Archive for the ‘Buyers’ Category

Newer Entries »

Buyer Basics: Your Most Frequently Asked Questions Answered – Part II

Friday, May 28th, 2010

Yes, there are still plenty of questions that many first-time homebuyers ask! Here are just a few of them:

Q: How much house can I afford to purchase?

A: There are several factors that determine how much Montrose home you can afford. A general rule of thumb is most homebuyers can afford a home that is about one and a half to two and a half times the their annual income. However, keep in mind that there is more to consider than your income; namely, your credit score and the amount of debt you currently have. All of these factors are taken into consideration by a lender when determining how much loan you can afford to take out.

Q: How do I start the home buying process?

A: Before you head out into the streets to search for your perfect Montrose home, there are a number of things that should be tended to; in particular, you will need to make sure your credit and finances are in order and that you have secured a mortgage preapproval letter. This letter, which is given to you by your lender, essentially states that you are preapproved for a home loan. A loan preapproval is the best place to start when determining which houses to view, as it states the maximum loan amount you can take out.

Q: How do I choose a home loan?

A: The best way to choose the home loan that best suits you is to do your homework. Ask a local lender about home programs available to you, and check the Internet and newspapers for the latest mortgage rates. As with any other industry, rates, fees and points can vary widely when it comes to home loans, so don’t gloss over this important step in the home buying process.

Q: How do I make an offer?

A: The best way to make an offer is to determine how much you think the loan is worth and put in an offer through your real estate agent. Once you have determined the price you want to submit (along with any contingencies) your real estate agent will work with you to look at comparables in the area to make sure your offer is reasonable and accurate. Then the agent will submit the offer to the seller’s agent.

Posted in Buyers | No Comments »

Buyer Basics: Your Most Frequently Asked Questions Answered – Part I

Thursday, May 27th, 2010

New homebuyers face a number of obstacles in today’s market; one of them being the sheer amount of information they must comprehend in order to purchase a home.

Fear not! Home buying doesn’t have to be a confusing process. In fact, if you come armed with a general amount of knowledge and a good real estate agent on your side you can easily navigate the home buying process without too much stress.

Here are some common questions for first-time homebuyers to get you started:

Q: Is it really advantageous to purchase a Memorial property in today’s market?

A: Although the evening news is enough to scare any potential homebuyer away, the fact of the matter is that now may one of the best times to purchase a Memorial property. From near-historic-low interest rates to the extended First Time Homebuyer Tax Credit and a fantastic inventory of homes on the market, new homebuyers are poised to take advantage of some great deals.

Q:  I think my credit is shaky. Can I still purchase a home?

A: Up until just about a year ago, my answer to this would have probably been “yes.” However, given the changes the credit sector has experienced, obtaining a mortgage is now more of a challenge, especially for first-time homebuyers. If you want the loan process to go smoothly, and if you want to secure the best interest rate, I would advise cleaning up any marks on your credit report and then go from there.

Q: How much of a down payment do I need?

A: Again, because of the tighter lending standards, homebuyers now are required to bring some money to the table. Although this amount varies from lender to lender, most lenders are now requiring at least 20 percent down. The best route to take is to talk to a local lender and ask about the down payment requirements of some of the major lenders.

Q: Do I really need a real estate agent?

A: No, of course you don’t need a real estate agent, but it sure can make the process go more smoothly if you have one in your back pocket. Real estate agents do more than find you a home; they help you make an offer; they are important during the negotiation process; and they guide you on everything needed for closing. In short, a qualified real estate agent is invaluable for first-time homebuyers.

Tags:
Posted in Buyers | No Comments »

Can you Afford that House?

Monday, May 10th, 2010

If you are more than ready to head towards home ownership, you may thing the only thing left to do is secure a home loan. However, you may first need to decide if you can realistically afford that Montrose property you have your eye on.

A Closer Look at your Personal Finances

First thing’s first: before you think about applying for a home loan you have to take a good look at your personal finances. The biggest factor when determining how much home you can afford is your income. However, a lender will ultimately determine your ability to obtain a home loan once they figure out how much you earn as compared to how much you want to borrow.

Your Monthly Income

So, your first step before heading to a lender is to determine your monthly income. Any documented income should be considered, including both regular and intermittent income; don’t forget to include income from alimony, lottery winnings, real estate and stocks, as well. However, if you are unable to document your income and it doesn’t show up on your taxes, you will likely not be able to use it as a source of income when purchasing a Montrose home.

Your Monthly Debt Obligations

Next, you will need to calculate your monthly debt obligations. Any type of monthly debt should be considered, including; credit cards, auto loans, and installment loans.

Once you have your monthly income and your monthly debt payments you can better get an idea of how much home you can afford, and if you can afford that perfect home you want.

Keep in mind that your monthly housing expense should not total any more than 28 percent of your gross monthly income. All taxes and insurance should be included in that 28 percent. If you exceed that percentage, your lender will likely tell you that your debt-to-income ratio is too high to secure a loan.

Before you head to a lender, gather together all of your financial information so that a loan officer can better guide regarding the amount of house you can afford.

Tags:
Posted in Buyers | No Comments »

The Basics of a Short Sale

Wednesday, May 5th, 2010

You may have heard the term “short sale” a lot lately, as many sellers in today’s economy are struggling to sell their homes amidst dropping house values.

Although short sales arise out of seller need, they can, in fact, be the source of a great piece of Midtown real estate for buyers. In other words, it pays to understand the basics of a short sale in case you find yourself falling in love with a home in short sale:

Q: What is a short sale?

A: Short sales became commonplace over the last year because of plummeting home values and too-good-to-be-true financing.  As a result, many sellers have been forced to sell their homes for less than what they owe on their mortgage.

When a homeowner must sell his or her home for less than what they owe on the mortgage and they ask a bank to relieve them of the debt they would incur as a result, it is called a short sale. In other words, a short sale occurs when a lender agrees to accept a mortgage payoff that doesn’t cover the mortgage amount.

Q: Why would a lender agree to a short sale?

A: For many lenders, it’s a matter of cutting their losses. Often times, accepting a short sale means avoiding foreclosure, which would cost the lender much more than a short sale.

Q: How does a seller qualify for a short sale?

A: The seller must show the bank that they are experiencing a genuine financial hardship and that if they are unable to sell their home they will likely end up in foreclosure.

Q: Is purchasing a short sale any different than a regular real estate deal?

A: Yes, because both the seller and the bank must approve your offer. For example, the seller may approve your offer, but the bank may reject it. In other words, you must get the green light from both the seller and the bank in short sale.

Finally, purchasing a short sale may take more time than a traditional real estate deal, as banks are typically slow to respond to short sale offers, simply because they are so bogged down by short sales and foreclosures. In other words, you may want to think twice about entering an offer for a short sale if you need to move quickly.

Tags:
Posted in Buyers | No Comments »

Make the Transition from Renter to Home Owner?

Tuesday, April 27th, 2010

Sure, there are loads of great reasons to jump into homeownership; however, for some people, there are just as many reasons for renting.

If you are finding it difficult to make the decision between renting and buying, you’re not alone. Many renters are being lured into homeownership with first-time homebuyer tax credits; low interest rates; and a large inventory of homes.

If you are currently renting and considering homeownership you will want to ensure that you are making the right financial decision. The following questions will guide you when making your decision:

  • Have you included all expenses associated with owning a Bellaire home? When considering your monthly budget, don’t forget to include such monthly expenses as insurance, taxes and household expenses, such as homeowner’s association fees, maintenance and general upkeep. Many renters fail to consider these added expenses when considering homeownership and, as a result, find themselves with a tighter than expected budget.
  • Do you have the down payment necessary to purchase a home? Lenders are no longer willing to extend loans to individuals who do not have a down payment. The days of no down payments are all but gone, as lenders are now requiring as much as 20 percent down on home loans.
  • Have you consider the long-term benefits of owning a home? Sure, renting is convenient, but the money that you could earn from owning a home may be worth making the switch to home ownership. However, in order to benefit from the long-term benefits of home ownership you must be prepared to stay in the same home for at least five years; otherwise, you will not benefit from home ownership. In other words, if you don’t think you’re ready to settle down and stay in one place for an extended period then home ownership is probably not right for you.
  • Are you ready to take on the responsibility of maintaining a home? Are you ready to repair your home, update your home and take care of the lawn and landscape? If not, are you prepared to hire someone to do this for you? Better yet, will you be able to afford to hire someone to handle household repairs and improvements? If maintenance and lawn and landscape are not your thing, then you may consider a condo or townhome; however, keep in mind that maintenance-free living usually also comes with its share of HOA fees.

Tags:
Posted in Buyers | No Comments »

Relocating to Houston: What to Expect

Wednesday, March 10th, 2010

Houston living is exceptional by many people’s standards, which is why Houston is often thought of as a Mecca for professional relocation. The strong job industry, qualified workforce and the low cost of living make Houston an obvious choice for relocating.

Low Cost of Living

It pays to live in Houston, both literally and figuratively. Consider first that the cost of living in Houston falls nearly 11 percent below the national average. In fact, housing is nearly 27 percent less than the national average. This, of course, essentially means that you can expect to get much more for your real estate dollar in Houston than in other parts of the country.

Houston is also home to some of the finest neighborhoods in Texas. From historic homes to sprawling estates, Houston real estate is superb. Some of Houston’s most well known neighborhoods in terms of exceptional real estate include: the Woodlands, Medical Center, Museum District, Galleria, River Oaks, Katy, Sugar Land, the Heights, Montrose and Midtown and, of course, downtown Houston.

Downtown and Midtown Houston boast some of the best high rise condos in the city, and the Woodlands and River Oaks boast some of the best estates in the city.

Excellent Cultural and Entertainment Destinations

Houston is known for its great array of fun things to do. From downtown Houston to the Theater District, there is never a lack of things to do in Houston. In fact, the Theater District of Houston is home to nine, major performing arts centers and six performance halls, as well as the NASA Lyndon B. Johnson Space Center.

Houston Jobs

In addition to being a hub for technology, oil and engineering jobs, Houston is also home to the Texas Medical Center, the largest of its kind in the world. In fact, it employs over 52,000 Houston residents, and is therefore considered the backbone of the Houston economy. In addition, Houston is also home to 18 Fortune 500 companies and over 5,000 energy firms.

Weather

One of the most attractive parts of relocating to Houston may be, in fact, the weather. Houstonians enjoy year-round temperate weather, and is often a choice for retirees and empty nesters.

Tags:
Posted in Buyers | 1 Comment »

Tips for Taking Advantage of the Home-Buyer Tax Credit

Thursday, December 3rd, 2009

Are you ready to get off the sidelines and make the leap into homeownership? If so, then you’re not alone! The home-buyer tax incentive, which was recently extended until April 2010, has motivated many first-time homebuyers to purchase their first West University home, and the market has increased home sales to show for it.

houston-home-buyer-tax-credit

The government tax credit is an excellent opportunity for many homebuyers, but there are a few things you should consider:

  • Although the tax credit has been extended into 2010, don’t wait until the last minute. You will have much better luck finding the right West University home if you take your time and begin searching now, instead of a month or two before the deadline.
  • See a lender and get preapproved before you even begin searching for a Houston property. It doesn’t make much sense to begin your home search if you don’t know how much home you can afford and if a bank will approve you for a mortgage at this time.
  • Pay close attention to your credit score. Although the government tax credit is encouraging new buyers, it’s still important to note that the credit sector is still enforcing tough lending standards. Order copies of your credit report to clear up any discrepancies, pay down some of your debt, and don’t take out any new loans until after you close on your home loan.
  • If you are selling a home, price it right –from the beginning. Don’t let the recent spike in home activity fool you; it’s still a buyer’s market. So make it easy on yourself and price your home aggressively so that you can sell it and move on.
  • Continue to pay close attention to mortgage rates. Although mortgage rates are low right now, they may very well start creeping back up next year. And a small rise in mortgage rates can mean a large rise in your monthly mortgage payment.
  • Be careful of purchasing a short sale. The process of buying a short sale can be a long one, particularly when you are dealing with the tax credit deadline. Because the process of purchasing a short sale can be quite lengthy (and frustrating), you may want to think twice about buying a home in short sale.

Tags: ,
Posted in Buyers | No Comments »

Newer Entries »