Look for a Mortgage Broker. They work with a variety of lenders and each lender has a variety of Mortgage products. Your credit score is not the lowest I've seen succeed. Before you even begin your house search get pre-approved with a lender. Not just qualified but actually do the credit check and get pre-approved. Then with letter in hand contact a Realtor and you know exactly how much house you can afford. Find a Realtor that knows your selected area. They will know the inventory (what houses are available) and may also know of some that are not currently on the market but will be soon. Good luck.... more
I could not figure out how to reply to your questions. I did resubmit the offer at 140K. If they couter once again to 145K or so I will most likely accept. My agent stated she is seeing more and more banks putting caps on consessions and in one case the bank would not allow any,
I hope this time they don't take 4 months to give me an answer. The house is in disrepair and needs work, also since they took so long to accept the offer I will not qualify for homestead exemption, therefore raising my closing cost and my mortgage payment for the year.
James had the right answer but incase you have difficulty navigating it I have posted some info:
How is land valued?
Land is valued based on the market or comparative sales approach. The location of the land is a major factor in determining its value. For example, land located near the water is generally more valuable than land located inland. Sale properties are analyzed and compared. Units of comparison such as square feet, acreage and front foot are used to develop land value from the sale properties. These land values are then applied to non-sale properties based on their comparability.
Q: How Can I Estimate Future Taxes on a New Home?
A: Property taxes are determined by multiplying the property's taxable value by the millage rate set each year by the taxing authorities. The basic formula is:
Just/Market Value, Capped by the Save Our Homes Cap = Assessed Value
Assessed Value - Exemptions = Taxable Value
Taxable Value / 1,000 x Millage Rate = Gross taxes*
*On January 29, 2008, Florida voters approved an additional $25,000 homestead exemption to be applied to the value between $50,000 and $75,000. This additional exemption does not apply to school taxes. Therefore you must add the school taxes back in to the Gross Tax amount (approximately $200.00).
Because each year's property value stands alone, it is difficult to estimate taxes before annual property values and millage rates are established.
A property's value is not based solely on the specific purchase price of that property.
Value is a reflection of the market. When sale prices decline, so do values, and conversely when sale prices increase, so do values. An arms-length sale price is one component used, along with other market information, such as comparable sales, to help establish values.
To get a rough estimate of future taxes, you can multiply your purchase price by the current millage rate in the tax district where the property is located. (Please note that that foreclosure or tax deed sales are not considered "arms-length sales," and may not be given the weight of arms-length transactions in our sales comparison approach to value. If your purchase price is a foreclosure price, you may get a more accurate estimate of taxes by using the current Just/Market value of the property or an estimated purchase price if the property was on the open market.)
You can review the latest millage rates from the Tax Collector's website, or use 24.0 as a starting rate for estimating. Please keep in mind that annual millage rates and values may change as of January 1, so this method is for estimation purposes only. If you apply and qualify for Homestead Exemption, you can expect to save about $500 - $800 on your taxes the first year of the exemption. (If you qualify for Cap portability from a previous homesteaded property, you may save more in taxes.)
Often, real estate professionals will suggest that you use 85% of your purchase price for estimating taxes. While doing so will give you a ballpark number, be aware that, depending on the date of your sale in relation to the January 1 assessment date and the actions of other buyers in the market, your property value may differ significantly from your purchase price.
It is important to remember that when a property sells, the previous owner's exemptions and Save-Our-Homes Cap will be removed at the end of the calendar year, which can cause a dramatic increase in taxes. Do not rely on the current owner's tax amount when estimating your taxes. More important information on the removal of the Save-Our-Homes Cap can be found here.
If you have any questions, please call our information desk at 727-464-3207
Information located at www.pcpao.org