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Preferred Properties of Texas

The Preferred way to buy & sell real estate for you

Where Do Mortgage Rates Come From, Anyway?

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You might wonder who is responsible for the daily adjustments to mortgage rates and where they come from. There is a method. Lenders do not just set rates at random. You might also wonder why mortgage lenders A to Z all offer interest rates that are very similar, if they are not identical. Do they all decide in a Zoom meeting?

A lender can set rates of interest based on several factors. The rates for a rental home will be slightly higher than those of a home that is owned by the owner. Shorter term loans may have lower rates than a longer term loan. Rates may even be adjusted based on the amount of equity or down payment in the property. Credit scores are also a factor. Almost all lenders follow this guideline.

Why are rates almost the same everywhere, with only minor variations? They all use the same index to set rates.

No, they are not based on Treasury bills or bonds, although this is a common misconception. Close, though. Fixed rate loans are a type of bond. Lenders instead look at the price of a specific mortgage-backed security, or MBS. An MBS is a bond with a fixed return rate. Just like any other bond the yield (return), when the price of that bond increases, will also decrease.

In general, when investors choose between a bond or a stock, a bond provides security. A particular stock may offer a higher return. Investors know how much they will receive, and when. Investors have historically withdrawn money from bonds when the economy is doing well. A lower demand for bonds will result in a lower bond price. The method is pretty similar for mortgage-backed securities.

The rate of inflation is another factor that can lead to higher mortgage rates. As the Fed seeks to cool an overheated economy, higher rates will usually result from higher inflation. Or, as it is now, the price of commodities and consumer goods may also rise. We are currently in this cycle. While the Fed remained steadfast at their last round, they have indicated that they will be ready for the next round. It’s possible that the Fed has already planned another rate hike. We’ll see. But the betting money is on another Fed hike at their next meeting in a few week.

Original Blog: https://realtytimes.com/mortgage-advices/item/1048165-where-do-mortgage-rates-come-from-anyway?rtmpage=

What’s the Process to Buy a Foreclosure?

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Some analysts predict that the number of foreclosures is going to increase. While the housing market remains strong, the coronavirus shutdowns had a significant impact on the economy and unemployment is still high.

It’s important to prepare for the process if you’re looking to see if a foreclosure is a good deal. The process of buying a foreclosed home is similar to that of buying any other house. However, if you know what to expect you can streamline the buying process.

Types of Foreclosures

There are two types of foreclosed houses. There are two types of foreclosed homes: bank-owned and real estate owned properties (REO). In both cases, the lender is the owner of the home. The main difference between the two scenarios is the stage at which the foreclosure occurs.

In the middle of foreclosure, the homeowner has stopped making payments and the lender is taking action to remove them from their home. Foreclosed properties are bank-owned homes that go to auction. REOs are still bank-owned homes if they don’t sell. REO properties are those that have been auctioned but still haven’t been sold. The lender will try to sell the REO properties through their REO agent.

Foreclosures are often cheaper, and in some cases significantly less expensive, than comparable properties in the same area. Many foreclosures are priced well below the market value. You may also receive other benefits by purchasing a foreclosed house, such as lower rates of interest, reduced down payments and the ability to avoid appraisal fees and certain closing costs.

You can get a great deal on a distressed home that is not owned by a bank.

Pre-foreclosure is one example. The lender will let the borrower that they are in default. However, if they can sell their property, they may be able to avoid foreclosure proceedings. Short sales occur when a lender accepts less than the amount owed on a loan for a home. A lender can approve a short-sale even if you are not in default.

There are also properties owned by the government. When a property purchased with a government-backed mortgage defaults, the federal government will own it.

Buying a Repossessed Home

Here are the steps you should take if you want to purchase a foreclosed property:

Mortgage Preapproval

You should get a preapproval from a lender for a mortgage before you begin looking at foreclosed homes. Preapprovals show that you are serious about buying and will help guide your search.

Find a Foreclosure Agent with Experience

It’s crucial to have an experienced agent who is familiar with foreclosures on your side. They can help you find properties in your area if you don’t already have a property in mind.

Make a Competitive Offer

You don’t need to be competitive just because you found a property that is in foreclosure. You are likely to get a good deal, but making an offer that is too low can result in it being rejected.

Get an Inspection

You can buy foreclosures as-is. The seller will not make any repairs. If you purchase the property, any repairs that are needed will be your responsibility. You need to be aware of what you are getting into before you make an offer. If you are not comfortable with the property after an inspection, you should pass. The inspection is merely to help you decide. What’s found won’t be much of a bargaining tool.

You won’t be able to inspect the home you purchase at auction.

You can’t usually go inside a house before you buy it at auction.

The Risk to Buyers

A foreclosed house comes with a lot of risk. You may not discover hidden costs and problems until after the inspection. It’s a long process.

When buying a foreclosed property, there is a lot of paper work. Banks are slow to respond with these properties. If a bank is backlogged with foreclosures, they can take several months to respond to an offering.

All of this does not mean that buying a foreclosed property is not a good idea. You just need to be prepared for these obstacles.

Original Blog: https://realtytimes.com/consumeradvice/buyersadvice/item/1039976-what-s-the-process-to-buy-a-foreclosure?rtmpage=null

No Perfect Home Exists: What You Should Know About Home Inspections

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Many first-time home buyers find buying a house a frightening experience. They know that they will be maintaining or improving the home, but have little or no experience in maintenance. So they buy a house in perfect condition. They hire a home inspection company to find all the flaws.

There is no perfect home. Air conditioners break down, plumbing pipes leak, and roof tiles blow away in the wind.

When you are buying a house, set reasonable expectations about what the home inspector can do. Their job is to inform about the integrity and state of what you are buying, both good and bad.

An inspection of a home should last several hours. This is enough time to cover all the built-in appliances and all the mechanical, electrical, and gas systems.

An inspector does not test for pests, or sample the septic system. You need inspectors who are industry-specific for these tasks.

Here’s what you need to do.

1. Make sure that the inspector you hire has a license. Home inspectors’ responsibilities vary depending on state law and their area of expertise.

2. Ask what is covered by the inspection. Some inspection companies offer environmental services, including radon and lead-based paint. Be prepared to schedule and hire several inspectors to meet your lender’s needs and to pay hundreds of dollars for each type.

3. Some inspection reports only cover one building, the main house. If you are having a specialty inspection, such as a termite inspection, ensure that the inspection includes all buildings on the property, including guest houses, detached Garages, Storage Buildings, etc.

4. Attend the inspection, and follow along the inspectors. You will be able to see the problems yourself and determine what is important, what needs replacing now or in the future, and what is not.

5. Do not expect the seller to fix or replace all negatives found on the report. Some items are not negotiable if you’re applying for a VA or FHA guaranteed loan. You must let the seller know about them. Otherwise, you should be careful how you negotiate with the seller.

Home inspections not only point out the problems but also what is working well. You can use it to help you make a final decision on the home, whether to ask the seller to do repairs or offer a lower price, or buy the house as-is or not at all.

Original Blog: https://realtytimes.com/archives/item/1015714-20180308-no-perfect-home-exists-what-you-should-know-about-home-inspections?rtmpage=

Seven Steps to Take to Prepare Your House to Sell in the New Year

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The holidays are a wrap, and with the coming of the new year, many people are starting to make their new year’s resolutions. If selling your house is one of your resolutions, you should take steps to prepare your home to sell in the coming year. This preparation will help you get your home ready for the spring/summer season of homebuying, which is a tradition that sees a rise in demand.

Preparing your home for sale in the New Year involves more than just taking down the holiday decor. Before putting your house on the market for the new year, you should:

1. Decide on the listing date

The first step is to decide on a date for when you will put your home on the market. Create a timeline of all the tasks to be completed prior to this. Set deadlines for all tasks starting with the listing date. Setting deadlines for each task can be a great way to motivate yourself to complete all the tasks necessary to present your home in its best light.

2. Hire a REALTOR

A REALTOR(r), will guide you throughout the selling process, and provide a plan to attract potential buyers in order to sell your house for the best price. A REALTOR(r) has a wealth of data and calculators to help them make the best decisions when selling your home.

3. Give your house a deep cleaning

Deep cleaning is more than just vacuuming and dusting. Deep cleaning your home includes steam cleaning carpets, mopping the floors, cleaning the windows both inside and outside, washing the walls to remove stains, and scrubbing bathroom. Consider hiring professional maid and carpet cleaning services to make your home sparkle and shine.

4. Get rid of the clutter

De-cluttering your home will make it appear larger and allow potential buyers to imagine themselves living there. Start by cleaning out your closets, cabinets and garages. Donate clothing, and other items that can be used and throw away items that cannot be used or are broken.

5. Update and repair your home.

It may seem like minor things, but squeaky door, running toilets and chipped paint are all signs that your home is not well maintained. Take the time to make minor repairs, such as painting rooms in neutral colors, replacing worn-out carpeting, or updating bathroom and lighting fixtures. This will help you attract buyers and maximize your sale price.

6. Improve curb appeal

Before putting your home on the market, it is important to improve the curb appeal. 94% of REALTORS(r) have recommended that sellers improve curb appeal before listing their home for sale. This is because the exterior of your home is what buyers see first when they pull up. And as the saying goes, you never get a chance to make a good first impression. Painting or replacing your front door, keeping your lawn mowed, trimming overgrown trees and shrubs, and repairing cracked pathways are all things that will improve the curb appeal of the home.

7. Stage it to Sell

Staging your house can help it look its best. According to the National Association of REALTORS Profile of Home Staging, 40% of buyers agents stated that staging a house helped buyers visualize it as their future home. 83% of buyers agents agreed. Staging can include rearranging furniture to make rooms look larger, repainting, opening blinds and curtains to let in light, and adding extras such as fresh flowers, fruit bowls in the kitchen, and folded towels in bathrooms.

If selling your home is on your New Year’s Resolutions list, be sure to follow the steps above to prepare it for sale. This preparation will help your home stand out from the millions of homes that are expected to be sold in the coming year.

Call Preferred Properties of Texas at 254-965-7775 today to get started!

Original Blog: https://realtytimes.com/archives/item/1035361-seven-steps-to-take-to-prepare-your-house-to-sell-in-the-new-year?rtmpage=

Smart Steps To Take Before You Buy or Sell a Home

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You can take steps to save money and avoid surprises when you are thinking about buying or selling a house. Even if you are not ready to put your home on the market or view homes, you can still benefit from taking these steps. These steps can help you avoid unpleasant surprises, reduce stress and save money.

Assemble Your Team

To complete a real estate transaction you will need to work with several experts. Your REALTOR(r) is the best place to begin. No one knows more about real estate transactions than REALTORS (r), the professionals involved from beginning to end.

You may also need to work with title agents, appraisers and inspectors. Your REALTOR(r), can explain the roles of these people and how they fit in with the overall transaction. You can also ask your REALTOR (r) to refer you to specialists who offer these services.

List everything

You’ll have to make a lot of decisions, whether you are buying or selling a home. Prioritizing your goals will help you narrow down your options so that you can focus your efforts on the most productive actions. You might decide to sell quickly over maximizing the sales price. As a buyer you can make better decisions by weighing the relative importance between price, location and features.

Your REALTOR(r), too, is invaluable in this regard. They can identify factors to consider, and discuss the pros and cons of options you may face.

Take Action

When is the best time to start planning your home purchase or sale? You may be surprised to learn that you can start much earlier than you think! If you are buying, you can focus on financing, improving your credit score, researching neighborhoods and properties, and researching the neighborhood. You may find that decluttering, repairs and remodeling will help you when you are selling. Your REALTOR(r), once again, can provide you with a wealth information and resources that will help you get started on the path to success.

Your REALTOR(r), whether you are buying or selling real estate, is your trusted guide in helping you realize your dreams.

Original Blog: https://www.texasrealestate.com/members/posts/smart-steps-to-take-before-you-buy-or-sell-a-home/?utm_medium=email&_hsmi=284417543&_hsenc=p2ANqtz-_AEycxa0-B-di6Z_QSIhszPsoYQ-VTIIDQzY5Qfe0-GrVkmWQkrk8ZvQbSdULoTaZpIlD03CP0bGwaYl8LYXZytWFMmQ&utm_content=284417543&utm_source=hs_email

Top 10 Tips for Selling Your Home During the Holidays

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The holiday season, from November to January, is often considered to be the worst time of year to sell a house. While the idea of selling your house during the winter months can dampen your holiday spirit the season has its advantages. Holiday buyers tend to take the sale more seriously and the competition is less fierce as fewer homes are actively marketed. Decide if you need to sell. Really. When you’re ready to take on the challenge, put on your gay attire and follow these FrontDoor tips.

  1. Decorate the halls but don’t go too overboard.
    Home decor is often at its best during the holiday season, but sellers must be careful not overdo the decorations. Too many or large decorations can distract buyers and crowd your home. Avoid offending buyers when you choose fall and winter decorations that are not religious.
  2. Hire a reliable real estate agent.
    This means that you want someone who will work hard and not disappear over the holidays, whether it’s Thanksgiving, Christmas, or New Year. Ask your family and friends if they know of a listing agent that will go the extra mile to sell your home. This will reduce your stress levels and give you time to enjoy the holiday season.
  3. Find motivated buyers.
    House hunting during the holidays is only acceptable if you have a valid reason. Your agent can help you target buyers who have a deadline. This includes people who are relocating to your area for a job, investors with tax deadlines, students and staff at colleges, and military personnel if you live near military bases.
  4. Price your product to sell.
    A home priced well below the market value will make buyers happy no matter what time of the year it is. Many real estate agents recommend that sellers slash the price before listing a home.
  5. Make curbside appeal a priority.
    Maintaining the exterior of your house becomes even more crucial when autumn arrives and the leaves start to fall. Touch up the paint and clean the gutters to make your home look more attractive. Make sure to consider the safety of buyers by clearing snow, ice, and leaves from walkways and stairs.
  6. Take the best real estate photos.
    Homebuyers will often start their search for a home online when the weather is bad. Make a great first impression by providing lots of high-quality, flattering photos of your home. If you can, provide a spring or summer photo of your house so that buyers can see what it looks like all year round.
  7. Create an online video tour.
    The holiday season will be less busy due to the bad weather and vacation plans. A video tour posted on the Web could attract buyers who don’t want to drive in a storm or don’t have the time to visit your home.
  8. Offer house hunters a place where they can escape the cold.
    Make your home inviting and cozy during showings. Turn up the heat and play soft classical music while offering homemade holiday treats. You can encourage buyers to spend longer in your home and appreciate its best features.
  9. Spread holiday cheer by offering financing.
    Bah, humbug! Lenders these days are scrooges, but if your means allow it, why not offer an affordable home loan to someone who is serious? You could earn a good return on your investment.
  10. Relax, the new year is right around the corner.
    It’s stressful enough to have to buy gifts, cook dinners and entertain relatives during the holidays. Remember that next year is just a few short days away if you decide not to sell your home now.

Original Blog: https://www.hgtv.com/lifestyle/real-estate/top-10-tips-for-selling-your-home-during-the-holidays

Preferred Properties of Texas

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