Archives for September 2022

Buyers Feel Pinch of Rising Interest Rates

September 29, 2022 by chorton Leave a Comment

Although homeownership is the largest investment and source of wealth for most households in the United States, there are many factors that make it more difficult to achieve homeownership, particularly for first-time buyers. Rising mortgage interest rates are the latest factor. The average rate for a 30-year fixed mortgage rose 2 percentage points from 3.22 percent in the first half to 5.7 percent in the second half of 2022.

Potential buyers face many consequences from rising interest rates. They reduce buyers’ purchasing power. The mortgage payment increases with rising mortgage rates, which in turn leads to a decrease in buyers’ purchasing power. This means that it is more difficult for them to get a mortgage loan. The mortgage rate rises means that the income required to be eligible for a mortgage loan for the same home is higher. This effectively pushes out more buyers from the housing market. With a 3 percent rate of interest, 34.8 percent Texas renters could afford the first-quartile price for a home in 2Q2022. With a 6. percent interest rate, this percentage drops to 24.7 per cent.

A higher interest rate equals a higher mortgage payment. This increases the buyer’s debt to income (DTI). This makes buyers more risky to lenders and could reduce the chances of getting a mortgage loan. A higher DTI ratio can make it more difficult to repay mortgages, especially for those who have lost their job.

Higher interest rates mean higher mortgage payments. This reduces the return on homeownership and prolongs the time it takes to break even.

To read more click on original article: https://www.recenter.tamu.edu/articles/tierra-grande/Home-Stretch-2362

Document That Can help You Avoid Any Surprises Regarding Property Taxes

September 26, 2022 by chorton Leave a Comment

You’re familiar with the situation: You work with buyers to close a property with the best outcome. You are the REALTOR(r) that your clients look to for guidance and support. You are professional, ethical, well-trained and committed to continuing education. Here’s a tip to impress your clients and allow them to take advantage of one of Texas’s best property tax benefits: the tax certificate.

The Texas Tax Code Section 31.08 allows anyone to request a statement on any delinquent taxes or penalties, interest, costs, or expenses for any parcel of real property. This information is easy to find in today’s digital age. Here’s the beauty of the tax certification: If a seller sells property with a statutory tax certificate that incorrectly indicates that there are no taxes due, or fails to include property as a result of it being omitted from an appraisal roll then any tax lien on the property will be extinguished and the buyer is freed from any liability for any omitted balances, or taxes based upon omitted property.

The title company will handle it for you. This tip is especially important for clients who do not use a title company. Some buyers feel the need to forgo title insurance to get a fast closing due to the rapid pace of the real estate market. This is especially true for cash transactions and other transactions that are not in the residential market. If taxes are owed, the buyer will be purchasing the property subject the balance. Your client also buys subject to any pending litigation to collect the debt. In such situations, the tax certificate protects your client.

Tax certificates are simple and affordable, which is perhaps the best thing. A tax collector must issue a tax certificate to any taxing unit that the collector collects. In San Antonio, for example, the Bexar County Tax Assessor-Collector collects taxes for the City of San Antonio and the local school districts and education districts. He also collects tax certificates for smaller utility and improvement areas. The tax collector would issue one tax certificate that contains all the information necessary to determine the taxing unit in which the property is located. Separate tax certificates are required if a property is located in an area where more than one tax collector collects tax for different taxing units. The cost of a certificate is $10, which is affordable for most buyers.

Unpaid taxes are not something buyers and sellers often think about, but they do exist. You can help your clients keep their eyes on the exciting part of buying a new property by using a tax certificate.

Original Article: https://www.texasrealestate.com/members/communications/texas-realtor-magazine/issues/august-2022/avoid-property-tax-surprises-with-this-document/

There Are Many Ways To Move.

September 21, 2022 by chorton Leave a Comment

You don’t have to rent a truck or hire movers when you move. You have other options for moving your belongings.

A moving truck may not be necessary for you. You might be able share a truck with another customer of a moving company if you don’t move a lot of items. This option is available for interstate moves.

FedEx states that freight is any shipment exceeding 150 pounds. You can send bulk items by air, sea, land or any combination thereof. It may be economical depending on your move.

A company can drop off a portable storage container at your home. You fill it up with your belongings. It is picked up by the company and shipped to your new residence. Ask if portable storage containers can be placed on the street or property of your future and current homes.

Not all your possessions are treasures. Consider whether it is worth the effort and cost to move an item. If the item isn’t worth it, you can sell, trade, or dispose of it and then buy another one once you get to your destination. It’s easier and cheaper to move with less.

Original Blog: https://www.texasrealestate.com/members/posts/theres-more-than-one-way-to-move/

Understand Real Estate Terms

September 19, 2022 by chorton Leave a Comment

If your clients don’t know the terminology and terms used in the industry, how can they make informed real-estate decisions?

You can trust glossaries from trusted sources to educate your clients.

If a client wants to know what an MLS is, they can refer to the definition at realtor.com: A real estate broker-member organization that compiles and distributes information about homes for sale. If clients are interested in learning more about earnest money, they can refer to the FTC definition: A deposit to prove that you’re serious about buying the home.

First Time Home Buyer’s Glossary at realtor.com

American Bar Association’s glossary of real estate terms

The Real Estate Marketplace Glossary: How to Talk the Talk

Glossary of Real Estate Industry Terms

English-Spanish Real Estate Glossary

Original blog: https://www.texasrealestate.com/members/posts/help-clients-understand-real-estate-terms

Can You Purchase a Home with a Home Equity Loan?

September 15, 2022 by chorton Leave a Comment

A home equity loan can be used to purchase a house. However, it is not always the best decision. With caveats, home equity can be used to purchase a second or investment property.

A home equity loan allows you to access the equity in your home by taking out a second mortgage. Home equity is the difference between your home’s value and what you owe.

There are two things you should know if you want to use your equity from your home to purchase another property. Is this a purchase of a second house or an investment?

A home equity loan is a great option if you are looking to purchase an investment property.

You can contribute more to your down payment. You can put more towards your down payment with a home equity loan. You will be more competitive in the current market and your monthly payments and interest rates will be lower.

A second property can be more difficult to finance due to the higher down payment requirements. A home equity loan is a better option and can be more affordable.

Home equity loans are secured by collateral which is your home. You will enjoy lower interest rates as a result.

Your home equity could be an asset in wealth building if you are looking to buy an investment property. You should consider the fact that a second house will not bring you income as an investment. This means you will be borrowing money to buy your second home.

There are downsides to using equity to purchase investment properties. You are effectively trading an asset for debt. You are taking the portion of your home you own and then putting it in a loan.

Housing market shifts can make you vulnerable, especially if you have two properties. If something happens in the housing markets, you’re at double your risk. If your property’s value falls, for example, you could owe more on both your home equity loan or your mortgage.

You could lose both your properties if you default on your loan.

It is possible to end up with three mortgages and only two homes. You will need to combine the home equity loan with the loan for your second house.

A downside to consider is that the interest on your home equity loan won’t be tax-deductible due to 2018 tax code changes.

This is the big takeaway: Yes, you can use your home equity to purchase a second home. Sometimes it’s a good option. However, it comes with risks. It’s not always the best decision. You need to carefully consider your particular situation.

Original Post: https://realtytimes.com/archives/item/1043687-can-you-use-home-equity-to-buy-another-property?rtmpage=

Becoming a Homeowner

September 12, 2022 by chorton Leave a Comment

Being a homeowner involves more than just having keys and your name on a deed. It’s possible to feel a surge of emotions when you get your keys and realize that you have a place in the world.

While you may be proud of your car or your clothes, nothing can compare to being a homeowner. It is a great accomplishment to buy your first home. Every day you can look back on that achievement.

After you move into your new home, have unpacked and taken a deep breath, you will experience that moment when you feel like “This is my home.” This moment can be repeated often. It will happen when you look at your countertops, realizing that you have the ability to change them as you wish. You don’t need to ask permission to have a dog. You can also paint your walls any color you like.

You may soon be able to tile your backsplash and snake a toilet. These tasks can be outsourced, as well as all other jobs you might need over time, but it is often more rewarding and cost-effective to do the work yourself.

You’ll need to learn how to maintain your lawn if you have a tight budget after purchasing your first home.

When you put money and sweat equity into your home, you’re impacting its value. It’s an investment not only in your home but also in you and your future.

If you’ve been considering buying a home contact Preferred Properties of Texas, our agents would to help!

For listings in Stephenville, Tx text HOMES to 877-965-7775

Original Blog: https://realtytimes.com/archives/item/1035879-6-things-that-happen-when-you-become-a-homeowner?rtmpage=