Real Estate Advice Archives | Preferred Properties of Texas Home & Ranch Properties Stephenville

Have You Outgrown Your Home?

January 15, 2021 by chorton Leave a Comment

It might appear difficult to imagine the house you’re in now — if it is your starter house or one you have fallen in love with — may not be your forever home.

Many needs have shifted in 2020, and it is fine to acknowledge if your home no more matches the way you live. If you are working remotely, easing virtual college, attempting to exercise in the home, or just spending additional time in your four walls, then you could be bursting at the seams in your existing property.

As stock has diminished and need has increased, prices are driven up. This is excellent news if you have a house and you are considering selling. The equity on your house has probably risen as costs have increased.

If you think you’ve outgrown your current home, reach out to one of our agents to discuss local market conditions and determine if now is the best time for you to sell.

#stephenvillehomesforsale #realestate #homesforsale

How And When To Apply For Home Loans In 2021

January 7, 2021 by chorton Leave a Comment

Pre-qualifying for a mortgage loans is frequently the first step towards owning a home.

Pay Attention to Falling Rates

Among the best ways to figure out when to use for home loans is to keep tabs on the rates of interest determined by the Federal Reserve. These interest rates set the floor on financing for lenders, so borrowing if there is a downward trend is almost always a good idea. If the trend has had the rates for a little, though, you might want to move faster–this might be a sign that the rates are going to return.

Look at Loan Types

Another good way to determine how to apply for a loan is to examine the sorts of loans that are out there. If you’re a first-time homebuyer who satisfies certain credit and income qualifications, then you can look at an FHA loan to get a lower deposit. Other borrowers might be better served by VA loans as well as traditional loans. Doing some research will allow you to figure out for which programs you should apply and what kind of documentation you will want going forward.

Look over Your Timetable

Among the most important approaches to figure out when you should apply for a loan would be to consider your schedule. It’s typically a good idea to start using to acquire pre-approved for financing round the exact same time you get serious about looking at houses, though there isn’t a wrong time to begin preparing your paperwork. Be aware that becoming pre-approved too early may be a problem as you may need to resubmit paperwork, but implementing beforehand is usually suggested.

Speak to a Lender

If you are ready to seriously start considering loans, then you’ll definitely need to talk to a lender. While you can really submit much of your pre-approval paperwork on the internet, you’ll eventually need to talk to a lender to go over the products that work best for you personally. Attempt to get estimates from many unique lenders to obtain an interest rate and loan product that works to suit your needs.

The ideal time to apply for financing entails looking at speeds, but it also requires knowing when you are seeking to buy. When you are ready, start searching for a fantastic loan product that’s going to satisfy your financial needs. Finding a mortgage may sound scary, but getting through the practice is easier today than it has ever been.

Preferred Properties of Texas is here for all your Real Estate Needs, so when your ready to buy a home give a call.

Homes for sale in Stephenville, Texas.

Documents Needed For Mortgage Pre-Approval

December 22, 2020 by chorton Leave a Comment

Are you aware the documents needed to get approved for a mortgage?

While pre-qualifying can seem attractive since it requires so much less work, pre-approval is far more inclined to assist you create a successful offer on a house.

In other words, there’s a difference between pre-qualification and pre-approval.

Pre-approval shows that you’re very likely to acquire a mortgage while pre-qualification only indicates there is a possibility that you might get a mortgage.

If you’re feeling a bit daunted by the amount of paperwork you have to collect and complete to get pre-approval, you’re not alone. Most home loans need extensive paperwork. It is going to take you a bit of time and attempt to get everything prepared and to complete the application procedure.

One serious bonus to going through the pre-approval process, however, is you will be well-prepared to your true mortgage application process. The majority of everything you are doing in pre-approval will use to the official application.

As soon as you have picked a lender, this is precisely what they’ll be looking for to complete the application and pre-approval.

Everything You Need to Give The Bank For a Conventional Loan
A conventional loan is a standard loan that does not involve a unique program like the FHA or USDA. The traditional mortgage is among the most popular loan products on earth. If you do not qualify for these special loan programs and you are a worker getting W-2s each year, you might submit an application for a traditional loan.

One of the few downsides of the majority of conventional loans is that you will pay private mortgage insurance if you place less than twenty percent down.

The mortgage documents You’ll Need for conventional pre-approval include:

Identification (among which you need to present in person)
A valid Driver’s permit
A Passport
An Official state or national ID
Income
30 days of pay stubs
Your previous two national tax yields
Your final two W-2s
Evidence of additional income–such as alimony or social safety
Finance Accounts
Bank statements for the past two statement periods
retirement and investment account statements
Property you have
Document revealing the settlement of your previous property sale should you have one
Additional documents
Gift letter out of any family member helping with a down payment
Landlord contact info for the past two years
Letter of explanation concerning issues like any other problems on your own credit report
Divorce-related documents if applicable

What You Want to Provide The Lender For an FHA Loan
FHA loans are one of the most popular kinds of loan products on the market. Among the most crucial advantages of an FHA loan is that the low 3.5 percent deposit.

Not every property qualifies for an FHA loan, particularly when you’re purchasing a condominium. It’s essential to check if the complex you are purchasing at has been FHA approved. As stated in this reference, there are also condition prerequisites for a home to qualify.

Mortgage records required for a Federal Housing Administration loan include:

Identification (among which You Have to present in person)
A valid driver’s license
An passport
A formal state or federal ID
Income
30 days of pay stubs
Your previous two federal tax yields
Your final two W-2s or previous two 1099s
Proof of additional income–such as alimony or social safety
Finance Accounts
Bank statements for the past two statement periods
Investment and retirement account statements
land you own
Closing disclosure for buy, or HUD-1 if the sale occurred before October 3, 2015
Additional documents
Gift letter out of any family helping with a loan payment
Landlord contact information for the last two decades
Letter of explanation concerning issues like collections along with other problems on your credit report
Divorce-related documents if applicable

What’s Needed by The Bank For an Investment Property Buy
If You’re Purchasing a home that you intend to rent like a multi-family, the documents that you require for pre-approval will include:

Identification (one of which You Have to present in person)
A valid driver’s license
A passport
A formal state or national ID
Income
30 days of pay stubs
Your past two national tax returns
Your final two W-2s or previous two 1099s
Proof of additional income–for example cheque or social security
Finance Accounts
Bank statements for the last two statement periods
Investment and retirement accounts statements
land you have
Settlement statement for recent home sales
Present statements for mortgages you have on other properties
Proof of insurance for all your possessions
Present leases for your entire leasing properties
Additional Documents
Donation letter out of any family helping with payment
Landlord contact information for the past two years
Letter of explanation regarding issues like collections and other problems on your own credit report
Divorce-related documents if appropriate

Self-Employed or Business-Owner Mortgage Document Requirements
If You’re self indulgent or own your own business, You’ll Need the next mortgage documents for pre-approval:

Last 2 Decades of 1099s
Property you own
Settlement statement from the previous home selling
Additional records
Gift letter from any household helping with a down payment
Landlord contact info for the past two years
Letter of explanation concerning issues like collections and other issues on your credit report
Divorce-related documents if appropriate
Current business license
Balance sheet if appropriate
Gain and loss statements for the last two weeks

What You Need to give the lender to get a VA Mortgage
A veteran’s loan is a fantastic mortgage product that’s for those who are serving or have served in the army. Among the most significant advantages of a VA mortgage is the fact you do not require a down payment. It is among those few no deposit products still available.

The Veteran’s Administration will Request the next mortgage records for pre-approval:

Identification (one of which you have to present in person)
A valid driver’s permit
A passport
A formal state or national ID
Income
30 days of pay stubs
Your past two national tax returns
Your last two W-2s or preceding 2 1099s
Proof of additional income–such as alimony or social safety
Finance Accounts
Bank statements for the previous two announcement spans
Investment and retirement account statements
land you have
Settlement announcement from the previous residence sale
Additional records
Certificate of Qualification from the Veteran’s Administration, which might need some or all of these records:
Type DD-214, certificate of discharge or release
Statement of service from the adjutant, personnel division, commander, or higher headquarters should on active duty
Form 26-1817 or form 21-534 for surviving spouses, also form 1300, report of casualty, or death certificate
Landlord contact info for the last two decades
Letter of explanation concerning issues like collections and other issues on your credit report
Divorce-related documents if appropriate

What Does The Lender Want To Get a USDA Loan?
A USDA loan is the other no down payment loan product available to buyers. The USDA loan, however, can only be written in these locations which are considered rural. The definition of rural is generally beneath a population of thirty-five million individuals.

Identification (one of which you need to present in person)
A valid Driver’s license
A passport
An official state or national ID
Income
30 days of pay stubs
Your previous two national tax returns
Your final two W-2s or preceding two 1099s
Evidence of additional income–such as alimony or social security
Finance Accounts
Bank statements for the last two statement periods
Investment and retirement accounts statements
Property you own
Settlement statement from the previous home sale
Additional documents
Gift letter out of any family helping with payment
Landlord contact info for the last two years
Letter of explanation concerning issues like collections along with other issues on your credit report
Divorce-related documents if applicable
Type 410-4: Uniform Residential Loan Application, stuffed out by (s)
Type 3550-4: Employment & Asset Certification, a separate form filled out and signed by each candidate
Form 3550-1: Authorization to Release Information, a separate form filled out and signed by each applicant and each adult household member
Form 4506-T: Request for Transcript of Tax Return, Another form filled out by every applicant
Life Insurance Plan
Child care costs documentation for any dependent 12 or younger
Present school transcript for household members That Are full-time students and 18 years or older
Annual medical expenses for applicants 62 years of age or older, or having a disability (to be thought of for an in-household income)
A written excuse of 2 years of history, such as an explanation of openings if there aren’t any

A Job-Based Incentive Loan
There are some programs intended to help employees in particular professions to own houses, like teachers, police, and firefighters. Among the more well-known programs is known as Good Neighbor Next Door. Each includes its own criteria, but most will need the following:

Identification (one of which You Have to present in person)
A valid driver’s permit
A Passport
An official state or federal ID
Income
30 days of pay stubs
Your previous two national tax yields
Your last two W-2s or previous two 1099s
Proof of additional income–including alimony or social security
Accounts
Bank statements for the past two statement periods
retirement and investment account statements
Property
Settlement statement in the previous home sale
Additional records
Gift letter from any family helping with payment
Landlord contact info for the last two decades
Letter of explanation regarding issues like collections along with other problems on your own credit report
Divorce-related records if appropriate

Once you have your pre-approval, you’ll want to make sure you don’t do anything that will get your mortgage approval taken away like buying a new car. Many buyers do not realize how much purchasing a car while buying a home can impact their finances.

Are you thinking of selling your home? Our agents at Preferred Properties of Texas have a passion for Real Estate and would love to share their marketing expertise! Contact our office today to speak to one of knowledgeable agents.

What Are Quitclaim Deeds?

December 16, 2020 by chorton Leave a Comment

Property deeds are written and signed legal documents used to transfer ownership of real property from a previous owner, or grantor, to a new owner, or grantee. Deeds can be official or private. General warranty deeds offer the highest level of buyer protection, while quitclaim deeds typically provide the least protection. So why are they used?

Quitclaim deeds are most often used for transferring property between family members. These deeds are relatively common, and most real estate agents have experience dealing with them. Because the parties know each other, they’re more likely to accept the risks associated with the lack of buyer protection. Quitclaim deeds are used when no money is involved in property transfer ownership:

What are you getting into when you obtain property this way?

A quitclaim deed also is called a nonwarranty deed and conveys whatever interest the grantor currently has in the property, if any. The grantor only “remises, releases, and quitclaims” his or her interest in the property to the grantee. There are no warranties or promises regarding the quality of the title.
Accept a quitclaim deed only from grantors you know and trust. Quitclaim deeds are best for low-risk transactions between people who know each other. Quitclaim deeds are commonly used to transfer property from a parent to an adult child or between siblings or when a property owner gets married and wants to add his or her spouse to the title. Married couples who own a home together and later divorce also use quitclaim deeds. When one party acquires the home in a divorce settlement, the other may execute a quitclaim deed to eliminate his or her interest in the property.
Quitclaim deeds can be used to clear a title defect, also known as a cloud on the title, in the recorded history of the real estate title. Title defects include issues with wording, like not complying with state standards, missing a signature or even failing to properly record the real estate documents.
Quitclaim deeds are as effective as warranty deeds to transfer titles but only if the title is good. It’s the lack of any warranties that makes a quitclaim deed less attractive from a grantee’s perspective. If the title contains a defect, the grantee has no legal recourse against the grantor.
A quitclaim deed affects ownership and the name on the deed but not the mortgage. If there’s still a mortgage on the property, the grantor may remain liable for the mortgage even after ownership is transferred through the execution of a quitclaim deed. Quitclaim deeds transfer titles but don’t affect mortgages. For this reason, a quitclaim deed may not be a good idea when a property still has a mortgage.

Think of quitclaim deeds as a fast way to accomplish real estate transfers among family members or to place real estate into a trust. Of course, this is just an introduction to a complicated legal issue.

Our agents at Preferred Properties of Texas are here to help you with all your Real Estate Needs. Contact our office today.

Home Office Deductions: A Refresher on the Rules

December 15, 2020 by chorton Leave a Comment

The Internal Revenue Code (IRC) allows taxpayers to claim a business deduction for expenses arising from the qualified use of all or part of a residence, as long as certain conditions are met. This deduction can be a particularly attractive tax planning tool for those who meet one of the following requirements:

The home office is taxpayer’s principal place of business. A home office must be used regularly and exclusively to conduct business. Consequently, working on the kitchen table (which is also used for purposes other than work) doesn’t qualify, but a desk set up in a bedroom might.
The home office is where the taxpayer meets patients, clients, or customers in the regular course of business. This can be difficult to assess if the taxpayer operates out of different locations. In such cases, the IRS will look at things like the amount of time spent at the location. To assess where the principal place of business is, if a taxpayer has multiple work locations, consider the relative importance of the activities conducted in each location, the amount of time spent there, and whether another fixed location might compete as the principal place where work is done.
A separate structure not attached to the dwelling and used in connection with the business may qualify.
If the dwelling is the only fixed location of the taxpayer’s business, a space within it that is used regularly to store the business’s inventory or product samples may qualify as a home office.

These considerations generally apply to the self-employed, because employees who work from home are not entitled to claim a home office deduction even if the employer requires the employee to maintain a home office. (The 2017 Tax Cuts and Jobs Act eliminated employees’ ability to deduct unreimbursed job-related expenses paid with personal funds as miscellaneous itemized deductions.)

The following is something of an exception to this rule: if the employer sets up an “accountable plan,” which reimburses workers for business expenses, that reimbursement is not counted as income, and it is not subject to withholding or reported on the employee’s W-2. When setting up the plan, the employer must (1) ensure that reimbursed expenses are business-related, (2) substantiate the expenses within a reasonable period and (3) make sure that any unspent funds are returned to the employer within a reasonable period.

This means that to avoid raising red flags for the IRS that can result in the plan being treated as a nonaccountable plan, the business owner must set up the plan carefully, fully document all associated expenses and comply with any limitations or restrictions associated with deductible expenses.

Ultimately, the point is that an accountable plan is a simple way to shift deductibility of business expenses from the employee to the employer and offers the ability to mitigate tax liability by allowing business owners to choose which expenses are reimbursable and which employees will be eligible to submit reimbursements. These rules can get complicated, so be sure to work with a professional on these, and all home office tax issues.

Buying In A Seller’s Market

December 12, 2020 by chorton Leave a Comment

Buying in a seller’s market does not indicate that you’re going to have to overpay for a home, just like buying a buyer’s market doesn’t mean that you won’t receive a good deal on your property. But if you are purchasing when demand is high, you’ll have to edge out the competition if you want to score a desired residence. You also might have to work some flexibility into your strategy in terms of closing requests and discussions.

Get your financing in place Before You Begin.
You need to be prepared to act quickly in a seller’s market, meaning that you don’t wish to be held up waiting for a mortgage approval or figuring out whether a particular home aligns with your budget.

Receive a mortgage quote before you begin your search, and do the math on what you could afford insofar as monthly obligations. It may be tempting to seriously up your offer at a seller’s market so as to compete–especially if bids are moving up on a house you love–but knowing what your spending limits are guarantees you don’t purchase more home than you are able. Additionally, it provides its own competitive advantage, since vendors are usually more inclined to go with the buyer who’s already a sure deal in terms of financing.

Be ready to act quickly.
From scheduling showings into counter-bidding on supplies, you have to be on the ball and ready for action in any way times. Homes in a vendor’s market can fly off the market in as little as a day, and there’s no guarantee that a house you’re interested in today is going to be available everywhere.

Obviously, being ready to act doesn’t mean jumping the gun. It is still important to be wise and informed decisions, since buying a house is among the biggest investments you will ever make.

Go into it knowing Just What you need (and do not want).
If you are likely to act fast, you are likely to have to understand right off the bat that which checks off the right boxes for you and what does not. This includes key features like place, number of bedrooms and baths, and how many cars can fit in the garage. It also extends to possible dealbreakers. Are you prepared to purchase a home that requires some work? What about a house that adds time on to your daily commute?

Knowing what you want, what you can live with, and what you can’t live with will help you quickly narrow down homes during your hunt. It also means that if you find the house that fits the bill, you won’t need to second guess yourself on if you should proceed forward.

Do not over complicate your offer.
Asking prices have a tendency to be greater in a seller’s market, together with reduced stock increasing demand and boosting the inherent value of what is available. Just because you are going to be paying more however, does not mean you always need to ask for more in return.

For the very best shot at an accepted offer in a seller’s market, attempt to keep it as simple as possible by minimizing your contingencies as far as you can. Contingencies (that are certain aspects that must be fulfilled prior to a sale can undergo, such as having to sell your present home ) muddy the waters of a deal and supply sellers with less assurance a final will actually occur.

While particular contingencies are usually necessary (you probably shouldn’t waive your right to back out after a serious find during the review ), requesting too much could lead to a vendor immediately writing off you in favour of a cleaner offer. The same is true for things like requesting protracted closing periods or discounts for specific home repairs.

Sweeten the deal.
Just as an overcomplicated offer can potentially turn off a seller, a sweetened supply can easily make one of the very attractive buyer. Ways to do this include offering at or above the asking price, asking a shortened closing period, or placing earnest money.

All home sales generally demand some type of concessions on either the part of the buyer or seller (or both). Showing that you are willing to amp up your offer makes it clear to the seller that you are serious, and may make the difference between finding a house fast when you’re buying in a seller’s market and extending your search span for months or weeks.

All or most of your interactions with a vendor are through your individual agents, so it’s easy for there to be a feeling of disconnection between the parties on each side of the offer. Buying and selling a home is a really personal process, however, and sometimes it can be helpful to keep in mind that there’s a real person you’re trying to utilize.

An individual letter to a vendor delivered alongside your offer humanizes you and helps foster a relationship and a psychological bond. If the home resembles perfect place to raise your new baby, or if it is situated near the ice cream store where your grandparents used to shoot you, mention that! Even if you don’t have anything specific to state, a private letter expressing just how much you love the house can only operate in your favor.

Buying a home in a seller’s market doesn’t have to be a super stressful experience. The real estate agents at Preferred Properties of Texas will be able to walk you through each step, and will be an important resource to rely upon. So when your ready to buy or sell contact our office, we are here to help.