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Preferred Properties of Texas

The Preferred way to buy & sell real estate for you

Buyers Feel Pinch of Rising Interest Rates

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Although homeownership is the largest investment and source of wealth for most households in the United States, there are many factors that make it more difficult to achieve homeownership, particularly for first-time buyers. Rising mortgage interest rates are the latest factor. The average rate for a 30-year fixed mortgage rose 2 percentage points from 3.22 percent in the first half to 5.7 percent in the second half of 2022.

Potential buyers face many consequences from rising interest rates. They reduce buyers’ purchasing power. The mortgage payment increases with rising mortgage rates, which in turn leads to a decrease in buyers’ purchasing power. This means that it is more difficult for them to get a mortgage loan. The mortgage rate rises means that the income required to be eligible for a mortgage loan for the same home is higher. This effectively pushes out more buyers from the housing market. With a 3 percent rate of interest, 34.8 percent Texas renters could afford the first-quartile price for a home in 2Q2022. With a 6. percent interest rate, this percentage drops to 24.7 per cent.

A higher interest rate equals a higher mortgage payment. This increases the buyer’s debt to income (DTI). This makes buyers more risky to lenders and could reduce the chances of getting a mortgage loan. A higher DTI ratio can make it more difficult to repay mortgages, especially for those who have lost their job.

Higher interest rates mean higher mortgage payments. This reduces the return on homeownership and prolongs the time it takes to break even.

 

To read more click on original article: https://www.recenter.tamu.edu/articles/tierra-grande/Home-Stretch-2362

Becoming a Homeowner

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Being a homeowner involves more than just having keys and your name on a deed. It’s possible to feel a surge of emotions when you get your keys and realize that you have a place in the world.

While you may be proud of your car or your clothes, nothing can compare to being a homeowner. It is a great accomplishment to buy your first home. Every day you can look back on that achievement.

After you move into your new home, have unpacked and taken a deep breath, you will experience that moment when you feel like “This is my home.” This moment can be repeated often. It will happen when you look at your countertops, realizing that you have the ability to change them as you wish. You don’t need to ask permission to have a dog. You can also paint your walls any color you like.

You may soon be able to tile your backsplash and snake a toilet. These tasks can be outsourced, as well as all other jobs you might need over time, but it is often more rewarding and cost-effective to do the work yourself.

You’ll need to learn how to maintain your lawn if you have a tight budget after purchasing your first home.

When you put money and sweat equity into your home, you’re impacting its value. It’s an investment not only in your home but also in you and your future.

If you’ve been considering buying a home contact Preferred Properties of Texas, our agents would to help! 

For listings in Stephenville, Tx text HOMES to 877-965-7775

 

Original Blog:  https://realtytimes.com/archives/item/1035879-6-things-that-happen-when-you-become-a-homeowner?rtmpage=

Happy Labor Day!

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Buying or Selling a home in Stephenville, Erath County or surrounding area, give Preferred Properties of Texas a call! 

Let us take the LABOR out of selling or buying your next home!

There’s More To A Property Than Features And Looks

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The wood floors, gourmet kitchen, and spa-like bathrooms are all things you love. Remember that there is more to a property then just its looks. These are some additional things to think about before you submit an offer.

The idyllic street that you saw at a Sunday open house could become a commuter’s cut-through during the work week. A nearby grade crossing could cause frequent train horns to sound in the middle of the night. To get an idea of the noise level, visit the house at different times and on different days. Also, ask your neighbors about noise sources.

Although the seller’s disclosure notice might alert you to potential problems with major appliances or systems, it won’t inform you that your HVAC or roof are nearing the end. It is possible to estimate the time it will take for certain items to age properly. While a home inspector may be able to tell you if certain systems are in poor condition, it is not possible to determine how long a component has left. Sometimes, the date of installation may be visible or available in some cases.

Although homeowners associations are beneficial for property owners, they also have rules and regulations that must all be adhered to. Before you make a commitment to purchase, be sure to read all documentation from the HOA. You can’t do anything with your property if you don’t comply with city ordinances or codes. It’s not a good idea to discover after closing that your property isn’t allowed to park your boat trailer on the driveway, or that your house can’t be painted your preferred shade of red.

A view of the city skyline or hills can be a big selling point. Will that view be retained? You should check with your builder if any plans are being made to block the view if you buy in a master-planned community. To determine if the scenic view is at risk, check out the area’s planning. Remember that development plans and zoning can change at any time.

Looking to Buy or Sell your home, contact our office and speak to one of our knowledgeable agents.

We Are Here For All Your Real Estate Needs!

For new listings in Stephenville text HOMES to 877-965-7775

 

Original Blog:  https://www.texasrealestate.com/members/posts/buying-a-home-its-about-more-than-features

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

Questions To Ask A Realtor When Selling Your Home

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You should hire an amazing real estate agent if you are looking to sell your house. There are some questions you should ask to ensure you find the right person.

You are smart to be selective! An excellent real estate agent will help you find buyers to quickly and for more cash. Your listing could be lost if you make the wrong decision. It’s not pretty when low-balling bargain hunters start to circle.

These are the most important questions you should ask your Realtor about selling your house, from listing costs to sales plans.

Do you have any credentials? When you are looking to sell your house, make sure to hire an agent with a license from the state and is a member of the local realty trade association. They will be able to list your property anywhere in the world, thanks to accessing the Multiple Listing Service . You may also want to search for someone who is a member of National Association of Realtors (r). This requires additional training and compliance to a code of conduct.

What number of sales did you close last year? A real estate agent’s past performance doesn’t guarantee a quick sale. However, their track record of success with sellers and buyers is a guarantee that they are professional professionals who will be able to sell your home. Ask potential agents how many clients they have worked with and the range of homes they sold. It is important to find someone who can accurately estimate the value of real estate features for buyers within your income range. It is also a good idea to seek out recommendations from past clients.

Are you a local expert? A local expert can make a big difference for sellers. Local agents will know about any developments in the area and plans for shops or other amenities that could affect the property’s value, the speed at which it will sell, as well as the likely price. They will also be able to tell you what local buyers are looking at real estate.

How do you determine the listing price? The discussion about pricing your home and the ability of your agent to find a listing prices that are appropriate for your local market is one of the most important things sellers need to do. If the property is priced too high, it will be difficult to sell and may turn away potential buyers. However, if the home is priced at an acceptable level, there might still be money available. Your agent should be knowledgeable about the market and recent sales of similar properties. This will allow you to arrive at the best price for your real estate transaction. Ask questions about the process of determining a list price.

What kind of person will I be working alongside? It is important to determine if you will work with a single agent or a team member. There are pros and cons to each scenario, so be sure to ask lots of questions. Agents work with clients in different ways.

What is the cost of selling my house? Ask questions about the costs you, the seller, will pay in the realty transaction. This will allow you to plan accordingly and compare each agent. These costs should be included in the listing agreement.

What is your selling plan? A great agent will have a written plan to sell your house. It should include a plan that describes the marketing strategy for your property in order to attract buyers. This could include open houses, listing services, and social media. This will ensure that you get a high selling price.

What can I do to make my house ready for sale? Find out what advice the agents have for you regarding repairs and upgrades, or how they can help you make your house more appealing to buyers. Ask them if they recommend staging or just a cleaning and decluttering. Ask about their availability to work around your schedule, and the preferred times and days they prefer to show houses.

How can we communicate? It could be a problem if you are a texter but your agent prefers long phone calls. You might also prefer a personal touch to an email over a phone call. It is important to know how and when you communicate with your agent. You should also make sure your agent is available to answer any questions you may have.

What is the time frame? Although no agent can predict how quickly the sale or full real estate transaction will proceed, they should be capable of giving an estimate on how long it will take for your house to sell. It takes on average 65 days to sell a house, but this depends on where you live.

Preferred Properties of Texas is here to help you with all your real estate needs and solutions. Connect with us for the answers to your questions.

 

Original blog: https://www.realtor.com/advice/sell/questions-to-ask-real-estate-agents-when-selling/

Preferred Properties of Texas

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