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Preferred Properties of Texas

The Preferred way to buy & sell real estate for you

5 Things to Know Before Filling Out a Loan Application

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When you decide to finance and buy a house, the first thing that will likely happen is for you to fill out and get a hold of a loan application. You can either complete the application in front of your loan officer or on a lender website. You need to be aware of a few important things before you start the mortgage application process. Here are five.

There’s a big difference between submitting a loan application to get a loan approved and completing some basic info to receive a letter of prequalification. To receive a complete preapproval you will need to fill out all the fields in the app. Leave a question blank if you are unsure of the answer. Your loan officer will contact you with additional information. Prequalification is a very simple process. You’ll only be asked a few questions. The loan application is much more detailed.

You’ll be asked to complete information regarding your income and assets, so be ready to fill the application in with approximate account balances along with account numbers and institution’s name. Prequalification is based on your word, but a loan application requires more information. It is not necessary to enter your current balance down to the penny. An approximation of the amount will suffice.

You may have been known under a different name. If you applied for credit with a name other than your own, you will need to provide proof and explain why. Your lender may want to know if you have a maiden or other name on your credit report.

Have your most recent pay stubs handy when entering your income. This piece of paper contains your gross monthly income and your year-to date income. To calculate debt-to income ratios, gross monthly earnings is used. Tax returns are usually required if you’re self employed or rely on income that exceeds 25% of your monthly salary. These returns will be used by your lender to calculate and verify qualifying income.

Understand that your lender may ask for additional information even if you have provided all the necessary documentation. It’s usually just a matter of updating information in your loan file. But, whenever you are asked to provide additional information, do not wait. Be prompt.

Original Blog: https://realtytimes.com/archives/item/1047225-5-things-to-know-before-filling-out-a-loan-application?rtmpage=

Just Listed! Lovely Home in Stephenville, Texas

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A Slice of Country Life, approx 2.5miles from Stephenville. A spacious brick home set on 1.5 acres. The front of the home is lined with large Red Oaks and Pecan trees. Property has a metal workshop appx 40×50 feet with 220 electrical power and tons of shelving. Covered parking attached, perfect for RV or boat. A great dog kennel set-up. The gardener is sure to appreciate the fenced Garden with water and fruit trees. This beautiful home has a large living room with a lovely brick fireplace, as well as an open formal dining area. The galley-style kitchen is equipped with built-in appliances and plenty of cabinets. A bright Breakfast Nook, for eat-in kitchen dining. Large Utility room with storage, shelving and space for a freezer or extra refrigerator. Split bedroom arrangement. The large primary bedroom features a walk in wardrobe, a double vanity bath, and a walk in shower. Additional bath has tub and shower combo for the two additional bedroom. This home is full of amenities that you must see. Please don’t miss out on this super great find.

SOLD!! Listing in Stephenville, Texas!

Why Ranch Ownership Could Be Your Next Great Investment

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Are you considering investing in a ranch? Owning a ranch can be an excellent way to diversify your investment portfolio, while creating a source of income. Owning a ranch is a great investment because it offers many benefits. Ranch ownership is a great investment for many reasons, from increased property values to sustainability.

The Financial Benefits of Ranch Owning

Many people may think that investing in a cattle ranch is a luxury they can’t afford. The financial benefits that come with owning a farm may make it more feasible than you think.

Owning a farm can be a great investment. Your land’s value will increase over time, especially if improvements are made, such as adding a barn or fencing.

You can expect a significant return on investment if you decide to sell the ranch at a later date. Renting out your ranch to farmers and ranchers can be a great way to earn a regular income. Your property may be suitable for farming or livestock grazing, which will generate a steady income stream without you having to do much work.

Ranches can be an excellent investment. You may be able deduct expenses associated with land ownership depending on your circumstances. This includes property taxes, mortgage interests, and even maintenance costs.

Ranch ownership is a great way to diversify your portfolio. Land is an tangible asset that can retain its value during economic downturns.

Owning a ranch has many financial benefits. These include potential appreciation, ongoing income streams, and tax deductions. It’s vital to consider all your options and to work with professionals who are experienced to ensure you make a wise investment.

Tax Benefits for Ranch Ownership

The potential tax benefits of owning land, and a ranch in particular, are one of the many advantages. You may be eligible for various tax credits and deductions depending on the way you use your property.

You can deduct several expenses if you own a ranch. You can deduct any costs related to the management of your property. This includes repairs, maintenance and utilities. You may also be able claim a deduction if you use the land you own for agricultural purposes such as raising animals or growing crops.

A ranch can also provide tax benefits by claiming conservation easements. These easements are agreements which limit the use or development of a property to protect wildlife habitat or natural resources. You may receive a significant tax deduction by donating a conservation agreement. This will preserve your land for future generations.

If you sell your ranch you may qualify for a special tax incentive known as a “1031 exchange”. You can defer capital gains tax on the sale of a property by reinvesting the proceeds into another piece of realty within a specified timeframe.

Ranch ownership offers significant tax advantages. Consult a tax expert to make sure you are taking full advantage of the credits and deductions available. You can enjoy the lifestyle and conservation benefits while maximizing the financial benefits.

Original Blog: https://www.landhub.com/land-news/why-ranch-ownership-could-be-your-next-great-investment/?inf_contact_key=0f7e4c66db855591209b2d7976f52238680f8914173f9191b1c0223e68310bb1

Welcome to the team, Chance!

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Chance Pack from Dream Home Lending in Stephenville, TX is committed to providing the best home loan solutions for his customers.

Chance has been with us for just a few months, but has already made a significant impact in our office. He is incredibly knowledgeable about the mortgage industry, and is always willing to go the extra mile to help his clients. Born and raised in Texas, Chance is a graduate of Tarleton State University and is a certified Construction and Divorce lender.

Chance comes to us with a wealth of experience in the mortgage industry. He has worked as a mortgage lender for many years, and has a deep understanding of the different types of mortgages available and the lending process. He is a highly motivated and results-oriented individual with a strong work ethic.

I am confident that Chance will continue to be a valuable asset to our team. He is a talented mortgage lender, and is also a great team player. We are proud to have him in our office.

If you are looking for a mortgage lender, We highly recommend Chance Pack. He is professional, knowledgeable, and dedicated to helping his clients achieve their dream of homeownership.

How Much Should A Down Payment Be?

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Saving for a down payment is a major part of buying a house. The down payment you make when you sign a mortgage is your down payment. Lenders often refer to down payments as percentages.

The down payment is what you own initially when you purchase a house. Your lender will cover the rest.

The standard is usually referred to by 20% but is this the truth?

You may feel that a 20% deposit is too high for you to afford, but is it really?

Considerations to consider when making a down payment

What are the Benefits of 20% down?

There are benefits to putting down 20%.

You don’t need to purchase private mortgage insurance, or PMI. The PMI protects your lender in the event that you default on your loan.

Your lender may agree to cancel PMI if you do not put down 20% but reach a certain level of equity.

The higher the deposit you make on your mortgage, the lower the rate of interest you will get.

The higher the down payment you make, the lower the risk you are to a lender, and the better the terms you’re likely get.

You could save thousands over the course of the loan if you put down 20%, and got an interest rate two points lower. The bigger your down payment, the smaller the monthly payment.

The real estate market is still competitive despite COVID-19’s economic downturn. A larger down payment will also make you look more attractive to sellers.

It’s important to buy in a market that is hot.

The downsides of putting 20% down

There are some downsides of a higher down payment.

You’re also taking on more financial risks. This can be scary for some buyers, as they will have less money in an emergency fund to cover any unexpected events. If you don’t save enough money, it will be difficult to pay for repairs and updates. It could also take many years to save up 20% of the purchase price.

Can you buy a home without a down payment?

You can buy a house without a down payment if you use a government-backed mortgage. These loans are insured by the federal government, which makes them less risky for lenders.

VA loans and USDA loans are two of the most popular government backed loans without a down payment. VA loans are for service members, veterans and some surviving spouses. USDA loans are available to buyers who qualify in suburban and rural areas.

What is the difference between a personal loan and a business loan?

The type of loan that you are likely to receive is crucial when deciding how much down payment you will need.

The down payment requirement for a conventional loan on a primary home is left up to the lender. Some lenders may require as little as 3 % down payment, for instance. Some lenders offer lower down payments for qualified borrowers.

A minimum credit score of 580 is required to qualify for an FHA loan. If your credit score falls below 580, you will need to pay at least 10%.

This means that for buyers, there are both advantages and disadvantages to the traditional 20% deposit guideline. It’s important to determine what is best for your finances and shop around for the loans that are most suitable for you. You don’t have to give up your dream of owning a house if you can’t make the 20% down payment.

Original Blog: https://realtytimes.com/archives/item/1040895-how-much-should-a-down-payment-be?rtmpage=

Join Our Team Today!

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Are you looking for a rewarding career in real estate? If so, we invite you to join our team! We are a successful real estate brokerage with a strong reputation for excellence. We offer our agents comprehensive training, support, and resources to help them succeed. We also have a strong referral network that can help our agents reach a wider audience.

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Preferred Properties of Texas

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