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

June 4, 2021 by chorton Leave a Comment

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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.

 

 

Filed Under: Blog, Buying a home, Homes for Sale Tagged With: Blog, buying a home, home for sale, Homes for sale Stephenville TX, loans, mortgage programs

Costs Associated With Buying a Home?

May 26, 2021 by chorton 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!

Filed Under: Blog, Buying a home, Homes for Sale Tagged With: Blog, buying homes, loans, mortgage programs

PMI Explained

May 20, 2021 by chorton 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.

Filed Under: Blog, Buying a home Tagged With: Blog, buying a home, first time home buyer, Homes for sale Stephenville TX, mortgage programs, private mortgage insurance

Homeowners Should Sell Now

May 10, 2021 by chorton 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.

Filed Under: Blog, Selling Your Home Tagged With: Blog, mortgage programs, selling a home

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.

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 the down payment and closing costs.”

Click On Link To Read More:

https://blog.prospectsplus.com/mortgage-programs-convert-renters/?utm_source=icontact&utm_campaign=Tuesday%20Mortgages%20that%20convert%20renters&utm_content=blog

 

Filed Under: Blog, Buying a home Tagged With: Blog, buying a home, mortgage programs

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!

Filed Under: Blog, Buying a home, Investing, Selling Your Home Tagged With: Blog, buying a home, investing, mortgage programs, real estate, selling a home

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Preferred Properties of Texas

Preferred Properties of Texas

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