New Fla. laws go into effect July 1

 

TALLAHASSEE, Fla. – June 28, 2017 – Seven real estate laws drafted by the 2017 Florida Legislature and signed by Gov. Rick Scott go into effect Saturday, including a Florida Realtors priority: estoppel fee caps.

Laws effective July 1

• Cap on estoppel certificate fees – Sellers of properties who live in an HOA, condo association or co-op will have a limit on the amount they'll pay for an estoppel certificate, a document that informs a buyer if the seller is current with their dues and assessments. SB 398 (Sen. Passidomo, R-Naples) caps estoppel certificate fees at $250 for unit owners who are current in their assessments. Associations may charge an additional $100 for expedited estoppel certificates (delivered within three business days) and another $150 to owners who are delinquent in their assessments. The bill sets the price of estoppel certificates for multiple units owned by the same person and establishes a uniform, statewide format that ensures buyers and closing agents receive the appropriate information needed to close the real estate transaction. This bill also requires certificates to be valid for 30 days if delivered electronically or 35 days if delivered by mail.
• Florida's natural resources – More than $500 million is earmarked for Everglades restoration, beach renourishment and springs restoration. During the session, SB 10 (Sen. Bradley, R-Orange Park) served as the primary piece of policy legislation for Everglades restoration and establishes how the funding will be used for these projects. A key provision of SB 10 is the construction of a reservoir south of Lake Okeechobee that is designed to curb nutrient and salinity levels that are harmful to Florida's valuable natural resources.
• Condominium termination law – Legislation passed in 2015 to protect condo owners from being forced to sell – possibly at a loss – has several loopholes that real estate investors and bulk buyers exploited. SB 1520(Sen. Jack Latvala, R-Clearwater) fine-tunes the rules and modifies the process by reducing the percentage of owners required to reject the termination – from 10 percent to 5 percent.
• Condominium oversight – A South Florida news report of fraud in condo board elections, misappropriation of funds and rigged bids resulted in a Miami-Dade grand jury recommending changes to Florida's Condominium Act. HB 1237 (Rep. Jose Felix Diaz, R-Miami) provides several new condo oversight rules: (1) a condo association with more than 150 units must publish its financial reports and other documents (bylaws, articles of incorporation, condo rules) on a password-protected web page; (2) if an owner is denied documents and fraud is proven, persons responsible for fraudulent activity could face felony charges; (3) the term of a condo board director is limited to eight years, with some exceptions.
• Private flood insurance – As Realtors petition Congress to reauthorize the National Flood Insurance Program (NFIP), Florida lawmakers continue to work to attract private flood insurance capital to Florida. HB 813 (Rep. Larry Lee Jr., D-Fort Pierce) accomplishes two primary goals: (1) Rating flexibility for flood insurers is extended from 2019 until 2025 before they must follow guidelines similar to other lines of coverage – a way to encourage private insurers to enter the Florida market; (2) insurance agents can place flood policies with surplus lines insurers for two more years – until 2019 – before they must make a "diligent effort" to place the coverage with carriers regulated by the state. Diligent effort requires an agent to seek coverage and be rejected by at least three regulated carriers writing the same type of coverage.
• Drone regulation – HB 1027 (Clay Yarborough, R-Jacksonville) preempts the regulation of unmanned aircraft systems (drones) by local governments and grants oversight to the state of Florida. This will prevent drone operators from having to potentially comply with ordinances adopted by 400+ local governments.
• Pollution notification – SB 1018 (Sen. Denise Grimsley, R-Lake Placid) sets a threshold for when an operator is required to notify the Division of Emergency Management and the Department of Environmental Protection about a pollution event. It also provides a timeframe for the notification and defines what a reportable event means. This legislation is the result of pollution from a sinkhole at the Mosaic fertilizer facility in Mulberry, Fla., last summer. The Scott administration created an emergency rule that shifted the burden of pollution notification from the state to the owner of the property where the spill occurred. Florida Realtors was part of a coalition that successfully challenged the legal authority for this rule, creating an opportunity for the passage of this friendly legislation.

© 2017 Florida Realtors

New Fla. laws go into effect July 1

Self-driving cars will influence real estate demand

 

NEW YORK – June 26, 2017 – The development of self-driving cars has pitched a handful of cities into a new gold rush, a chance to be at the forefront of a new technology that will give rise to billion-dollar companies and thousands of new jobs.

The stakes are enormous. Last year, Goldman Sachs projected the market for advanced driver assistance systems and autonomous vehicles would grow from about $3 billion in 2015 to $96 billion in 2025 and $290 billion in 2035.

In some cities, automakers, suppliers and technology companies are clustering to test their self-driving vehicles. In others, governors and mayors are beckoning the industry by changing laws or touting other inducements.

Here are the nation's hot spots that have emerged as leaders in the race to self-driving cars:

Austin
Mayor Steve Adler likes to refer to Texas' capital city as "the Kitty Hawk of driverless cars," referencing the site of the Wright brothers' first flight in 1903. That's because Google's self-driving-car unit, Waymo, quietly chose Austin for the first fully autonomous test drive in 2015. Now Austin officials want more.

"We are trying to do everything we can to help promote and advance the future of this technology," Adler said. "We think it's the wave of the future. We think it is going to help our city."

The city and the state have put political differences aside to embrace partnerships and legislation designed to attract testing and investment. Austin is part of a statewide consortium that includes the University of Texas and Texas A&M University to create a network of proving grounds and testing areas. – Brent Snavely, Detroit Free Press

Boston
In October, Mayor Marty Walsh and Massachusetts Gov. Charlie Baker announced policies intended to put the city at the forefront.

Area technology companies are already at work. NuTonomy, a company that emerged from the Massachusetts Institute of Technology in 2013, is working with French automaker PSA Groupe on a self-driving car. – Brent Snavely, Detroit Free Press

Columbus, Ohio
Columbus leaders are tickled their city was chosen for $50 million in federal and private funding over seven other finalists. Key to Columbus' win was the buy-in of the city's major employers, who have come to view their home city's preparation for autonomous vehicles as part of the companies' preparation for profits in the next century.

It combined investments from top local companies, the state of Ohio and Ohio State University to pool more than $400million for autonomous and electric vehicles.

"There are a select group of cities that are going to be a part of the race. And Columbus is in the race, and it always will be," said Alex Fischer, CEO of the Columbus Partnership. – Chrissie Thompson, Cincinnati Enquirer

Detroit
A former industrial site 30 miles southwest of downtown Detroit where Rosie the Riveter worked during World War II is where the Motor City is planting one of its most significant flags in the battle to capture a significant role in the future of self-driving cars. It is slated to become Michigan's newest testing ground for autonomous and connected vehicles.

"What we're going to create is … a lifelike proving ground so we can really exercise these (driverless) vehicles," said John Maddox, CEO of The American Center for Mobility, which is expected to open late this year. "No one will have the full scope of what we will have." – Brent Snavely and Eric D. Lawrence, Detroit Free Press

Nashville
Nashville was chosen as one of 10 global cities for an autonomous-vehicles initiative launched last year by Bloomberg Philanthropies and the Aspen Institute. It certainly doesn't hurt that Nissan's U.S. headquarters is just outside the city and that the Japanese automaker was among the first to predict when it would field self-driving cars for sale – 2020.

The city's newly appointed transportation director, Erin Hafkenschiel, wants to see shared electric autonomous vehicles in Nashville that would operate similarly to Uber or Lyft. That would help alleviate congestion problems in tandem with major investments in mass transit, she said. The city has been upgrading its traffic signals to be compatible with autonomous vehicles. – Lizzy Alfs, The Tennessean

Reno
Northern Nevada has been at the forefront of self-driving-car testing since 2011, when it became the first state to adopt legislation authorizing the testing.

Google was lured to Nevada by the state's dry weather and its wide-open spaces when it ran into early resistance from California. Plus, Tesla's Gigafactory, a 5 million-square-foot factory that began pumping out batteries for its electric cars, is on Reno's outskirts.

Tesla has been aggressive in developing self-driving vehicles.

"Six years ago, we envisioned people buying self-driving cars," said Bruce Breslow, director of the Nevada Department of Business & Industry. "Now it looks like the first major push is going to be in fleets for self-driving cars, whether it be a taxicab fleet, a transportation network company like Uber or Lyft or even self-driving trucks." – Jason Hildalgo, Reno Gazette-Journal

Phoenix
Arizona Gov. Doug Ducey touts a hands-off regulatory environment in an effort to lure autonomous vehicle testing to his state, and the tactic has led to some high-profile wins. In December, Uber joined companies such as Waymo and Ford, which were already testing self-driving cars in the state. Uber promptly trucked its self-driving cars to Arizona in December following a registration dispute in California over not having the correct permits.

In April, Waymo announced it would begin taking applications from Phoenix-area residents who want to be among the hundreds of riders testing an expanded fleet of Chrysler Pacifica plug-in hybrid minivans outfitted with Waymo's myriad autonomous car sensors. – Ryan Randazzo, The Arizona Republic

Pittsburgh
With talented professionals in the autonomous-vehicle space at Carnegie Mellon University, Pennsylvania's second-largest city emerged as an attractive base for the world's leading self-driving-car companies. Uber, which recruited many of CMU's self-driving-car experts, has located a major R&D facility in Pittsburgh.

In addition, Uber made a splash in September when it became the first major American company to offer urban rides to consumers in partially self-driving vehicles, choosing the confusing, pedestrian-filled, bridge-laden streets of Pittsburgh for the pilot program.

But Uber's relationship with the city has soured. Mayor Bill Peduto has publicly assailed Uber for refusing to back the city's application for a federal cities innovation grant and for making a stingy contribution to a philanthropic initiative.

That spat aside, Uber has shown no signs of easing off the accelerator in Pennsylvania. As a result, competitors are fast on its heels. In February, Ford announced it would invest $1 billion over five years in Pittsburgh-based autonomous-car start-up Argo AI. – Nathan Bomey, USA TODAY

Silicon Valley
With Silicon Valley at the heart of developing self-driving cars, California has become a top testing ground. Google has been letting its high-tech, self-driving cars wheel around the area south of San Francisco for several years. Now, about 30 companies – from traditional automakers to upstart tech companies – have taken out the paperwork to test self-driving cars in the Golden State.

"Silicon Valley is the right place to be doing a lot of this work," says Greg Larson, chief of the Office of Traffic Operation Research for the California DOT. Instead of building a car with a computer, "this is building a computer and putting a car around it." – Marco della Cava, USA TODAY

Copyright 2017, USATODAY.com, USA TODAY

Self-driving cars will influence real estate demand

12M consumers may get July credit-score boost

 

WASHINGTON – June 22, 2017 – The three largest credit-reporting agencies will begin cleaning up credit reports in July, which could help lift the credit scores of about 12 million consumers.

In a survey by the Federal Trade Commission (FTC), one in four people say they spot errors in their credit reports, most commonly concerning tax liens and civil judgments.

Up to half of tax lien data on a credit report is inaccurate or incomplete, says Eric J. Ellman, senior vice president for public policy and legal affairs at the Consumer Data Industry Association. Civil judgments – which means a court has ruled a person owes money – also tend to be ripe with errors or omissions on a credit report, experts say. Consumers can dispute the errors, but the process can be cumbersome.

Beginning July 1, Equifax, Experian and TransUnion will automatically exclude tax lien and civil judgment records from credit reports if they are missing a person's name, address, Social Security number or date of birth. Claims that do contain this key information, however, will remain on credit reports.

Six percent of Americans with a credit score – or 12 million – likely will see their score go up once the new policy takes effect. About 11 million could see an increase of about 20 points.

"A lot of people who have liens or judgments against them already have crummy credit to begin with," says Keith Gumbinger, vice president at HSH.com, a mortgage resource website. "A 10- or 20-point increase isn't going to make a difference for a lot of borrowers."

But borrowers who are on the cusp of qualifying for a home loan may stand to benefit the most. For example, Gumbinger says, a would-be buyer with a credit score of 570 who receives a 10-point uptick may be able to qualify for an FHA loan. FHA loans require a minimum 580 credit score.

Source: "Have a Bad Credit Score? It Could Soon Get Better – But Is It Enough to Buy a Home?" realtor.com® (June 22, 2017)

© Copyright 2017 INFORMATION INC., Bethesda, MD (301) 215-4688

12M consumers may get July credit-score boost

Citizens customers could be paying more in 2018

 

MAITLAND, Fla. (AP) – June 20, 2017 – Florida's state-created property insurer is probably going to raise its rates again.

The board that oversees Citizens Property Insurance will vote Tuesday on a proposal to raise homeowner rates an average 5.3 percent and commercial accounts by an 8.4 percent average. State regulators must approve the hike before it can take effect in February.

Citizens has more than 451,000 customers, many of them living near the coast or in south Florida.

Florida has been spared from major hurricanes in recent years, but Citizens officials contend rate hikes are needed to deal with claims associated with water losses not associated with storms.

The proposed hikes vary by the type of policy purchased and location. South Florida homeowners could be paying more next year, while residents in other coastal counties could be paying less.

 Copyright © 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  

Citizens customers could be paying more in 2018

Gov. Scott signs renewable energy bill

 

TALLAHASSEE, Fla. – June 19, 2017 – Gov. Rick Scott signed 13 bills late Friday, including a measure supported by Florida Realtors that will carry out a constitutional amendment aimed at boosting the use of solar energy in the state.

Lawmakers passed the renewable-energy bill (SB 90) after nearly 73 percent of voters approved a constitutional amendment during last August's primary elections.

The amendment called for extending a renewable-energy tax break to commercial and industrial properties and making renewable-energy equipment exempt from state tangible personal property taxes. The amendment, which had widespread support from business and environmental groups, needed lawmakers to approve a bill to carry it out.

Sen. Jeff Brandes, a St. Petersburg Republican who sponsored the bill during this spring's legislative session, said in a prepared statement that Scott "answered the will of the voters" in signing the measure Friday.

"I look forward to continuing our work to diversify Florida's energy economy, so we can live up to our title as the Sunshine State and lead in renewable energy," Brandes said.

Source: News Service of Florida, Jim Saunders  

Gov. Scott signs renewable energy bill

The zero-down loan? It’s making a comeback

 

NEW YORK – June 16, 2017 – Buyers may soon be able to bring less to closing. They were blamed for precipitating the housing crisis years ago, but major lenders are giving no- and low-downpayment loans another shot.

Several major lenders are reportedly offering loans with just 1 percent down. Navy Federal, the nation's largest credit union, offers its members zero-down mortgages in amounts up to $1 million. NASA Federal Credit Union markets zero-down mortgages as well.

Quicken Loans, the third highest volume lender, offers 1 percent downpayment options, as does United Wholesale Mortgage. And the Department of Veterans Affairs has offered zero-down loans to eligible borrowers for many years.

Also, Movement Mortgage, a large national lender, has introduced a financing option that provides eligible first-time buyers with a non-repayable grant of up to 3 percent. As such, applicants can qualify for a 97 percent loan-to-value ratio conventional mortgage, which is basically zero from the buyers and 3 percent from Movement. For example, on a $300,000 home purchase, a borrower could invest zero personal funds with Movement providing $9,000 down. The loan also allows sellers to contribute toward the buyer's closing costs.

So far, the delinquency rates on these low- to zero-down payment loans have been minimal, according to lenders. Quicken Loans says its 1 percent down loans have a delinquency rate of less than one-quarter of 1 percent. United Wholesale Mortgages told The Washington Post that it has had zero delinquencies from the borrowers on its 1-percent down loan since debuting it last summer.

For Movement's new loan product, the lender will originate the loans and then sell them to Fannie Mae, which remains under federal conservatorship. Fannie officials released the following a statement:

"(We're) committed to working with our customers to increase affordable, sustainable lending to creditworthy borrowers. We continue to work with a number of lenders to launch (test programs) that require 97 percent loan-to-value ratios for all loans we acquire." They add that there "is no commitment beyond the pilots," which are "focused on reaching more low- to-moderate income borrowers through responsible yet creative solutions."

During the housing crisis, zero-down loans were among the biggest losses for lenders, investors and borrowers. However, housing experts say the latest versions are different from years ago. Applicants must now demonstrate an ability to repay what's owed. They also must have stellar credit histories and scores, and lenders require a lot more documentation to prove borrowers are in good standing.

Also, many of the programs are charging higher interest rates. For example, Movement's rate for its zero-down payment option in mid-June was 4.5 percent to 4.625 percent, compared with 4 percent for its standard fixed-rate mortgages.

Some critics say that the borrowers who really could benefit from such options aren't able to qualify for them. Paul Skeens, president of Colonial Mortgage Corp. in Waldorf, Md., told The Washington Post that "it seems like people without excellent credit scores and three months of [bank] reserves don't qualify."

Source: "No Down Payment? No Problem, Say Lenders Eager to Finance Home Purchases," The Washington Post (June 14, 2017)

© Copyright 2017 INFORMATION INC., Bethesda, MD (301) 215-4688  

The zero-down loan? It’s making a comeback

The Craigslist scam: Still around, still a problem

 

How to use Craigslist

Advertise listings on Craigslist? It’s useful tool when used legally and ethically, providing you follow IDX rules per MLS guidelines and abide by the Realtor Code of Ethics. For more, watch Florida Realtors VP Margy Grant’s Take 5 video: Legal Do’s and Don’ts on Craigslist.

ST. AUGUSTINE, Fla. – June 15, 2017 – An apparent scam that has been making the rounds on Craigslist recently could catch people who are looking for a cheap place to rent, but officials and industry professionals say there are plenty of red flags that should warn them off.

"It's just this crazy scam where people take our listings from online and use our photos," Endless Summer Realty broker Robin Arnold said.

A property he has listed was a subject in one of two email conversations provided to the St. Augustine Record in which a potential renter responded to an ad on Craigslist and got a suspicious response. In both cases, the homes advertised on the popular listing site turned out to be for sale and the emailed answer to the initial inquiry was written by someone posing as the legal owner with a story about why he or she was out of town and would have to conduct any transaction over email.

The ads, though, contained pictures and well-written descriptions of the homes.

Noah Bailey, an agent with RE/MAX who was the listing agent on the other house, said those things are pretty easy to get from online listings.

"They basically just take your verbiage, take your pictures," he said. "It's something that's pretty common."

Both men said they were aware that their listings had become subjects of the scam and had either reported it to the owner of the property or to Craigslist.

"Typically, we are the first person to get the heads up," Bailey said.

Arnold said this is the only one of his properties that has been used in the scam recently, though he recalled a rash of them a couple of years back. Bailey said his listings seem to get used about two to three times a year.

This month, Arnold had received about 25 calls on his current listing from people interested in renting the home.

"They'll pull it up and go do a drive-by and see my sign in the yard," he said, adding that he lets the callers know the ad was a potential scam and tries to educate them about what to watch for.

Though the email chains provided to The Record never progressed to discussion about an exchange of money, Bailey said the scammer will likely promise to mail keys in exchange for a wired deposit.

The emailed answers both contained the legal property owners' names, though they appeared to be copied and pasted from online tax records because they were inserted into the email, by way of introduction, in all capital letters with the last names appearing first.

Both men said things like that are among the many warning signs on the path to an exchange of money that should scare people off.

The to-good-to-to-be-true, advertised rates are too, they said. In both cases, the homes listed had three bedrooms and were in desirable neighborhoods and carried advertised rates of under $1,000, with one as low as $750.

Bailey said he wasn't aware of anyone actually falling for the scam and that the people he interacts with typically catch on once they realize the house is actually for sale when they see his sign.

"Most people, I think, kind of wise up when they see something like that," he said.

But St. Johns County Sheriff's Office spokesman Cmdr. Chuck Mulligan said some people have fallen for similar ads. Though he had no recent example of long-term rental scams, he said he could recall about three or four instances in the past two years where someone lost money after paying a deposit or advance rent when responding to a fake vacation rental ad. Those homes are typically advertised for shorter stays for people coming from out of town.

"And then they get here and find out that the homeowners are there and the homeowners are not the ones that advertised the property," Mulligan said.

Another variation that was common, he said, were scams involving foreclosed-on properties during the recession.

Mulligan said people that are looking for rentals on Craigslist or any e-commerce site should always look for warning signs and take steps to protect themselves. First, he said, Florida has very open public records laws, and it is easy for people to determine who the legal property owner is.

"They should do some of that research," he said, and suggested they search for the address online and see if it is listed for sale.

Mulligan also warned that any transaction in which the person asks that money be wired via Western Union or any other service, or asks for payments in an unusual form, like a gift card, should also raise suspicions.

Another warning sign can be the tone of the email.

Most of the scams, Mulligan said, originate from outside the country and the person composing the response is usually not a native English speaker, and they often give themselves away with awkward word usage.

If any of those things pop up throughout the course of a transaction, Mulligan said, people should think twice before they part with their money. "They should pause and then do some more research to ensure they are actually dealing with the homeowner," he said.

Though Craigslist does provide a way for users to flag ads as spam or "prohibited" no one at the organization responded to an email requesting information about how that process works and how ads get taken down.

Copyright © 2017, The St. Augustine Record, Jared Keever. All rights reserved.  

The Craigslist scam: Still around, still a problem

6 common misconceptions about hurricane season

 

BILOXI, Miss. – June 13, 2017 – If you've seen one hurricane, you've seen them all, right? Wrong.

Even the most seasoned Gulf Coast residents have something to learn about the amazingly complex and destructive storms that are hurricanes.

That's why we asked an expert meteorologist to share his knowledge. Rocco Calaci is a partner and chief meteorologist at a weather technology company called MetLoop. He's been studying the weather for 46 years now, and his daily email on Gulf Coast weather has thousands of readers.

Here's six common misconceptions he said people have about hurricanes:

1. Hurricane season is from June 1 to Nov. 30.

Yes and no. Unfortunately, global weather patterns largely ignore our detailed way of tracking time. For example, 2017 saw its first named storm -- Tropical Storm Arlene -- in April. Many people on the Gulf Coast associate August with peak hurricane season, and that's mostly accurate. But it may surprise you to know that, historically, the most active day for hurricane activity is Sept. 12.

Calaci said for the Gulf Coast, the peak is generally from mid-August to mid-September, when the Gulf of Mexico waters are nice and warm and provide fuel for passing storms.

There are a frankly mind-numbing amount of factors that can affect where a hurricane goes, but Calaci says he generally keeps an eye on a few throughout the season.

One is something called the Intertropical Convergence Zone, which he described as a shifting belt around the globe where winds in the Southern Hemisphere meet winds in the Northern Hemisphere. Usually around late July and early August, the zone moves north far enough to create an ideal path for hurricanes to spin off the coast of Africa toward the United States. Once it gets above 11 degrees latitude, it sends those storms straight on over.

Another factor Calaci watches is the dust from the Sahara Desert. Yes, you read that right. Weather patterns actually carry the dust -- known as the Saharan Air Layer -- over the Atlantic Ocean to parts of the U.S. and South America. Fun fact: The dust actually fertilizes the Amazon rain forest and scientists credit this for the region's amazing biodiversity. However, the dry air also acts as a barrier to hurricanes trying to cross the Atlantic.

2. El Nino is a major factor.

Again, yes and no. Calaci takes issue with El Nino, saying there are actually three prevailing definitions. He said it's like describing something as "tall." It means different things to different people.

"I don't believe in El Nino affecting hurricanes," he said.

Also, predictions so far vary wildly for how El Nino will behave this year: when it will occur and how strong it will be.

However, Calaci did say generally El Nino brings stronger wind shear, which can prevent hurricanes from forming.

3. Global warming isn't a major factor.

The U.S. and the Gulf of Mexico waters have been seeing months of record heat over the past year, according to the National Oceanic and Atmospheric Administration. Why that's happening is a topic of much debate, but the fact that it's happening is not.

Heat is fuel for hurricanes.

"The Gulf is getting warmer at an earlier date each year," he said. "That means there's more potential for stronger hurricanes."

4. All hurricanes form off the Coast of Africa.

Actually, hurricanes are more than capable of forming anywhere, including in the Gulf and the Caribbean Sea. An example is Hurricane Otto in November last year, which formed in the western Caribbean.

These kinds of storms are a unique threat because of how quickly they form and how close they already are to land. Combine that with the aforementioned hotter-than-usual Gulf waters, and we have a dangerous combination.

They also don't follow the peak season rules, as the ITCZ zone and Saharan dust aren't as much of an issue. So be on the lookout for tropical systems that pop up in May, June and July.

4. Tornadoes only happen in the outer bands of a hurricane.

No. Tornadoes can occur anywhere in a hurricane if the conditions are right.

5. Microbursts only happen in thunderstorms.

Microbursts are sudden, powerful drafts of air that drop down and wreak havoc. Calaci said there were actually a lot of them during Hurricane Katrina.

"A hurricane is just a rotating area of thunderstorms," he said, so microbursts can occur at any time during one.

6. Preparation is for newbies.

"People don't prepare," he said. "People don't think of what they should be doing now when they have the opportunity."

Quick question for homeowners: Do you know exactly how much your house is insured for, and proof of what you own? You should.

Calaci said people who bought a house a decade or more ago may not have updated their insurance policy to reflect its current value. Mississippi Coast residents found that out the hard way after Katrina.

He said to check with your insurance company to see what you need to prove what you own, such as photos of your property.

"If a hurricane hits and you lose everything, you've got nothing to start with."

And check the policy. Do you have flood insurance? Wind insurance?

He said insurance companies and local emergency management agencies both have great information on how to prepare. And preparing is always preferable to the alternative.

Copyright © 2017 The Sun Herald (Biloxi, Miss.), Lauren Walck. Distributed by Tribune Content Agency, LLC.

6 common misconceptions about hurricane season

25 tips for first-time home buyers

GROVE, Okla.– June 9, 2017 – Buying a home can be a nerve-racking experience, especially if you're a first-time home buyer. Not only is it probably the biggest purchase of your life, but the process is complicated and fraught with unfamiliar lingo and surprise expenses.

To make the first-time home buying journey a little less stressful, NerdWallet has compiled these 25 tips to help you navigate the process more smoothly and save money.

1. Start saving for a downpayment early

It's common to put 20% down, but many lenders now permit much less, and first-time home buyer programs allow as little as 3% down. But putting down less than 20% may mean higher costs and paying for private mortgage insurance, and even a small downpayment can still be hefty. For example, a 5% downpayment on a $200,000 home is $10,000. Play around with a downpayment calculator to help you land on a goal amount. Some tips for saving for a downpayment include setting aside tax refunds and work bonuses, setting up an automatic savings plan and using an app to track your progress.

2. Check your credit

When you're taking out a mortgage loan, your credit will be one of the key factors in whether you're approved, and it will help determine your interest rate and possibly the loan terms. So check your credit before you begin the home buying process. Dispute any errors that could be dragging down your credit score and look for opportunities to improve your credit, such as making a dent in any outstanding debts.

3. Pause any new credit activity

Any time you open a new credit account, whether to take out an auto loan or get a new credit card, the lender runs a hard inquiry, which can temporarily ding your credit score. If you're applying for a mortgage soon, avoid opening new credit accounts to keep your score from dipping.

4. Determine how much home you can afford

Before you start looking for your dream home, you need to know what's actually within your price range. Use a home affordability calculator to determine how much you can safely afford to spend.

5. Explore your downpayment options

Struggling to come up with enough money for a downpayment? First-time home buyer programs are plentiful, including federal mortgage programs with Fannie Mae and Freddie Mac that allow loans with only 3% down, plus Federal Housing Administration loans and Veterans Affairs loans. You could also try crowdfunding or asking if family members are willing to pitch in with a gift.

6. Research state and local assistance programs

In addition to federal programs, many states offer assistance programs for first-time home buyers with perks such as tax credits, low down payment loans and interest free loans up to a certain amount. Your county or municipality may also have first-time home buyer programs.

7. Budget for closing costs

In addition to saving for a downpayment, you'll need to budget for the money required to close your mortgage, which can be significant. Closing costs generally run between 2% and 5% of your loan amount. You can shop around and compare prices for certain closing expenses, such as homeowner's insurance, home inspections and title searches. You can also defray costs by asking the seller to pay for a portion of your closing costs or negotiating your real estate agent's commission.

8. Set aside more money for after move-in

Sorry, that's not all you need to save up for before home shopping. Once you've saved for your downpayment and budgeted for closing costs, you should also set aside a buffer to pay for what will go inside the house. This includes furnishings, appliances, rugs, updated fixtures, new paint and any other touches you'll want to have when you move in.

9. Consider what type of property to buy

You may assume you'll buy a single-family home, and that could be ideal if you want a large lot or a lot of room. But if you're willing to sacrifice space for less maintenance and extra amenities, and you don't mind paying a homeowners association fee, a condo or townhome could be a better fit.

10. Research mortgage options

Is a 30-year, fixed rate mortgage a given, or is another loan type right for you? If you can afford larger monthly payments, you can get a lower interest rate with a 20-year or 15-year fixed loan. Or you may prefer an adjustable-rate mortgage, which is riskier but guarantees a low interest rate for the first few years of your mortgage.

11. Compare mortgage rates

Many homebuyers get a rate quote from only one lender, but this often leaves money on the table. Comparing mortgage rates from at least three lenders can save you more than $3,500 over the first five years of your loan, according to the Consumer Financial Protection Bureau. Get at least three quotes and compare both rates and fees.

12. Decide if paying points makes sense

Lenders often allow you to buy discount points, which means prepaying interest upfront to secure a lower interest rate. There may also be an option for negative points, in which the lender pays some of your closing costs in exchange for a higher interest rate. How long you plan to stay in the house is one of the key factors in whether buying points makes sense. You'll need to do some calculations or speak to a mortgage broker or loan officer to help you decide if buying points is worth it for you.

13. Get a preapproval letter

You can get prequalified, which simply gives you an estimate of how much a lender may be willing to lend based on your income and debts. But as you get closer to buying a home, it's smart to get a preapproval, where the lender thoroughly examines your finances and confirms in writing how much it's willing to lend you and at what terms. Having a preapproval letter in hand makes you look much more serious to a seller and can give you an upper hand over buyers who haven't taken this step.

14. Hire the right real estate agent

You'll be working closely with your real estate agent, so it's essential that you find someone you get along with well. The right buyer's agent should be highly skilled, motivated and knowledgeable about the area.

15. Stay under your preapproval limit

As your agent shows you homes, look for properties that cost a little less than the amount you were approved for. While you can technically afford that amount, it's the ceiling " and it doesn't account for a broken washer or dryer or any other expenses that arise during homeownership, especially right after you buy. Rather than maxing out that amount, set a lower purchase budget to leave yourself wiggle room for unexpected costs.

16. Pick the right neighborhood

Finding the right neighborhood is just as important as locating the right house. Research the schools, even if you don't have kids, since that affects a home's value. Look at local safety and crime statistics. How close are the nearest hospital, pharmacy, grocery store and other amenities you'll use? Also, drive through the neighborhood on various days and at different times to check out traffic, noise and activity levels.

17. Make the most of an open house

Use this as another opportunity to scope out the neighborhood and your potential neighbors. During the open house, pay close attention to the home's overall condition and look for any smells, stains or items in disrepair. Ask a lot of questions about the home, such as when it was built, when items were last replaced and how old key systems like the air conditioning and the heating are. If several other potential buyers are viewing the home at the same time as you, don't hesitate to schedule a second or third visit to get a closer look and ask more questions.

18. Buy a home for tomorrow

It's easy to look at properties that meet your current needs. But if you plan to start or expand your family, it may be preferable to buy a larger home you can grow into. Consider your future needs and wants and whether this home will suit them.

19. Let little things go

When you're looking at a home, it's easy to get caught up on superficial details like paint color, fixtures and carpets. These features are easy to change once the home is yours, so don't let those little details get in the way.

20. Be prepared to compromise

It's rare to find a house that's perfect in every way, so think carefully about what you're willing to compromise on and what you're not. Perhaps no walk-in closet in the master bedroom is a deal breaker, but an outdated guest bathroom will be tolerable until you can renovate it.

21. Make a strong offer

Your real estate agent can help you with this, but consider how much under or over the asking price you're willing to pay to obtain your dream home. If there are multiple bids, think about tactics to win over the seller, such as a personalized letter.

22. Avoid a bidding war that blows your budget

In a competitive real estate market with limited inventory, it's likely you'll bidding on houses that get multiple offers. When you find a home you love, it's tempting to make a high-priced offer that's sure to win. But don't let your emotions take over; stick to your purchase budget to avoid getting stuck with a mortgage payment you can't afford.

23. Negotiate

A lot can be up for negotiation in the home buying process, which can result in major savings. Are there any major repairs you can get the seller to cover, either by fully handling them or by giving you a credit adjustment at closing? Is the seller willing to pay for any of the closing costs? If you're in a buyer's market, you may find the seller will bargain with you to get the house off the market.

24. Buy homeowners insurance

Before you close on your new house, your lender will require you to buy homeowners insurance. Shop around and compare rates to find the best price. Look closely at what's covered in the policies; going with a less expensive policy usually means fewer protections and more out-of-pocket expenses if you file a claim. Be aware that your insurer can drop your property if it thinks the home's condition isn't up to snuff, so you may have to be prepared to find a new policy quickly if it sends someone out to look at the property and isn't happy with what it finds. Also, flood damage isn't covered by homeowners insurance, so if your new home is in a flood-prone area, you may want to buy separate flood insurance.

25. Know the limits of a home inspection

Once your offer is accepted, you'll pay for a home inspection to examine the property's condition inside and out. But not all inspections test for things like radon, mold or pests, so be sure you know what's included. Make sure the inspector can access every part of the home, such as the roof and any crawl spaces. Attend the inspection and pay close attention. Don't be afraid to ask your inspector to take a closer look at something and ask questions. No inspector will answer the question, 'Should I buy this house?', so you'll have to make this decision after reviewing the reports and seeing what the seller is willing to fix.

© 2017 The Grove Sun, Emily Starbuck Crone, a staff writer at NerdWallet, a personal finance website.

25 tips for first-time home buyers