Preferred Properties of Texas

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

Finding A Better Home Insurance Deal For Your First Home Purchase

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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

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

  1. 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

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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

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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.

Mortgage Help for Homeowners During the Crisis

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During times of financial chaos and widespread unemployment, then you aren’t alone in the event that you end up worried about keeping up with your mortgage obligations. As per a U.S. Census Bureau poll earlier this season, a quarter of all Americans either missed a mortgage or lease payment, or had little to no assurance that they’d have the ability to make next month’s payment in time.

The great thing is you do have choices if you discover yourself coping with income reduction or struggling financially.

Exactly what the CARES Act Means For You
Lien backed by the national government might be eligible to suspend payments when a borrower is coping with financial hardship
Lenders Won’t charge late fees or report late payments to credit agencies during that period
Foreclosures and foreclosure-related evictions are suspended prior to the end of the year
If a mortgage Isn’t federally-backed, then contact your creditor and inquire about hardship strategies and alternatives

First Things First: Reach Out For Your Mortgage Bank
It’s essential that you don’t assume you’ll be addressed by your CARES Act and simply quit making your monthly obligations even if you’re not qualified for the CARES Act, you likely have more choices than you may realize. Speak to your creditor as soon as you can notify them of any fiscal conditions, and inquire what choices they have set up as a consequence of the present catastrophe. They will likely have a couple alternatives for forbearance or altered loan arrangements for you to think about, though you’ll normally have to submit some kind of documentation demonstrating your financial hardship.

Forbearance vs. Refinancing
Forbearance choices will defer your mortgage obligations to get everywhere from six-12 months, with the knowledge that payment will continue to be due in the conclusion of forbearance. Forbearance isn’t a forgiveness program, but this alternative does leave you with additional money flow during uncertain times. If you cannot settle your missed payments at one time, you could be qualified to generate higher payments for a time period to settle the sum past due. If it is possible to restart your monthly payments in any stage, you might qualify to reevaluate the sum past due until a later date.

Some mortgage lenders will also be offering loan arrangement modifications in that time, many in the kind of a longer-term loan period or a lower rate of interest. Loan modifications make an option that changes the conditions of your loan so as to think of a monthly payment you can spend.

Research Added Options Available to You
There are lots of national, local and state entities offering grants, loans and other assistance programs for homeowners fighting because of the pandemic. Federal and state funds are usually distributed to city and county departments and are frequently dispersed from there to local agencies or financial institutions to handle.

Added resources for homeowners throughout this time:

Gov Temporary Mortgage Relief
USDA Rural Development Programs
Housing and Urban Development Resources for Homeowners
Consumer Financial Protection Bureau Mortgage and Housing Assistance

If you have received help with your mortgage payments throughout the ordeal, continue to carefully track and record your own accounts and statements to be certain they remain error-free. Cancel or fix any automated payments you’ve set up to make certain you stay away from any penalties or fees from your bank. The moment your earnings is revived or in a level in which you feel more comfy, get in touch with your mortgage lender and then resume your normal payment schedule.

Should you strike instances of financial hardship, do not worry –research which apps are available so that you may pick the choice which makes the best sense for you personally. Do not just stop making payments, or you could encounter consequences such as fees, overdue charge, as well as potential foreclosure. Bear in mind that during times of catastrophe, there’s an elevated probability of fraud and spam, so ask questions and read all materials supplied to you attentively.

5 Reasons About Selling A Home That Aren’t As Scary As They Seem

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For the vast majority of homeowners, there’s a practically inevitable event somewhere on the horizon: Eventually, you will probably sell your property. Thousands of homes are sold every day. It’s only the nature of the real estate business; properties are constantly being sold and bought. Nevertheless, when it is time for everybody to be one of those properties, it can be somewhat scary. Any home sale could be susceptible to hang-ups that seem uncomfortable. The process of getting your house ready to market can be daunting. Handing over the keys to complete strangers can be discomforting. That said, there are a number of things that prospective home sellers appear to fear the most. But not everything needs to be so scary!

Creating (and keeping) your house presentable
One of the common complaints of home sellers is the requirement to wash, repair and stage their homes so that visitors can pop in each time and poke around. The reality is, however, that getting a house ready to reveal frequently means a de-cluttering process that would be necessary before proceeding anyway. It is a seller’s chance to have a jump onto the moving process, to purge unneeded possessions and get personal touches prepared to move to the next home. Should you think of this as a chance, instead of a chore, getting a home ready to show to potential buyers may have significant advantages. And if you are working with the right listing agent, you shouldn’t ever be made to drop everything and straighten up for an unexpected showing. A fantastic listing agent will adapt your daily life without forfeiting sales attempts.

Criticism from buyers

When push comes to push negotiations, buyers will point out what they view are deficiencies in your property. It is merely a part of the sales process, and hearing that the carpeting you love needs to be torn out or the wall color on your youngest one’s nursery needs to be altered aren’t personal indictments of you or your property. It’s hard to hear that other folks don’t enjoy what you love about your home. But if you’ve been searching for another home, you’ve likely made the same kind of observations. You want to be able to put your touches on your new space, and you do not mean any insult to the present owners by having that desire. It is nothing personal, so it is not anything to fear when the shoe on the other foot.

Home inspections

At the same time, it is nerve-wracking to have your home gone over with a fine-toothed comb with a home inspector, that can be by contract, working for the purchaser. Frankly, any dwelling inspector will point out some flaws in almost any home. That’s their job, and they have a fiduciary duty to the buyer to communicate their professional opinion. However, odds are, most of what is shown by the inspector is what you already understand. By way of example, when you’ve got 20-year shingles on the roof and you have not replaced it in 18 years, it’s just true that the roof is near replacement era. If your furnace isn’t operating efficiently, it is probably something you have noticed, and you may make sure that a professional inspector will corroborate that. Remember that nothing that comes up in a house inspection is always a deal-breaker. Everything is negotiable, and when you were not selling the house, it’s likely you were going to absorb any cost to remedy anything shown by a home inspection anyhow.

Unqualified buyers

There’s no question that there are”tire-kickers” on the market, or people who simply prefer to look at homes on the market but have no real interest or capacity to actually purchase the house. It just goes with the land. But should you be certain to just consider offers from potential buyers who have been pre-qualified with a creditor, you are more inclined to avoid bogus purchase offers. No lender’s pre-qualification correspondence is ironclad, but it means that the purchaser is somewhat honest about their capacity to buy a home such as yours. And any critical buyer’s agent is going to insist on mortgage pre-qualification of their customers before presenting a deal.

Saying good bye

That is an oft-overlooked facet of the procedure, but it’s not always easy to leave a house in which you have lived for a long time. It may be uncomfortable and scary because each home purchase is quite an emotional one. However there are a couple things to keep in mind, perspective-wise. Certainly one, giving up a space you have considered home usually means that you’re going to embark on that exciting adventure . You have to experience that anew, get to put your own personal stamp on a fresh place of your own. It is a goodbye that accompanies an exciting brand new hello. Second, you are providing that same experience for someone else by entrusting to them the place you have grown to appreciate. You are giving somebody else the opportunity to appreciate that house exactly the way you did when it fit one of the best. You’re not walking away from all that’s meaningful; you’re only giving somebody else the same opportunity you’re given to make meaningful moments.

The bottom line is that selling a house can be sort of scary. There’s nothing wrong with admitting that. But looking at things from various viewpoints, and recognizing that just about every homeowner at one point or another goes through it, and hiring the right agent might make it somewhat less scary.

Preferred Property of Texas is here for you and to make the real estate process less scary and go smoothly. CALL TODAY!

Preferred Properties of Texas

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