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

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

July 26, 2021 by chorton Leave a Comment

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.

Understanding Escrow Accounts

May 22, 2021 by chorton Leave a Comment

All mortgages require a monthly payment. Normally, the monthly payment is made from the principal repayment, prorated property taxation, prorated homeowner’s insurance coverage and interestrates. Of them, your premiums and insurance obligations are held in a trust account with the creditor, called the escrow accounts. If you refinance a mortgage, present credit card accounts are often closed and a new one is opened unique into the brand new loan.

To better understand the benefits and pitfalls of escrow accounts and how they operate, browse below.

Recognizing Escrow Accounts. When you cover your monthly mortgage payment, then your own insurance and taxes are stored in an escrow account held by your mortgage business. Whenever these invoices are expected, the lender is accountable for paying them in a timely way. Some lenders require that you open an escrow accounts to be able to give you the loan others will allow you to cover the bills yourself.

The Preceding Escrow Account. If you refinance a loan, then the first escrow accounts stays with the loan. Escrow funds, regrettably, cannot be transferred to fresh loans, even if it’s with the identical lender. All of the property insurance and tax payments you’ve made to this account, because the previous payment has been made, will be returned to you, typically within 45 days through wire transfer or check.

Utilizing Old Escrow Funds. Since the capital will be delivered to you at a subsequent date, it’s typically not feasible to utilize held lien funds from a former loan to apply your new escrow accounts on the refinanced loan. This may ask that you produce more money at closing to finance your new bank account and, depending on the time of year which you’re refinancing, the creditor will need a considerable amount in taxes to be prepaid into escrow.

Advantages of Escrow Accounts. If you decide to use an escrow accounts for the loan, you might be given a lower rate of interest. The lending company gets responsible for paying your quarterly real estate taxation, in addition to obligations for your homeowner’s insurance, preventing you from needing to remember to cover them. Because of land taxes being financially problematic in certain towns, having the ability to divide the sum due into 12 equal payments makes it less difficult to manage for many people.

Selecting a Escrow Account. When picking about an escrow accounts in your own loan, remember that with no escrow accounts, the final costs will usually be lower as you aren’t depositing money for potential property tax or tax premiums beforehand.

On the flip side, with no escrow accounts, your lender may charge you a lien charge or a higher rate of interest on the loan because their risk increases since they’ll be relying upon you to make timely payments for real estate taxes and homeowner’s insuranceplan. In the event you decide to cancel an escrow accounts and you fall behind on taxation or homeowner’s insurance premiums, you can face substantial penalties and late fees. You can lose your homeowner’s insurance policy, and the tax assessor can place a lien from the property. At worst, you can face foreclosure. All this would endanger the creditor’s investment in the house.

Outstanding Opportunities For Buyers and Sellers In Today’s Housing Market

March 25, 2021 by chorton Leave a Comment

Right now, the home market is full of outstanding opportunities for both buyers and sellers. Whether you are considering purchasing your first home, moving up to a bigger one, or selling so that you can downsize this spring, there are advantages today that are powering big moves for individuals throughout the country.

The biggest perks for buyers now is low mortgage rates. Today’s most persuasive buyer incentive is low mortgage interest rates. The 30-year fixed-rate is now averaging only over 3 percent . While that is slightly higher compared to record-lows out of 2020 and before this season, it’s still way lower than historical norms, making purchasing a home an ongoing perk for optimistic buyers.

This is a massive advantage for buyers and helps to make owning a home attainable for more households — and there is good reason to try for homeownership.

Low mortgage rates are a plus for buyers at this time, but experts prediction we will find them continue to grow as the year goes on. If you are ready to buy a home, it’s wise to get started on the procedure shortly so you may secure today’s comparatively low speed.

The largest perks for sellers now is low inventory. Today, there are simply not enough houses in the marketplace for the number of buyers seeking to purchase them, and it’s creating a serious sellers’ market.

The lack of homes available continues to challenge the market, and with low mortgage rates fueling purchaser demand, houses are hard for buyers to find today. According to the newest Realtors Confidence Index Survey by the National Association of Realtors (NAR), the average house is presently receiving 4.1 offers and is currently in the marketplace for only 20 days.

Buyers are definitely eager to buy, and because of the lack of inventory accessible, they’re often entering bidding wars. This is only one of the factors keeping house prices strong and giving vendors leverage from the negotiation procedure.

Homeowners who are in a position to sell shouldn’t wait to make their move. There is a mild at the end of the tunnel for the inventory deficit, so record this spring will get your home on the market when conditions are most favorable. With low stock and high buyer demand, homeowners can potentially earn a greater profit on their houses and sell them fast in the fast-paced spring marketplace.

Whether you’re thinking about buying or selling a home, there are major perks available in today’s housing market. Contact a trusted real estate professional today to discuss how these favorable conditions play to your advantage in your local area.

Three Ways You’ll Win When You Buy A Home

March 11, 2021 by chorton Leave a Comment

There are many great reasons to purchase a house, and within the last year, we have realized a lot of them than we ever believed possible. If you’re a first-time homebuyer, acquiring a house of your own may provide you a greater sense of security and achievement in a time that’s largely uncertain. If you are a repeat buyer searching for your dream home, making a move could provide you the space or characteristics you need to find more success and happiness in a fresh normal lifestyle. Whatever your motives are, here are 3 reasons why getting a homeowner today might help you win big in the long term.

1. Buying a Home Is a Great Investment
Several recent reports indicate that real estate remains a great investment, topping other options such as stocks, gold, bonds, and savings. Why? Real estate makes it possible to construct equity, a type of forced savings which develops your net worth.

2. Mortgage Interest Rates Are Low
The Primary Mortgage Market Survey from Freddie Mac indicates interest rates to get a 30-year mortgage have fallen as November 2018 if they struck 4.94%. In their most recent prediction , Freddie Mac expects rates to stay low, leveling out to an average of 2.9% in 2021.

When you get a home in a low mortgage rate, it is going to affect your monthly mortgage payment, giving you the chance to probably get more house for your money.

3. Investing in Your Future Pays Off
There are a few tenants who have not purchased a house yet because they’re uncomfortable taking on the obligation of a mortgage. What many tenants do not realize, however, is the monetary power of equity.

As a homeowner, your monthly payment becomes a kind of’ ‘forced savings’ you can reinvest later in life as you see fit. You can use it in many different ways, like to finance a loved one’s schooling, proceed up to a bigger home, or begin your own business. As a renter, you are actually growing your landlord’s equity rather than your own.

If you’re prepared to put your monthly obligations to function for you and take actions toward these dreams and goals, buying a home may be the way to go, especially as rental costs continue to rise.

Buying a home sooner rather than later could lead to substantial savings and long-term financial growth. Reach out to Preferred Properties of Texas today to determine if homeownership is the right choice for you this year.

Owning Is Still More Affordable Than Renting

January 20, 2021 by chorton Leave a Comment

If spending time at home over the last year is making you think hard about purchasing a house instead of renting one, you’re not alone. You may be wondering, if the dollars and pennies add up in your favor because home prices continue to grow . According to the experts, in many cases, it is still more affordable to buy a house than rent.

In 2020, mortgage rates reached all-time lows 16 times, and up to now, they are continuing to put in low this year. Owning a median-priced three-bedroom home is more affordable than leasing a three-bedroom house.

It is startling to see that type of trend. However, it shows how both the expense of leasing has been comparatively high in comparison with the cost of ownership and how declining interest rates have a remarkable effect on the housing market and property ownership. The coming year is wholly uncertain, amid so many questions linked to this Coronavirus pandemic and the broader economy.

If you’re considering buying a home this year, contact one of our professional agents today to learn more about the options that match your budget while affordability is in your favor.

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.