Florida and Western North Carolina. 

We act as consultants, advisors, advocates and negotiators for our clients rather than as a salesperson.

I look forward to speaking with you and representing YOUR INTERESTS in future real estate transactions.

Sincerely,
Kim N. Bregman Lic. Real Estate Broker
FL & NC, REALTOR, MBA, ABR, NAEBA  

 

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