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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

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/

 

Spring Housing And What To Expect

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You want to be prepared for the spring housing market. There are many factors that can cause uncertainty such as the conflict in the Middle East, rising inflation and the first rate hike from the Federal Reserve over three years , but the housing market seems relatively stable.

Here are some predictions from experts about spring.

Mortgage Rates Will Rise

Freddie Mac The 30-year fixed mortgage rate increased by more that a full percentage in the last six months. Experts believe that rates will rise over the next 90-days, despite mild fluctuations in recent week.

If you are a first-time buyer, or a seller looking to move into a better home, you should know that you will pay a higher interest rate if you wait. This higher rate can increase your monthly payments and add up over the loan’s life.

Housing Stock Will Rise

Buyers looking for homes to buy may find some relief. Realtor.com reported recently that the number new homes increased for each of two months. The National Association of Realtors just announced that the month’s supply of inventory increased. This is the first time it has happened in eight-months. Based on the activity in recent months, it appears that the inventory of existing homes will grow every spring.

It looks like buyers who are frustrated by the lack of homes for sale could be able to find relief this spring. If you do find the perfect home, it is important to act fast.

Listing now is better than waiting for more competition if you are a seller. As more homes are added to the market, your leverage in negotiations will be affected.

Home prices will rise

Supply and demand determine prices. Despite the increasing number of homes on the market, buyer demand is still very strong.

What does this mean for you? Home prices will continue rising as the demand for housing continues to outpace supply. Experts believe that the rate of appreciation will decline from the double-digit highs we have seen in the past two years. This means that prices will continue rising, but at a slower pace. Experts predict that home prices will not fall.

Will Increasing Mortgage Rates Not Cause Home Prices to Fall?

Experts disagree with the belief that a 1% rise in mortgage rates will cause home prices to drop.

If you are a first-time or repeat buyer, you will likely pay more to buy a home late in the year if you wait.

Three things seem certain about the spring housing market

  1. The mortgage rates will continue to rise
  2. There will be a slight increase in the number of homes for sale
  3. The pace of home price appreciation will be slightly slower, but it will not stop.

You should act quickly if you are thinking about buying a home. Selling is a good option if you want to beat rising competition. Contact Preferred Properties of Texas to speak with one of our knowledgeable agents today! 

 

Original Blog: https://www.keepingcurrentmatters.com/2022/03/24/what-you-can-expect-from-the-spring-housing-market/

People Are Planning On Buying Homes Soon

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Although some homeowners might be tempted to wait until spring to sell their homes, homebuyers don’t want to wait. As rising mortgage rates are being beaten, there is high demand. In response, buyers are eager to enter the market or move their plans higher so that they can purchase as soon as possible.

The number of people who are fast-tracking their plans for purchasing a home has increased over the last three months. Many buyers are now assessing their strategies and realizing that they need to act quickly. It’s a sign that homeowners who are looking to sell may now be the right time to list .

Some people are planning ahead, while others are putting their plans in motion. The time on the market is a good indicator that homebuyers are motivated to move quickly.

Homebuyers are changing their strategies and moving forward. Others are moving today. This means the demand for your house has risen.

Because there are so few homes for you to choose from, it is important to sell your house sooner in order to take advantage of the high buyer demand and get more houses listed in your area. This is why it’s important. Buyers will have more choices as there are more houses on the market. Your house will still be the center of attention until then.

Let’s get your home SOLD! Contact Preferred Properties of Texas and speak to one of our trusted agents.

 

Original article: https://www.keepingcurrentmatters.com/2022/02/16/more-people-are-planning-to-buy-a-home-soon/

What Can Affect Your Home Value?

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Real estate experts know that homes in desirable locations or within the boundaries of top schools will sell at a higher price. The location is an important factor in determining the price of homes. What are the factors that can lower the home’s value? What makes a neighborhood less desirable?

Bad Schools. Young families are looking for homes that are zoned for the best schools. Homes with low school ratings aren’t highly sought-after. Property values are affected more by living within the limits of schools with poor ratings than any other factors. According to Great Schools, the median home price for zip codes with schools rated 1 through 3 out of 10 is $155,000.

Strip Clubs. This one seems to be the most expected on this list. A young family would not want to live near a club with an adult theme. These clubs often have loud music blasting and unsavory people hanging out outside. Realtor.com surveyed many areas with strip clubs in large metropolitan areas. One neighborhood had 10 clubs. Washington Park, East St. Louis, IL. This neighborhood has only seen a few homes sell in the past three years, and the median home price is $10,000.

Lots of Rentals. Is it possible for a neighborhood with high levels of rental units/buildings to lower its property value? Although it is difficult to do an exact analysis of this factor, the research revealed that higher property values were associated with areas with more rentable homes.

Homeless Shelters. Shelters for homeless people can often be seen as the unloved misfits of a community. Although there isn’t any hard evidence to prove that homeless shelters bring in more crime than others, shelters can attract a diverse group of people and emergency calls numbers go up in areas close to shelters. The property values of areas with homeless shelters are almost 13% lower than those without them.

Cemetery. Cemeteries can be quieter than other neighborhoods, but there are still people who don’t want to live in close proximity to the living. The median home price in zip codes with cemeteries was 12% less than the neighboring zip codes.

Factors that Bring Down Value less than 10%

These last factors  bring down property values less than 10%, but are still worth noting.

  • Funeral Homes- 6.5%
  • Power Plants- 5.3%
  • Shooting Range-3.7%
  • Hospitals-3.2%

While location is important when it comes to real property, there are many other factors that can help homes sell for top dollar. With the help of an expert selling agent you can get your home sold for a great price.

Is It A Good Idea To Go Over Asking Price?

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It is important to consider the price of homes for sale when making an offer. You risk losing your offer if you offer too much and the bank might not value the home at the amount that you have offered. However, this does not mean that you should offer more than the asking prices for a home. This strategy might sound odd at first. The sticker price of a car is what you would offer, but the extra $100 for a barbecue at the shop is not something you would do. However, buying real estate is a different matter. Sometimes, it makes sense to offer more than the asking price.

There will be many offers. We are currently in a seller’s marketplace. This means that there are more buyers than homes available. Sellers receive multiple offers for their homes. They will accept the highest offer, naturally.
To be competitive in such a market, you will often need to offer more than the asking price. You are more likely to win the deal if there are three bids at the asking price but you offer 2% more than that.

The house is priced well below market. Sellers who are motivated and want to sell their house quickly will sometimes under-price their property. This will attract more attention and result in multiple offers.
If you or our real estate agent agree that a home should be priced lower than it is, then asking for more than the asking price makes sense. In order to score a deal, you will outcompete other buyers by offering higher asking prices. However, you won’t overpay.

A cash offer must be rejected. Imagine your agent talking to the buyer’s agent about the pending offer for the home. It’s a cash deal. Cash offers are difficult to beat. Cash offers are attractive because they require less work and take a much shorter time to close.
You can make a similar deal, but the seller will likely choose the financing offer. You can make it worth while for the seller to accept your offer by asking for more than the asking price

In the past, multiple offers were turned down by the seller. What if multiple offers have been made on the house but none have been accepted? Although the home is still available for sale, you don’t want another buyer to reject your offer. This behavior is commonly referred to as “unmotivated selling”. Sellers will only sell if they feel it is worth the effort. You can make an offer instead of asking if you truly want the house.

It is impossible to let go of your home. Perhaps this is the only house you have seen that suits your needs. Perhaps you have a deadline and can’t wait to make an offer. It’s a great way to get extra insurance and make sure you don’t lose your home by making an offer above the asking price.

Deciding how much to offer for a home isn’t always easy! It’s important to have a good agent on your side to help you make these decisions. Contact us if you’re looking for a reliable agent to guide you through the home buying process.

Preferred Properties of Texas

(254) 965-7775|Contact Preferred Properties of Texas