mortgage programs Archives | Preferred Properties of Texas Home & Ranch Properties Stephenville

4 Mortgage Programs That Will Convert Renters Into Buyers

March 22, 2021 by chorton Leave a Comment

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.

The Cost Of The Home Is More Important Than The Price

March 15, 2021 by chorton Leave a Comment

Housing inventory is at an all-time lowcost. You will find 39% fewer houses available today than at this time this past year, and buyer demand continues to set records.

Whenever there’s a shortage in supply of an item that is in high demand, the cost of the item increases. That is exactly what’s going on in the real estate market at this time. CoreLogic’s latest Home Price Index reports that values have risen by 5.5% over the last year.

This is great news if you’re planning to sell your house; on the other hand, as either a first-time or repeat buyer, then this might instead look like upsetting news. Nevertheless, buyers should understand that the cost of a house is not quite as vital as the price. Let’s break it down.

There are lots of factors that influence the expense of a home. The two major ones are the cost of this home and the interest at which a buyer can borrow the funds necessary to buy the home.

Last week, Freddie Mac announced that the typical rate of interest to get a 30-year fixed-rate mortgage has been 2.87%. At this time this past year, the speed was 3.73 percent. Let’s use an illustration to see how that gap impacts the true cost of a house.

Assume you bought a house last year and took out a $250,000 mortgage. As mentioned previously, home values have increased by 5.5% during the last year. To purchase that same house this year, you would need to take a mortgage at $263,750.

The difference in monthly payments based on today’s low mortgage rates.

That’s a savings of $61 monthly, which adds up to $732 annually and $21,960 over the life of the loan.

It’s a great time to sell your home cause of low inventory and buyers ready to buy and a great time to buy a home cause mortgage rates are at historic lows.

Contact our office today to get you started on the path to your dream home!

Finding A Better Home Insurance Deal For Your First Home Purchase

January 14, 2021 by chorton Leave a Comment

When you buy a new home, you might be surprised to discover how quickly all the various fees associated with the house purchase accumulate. One of the greatest foes you will face is paying for a new homeowner’s insurance coverage so that you can be qualified for a mortgage. The good news, though, is that there are ways to find competitive prices that will assist you free up some money to put toward other home costs.

Pay Down Debt
If you’ve got the financial resources, it’s a fantastic idea to pay down some credit card and student loan before shopping for homeowner’s insurance. That’s because excess debt will decrease your credit score along with a lower credit rating will frequently result in higher insurance prices.

Shop Around
Since different insurance businesses rely on different metrics to ascertain your premium, it is very important to shop around to try to get the very best rate. Additionally, it is vital to consider companies of all sizes, even if it means calling rather than putting on your data online. In regards to homeowner’s insurance, make sure the organization that you choose can offer decent service so that if and when you need to make a claim, you don’t suffer simply because you picked the firm with the cheapest rate.

Bundle Policies
Another fantastic way to save on homeowner’s insurance would be to unite your homeowner’s coverage with your vehicle insurance policy. To help bring in more business, most insurance businesses offer a fairly considerable discount if you choose to combine multiple coverages. Besides saving you money, choosing this strategy can help make payments more simple because you’ll just be using one company.

Look Backward
In case you’ve carried a renter’s insurance coverage before buying property, you could be entitled to a reduction, especially if you stick with the exact same insurance company. That’s because insurance companies may look at your previous claim history and see if you’re a low-risk individual. If you don’t have any claims, you might be eligible for some savings. Since many insurance agencies use many companies to provide various policies, it’s important that your main insurance provider is aware of your past policies.

Even in the event that you don’t initially get the purchase price you need for homeowner’s insurance, there is still hope. Since you establish yourself as a low-risk person in your new home and show your loyalty to a specific insurance company, you may see your rates fall from year to year. That is why it’s very important to work as hard as you can to stay claim-free during your first couple of years of homeownership so you can enjoy the savings that are yet to come.

Home Resolution

December 31, 2020 by chorton Leave a Comment

Is your 2021 resolution to buy a home? Here are some resolutions that will help you become a homeowner for 2021.

Save for a Down Payment

Roughly 60 percent of homebuyers financed their home with a 6 percent or less down payment!

2. Clean Up Your Credit

Your credit report determines your credit score, which determines everything from whether or not you get a loan to your interest rate.

3. Get Paperwork in Order

Buying a home involves a lot of paper work, so start getting everything together early. You will need several years of tax returns, bank statements and proof of current income.

4. Get Pre-approved for a Mortgage

Before beginning the house process prospective homebuyers should receive pre-approval from one or more lenders to verify the amount of money they are qualified to borrow.

5. Find a Realtor

Whether you are buying your first home or your fifth, working with a realtor is the smart move. They can provide counsel, discuss listings, show you homes in person, negotiate on your behalf and help you find your dream home this year!

When your ready to buy or sell a home, call our office and speak to one of our knowledgeable agents.

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.

Down Payment Assistance Opens the Door to Homeownership

December 7, 2020 by chorton Leave a Comment

A newspaper on a wooden desk – Real Estate

A lot of men and women are happy to get a house right now while affordability is still a highlight of their current housing market. This is certainly clear.

If you do not feel comfy with the fiscal procedure of purchasing property, it’s tough to generate a certain choice. In reality, four homebuyers say they want help to know what they could even manage in the first location. That is the reason why finding the ideal professionals to assist you get through the procedure is so essential.

In addition to that, the exact same poll reports on two-thirds of potential homebuyers think they will require assistance to conserve enough to get a deposit . What they might not understand is there are a great deal of down payment assistance programs in the regional and state levels, and a number have capital readily available for potential customers.

Remember, these apps are not only for first-time homebuyers, therefore it is well worth researching your choices wherever you’re in your own homeownership journey. By way of instance, if you are working at home today, you could be considering moving to a less expensive area where you can stretch your dollar further and have more room, indoors and outside.

If affordability is in your mind and you are hoping to be operating from home longterm, the ideal home might be in a place you have not thought yet. Additionally, the help program you need may be within reach also.

If you are interested in knowing more about down payment assistance programs, extra information can be found via Down Payment Resource. Your property adviser can help you choose which choice is right for you personally.

Thanks to a range of down payment assistance programs, affordable options are out there for today’s hopeful homebuyers. Let’s connect today to get you started on the path to your dream home. Contact Preferred Properties of Texas today.