Buying a home Archives - Page 20 of 22 - Preferred Properties of Texas Home & Ranch Properties Stephenville

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.

The Importance Of Pricing Your House Right

March 10, 2021 by chorton Leave a Comment

Even in today’s seller’s market, placing the ideal price for your house is one of the most valuable things you can do.

When it comes to setting the ideal price for your residence, the goal is to increase visibility and drive more buyers your way. Rather than attempting to acquire the discussion with a single buyer, you should price your house so that demand is maximized, and more buyers want to have a look.

As a vendor in the current market, you could be thinking about pricing your house on the high end while so many of today’s buyers are searching harder than ever simply to locate a home to purchase. It’s actually more likely to deter buyers.

Right now, even if there are a lot of homes for sale, your home is more likely to take a seat in the marketplace longer or require a price fall that may send buyers operating if it’s not priced just right from the very start.

When you buy it competitively from the start, you will not be bargaining with one buyer. Instead, you will likely have multiple buyers competing to your home, possibly increasing the last sale price.

The secret is to ensure that your home is priced to sell immediately. In this manner, it will be seen by the greatest number of buyers. Over one of them might be interested, and it will be more inclined to sell in a competitive price.

Give us a call to find out what your home is worth in today’s market.

Ideas To Cover Your Next Down Payment On A Rental Property

February 27, 2021 by chorton Leave a Comment

Whether you are purchasing your first house or your 14th, try the following ideas to create property investing less expensive.

1. HELOC or RELOC
While homeowner mortgages do not typically permit you to borrow any portion of the deposit, investment property creditors do normally let it, which opens up many opportunities for borrowing your down payment. In case you’ve got a house equity credit line (HELOC) in your main residence, you are able to draw it to supply down your next payment. It makes for a flexible means to borrow and repay the debt on your personal schedule.

Many landlords do not know they can also take out HELOCs against leasing properties with equity. I call those”RELOCs,” but I am not sure anyone else can. Irrespective of the real estate type, know you could tap present equity not merely to fund property updates , but in addition to pay down your next payment.

2. Cross-Collateralize Present Properties
A different way to tap current equity would be to place up another property for security. The lender places a lien on the two possessions instead of collecting a deposit.

It works like this: Suppose you own a home worth $100,000, which you only spend $40,000 on. You wish to purchase an additional $100,000 rental home, but the creditor asks for a 20% ($20,000) down payment. Rather than coughing up $20,000, you provide to allow the creditor cross-collateralize your current home with $60,000 equity within it.

They place a lien against your new house and the old home with equity and give you the entire $100,000 purchase price. That versatility is part of everything you pay for if you take a hard cash loan or a leasing home mortgage out of a portfolio lender.

3. Utilize Unsecured Business Credit Lines and Cards
Do not have additional properties with equity? No sweat. As a property agent with an LLC, you are eligible for company credit cards and charge lines. These lenders may review your organization credit, but just as often they concentrate on your own own credit, especially in the event that you have not established company credit however.

I have used credit cards to fund a home purchase and renovations before. It is possible to purchase the stuff straight on credit cards without a penalty, and lots of builders now accept credit cards, possibly with a two – 3% convenience charge. A 3 – 4% cash advance fee is usually more affordable than the overall fees billed by hard money lenders or leasing property mortgage creditors.

4. Seller Financing
An oldie but goodie, you could always attempt to negotiate a seller carryback, also referred to as a seller-held next mortgage.

Say your rental home mortgage lender needs a 20 percent down payment. Then you approach the seller and request them to offer you another mortgage to pay any or all of itand you generally pay it back in a couple of decades. You avert a deposit, they score a source of passive income and also get some interest during the upcoming few decades. Win-win. And for this matter, you may even attempt to negotiate whole seller funding as your mortgage.

5. Tap Into Your Roth IRA
One of the many overlooked advantages of a Roth IRA is that you may draw gifts tax-free and penalty-free, any moment. This makes it the most flexible retirement accounts available.

Obviously, when you raid your Roth IRA, you miss out on potential tax-free compounding. However, by utilizing the money to purchase rental properties, you may potentially score much higher yields, greater compounding and also the chance to retire early on rents. To put it differently, it might wind up serving the exact same function, with much quicker results.

6. Partner With Deeper Pockets
As you prepare to purchase your first house or 2, it will help to locate a senior spouse. This is somebody who can point out common pitfalls and errors made by novice traders.

And, ideally, somebody who can help pay some of their deposit. Just understand that in the event you do not bring expertise or even money to the venture, you are probably going to have to do the lion’s share of their labour to pull your weight.

7. Assessing an Owner-Occupied Mortgage
Lease property mortgage lenders demand a bare minimum of 20 percent, regularly 25 – 30 percent. This could add up to a huge quantity of money, for assets costing $200,000, $500,000, occasionally even $1,000,000 or more.

But homeowner mortgages need as few as 3 percent down; cases comprise Fannie Mae’s HomeReady loan application , Freddie Mac’s Home Possible program and FHA loans’ famous 3.5percent down payment. Obviously, owner-occupied mortgage loans need you to really occupy the house. Luckily, you have a lot of alternatives to fulfill that condition while still raising your rental portfolio.

The traditional method entails housing hacking: purchasing a duplex to rent 1 unit and reside at another –or even a triplex or fourplex. Residential mortgage loans permit up to four components. You may also use the rental income in another device (s) to assist you meet the requirements for the creditor’s income requirements.

On the other hand, the choices do not stop there. You could move in the property for a single year–that satisfies lenders’ occupancy demands –then proceed out, maintaining the house to get a rental. You can achieve this with single-family houses, or using multifamily properties which you home hacked.

In reality, you may even home hack through your adult kids to ensure they meet the occupancy requirement as opposed to you personally. Since you comparison store lenders, inquire about”kiddie condominium” loan plans in which you associate with your adult kids on household purchases, and they proceed in as you remain comfortably nestled on your house.

Last Ideas
You’ve got loads of alternatives to fund rental properties–and just as many to pay your deposit.

The quicker you construct passive rental income, the less you need to rely on your own nine-to-five job. Since you are able to pay more of your living expenses with lease income, you approach financial freedom. Once there, functioning becomes discretionary, and you’ll be able to devote the remainder of your life doing, well, anything you desire!

Looking for investment property? Check out our website or contact our office to speak with an agent who can assist you in all your real estate needs.

Deciding on The Ideal Home Size for Your Family

February 23, 2021 by chorton Leave a Comment

Making the decision to purchase a new home is a significant decision for anyone. Once you’ve settled on the concept that you do wish to get a house, there are many more choices you are going to have to face; among the most important is the ideal size of a home to best fit your loved ones and lifestyle.

Realize That Bigger Is Not Always Better
You may initially begin your house search thinking that size does not really matter. So long as it seems big enough to reside in, you do not care how large it actually ends up being. The truth is that bigger is not always better. A large home requires more money–and time to preserve. Unless you’re using the distance, you might just end up wasting your money on keeping up a big house for no reason.

Know Your Own Maintenance Budget
A crucial component of your home purchase choice will be to ascertain what your budget will be for home maintenance. A larger home requires more time and money to look after, especially if you’re looking at houses with substantial front and backyards. In terms of the interior, there are cleaning, energy and repair costs for cooling and heating. Discuss your budget with your partner and your real estate agent to decide the square footage you can realistically handle.

Identify the Number of Rooms You’ll Need
If you really don’t understand what amount of space is ideal for your family, then you want to start simple. This implies counting the number of rooms which you’ll need. Consider your main rooms such as your kitchen and living space, and then proceed to counting the amount of bedrooms and baths that you need. This gives you an excellent starting point to identifying just how much space your family members will require. Keep in mind if you intend on enlarging your family, if you often have guests visit and if you might have to get a relative, like an aging parent, live together with you later on.

Once you get an notion of the size range that will fulfill your requirements, it’s time to take a few excursions. Look for homes which are in the appropriate size range which you just determined. This isn’t so much about assessing potential purchases as it is all about determining if that size range will fit what you are considering. Home tours will give you a clearer idea of what you would like the square footage of your home to be and the way you want those square feet distributed throughout the bedrooms, common areas and outside.

Determining the right size house for your loved ones may be challenging at first. Start by breaking down your budget versus what you think you’ll want and give us a call so we can begin looking at sample homes and go from there.

Choosing a Loan Officer

February 17, 2021 by chorton Leave a Comment

You’ve got lots of choices to make when you first begin your trek to purchase and finance your home.

First of all, the most significant choice is which home to purchase. Determined by market conditions in your area, you could be amazed at how many homes to fit your own personal criteria. You may require a 3 bedroom house and you’d like it to maintain a specific area of town, perhaps near great schools or a brief commute to work.

Once you do find some houses to look at, the sellers are going to want to see some sort of documentation that you’ve not spoken into a loan officer but have a preapproval letter in your own hand. Before you get to this point however, you want to make sure you’ve got a sterling loan officer. You can’t select a loan based upon marketing or smart ads, you have to interview your loan first before you get a lot farther.

You want to learn the length of time the loan officer has been in business. That is not really that fair to new loan officers who might be just as capable of getting a loan to an approval but keep in mind that loan officers close loans…that’s exactly what they do. You will only interact with a home loan officer a couple of times on your whole time as home owner. You need to make the right option.

A loan officer who has been in business for many years has been established as experienced, reliable and a fantastic communicator. Loan officers that can not bring in the business will not be loan officers for very long, they will be on to something else. Good loan officers have seen all sorts of approval situations as well as knowing that loan programs are ideal for your personal situation. An experienced loan officer has seen everything.

You would like to learn what your closing costs are going to be. A good loan officer will be able to give you a solid, verbal quote over the phone without hesitation. A good loan officer will have the ability to itemize lender charges at the drop of a hat. A loan officer that does not answer right away and answers a written cost quote will be forwarded a day or 2 afterwards likely isn’t your best option. Most loan officers will know these potential prices from an appraisal charge to title insurance. An experienced loan officer will readily have the ability to recite potential charges.

Last, request referrals from past clients. Your realtor will probably provide you with a couple names of good loan officers, so you need to begin there. Realtors do not get paid any referral fees for doing this but rather refer loan officer names because the loan officers do not drop the ball during the approval process. Nothing is worse in a broker’s eyes to find out only a few days before closing the lender will not have the ability to provide closure documents on the settlement date. Remember, real estate agents do not get paid until the deal is closed.

These are just a few things to ask your loan officer and you will definitely inquire more when you submit your loan application, but before you submit your application, you’ll first have to pick your loan officer.

Looking for homes for sale in Stephenville

The Wealth Built Through Equity When You Own A Home

February 4, 2021 by chorton Leave a Comment

Each year, households across the nation make the decision to rent for one more season or take the jump into home ownership. They look at their earnings and savings and then decide what makes the most financial sense. That equation will almost certainly take into consideration monthly housing costs, tax benefits, and other incremental expenditures. With these measurements, recent studies show that it is still more cheap to own than rent in most of the nation.

There is, however, another financial advantage to owning a home that is often forgotten in the analysis — the wealth constructed through equity when you own a home.

The normal advantage in the sale of the house (equity) has improved significantly over the last five years.

The National Association of Realtors (NAR) just reported that now, the median-priced home in the country sells for $309,800.

As you make your plans for the coming calendar year, make certain to consider the equity benefits of house price appreciation since you weigh the financial benefits of buying over renting. When you do, you may find this is the best time to jump right into home ownership.

When your ready to become a homeowner contact our office and speak to one of our knowledgeable agents. We are here for all your real estate needs!