Preferred Properties of Texas

The Preferred way to buy & sell property for over 25 years

Take Advantage of Today’s Low Rates Before They Begin to Rise

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Mortgage interest rates in today’s realty market are at or near record lows. If you have owned your home for many years, and haven’t refinanced recently, it’s likely that you have an interest rate on your mortgage that’s higher than the current average.

Many of today’s homeowners are rethinking what they need in a home and redefining what their dream home means. For some, remote work means they need additional space. Some people may choose to move to a less expensive area or downsize. These are great options if you’re thinking about moving.

Today’s rates are less than 3%. But experts predict in the coming years, rates will rise.

Take advantage of the opportunity to get a lower interest rate on your mortgage if it is higher than average. Lower rates mean you may be able to get more house for your money and still have a lower monthly mortgage payment than you might expect.

As mortgage rates rise so does your monthly payment.

Even a slight increase in rate can make a big difference in your monthly mortgage payment.

To keep your monthly payments the same, you will need to consider a home that is less expensive.

Whatever your reason for wanting to move up or down, this is the best time to do it. Even a slight change in interest rate can make a huge difference to your purchasing power.

Consider refinancing if making a move now doesn’t feel right. If you want to reduce your monthly mortgage payments and remain in your home, refinancing may be a good option.

Take advantage of today’s low rates before they begin to rise. Whether you’re thinking about moving up, downsizing, or refinancing, contact Preferred Properties of Texas today to discuss your options.

Why Getting a Real Estate Agent Helps For Home Sales And Purchases

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A person selling or buying a house may not be aware of all the work involved in these types of real estate transactions.

These steps can be broken down into the following categories:

  • Activities that are not yet on the list.
  • Listing appointment presentation
  • Posting a listing agreement
  • Managing the entry for multiple listing service (MLS).
  • Marketing the listing
  • Handling and evaluating offers and contracts.
  • Tracking the loan process, home inspections, appraisals, closings, and follow-up.

Although not all steps are involved in every transaction the services list gives a clear picture about the complexity of the business. This is despite the fact that there are many digital technologies available for 2021.

An experienced licensed agent can help sellers and buyers save a lot of time. Due diligence is an extensive and thorough process. The experience and connections of a Realtor in the area as well as their referrals are invaluable. This process usually requires the involvement of appraisers. Surveyors. Inspectors. And attorneys.

It is hard to overstate the financial benefits of working with a real estate agent. Our experience shows that homes that are marketed by a Realtor sell for a higher average price than those owned by the owners. A buyer who uses an agent to sell their property can often negotiate a lower price or better terms due to the agent’s experience.

In a fast-moving market for real estate, buyers need to act quickly in order to secure their properties. Agents often know about properties on the market and can notify their buyers immediately to get the contract written. Agents should review the contract with potential buyers before they find a property. This will allow them to move quickly and is a good idea since you don’t often have much time.

There are two types, licensed agents and registered Realtors. The state licenses agents to practice. Realtors can also be licensed to practice by the state. Realtors must adhere to a higher standard of ethics.

Buyers and sellers should feel at ease knowing that strict standards of conduct have been adhered to and that all parties are treated equally. These standards of professionalism are constantly updated and improved to meet the changing needs of the real-estate industry.

HM Properties understands the importance of staying informed and up-to-date about what’s happening in our community and around the globe. We are taking steps to encourage and engage in activities to raise awareness for agents and staff about diversity and inclusion.

There are two types: a full-service broker who works with HM Properties clients or a limited-service broker. Although limited-service brokers may offer lower commissions than full-service brokers as the name suggests, they don’t provide all the same benefits. They could, for example, limit their services to listing a property on the MLS. However, they would not conduct a market analysis, promote the property, or negotiate on behalf of the seller. This scenario would place the seller in a disadvantage as they would need to communicate directly with the buyer’s agent.

Finding the right agent is difficult due to the large number of Realtors available in the area. It is always a good idea to ask a friend, family member, or colleague for recommendations.

Online research can help you find out the number of homes that an agent has sold, what their focus is, and how much experience they have. It’s a smart idea to interview multiple agents to compare their credentials and find the right fit.

It is your choice whether you work with a real estate agent or a realtor. It is important to search for an expert but it also helps to connect with one. A lot of information about you and your finances is shared with an agent during a real estate transaction. It is important to trust your agent with this sensitive information.

Agents should have a deep understanding of the area. It is a huge difference to be able to sell a lakefront property than one in Uptown. You’re likely to be completely uninformed if your agent isn’t familiar with the area. This is especially true if you are moving from another part of town.

A seller should look for an agent with prior marketing and listing experience. Although there are agents that can represent buyers and sellers, the success of the seller will depend on the location and the price, it is important to find an agent who has previous listing experience in the area.

It is also important to determine whether agents work in the industry full-time or part-time. It is a full-time job and requires constant attention. Agents who make it a career and run their business full-time are the most skilled.

A real estate agent is a valuable resource for both sellers and buyers. They can make selling and buying the biggest home or condo easier. Realtors can work with other agents to help them in their purchase transactions.

If your in the process of selling or buying, contact our office and speak with an agent. We are here to help make things go smooth.

Still Renting?

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Each person has to ask the question, “Should I buy a home or rent one?” If you don’t have a mortgage or aren’t familiar with the process, it can be daunting to owning a home. Many renters believe they cannot afford to buy a home due to not having the right kind of job or the funds. No matter what your thoughts about owning a house or renting, we can help you to overcome any doubts and false assumptions.

It is easy to own a home. If you are planning to live in your home for at least 2 or 3 years, it is a smart financial move to purchase instead of renting.

Most people realize the financial benefit of owning a home after they have lived there for between 3-5 years. This depends on the price of the house.

You have so many advantages to being a homeowner

  • You are in control of the style and design aspects of your home.
  • Fido and Fifi, Tigger, or any other pet, are allowed to stay with you. No pets allowed in your home. Pet deposits are not required.
  • No deposit. You don’t have to worry about paying 3 months rent or whether your landlord will retain your deposit when you move out.
  • If you take care of your home, you don’t have to worry. You are the owner of your home. This means you have total control of how your home looks. There’s no need to wait for approved maintenance men to come by at unfavorable hours or at all.
  • Avoid sudden rent and utility expense increases. Renters who have ever rented know that they can be notified by the landlord that additional charges will appear on their next rent/utility bill. You may find yourself in a difficult situation when your yearly lease is due to expire. You may also find that your monthly bill comes with “additional” fees.
  • There is no reason to be concerned that your rental home may be sold. This is a real possibility. It can be frustrating to finally feel at home in a place and to then discover that the owner has decided it is time to move on.
  • You can build an asset that can help your financial goals over the long-term by planning and buying smartly.
  • Renting is a great way to generate additional income. Consider adding your home to a larger retirement plan once you have lived in the house for some time. Your home can be used to earn rental income, long-term or short-term. Passive income can be a very exciting possibility that I would love for you to explore.

Most people aren’t able to become homeowners because of these excuses.

You don’t need any money to pay down a mortgage payment. If you have at least $1000 in savings, two years of work history, and are either a first-time home buyer or have never owned a home for three years, you may be eligible to receive down payment assistance. For low- and middle-income households who wish to be homeowners, there are many programs.

Bad credit. You can get help from a caring, knowledgeable loan originator to repair your credit. You can raise your credit score by as little as 2-6 months and qualify for a mortgage. It takes only a few months to get your credit score up to 640 and qualify for a mortgage.

Locked into lease agreements The realtor or loan originator can help you pick a closing day that allows you to live in your new home for two months without paying a mortgage. Save the money to pay off your lease. You should also consider the time required to close on a house. It is possible that you will have to wait between when you submit your offer and when it is time to make your first payment on your mortgage. The monthly mortgage payment will likely be lower than the rent. Plus, you can stay in the house for up to two months without having to make any payments.

You haven’t been at your current job for a while or you are self-employed.

The key is two years.If you’ve been working in the same type of job for at least two consecutive years, you may apply for a loan. It is not necessary to live in the same company or location, but you must have worked in the exact same job field for at least two consecutive years.

Self-employed must have at least two years of tax returns showing enough income. You may need to take some deductions depending on your circumstances so you can show the right income.

I hope you found this helpful and that it has shown you how easy it can be to become a homeowner. A little preparation and planning can make it possible to buy a house in two months to two year.

When your ready to buy a your home give Preferred Properties of Texas a call. We Love To Help!

PMI Explained

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When a creditor looks at Financing Program, their principal question is”what threat do I take on by issuing this loan?” Credit checks, bank statements, employment Verification — all of the documentation needed when getting approved for a Loan is in support of assessing what the odds are that the loan will proceed into default. This is why a down payment is such a Vital part of getting A home loan. When a borrower has a Significant deposit (20 to 30% or More), the lender’s vulnerability is lessened in case of a default.

This 20-30% figure was required, yet clearly this retained a great deal of Individuals from realizing the advantages of homeownership, particularly first Time buyers. That’s until 1957, when Max H. Karl, a real estate Attorney, based Mortgage Guaranty Insurance Corporation and formulated The contemporary kind of mortgage.

PMI is intended to address the hefty down payment barrier. Instead of Coming into the table with 20% or more for a down payment, a personal Mortgage insurance plan allows consumers to buy and finance a home With no sizable down payment. Together with PMI, the debtor pays a little Percentage of the total loan amount (0.3 – 1.5%/year) along with Their insurance and mortgage payments. As an example, a $200,000 loan With a PMI speed of 1% will return to $167 dollars extra a month for a borrower. It’s not nothing, but for many it’s a manageable off trade.

Yet sometimes PMI can get a bad rap, as something to be avoided at all Costs. Until the end of the 90’s this mindset was understandable — Homeowners had limited funds to cancel PMI and so were frequently stuck with It for the life of their loan. That changed with the Homeowners Protection Act of 1998. It took automatic termination of PMI if the Loan balance reaches 78 percent of their initial value through natural amortization. Borrowers may frequently drop their PMI even before reaching That 78% figure — after a debtor accomplishes 20% equity in their house, they can request a cancellation of PMI. As home prices continue to rise, Borrowers build up equity in their houses quicker, meaning that they can frequently Drop PMI payments earlier than they think.

If your curious about buying a home, or wondering what the value of your home is today, reach out to one of our agents at Preferred Properties of Texas. We have the market information to help you.

Is It Still Affordable To Buy Right Now?

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Housing inventory is in an all-time low. Realtor.com only reported that there are 39% fewer homes for sale today than there were last year. At precisely the exact same time, customer demand stays strong.

Whenever there is a lack in the supply of a product that’s in high demand, the purchase price of that item increases. That is precisely what’s going on in the housing market right now.

This is excellent news if you are planning to sell your residence. On the other hand, as either a first-time or repeat buyer, this might instead look like troubling news. Purchasers, however, should see that the purchase price of a home isn’t quite as vital as the monthly price .

There are numerous factors that influence the expense of a house. Two of the largest ones is that the cost of the house and the mortgage rate where a purchaser can borrow the money necessary to purchase the home.

Purchasing a home today is merely a little less affordable than it had been last season, but still very affordable when compared with historic housing market tendencies.

The number one factor impacting the current homebuying affordability is record-low mortgage prices . There’s no doubt that prices are on the rise. However, mortgage rates have dropped dramatically. Last week, Freddie Mac announced that the typical rate of interest for a 30-year fixed-rate mortgage was 2.72percent . Last year at the time, the average rate was 3.68%.

If you’re considering buying your first home or moving up to the one that you’ve always hoped for, it is important to realize how affordability plays into the overall cost of your property. Bearing that in mind, buying while mortgage rates are as low as they’re now may save quite a little money over the life of your house loan.

If you’ve been thinking of selling, buying or would like to know what your home is worth, give Preferred Properties of Texas a call to speak to an agent. We are here to answer any of your real estate questions.

Making a Backup Offer on a Home

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So, you’ve found the home of your dreams, but in a cruel twist of fate, it already has an offer on it. Though it can be that you’ll just have to take the loss and proceed in your search, all hope isn’t lost.

Home buy transactions fall through for all kinds of motives, from contingencies not being met to funding issues, so it can’t hurt to place yourself to possibly pick up the bits of a busted deal and get to a house you’d had your eye on. This is where the backup deal comes in.

In home buying, a backup offer is made in acknowledgment of an present offer and guarantees a contract with the vendor if that offer falls through. It’s a legally binding contract which, if accepted by the seller, will place you in line to purchase the house should the initial buyer back out.

If the original offer successfully closes, you’ll be released from your contract along with some earnest money which you put to escrow will be returned. Additionally, you should be able to withdraw from the backup offer while the initial offer is still active in case you decide to proceed; however, you need to double-check your realtor to make sure, and be aware that you should only make a backup offer on a house if you are intent on shutting on it. If the principal offer does fall through, your offer will move into the primary position and the procedure to close on the house will start.

Making a backup offer is much like creating a normal offer. A seller considers and takes a backup offer just as they would a key offer, therefore it’s important to strategize in case you want yours to be accepted.

Pricing your backup offer can be somewhat tricky. After all, you want to price it so it’s likely to be accepted by the vendor. How much you need to offer is dependent on the property market in your region .

If you are buying in a cooler market where homes typically spend longer than average on the market before being sold, you could be able to offer listing price or slightly less. The reasoning behind this is that your backup offer gives the seller a security net that prevents them from having to reenter the marketplace if their principal offer falls apart. That security could be worth accepting a slightly lower cost than the current deal.

On the other hand, you may have to offer more. If you are buying in a hot market, at which bidding wars are frequent, you’ll want to create a competitive offer to have the best odds of your backup offer being accepted. In some really popular markets on exceptionally sought-after properties, it’s possible for a vendor to take multiple backup supplies, lined up in the order in which they were approved. But it’s already unlikely that the first backup offer will wind up coming into play — farther backup offers are highly unlikely to go into the primary position.

Work with a skilled real estate agent to negotiate a decent price, as they will be the professional in the regional marketplace and also have a much better grasp of what a competitive offer resembles.

 

Preferred Properties of Texas

(254) 965-7775|Contact Preferred Properties of Texas