Question:      I want to know are there really no-cost or no-fee loans?
Answer:      No.

Some lenders do promote what they call “no-cost” loans, but banking regulators are increasingly cracking down on these misrepresentations.

In reality “no-fee” loans may acould actually cost you more over the long term of the loan because the costs of the “no cost loans” are generally rolled into the new loan through higher interest or larger principal.

A common occurrence of a “no-fee” loan is one where the points charged and all fees are included in the loan principal.

This means that you the borrower does not pay these expenses at the close of escrow. Instead they are rolled into the loan and you end up paying for them over the life of the loan, which ends up costing you a lot more.

This type of loan has been called a “no-fee” or “no cost” loan in order to sell it, as the borrower is not charged any fees up front. But the borrower ends up paying a lot more in the long run as they end up paying for these “no fee” costs every year of the mortgage.

Question: What kind of home insurance would you recommend for my Palm Coast home?

Answer Part 1: In this area where there is a possibility of hurricane damage and flooding it is important you have a policy that will cover all the potential damages caused by a hurricance including wind and flooding. Flooding is often not covered in many policies and it is important coverage to have since flooding is one of the major possible impacts of a hurricane.
Answer Part 2: According to the Insurance Information Institute Standard: homeowners policies normally protect against fire, lightning, wind, storms, hail, explosions, riots, aircraft wrecks, vehicle crashes, smoke, vandalism, theft, breaking glass, falling objects, weight of snow or sleet, collapsing buildings, freezing of plumbing fixtures, electrical damage and water damage from plumbing, heating or air conditioning systems.

Such policies are called “all-risk” policies, which cover everything except earthquakes, floods, war and nuclear accidents.

As mentioned above, in the Palm Coast area you also want a policy that covers floods and hurricane damage.

It is currently recommended that you obtain insurance equal to the full replacement value of your home, and many experts recommend an inflation rider, as the home increases in value.

You may also want to get a real replacement value insurance for your personal belongings in order that they are covered beyond the depreciated value.

Question:   Can you explain the difference between sales price, list price and appraised value? 
Answer:   The appraised price is the price that a certified appraiser estimates the property being worth. The certified appraiser bases their price on the property condition, the value of similar properties in the same or similar neighborhood, previous value and plus other factors.

The sale price is the price you are offering for the property, or the price a property is actually sold for.

The list price is the seller’s asking price, the price the seller is advertising the property for sale as. Sometimes sellers price their properties high, low and in between depending on what they hope to get, their negotiation strategy and what they actually think the property, or home is worth.

Question:   Do I need a home inspection when buying my Palm Coast home? 

Answer:   Yes. It is always a good idea to get a home inspection when buying a home. Buying a home “as is”  without an inspection is risky. It may not be visibly apparent to you that major repairs are necessary. Major repairs on a home you just bought can end up costing thousands of dollars you did not intend to spend. There can be plumbing, electrical and roof problems that you are not aware of that could be expensive to fix. It is always good to get a home inspection when buying a home.

Question:   How is the value of a Palm Coast  home determined? 

A:   There are several different ways used to determine the home value.
1) The first is an appraisal.  And appraisal is done by a professional appraisor. The professional appraisor makes an estimate of what he thinks your house is worth based on recent sales of what he considers comparable properties, with comparable location, comparable square footage and construction.An appraisal is a professional estimate of a property’s market value, based on recent sales of comparable properties, location, square footage and construction quality.  This is a service you pay for. The cost of this service varies according to the price of your home.

2) The second method of determing the value of your Palm Coast home is a Comparative Market Analyses. A comparitive market analyses of your Palm Coast home is considered an informal estimate. This informal estimate is usually made by a real estate agent and is based on similar sales of similar properties in your Palm Coast area.  Agents frequently offer free analyses to help win business.

3) The third method of determining the value of your home is a Comparable Sales Report. Comparable Sales Reports can be ordered for a fee from companies specializing in real estate datat.  If you do not wish to pay money and you want a rough idea of value you can also find information about comparable sales in your area on a variety of real estate internet sites.

Question: What are the benefits of seller financing in the current Palm Coast Real Estate market?

Answer: Seller financing can actually benefit the buyer and the seller, especially in today’s market. Sellers may get a tax break for financing, plus they may also be able to sell when other sellers are having difficulty by offering an alternative financing when conventional loans are hard to come by.

For the seller there are the same risks as any loan. Is this purchaser a good credit risk? Plus will the property hold or gain value enough to protect the seller from default while giving the buyer the oppourtunity to repay the loadn.

When you are considering self financing your Palm coast home you should run a full credit check on the borrower. You should also require full insurance on the property including, fire, flood, hurricane, wind etc.

Self financing can also be very beneficial to the Palm Coast buyer. Self financing can allow the buyer to buy a home, sometimes at better rates, when they otherwise might not be able to get financing. This is expecially true in today’s market.

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