Preferred Properties of Texas

The Preferred way to buy & sell real estate for you

Thinking Of Buying A Vacation Home?

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Most people have vacation in their heads as the summer season begins. It is important to research all aspects of a potential purchase before you make an emotional decision.

It’s tempting to make big decisions after a vacation. Here are some things you need to remember before purchasing a vacation house.

The pros and cons of buying a vacation home

  • It is an investment and will increase in value, especially if it is located near popular areas such as the beach or mountains.
  • This property can make your vacation more enjoyable. It will save you money and let you stay longer than you would in a vacation rental. It will also allow you to invite your loved ones for some R&R.
  • Rent out the property to make money during your absence or rent it out to vacationers.

The cons of buying a vacation home

  • It is expensive to rent vacation properties. Additional mortgages, property taxes, insurance, and utilities will be required. These costs can reduce savings in other areas, such as retirement or college funds.
  • You must consider security and maintenance when you aren’t there. You can still monitor your property remotely using modern technology. But what if you are far from your primary residence?
  • Are you going to get bored of the view? It’s important to not make an emotional purchase when buying a vacation home. Are you sure you will want a change of scenery within a few years? Are you going to stop taking vacations abroad because of this investment?

Important Information to Consider Before You Buy a Vacation Property

While you have the pros and cons listed above, there are still some things that you need to know when purchasing a vacation home.

  1. Think about the things you want in a vacation home. What are you looking for? What do you see yourself doing with this property? What is the most frequent you will be able visit this property? These questions should be answered in detail. You can use these answers to help you find the right property.
  2. Understand the financial implications of vacation homes. Many buyers don’t realize the higher mortgage rates for a second home. The rules for financing a second residence are different from those for a primary residence.
  3. Do your research. Buying sight unseen is becoming more common in today’s real estate market. However, with a large investment like this, it’s important to know the area. Is the property close to shops and restaurants? These are important things to consider whether you will be renting or living in the home.

It’s an exciting idea to own a vacation home. But make sure you do your research so that you can find the right fit.

Ready to purchase? Contact Preferred Properties of Texas today!

 

Original blog: https://www.landhub.com/land-news/buying-a-vacation-home/?inf_contact_key=9a8e94f992f9eb8392bcff3da9fc2f74680f8914173f9191b1c0223e68310bb1

There Are Many Signs That The Home You’re Buying Will Have A High Resale Value

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Although it may seem premature to consider selling your home before you actually buy it, it is important to remember that a house can be an investment. In an ideal world, investments would make money and not lose it.

When house hunting, resale values should be considered. It shouldn’t be the only thing that you consider when buying a house. If you want 20 acres or lakefront access, should be your priority. You will be happier if you can predict the future appeal of the house you are buying and the surrounding area it is located. You might even be richer.

Buyers will save a lot of money by considering resale values. They won’t have to spend a lot on renovations and updates. A high resale price is not a guarantee.

Because of the effect of the local market and economic factors, it is difficult to ensure that a home will retain its full value.

When house hunting, pay attention to the surroundings. Is it easy to get around the neighborhood? Is it possible to walk to the grocery store without having to stop for snacks? Are there nearby restaurants for those evenings you just cannot?

You won’t get a high return on your home if it isn’t well-developed or has poor infrastructure.

A home purchase is a study of contrasts. You need a beautiful kitchen and good delivery options. Five bedrooms is the minimum requirement. You also need a decent hotel nearby. Your mother-in-law will not be staying with you. You want everything to be bustling, but not in your backyard.

There are buyers, and maybe even you, who love to live in the middle all the action. Be aware that your future buyers may not be as keen to buy the bungalow right next to your favorite watering hole.

Many people view return on investment as the sum of simple calculations: Will your home sell for less than what you paid?

The inspector will give you an overview of the health of your home. However, it is important to pay attention to the roof, foundation, HVAC system, windows and doors. You should also pay attention to electrical and plumbing. Any problem with one of these systems could lead to a costly repair that can take a chunk out of your paycheck.

 

To read more click on original blog: https://www.realtor.com/advice/buy/home-youre-buying-good-resale-value/

DIY Home Improvement Projects

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Home improvements that you do yourself can be a great way to feel good. You learn a new skill and can take pride in what you make.

Let’s face the facts: A DIY project that doesn’t generate income isn’t worth it. It must pay off when you sell your house.

To win the home-improvement return-on-investment game, you must adopt a less-is more approach.

It is a good idea to make small improvements that have a positive impact on buyers if you want to get a return on your DIY investment.

You don’t have to equip your home with the latest technology, but that doesn’t mean that you shouldn’t. If you are making a renovation that you love, you should do it. These home improvement projects will give you the opportunity to get creative and make a big impact on your budget.

Refreshing your kitchen cabinets. If the cabinets are in good shape, adding a fresh coat of paint or stain will dramatically transform the feel of the entire kitchen.

Creating curb appeal. Landscaping and gardening are the biggest ones that also are simple. Curb appeal has a significant impact on buyer’s purchasing decisions. Making a great first impression on home buyers is one of the quickest ways to boost your home’s value.

Giving your front door a new look. Want to boost your home’s curb appeal but don’t have a green thumb? Spruce up your front door instead. All it takes is a few coats of paint. A fresh color at the front door is a great way to enhance your home’s curb appeal for not a lot of money or time.

Adding more storage. Making an addition to your home might not be realistic. But smaller improvements, like adding a pantry in the kitchen, a new storage unit in the garage, or even closet organizers, add valuable storage space to your home and will pay off when you’re ready to sell.

Making small repairs. Spending a few hundred dollars on these small repairs will let the buyer know that this house has been cared for.

Making a great first impression on home buyers is one of the quickest ways to boost your home’s value.

When your ready to SELL contact Preferred Properties of Texas.

 

Original blog: https://www.realtor.com/advice/sell/diy-home-improvement-projects-with-serious-return-on-investment/

First Time Mortgage

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The process of buying your first home can be exciting and complicated. There are many things you need to know. The mortgage is one of the most important but also the most confusing item on this list.

We covered the basics of a mortgage in one of our articles about first-time homeownership. In this article we will go deeper into the subject and offer some tips and tricks to help you get through the process.

What criteria must I meet to get a first mortgage?

To be approved for a mortgage, homeowners must meet certain requirements. According to Investopedia, certain lenders offer Special loans and benefits for first time homebuyers

Many people are surprised to learn that there is a general definition for what a “first-time homebuyer” is. To be approved for loans for first-time homebuyers, you must meet these terms. The U.S. Department of Housing and Urban Development (HUD) has established the criteria.

  • Who hasn’t owned a primary residence for at least three years?
  • An individual who is the sole owner of a residence that is not permanently attached to a foundation
  • A single owner who has owned only with a spouse
  • An individual who only owns a property that is not compliant with building codes

There are many loan programs that can help you purchase a home if you fall into any of these categories.

Additional requirements must be met before a mortgage can be approved

Other than the requirements above, you will need to prove your income for at least two years, a down payment of 3.5% and a credit score below 620. There are many programs that will allow first-time buyers purchase without requiring them to meet these requirements.

What are the best mortgage options?

There are many mortgage options. The most popular type of home loan is the 30-year fixed mortgage. This is a traditional bank private loan. There are many other loan options. Check out the top-rated types to find one that suits your needs.

1) Federal Housing Administration loans (FHA): Insured Mortgages that require 3.5% down FHA loans are more competitive than conventional loans because they have lower interest rates, smaller downpayments, and lower closing costs.

2) U.S. 2) U.S. Department of Agriculture loans: This loan program for homebuyers is aimed at rural homes and comes with fixed payments.

3) U.S. U.S. Department of Veterans Affairs loans (VA): These loans are available for military personnel with no down-payment, including veterans and active-duty military personnel.

4) First-time homebuyer programs in Many states offer local lenders that are more suitable for the borrower’s location than national lenders. NerdWallet offers a comprehensive guide to first-time buyer programs for each state.

5) Home Renovation Loan: This loan is for homeowners who are looking to purchase and remodel their home.

6) Fannie Mae loans and Freddie Mac loans: Created in Congress, Fannie Mae loans and Freddie Mac loan are the backbone of our housing finance system. They support conventional loans with only 3% down.

Find the perfect property!

There are many options for mortgages for first-time buyers. It is important to research your options and consider your needs before you choose the right mortgage.

Contact Preferred Properties of Texas  

 

 

Original blog: https://www.landhub.com/land-news/mortgages-for-first-time-homeowners/#comment-13055

What Is A Home Renovation Loan? And Should You Consider One?

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A move-in-ready, picture-perfect home is the ideal home for many homebuyers. Others find a project home too tempting to pass up, especially if they are able to get a discounted price and put their own stamp on it. Problem with many “project houses” is the difficulty of funding the projects.

After you have exhausted your savings and paid the closing costs and your down payment, it may be impossible to tear down the wall between your living and kitchen rooms, replace the cabinets and install hardwood flooring. It could take years to finally make these improvements after you add in the cost of moving and new furniture.

A home renovation loan is a great option.

What is a loan for home renovation?

While they are becoming more popular, home renovation loans aren’t nearly as common as FHA loans for first time buyers. According to FHA Handbook, first-time homebuyers account for more than 75% of FHA home purchase,” stated the Mortgage Bankers Association.

They might be.

A home renovation loan can help with a few things:

1. This allows you to renovate your home using funds that are tied to your loan. 2. It gives buyers the opportunity to buy something more affordable if they can’t afford to move in or are losing out on homes.
3. It allows buyers to quickly build equity.

This is how it works. Renovation loans combine funds for home purchase and renovation. There are many options to choose from. These are the most well-known:

Fannie Mae HomeStyle Renovation loan – “The Fannie Mae HomeStyle Loan is a single-close loan which includes the cost for home repairs in the total loan amount,” stated ValuePenguin. This loan can be used for repairs required by an appraiser or to make changes that the homeowner wishes to make. It can also be used to fund both structural and cosmetic repairs.

Fannie Mae HomeStyle Renovation mortgages require a 5% downpayment and are open to investors. Interest.com stated that a down payment of less then 25% will require a credit score of 680 or higher. Your credit score must be 700 or higher if your debt-to income ratio is greater than 36%, but less than or equals 45%. The funds can be used to repair, renovate, or improve energy efficiency. The only condition is that the modifications must be permanent and add value to the property.

FHA203(k) -This option is similar to the HomeStyle loan but it is government-backed and requires lower credit scores. FHA loans will require you to pay mortgage insurance premiums if your down payment is less than 20%. This can increase your monthly payments. FHA loans also require borrowers to pay an upfront fee. This will increase your out-of-pocket expenses.

Two different FHA203(k) loan options are available:

* Full Loan – The Full Loan is for a primary residence that requires significant or serious repairs.
* Streamline Loan – This loan can be used to make smaller repairs, and has a maximum limit of $35,000.

FHA’s loan 203(k), requires a minimum credit score 500 and a downpayment of at least 10%. Credit scores of 580 or more allow a downpayment of 3.5%, said MarketWatch. These loans cannot be used for work the FHA considers luxurious, such as installing swimming pools.

 

Original blog: https://realtytimes.com/archives/item/1036944-what-is-a-home-renovation-loan-and-should-you-think-about-one?rtmpage=

Today’s Mortgage Rates

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It is important to understand the relationship between mortgage rate and your purchasing ability if you are looking to purchase a home. Your purchasing power is the ability to afford a home that you are able to purchase. The monthly payment you pay on your home will directly affect the mortgage rates. Rates rise and so will the monthly payment that you can lock in on your home loan. This could impact your purchasing power in the future, especially in a rising rate environment such as we are currently experiencing.

The average 30-year fixed mortgage rate today is higher than 5%. Experts predict that this will rise in the coming months. If you act now, you can get ahead of this increase in your purchasing power.

If you get a smaller home loan amount, your chances of exceeding your target payment range increase. You can use this motivation to buy a house now if you are ready to do so.

When searching for a house, it is important to remember your budget. Consider what might happen if rates go up by getting preapproved. . . You should know what this would mean for your monthly expenses and how comfortable that makes you feel. This will help you to adapt if rates go up.

It doesn’t matter what, it is best to collaborate with your real-estate advisor and trusted lender to develop a plan which takes rising mortgage rates into account. You can both look at your budget and compare it to current rates, and create a strategy that you are ready for changes.

Even small increases in mortgage rates could have a significant impact on your purchasing power. It’s important to have a solid plan if you are in the process of purchasing a home. To help you achieve your homeownership dream, partner with a trusted lender and real estate advisor.

 

 

Original article: https://www.keepingcurrentmatters.com/2022/05/09/how-todays-mortgage-rates-impact-your-home-purchase/

Preferred Properties of Texas

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