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Preferred Properties of Texas

The Preferred way to buy & sell real estate for you

First Time Mortgage

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The process of buying your first home can be exciting and complicated. There are many things you need to know. The mortgage is one of the most important but also the most confusing item on this list.

We covered the basics of a mortgage in one of our articles about first-time homeownership. In this article we will go deeper into the subject and offer some tips and tricks to help you get through the process.

What criteria must I meet to get a first mortgage?

To be approved for a mortgage, homeowners must meet certain requirements. According to Investopedia, certain lenders offer Special loans and benefits for first time homebuyers

Many people are surprised to learn that there is a general definition for what a “first-time homebuyer” is. To be approved for loans for first-time homebuyers, you must meet these terms. The U.S. Department of Housing and Urban Development (HUD) has established the criteria.

  • Who hasn’t owned a primary residence for at least three years?
  • An individual who is the sole owner of a residence that is not permanently attached to a foundation
  • A single owner who has owned only with a spouse
  • An individual who only owns a property that is not compliant with building codes

There are many loan programs that can help you purchase a home if you fall into any of these categories.

Additional requirements must be met before a mortgage can be approved

Other than the requirements above, you will need to prove your income for at least two years, a down payment of 3.5% and a credit score below 620. There are many programs that will allow first-time buyers purchase without requiring them to meet these requirements.

What are the best mortgage options?

There are many mortgage options. The most popular type of home loan is the 30-year fixed mortgage. This is a traditional bank private loan. There are many other loan options. Check out the top-rated types to find one that suits your needs.

1) Federal Housing Administration loans (FHA): Insured Mortgages that require 3.5% down FHA loans are more competitive than conventional loans because they have lower interest rates, smaller downpayments, and lower closing costs.

2) U.S. 2) U.S. Department of Agriculture loans: This loan program for homebuyers is aimed at rural homes and comes with fixed payments.

3) U.S. U.S. Department of Veterans Affairs loans (VA): These loans are available for military personnel with no down-payment, including veterans and active-duty military personnel.

4) First-time homebuyer programs in Many states offer local lenders that are more suitable for the borrower’s location than national lenders. NerdWallet offers a comprehensive guide to first-time buyer programs for each state.

5) Home Renovation Loan: This loan is for homeowners who are looking to purchase and remodel their home.

6) Fannie Mae loans and Freddie Mac loans: Created in Congress, Fannie Mae loans and Freddie Mac loan are the backbone of our housing finance system. They support conventional loans with only 3% down.

Find the perfect property!

There are many options for mortgages for first-time buyers. It is important to research your options and consider your needs before you choose the right mortgage.

Contact Preferred Properties of Texas  

 

 

Original blog: https://www.landhub.com/land-news/mortgages-for-first-time-homeowners/#comment-13055

What Is A Home Renovation Loan? And Should You Consider One?

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A move-in-ready, picture-perfect home is the ideal home for many homebuyers. Others find a project home too tempting to pass up, especially if they are able to get a discounted price and put their own stamp on it. Problem with many “project houses” is the difficulty of funding the projects.

After you have exhausted your savings and paid the closing costs and your down payment, it may be impossible to tear down the wall between your living and kitchen rooms, replace the cabinets and install hardwood flooring. It could take years to finally make these improvements after you add in the cost of moving and new furniture.

A home renovation loan is a great option.

What is a loan for home renovation?

While they are becoming more popular, home renovation loans aren’t nearly as common as FHA loans for first time buyers. According to FHA Handbook, first-time homebuyers account for more than 75% of FHA home purchase,” stated the Mortgage Bankers Association.

They might be.

A home renovation loan can help with a few things:

1. This allows you to renovate your home using funds that are tied to your loan. 2. It gives buyers the opportunity to buy something more affordable if they can’t afford to move in or are losing out on homes.
3. It allows buyers to quickly build equity.

This is how it works. Renovation loans combine funds for home purchase and renovation. There are many options to choose from. These are the most well-known:

Fannie Mae HomeStyle Renovation loan – “The Fannie Mae HomeStyle Loan is a single-close loan which includes the cost for home repairs in the total loan amount,” stated ValuePenguin. This loan can be used for repairs required by an appraiser or to make changes that the homeowner wishes to make. It can also be used to fund both structural and cosmetic repairs.

Fannie Mae HomeStyle Renovation mortgages require a 5% downpayment and are open to investors. Interest.com stated that a down payment of less then 25% will require a credit score of 680 or higher. Your credit score must be 700 or higher if your debt-to income ratio is greater than 36%, but less than or equals 45%. The funds can be used to repair, renovate, or improve energy efficiency. The only condition is that the modifications must be permanent and add value to the property.

FHA203(k) -This option is similar to the HomeStyle loan but it is government-backed and requires lower credit scores. FHA loans will require you to pay mortgage insurance premiums if your down payment is less than 20%. This can increase your monthly payments. FHA loans also require borrowers to pay an upfront fee. This will increase your out-of-pocket expenses.

Two different FHA203(k) loan options are available:

* Full Loan – The Full Loan is for a primary residence that requires significant or serious repairs.
* Streamline Loan – This loan can be used to make smaller repairs, and has a maximum limit of $35,000.

FHA’s loan 203(k), requires a minimum credit score 500 and a downpayment of at least 10%. Credit scores of 580 or more allow a downpayment of 3.5%, said MarketWatch. These loans cannot be used for work the FHA considers luxurious, such as installing swimming pools.

 

Original blog: https://realtytimes.com/archives/item/1036944-what-is-a-home-renovation-loan-and-should-you-think-about-one?rtmpage=

Today’s Mortgage Rates

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It is important to understand the relationship between mortgage rate and your purchasing ability if you are looking to purchase a home. Your purchasing power is the ability to afford a home that you are able to purchase. The monthly payment you pay on your home will directly affect the mortgage rates. Rates rise and so will the monthly payment that you can lock in on your home loan. This could impact your purchasing power in the future, especially in a rising rate environment such as we are currently experiencing.

The average 30-year fixed mortgage rate today is higher than 5%. Experts predict that this will rise in the coming months. If you act now, you can get ahead of this increase in your purchasing power.

If you get a smaller home loan amount, your chances of exceeding your target payment range increase. You can use this motivation to buy a house now if you are ready to do so.

When searching for a house, it is important to remember your budget. Consider what might happen if rates go up by getting preapproved. . . You should know what this would mean for your monthly expenses and how comfortable that makes you feel. This will help you to adapt if rates go up.

It doesn’t matter what, it is best to collaborate with your real-estate advisor and trusted lender to develop a plan which takes rising mortgage rates into account. You can both look at your budget and compare it to current rates, and create a strategy that you are ready for changes.

Even small increases in mortgage rates could have a significant impact on your purchasing power. It’s important to have a solid plan if you are in the process of purchasing a home. To help you achieve your homeownership dream, partner with a trusted lender and real estate advisor.

 

 

Original article: https://www.keepingcurrentmatters.com/2022/05/09/how-todays-mortgage-rates-impact-your-home-purchase/

Markets May See a Noticeable Bump in the Number of Homes

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A survey by the National Association of Realtors found that finding the right home for them is the biggest challenge in today’s market. This is due to the low inventory today of homes for sale.

You may have seen this if you are looking to purchase a home. There is good news. Recent data suggests that more sellers are listing houses this season. This may increase your home search options.

This year, more sellers are listing their homes for purchase each month. According to realtor.com this trend is expected to continue. Their research shows that the majority of potential sellers intend to list their home within the next six-months.

As we move into spring and summer, there may be a noticeable increase in homes on the market. Nearly 10% of homeowners who plan to sell their homes this year have already put their property on the market.

It can be difficult to navigate a low-inventory marketplace as a buyer. However, there are some things you can do. If you have had difficulty finding the right home for your needs, the increasing number of listings and expectation that more sellers will list it in the future is good news. These new listings are moving fast. This means that you need to keep your feet on the gas, and be ready act if you see a home that you love.

Your agent can keep you up to date with the latest listings in your local area, so you can find the right home for you. Also, your strongest offer can be submitted as soon as possible.

You can keep searching if you are having trouble finding the perfect home for you. There are many options available and your dream home might be one of them. You can partner with a professional real estate agent to keep up-to-date on all the listings in your area so that you are ready to act quickly when you find the right one.

 

Original article:  https://www.keepingcurrentmatters.com/2022/05/11/are-there-more-homes-coming-to-the-market/

 

Simple Internet Search Will Tell You What A Home Is Worth. Or Will It?

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You can find out the value of a house by doing an internet search.

A website that gives you an estimate for a home’s worth doesn’t necessarily mean you can purchase or sell the property. Many home-valuation websites have disclaimers that warn you about the accuracy of their information.

There are many data sources online that provide information about the median home price in an area, how many properties have been sold, days on the market, and housing inventory. Even if the data is correct and current, it may not be accurate. You may not be able to determine how these numbers translate into the home values of the property you are selling or buying. How do you account for differences between neighborhoods and homes in the area?

Your REALTOR(r), can provide you with accurate and comprehensive information that is relevant to your situation. This will help you make informed real estate decisions. REALTORS(r), who have the experience and training to explain the implications of the most recent market data for your particular situation, can help. Talk to your REALTOR before you become too excited about the online real estate data.

 

Original Blog: https://www.texasrealestate.com/members/posts/is-that-estimated-home-value-worth-anything/

Legal FAQ: Can a Buyer Change Financing?

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A seller accepted a contract with conventional financing and a full appraisal waiver. The buyer now wants to switch to FHA/VA financing. Does the seller have to allow the buyer to make this switch? Can the seller terminate? Can the buyer terminate if they are unable to obtain FHA/VA approval?

Original Blog:  https://www.texasrealestate.com/members/posts/legal-faq-can-a-buyer-change-financing/?utm_medium=email&_hsmi=211287098&_hsenc=p2ANqtz-9tAhZAfLyLMyBBnmodxEmZ1ho_-Xw2Ox9wVEZl4KFjIktHqOzNIenqrCHGk4sBwGGKO-O0-iTLc8TMbBm76t6MsbTTkw&utm_content=211287098&utm_source=hs_email

 

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