Fixer Upper vs. Move-In Ready: Which One Is Right For You?

June 12, 2020 by chorton Leave a Comment

When it comes to buying real estate, you want to make sure the property you purchase is the right fit for your needs. For some buyers, purchasing a home that needs some work is the ideal situation. For others, getting a turnkey home that’s move-in ready is the only option they’ll consider. And for still others, both seem like reasonable options.

The question is: which is for you? There are pros and cons to both fixer uppers and move-in ready homes. The important thing is to recognize which is the best fit for you, your budget, and what you want out of a home.

Let’s take a look at the pros and cons of fixer uppers and move-in ready homes to help you determine which is the better fit for you:

Fixer uppers

Fixer uppers are, as the name implies, homes that need a bit of TLC – or fixing up – upon move in.

Pros

Discounted price

The major draw of fixer uppers is the price. Since they need work, you can typically get a fixer upper at a fraction of the cost of a move-in ready home of a similar size or in a similar location. So if you’re on the hunt for a bargain or you have a tight budget, a fixer upper is definitely going to be the least expensive home-buying option.

You can make the house your own

Since a fixer upper will need work and renovations, it does offer the opportunity to put your own stamp on the design and layout and really make the house your own. With a move-in ready home, the work has already been done and the home already designed. With a fixer upper, you get the opportunity to build your home from the ground up with everything from flooring and cabinetry to landscaping and windows.

It’s a project

For people who are interested in home renovation, there’s nothing better than a fixer upper. Taking on the challenge of completely transforming a home is a really exciting prospect for a lot of people, and if you’re in that camp, a fixer upper is a great opportunity to take on a worthwhile project.

Cons

It can get expensive

Even though the purchase price of a fixer upper is typically low, if there is a significant amount of problems with the property or changes that need to be made, it can definitely get expensive. Things like repairing electric, adding a new roof, tearing up and installing new flooring, and redoing a kitchen can get pricey, and if you’re not careful, you can find yourself way over budget, swimming in contractor bills with no end to your renovations in sight.

It takes time

Even if you’re a person who loves renovating homes, there’s no escaping the fact that it takes time. If you need to move into your home quickly, a fixer upper isn’t going to be the right fit.

Move-in ready

Move-in ready homes are recently built, updated, or remodeled homes that need next to nothing in terms of renovations or improvements. You can comfortably move in without making a single change.

Pros

It’s convenient

In terms of convenience, you can’t beat a move-in ready home. Moving can be a stressful process, and for many new homeowners, the last thing they want to do upon moving into their new home is start managing a bunch of renovations. With a move-in ready home, once you move in, you’re done. While you may want to make some cosmetic changes down the road (like painting the walls or changing the flooring), there’s nothing that needs to get done after you move.

Better energy efficiency

Newer, move-in ready homes tend to be more energy efficient, which is not only better for the environment, but also better for your utility costs. Energy efficient homes require less energy to heat the home during the winter and cool the home during the summer, which can end up saving you a significant amount of money in the long run.

Cons

Home prices are higher

When you buy a move-in ready home, you’re paying for the convenience. Move-in ready homes will always be significantly more expensive than fixer uppers in the same neighborhood and of the same size. If you have a tight budget, you might have to make some sacrifices to purchases a move-in ready home, like buying a smaller house or buying in a less popular neighborhood.

The “cookie cutter” effect

When you buy a move-in ready home, everything has already been done for you. Which is certainly convenient, but it can lack originality, charm, and the architectural and decor details you might want in a home. Newer homes sometimes feel more generic and “cookie cutter” than their older counterparts, so if charm and individuality are important for you, a move-in ready home might not feel like the best fit.

Fixer uppers and move-in ready homes both have unique benefits and challenges. Ultimately, you have to go with the choice that best aligns with your budget, your needs, and your long-term goals for your home.

Closing Costs on a Mortgage: What Are They?

June 2, 2020 by chorton Leave a Comment

Closing Costs:

The term “closing costs” usually includes a wide range of fees necessary when you’re purchasing a house: fees for an attorney, a title search, title insurance, taxes, lender costs and homeowners insurance. The amount you’ll pay in closing costs often averages 2% to 5% of the purchase price, based on the size of the loan and local taxes and fees.

If you’re buying a home, your loan estimate should include an estimate of closing costs. Shortly before your closing, you should receive your closing disclosure, a document that provides final details about your loan and your closing costs. These costs may include the following:

Lender fees:

Some lenders wrap all their costs into an origination fee, while others break them out into a list of such things as courier fees, appraisal costs, administrative fees, processing fees, a credit check, transfer taxes, a flood certification if one is required, and underwriting fees.

An optional closing cost is a discount point that is about 1% of the loan amount. Discount points can be used to lower your interest rate. Consult with your lender to discuss the pros and cons of paying discount points. If you’re cash-poor, you’re less likely to want to pay extra upfront to bring down your interest rate.

Title fees:

About 70% of closing costs are title-related, so shop for title service if possible: title search, title insurance and settlement services. Settlement fees can vary by several hundred dollars from one company to another. To compare fees, make sure you understand what’s covered, including a title search and courier fees.

Lenders require that you purchase title insurance — for your and the lender’s protection. Suppose someone claims an ownership right to the home or says he or she hasn’t been paid for work on the property and has a lien against it. Title insurance protects you if previous owners failed to pay taxes.

Prepaid costs:

You may be required to set up an escrow or impound account to collect homeowners insurance and property taxes. If you make a down payment of 20% or more, you may be exempt.

At closing, you’ll pay one year of homeowners insurance plus two months of premiums to be kept in reserve. You’ll also be required to pay two to six months of property taxes, depending on when the tax bill is due. This can add thousands of dollars to closing.

You’re not likely to avoid paying closing costs entirely, even though some of the costs can be negotiated with sellers who typically pay the real estate agent’s commission. Some costs, like transfer taxes and property taxes, can’t be changed, but you can ask sellers to raise the purchase price in exchange for a credit at the settlement table to cover closing costs. This lowers your out-of-pocket expenses. When it’s a buyer’s market, you can ask sellers to pay closing costs and not raise the price to cover them. You may request your lender to pay the closing costs. A slightly higher interest rate can be charged to recoup the money.

Be sure to keep in close communication with the real estate agent, your attorney and other financial professionals to be sure you understand what your costs are as you head toward closing date.

Interested in knowing more about different mortgage programs? Click Here

Whether you are a first time home buyer or buying your 5th home the experienced agents at Prefered Properties of Texas are here to help you!

VA Loans by the Numbers

May 23, 2020 by chorton Leave a Comment

VA Home Loans by the Numbers [INFOGRAPHIC] - Keeping Current Matters

Getting qualified for a VA loan may seem overwhelming, but it doesn’t have to be. Let our experience and expertise go to work for you.
Our team is built to help homebuyers become mortgage ready.

Call us today for all your Real Estate needs.

For veterans and active military, VA loans are a great way to achieve the dream of home ownership. More than 22 million service members have used these flexible, no down payment loans since 1944. But when people hear “no down payment,” they often don’t realize they’ll still need some cash on hand to finish the deal. The good news is that buyers don’t have to go in blindly: Your VA loan-savvy real estate agent will be your ally in helping you estimate the costs you will need throughout the process, no matter where you live. “Our goal is to save veterans money and get them into a home that they’re happy with,” You can approach us for Homes For Sale Stephenville.

While the amount you need to close will vary according to your location and situation, experts say you can usually expect to need about 3% of the purchase price on hand to close. If you have any other doubts about Homes For Sale Stephenville, keep in touch with us, or else, you can contact us at (254) 965-7775 to know about that walking horse lot. You can visit our website at www.preferredpropertiestx.com to know about our other services in other areas of Texas.

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Get to know these 4 mortgage programs for your first-time Buyers

May 18, 2020 by chorton Leave a Comment

Too many Americans who want to buy a home feel they can’t because they don’t have the cash to put 20 percent down on the mortgage.

Yes, we know that 20 percent is “so yesterday,” but the general public is still operating under this illusion.

In fact, according to a NerdWallet.com survey, 44 percent of Americans think that the 20 percent down payment figure is written in stone.

Sadly, the respondents who don’t currently own a home said that what’s holding them back is the lack of this large down payment.

It’s safe to say that the down payment is one of the biggest obstacles to homebuying today. And, it doesn’t have to be.

Get the word out to renters that there are various first-time homebuyer programs that many can qualify for.

We rounded up four that we think agents should bone up on.

1. Fannie Mae’s 3-percent-down mortgage

Launched a few years ago, Fannie Mae’s Conventional 97 is a brilliant alternative to the FHA-backed loan. In fact, it is “among the most in-demand programs for today’s homebuyers,” according to Dan Green at TheMortgageReports.com .

Conventional 97 is what FHA used to be — ideal for both the first-timer and repeat homebuyer who lacks a large down payment. While borrowers are still required to purchase mortgage insurance, the premiums “are usually less expensive than those of comparable FHA home loans,” according to Green.

Best of all, according to Tim Lucas, editor at MyMortgageInsider.com, borrowers can qualify with scores as low as 620 and “gift funds can be used for down payment and closing costs.”

Speak with your preferred lender to learn more about how to sell this to potential homebuying clients who think they can’t afford the down payment for a home.

2. Freddie Mac HomeOne℠ loan

If your preferred lender isn’t among those conventional lenders approved to offer the HomeOne loan from Freddie Mac, it’s time to add another to your vendor list.

Like Fannie Mae’s loan, it allows you to help your eligible first-time homebuyers achieve the dream of homeownership.

Features include:

No income limits
No geographical limits
Allows for the purchase of a single-family home, condo or townhome

Buyers are required to have at least 3 percent for a down payment and a credit score of at least 620. If first-time buyers, borrowers must agree to attend a buyer education course.

Naturally, there is more to know about Freddie Mac’s HomeOne loan. You can get the details either from your preferred lender or online at SFFreddieMac.com.

3. Freddie Mac Home Possible®

Freddie Mac offers an alternative to the HomeOne loan and that’s the popular Home Possible mortgage. This program is deal for your lower income buyers who lack a big down payment and require “flexible sources of funds.”

These sources can be family members, employer assistance “secondary financing and sweat equity,” or a combination of these, according to Freddie Mac’s website.

Your buyer’s qualifying income (on an annual basis) cannot exceed 80 percent of the AMI.

There’s a 3 percent down payment, but unlike other similar programs, a borrower can quality for 105 percent LTV with Freddie Mac’s Affordable Seconds®.

Consider mentioning Home Possible to your very-low to low-income buyers, move-up buyers and retirees.

4. HomePath Ready Buyer™ program

Another Fannie Mae program, HomePath Ready Buyer, offers 3 percent down payment assistance for qualified borrowers who agree to participate in an online homebuying course and then purchase a HomePath property.

The bonus for agents whose clients use this program is that you end up with a client prepared for the process.

It’s important for you to understand your part in the process as well. Your client will need to request a course completion certificate and then you’ll need to include it when you submit the offer on a HomePath property.

“The request for closing cost assistance must be made at the initial offer in the HomePath Online Offers system,” according to information on the HomePath website.

The website includes the verbiage the buyer’s agent needs to use to make the request for closing cost assistance for the buyer. You’ll find that when you scroll to the bottom of this page.

Your buyer must not have owned a home within the past three years, they must agree to reside in the home as their primary residence and take possession within 60 days of closing.

There are plenty of other programs out there that will help you to assist reluctant buyers who think that they can’t buy without a huge down payment. Learn about them, then use them in your marketing.

If your ready to buy a home, our agents are here to help assist you and make things stress free. Contact our office today for a free consultation.

Lake Homes: More Than Just Waterfront

May 8, 2020 by chorton Leave a Comment

looking out at the lake through window

When you hear, “lake home,” those words can conjure a variety of images. Contrary to popular belief, not all lake homes are waterfront homes.

As a matter of fact, many people who own lake houses aren’t even close to the waterfront! Because of this, many lake homes are more affordable than you might think.

There are three major types of lake property: lakefront, lake access, and lake community. Each of these have their own pros and cons, both functionally and financially.

Waterfront Property

Lakefront, also known as “waterfront,” property extends to the shore of the lake itself.

It offers the most prestige, the most access, and a direct line to the lake right out your door.

Lakefront property can be incredibly beautiful, and there’s nothing like looking out your back patio directly onto the calm waters of the lake in the evening.

Naturally, such prestige comes with a high price tag. Waterfront property is significantly more expensive than similar property even a block away from the water.

It also brings with it many more responsibilities.

Waterfront property is the most vulnerable to flooding, erosion and inclement weather. There are often special insurance requirements, and upkeep can be a significant commitment of time and money.

If you plan to build or improve on waterfront property, make sure your plans fit with the local regulations. Many lakes have restrictions on docks, signage and landscaping.

Since there is a limited amount of shoreline on each lake, property on the water’s edge often appreciates the fastest.

Waterfront is also very attractive to vacationers. This can pay dividends if you intend to rent it out.

Waterfront property is perfect for those who have their heart set on the water’s edge, and have the time and money to maintain it.

Lake View Property

“Lake view” property, also known as “lake access,” is near the water, but does not extend to the lake itself.

This property can be a literal stone’s throw away from the water and is often just as picturesque as lakefront.

Prices vary from lake to lake, but lake view property is typically much less expensive than lakefront.

Lake view property isn’t as scarce, doesn’t have the same water access and doesn’t have the convenience or prestige of being directly on the waterfront.

At the same time, lake view can give many of the benefits of waterfront, at a fraction of the cost or the headaches.

Owners still typically have easy access to the lake, without needing to maintain their own stretch of shoreline. Weatherproofing and maintenance costs aren’t as significant, either.

Most lake communities have options for those who live on the lake to enjoy its benefits. Marinas can store boats until you need it, and there are usually access points for swimming, fishing and water sports.

If you want property close to the water’s edge, but have a limited budget, lake view property may be for you.

Lake Community

Most lakes have neighborhoods arrayed about them. Many of these homes aren’t within clear view of the water’s edge, but are still very much part of the lake community.

Homes situated in a lake community a short distance from the water can cost a fraction of waterfront property.

Nicole Anderson Walters, a Lake Homes Realty agent specializing in real estate on Logan Martin Lake, Alabama, offered, “you can save money by being in a lake view or lake access neighborhood. Many have water views and community areas with boat launch.”

“Where a home may cost you $89 per square foot off the water, the same home could cost upwards of $168-$200+ per square foot directly on the water,” she added. “You can often find a much nicer home off the water with amenities in the neighborhood.”

Depending on the size of the lake, these neighborhoods can range from high-end gated communities, to condos and cabins, to retirement communities and everyday suburbs.

These lake communities are often a short drive to a short walk or drive to the lake itself, but still have easy access to fishing, swimming, boating and other lake activities.

As an added benefit, most avoid many of the upkeep costs and restrictions associated with lakefront property.

Many communities are also situated near state parks, landmarks, shopping centers and other attractions. If these appeal to you more than living near the water, look for lake communities within a short distance of the lake.

Find what works for you!

Every lake is different.

In addition to those listed here, market prices can vary greatly between lakes. If you can’t find the kind of property you are looking for at one lake, look for others nearby. You may find a hidden gem right under your nose!

If you need help finding the right one just contact our office, we’d love to help!

Time To Build at Walking Horse Estates

May 7, 2020 by chorton Leave a Comment

Build Your Dream Home at Walking Horse Phase II

A Beautiful Residential Subdivision in Stephenville, TX

Building your dream home in a beautiful community can be a reality at the Walking Horse subdivision. Walking Horse Phase II is a residential subdivision located just outside the city limits of Stephenville, Texas, on Highway 108 North. This prime location delivers all the benefits of country living in a restricted housing development while protecting the value of your home without any homeowners’ association fees.

Act fast! Phase I is already sold out, and Phase II lots are available now starting at just $37,000. Phase II includes beautiful cul-de-sac lots with native trees and at least half an acre of land.

If you are looking for the best real estate agents to find you that beautiful place to build your forever Texas home – Then Preferred Properties of Texas is here to help you make that want a need and we will make you want become a reality!