Preferred Properties of Texas

The Preferred way to buy & sell real estate for you

The Dream Of Homeownership

by Leave a Comment

The American Dream of homeownership is a long-held ideal. Every American should be able to achieve it. Owning a home is a deeply personal dream. Our home is our safety and security. It’s also a place where we can flourish .

Today, we celebrate the legacy of Dr. Martin Luther King, Jr. Many will recall his passion and determination to support the causes he believed in, such as his 1963 speech ” I have a Dream”. It may be inspiring to you to dream of homeownership as we reflect upon his message today. You’re not the only one who feels this way. You can start your journey towards homeownership with a trusted real-estate advisor by your side.

It is important to understand the process when buying a house. It is important to determine how long you will be living in the area, how big you want, how many square feet you need, how easy it is for you to commute, and how much money you are willing to spend.

Once you have decided to purchase, you will need to apply for a mortgage. To determine how much money you can borrow, your lender will consider several factors including your credit history. Lenders will want to know how you have managed your student loans, credit card debts, and other past obligations.

Most lenders recommend that you spend not more than 28% (pre-tax) of your monthly gross income on your mortgage payment. This includes principal, interest, taxes, and insurance.

You’ll need to determine how much money you have available to pay for a down payment. Although saving for a down payment can seem daunting, there are many resources and options that can help.

You may wish to have your paycheck sent directly to your savings account.

A plan budget is another way to increase savings. There are many tools that can help you budget if you have never done it before.

You can tighten your spending to speed up your journey to homeownership if you are already budgeting. It’s amazing how much a little bit of extra savings can add up over the long-term.

You can achieve your homeownership dream if you plan well. You don’t have the luxury of walking alone. You can count on our real estate professionals to assist you every step of your way.

 

Original Blog:  https://www.keepingcurrentmatters.com/2022/01/17/achieving-the-dream-of-homeownership/

Still Renting?

by Leave a Comment

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!

Looking For A Bigger Home? Why Not Get It Now?

by Leave a Comment

GetMedia4 2 1

Are you currently clamoring for additional rooms or some more practical floorplan on your residence? Perhaps it’s time to create a move. If you will have the ability to work remotely to your long term or your overall requirements have only shifted, it is a fantastic time to sell your home and proceed up. Why? With mortgage rates in their favor and higher-priced house earnings powering more moves throughout the nation, sellers in the current marketplace are discovering the distance they desire (and have always dreamed of) by buying a house in the top end of the home industry.

With this few houses available for sale and higher demand from today’s homebuyers, sellers are now profiting from significant ways this year. Bidding wars are gaining traction, forcing the selling price of an increasing number of houses around the nation. This means sellers can leverage additional money from higher-priced sales while also benefiting from the low mortgage rates whenever they buy their next house. It is the ideal situation to maneuver into a genuine dream house.

The Institute’s current study of earnings in 2020 for houses over 5,000 square feet encourage the ongoing preference for bigger houses. The study determined that there was a 17 percent gain in the amount of 5,000+ sq ft homes marketed compared to the amount of earnings from 2019.

Luxurious home costs continue to view record highs in nearly all wealthy ex-urban communities, since the effect of having the ability to work at home remains driving buyers from residing in high density locations. Low interest rates also stay in play, enabling buyers to realize that the significance of owning a bigger house, which further strengthens this tendency.

Although this budget certainly does not match every budget, even if it is in your reach this summer, you might choose to create your move earlier rather than later. Nowadays, more homes can be found in this sector of the current market, but as the report cites, more buyers are investing here too, so competition might heat up earlier rather than later.

If you’re planning to sell your current home to move into a larger one, let’s connect today. We’ll discuss your current situation and the opportunities in our local market.

 

 

Costs Associated With Buying a Home?

by Leave a Comment

When you stumble across a favorable mortgage deal, you may think,”Good! I can manage my dream home.” You could be able to, however, the expenses associated with buying a home go beyond the mortgage payment. To determine how much house you are able to afford, it is important to factor in additional expenses, such as closing costs, taxes and insurance, before committing to a mortgage.

Complete Costs of Buying a House
Matt Hester and Ross Hester, father and son co-founders of The Hester Group, Harry Norman Realtors in Atlanta, Georgia, encourage all their customers to prepare for the funds needed to Buy.

“If you do not consider all of the expenses, your monthly expense budget could be flipped on its head,” Matt Hester says.

These costs include:

Down Payment
The deposit is the section of the property’s purchase price you pay upfront, instead of financing it through a mortgage. If you’re buying a $200,000 home, as an example, and put 10 percent, or $20,000, you’d be getting a mortgage for $180,000.

If you choose a traditional or FHA loan, a deposit is necessary. The amount of the down payment that’s required is based on the home’s price and property type, as well as the loan merchandise.

For a traditional loan, how much depends on the lender and loan type–you could put down 3%, 10%, 20% or more. With an FHA loan, you could be able to put down as small as 3.5 percent.

It is necessary to be aware there are loans with no down payment demand: USDA loans, for borrowers purchasing in specified markets (generally rural), and VA loans, for eligible service members and veterans.

Closing Prices
To shut your home loan and receive the keys to the property, you’ll need to cover closing costs, that are all the charges associated with the mortgage. These vary typically from 2% — 5% of the loan principal, and can include:

–Application fee
— Appraisal fee
— Credit check fee
— Origination and/or underwriting fees
— Title insurance policy
— Title search fee
— Transfer tax (if applicable)
“There are quite a few standard closure table items for which the real price will vary based on the value of the home and also the partners that you work with,” Ross Hester says.

If you’re lean on savings, but many lenders provide a no-closing-cost mortgage alternative, where the closing prices are added to your loan or otherwise paid for in the form of a higher interest rate. Save you from having to bring money to the final upfront, but might cost you more in the long run, particularly in the event that you intend to stay in the house long term.

Real Estate Taxes
In most places, your county or city government requires you to pay property taxes on your home for as long as you have it. Typically, property tax is included in your monthly payment, but separate from the interest and principal.

For instance, if you own a home with an appraised value of $100,000, and the tax rate is 2 percent, your yearly property tax would be $2,000, paid in $167 increments added to all your 12 monthly mortgage payments throughout the year.

Remember that the assessed value is not the same as the cost you’ve paid for your home. If home values move up on your area, your county or city could assess your house in a higher value, which means that you’ll spend more in property tax.

Homeowners and Mortgage Insurance
When purchasing a home, there are two kinds of insurance to consider: homeowners insurance and private mortgage insurance, or PMI.

Homeowners insurance protects you financially out of unexpected events which damage your house, like natural disaster, theft or vandalism. Though homeowners insurance isn’t required by legislation, most mortgage lenders require it in some kind. The cost significantly varies, and there are lots of options, so it is best to compare supplies to keep the cost as low as possible.

If you get a traditional loan, PMI is generally required if you put less than 20% down. This type of insurance protects the lender should you default on the loan and can substantially boost your mortgage payment. According to the Urban Institute, yearly PMI premiums range from 0.58% to 1.86% of the amount of the loan.

PMI is not permanent, yet. As you pay off your mortgage and build equity in your house, you can remove PMI.

HOA Fees
If you are buying a condominium or another kind of home in a community overseen by a homeowners association (HOA), you will likely be asked to pay a monthly fee, also known as an HOA fee. HOA fees are determined by the association and highly variable. These funds go toward the professional services that the institution provides, which may include security, a pool or gym and landscaping and upkeep.

HOAs can also charge occasional special assessment fees for urgent repairs. These financial obligations might be overlooked when buyers tally up the costs of purchasing a home, but they accumulate fast.

Home Maintenance, Repairs and Utilities
Wherever you reside, you ought to plan for home repairs and maintenance. Wear and tear occurs, therefore it is important to have additional money available for fixing or replacing appliances and important structures and systems, such as the roof or HVAC.

Many experts recommend budgeting 1% of your home’s worth for house maintenance every year, in addition to maintaining a crisis fund to address urgent, non-budgeted concerns as they crop up.

You’ll also have to cover utilities, probably including water, sewer, gas and electricity. These costs vary according to location, however, the general rule of thumb is that the bigger the property, the more utilities will cost.

Home Prices Today
The price of the house you buy is undoubtedly a big factor in your overall expenses. If you’re looking to purchase a house now, expect higher prices and tougher competition. As of March 2021, the median existing-home cost was $329,100, according to the National Association of REALTORS®, a 17.2% increase from the exact same time a year ago. Present single-family home costs were at a record high of $334,500, an 18.4% hike from this past year. Meanwhile, the median cost of a new-construction home was $330,800, as stated by the U.S. Department of Housing and Urban Development.

Keep in mind that home prices on your market may be much lower or higher than these national figures, and also the price that you’ll pay also depends on the sort of property you purchase.

The costs of purchasing and owning a home can add up fast, so it’s important to prepare. You’ll want to save money, enhance or maintain your credit and also compare creditors to find the best mortgage rates possible.

If you have questions about where to start contact our office and schedule an appointment with one of our knowledgeable agents. We are here for all your real estate needs!

PMI Explained

by Leave a Comment

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.

Homeowners Should Sell Now

by Leave a Comment

The home market keeps sailing along. The only headwind that could take it off course is the shortage of inventory for sale.

Homeowners do not know if they’ll have the ability to secure their next home before selling. In negotiations, leverage is your power which one side may need to influence another side while moving nearer to their own negotiating position. A party’s leverage relies on the capability to award benefits or remove costs on the other side.

The buyer wants give the seller tremendous leverage. Most already realize this leverage allows the homeowner to market at a fantastic price. However, this leverage may also be employed to negotiate time to find their next home. The homeowner can sell their home to the purchaser at the cost, which will enable the purchaser to take advantage of current mortgage prices. In return, the buyer may lease the house back to the vendor for a predetermined length of time whereas the seller finds a new home or has one assembled. This offers the buyer what they need while also giving the seller exactly what they need. It’s a true win-win negotiation.

This is the perfect time to maximize profits while selling a house. NAR simply released a research demonstrating that bidding wars are in an all-time high. The study shows that when comparing the first quarter of last year to the first quarter of this year, the number of supplies on homes for sale dropped from an average of 2.4 to 4.8 offers. Whenever there’s a bidding war, the purchase price of the item for sale escalates.

Homeowners do not know if they will find an offer with no residence requiring work or upgrades. Again, leverage is the maximum strength a vendor has in this market. On account of this lack of homes available, many buyers are more willing to undertake home improvement jobs themselves in order to acquire the home they are after. If a seller is worried about performing work or updates on their house, they need to understand that today’s historically low stock likely renders these projects less critical to the sale of the house.

Homeowners don’t know whether they can have a quick closing procedure. If speed is important, there are two points vendors must consider, like the time it will take to find the buyer for the home and the time it will take to close the transaction. Regarding the time it will take to close the transaction, all-cash earnings accounted for 23% of all home purchase transactions in March. All-cash sales can ordinarily be closed in fourteen days. In case you’re looking for a fast final process, there’s never been a market where the two-step procedure (finding a buyer and closing the deal) has obtained less time.

The fact that we’re in such a strong sellers’ market clearly eliminates many common concerns. Contact our office today to speak to a real estate agent and learn more about the opportunities for homeowners who are ready to sell.

Preferred Properties of Texas

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