When it comes to the nature of a real estate transaction, there is more than meets the eye. Each and every transaction is unique within itself. If the seller or buyer does not have proper representation, the process promises to be very cumbersome and overwhelming for some. A professional real estate agent/Realtor® will facilitate a seamless process from start to closing and beyond. Look for a professional you can trust to guide you through the process and provide exceptional service.
Whether this is your first real estate transaction or your fifth, laws, forms and other variables are bound to have changed from year to year. From loan requirements to transaction closing rules, a Realtor® has the knowledge to guide you through the process.
Ready to sell your home? Call me for a Free Market Analysis! Jewel Johnson, Realtor®, Champions Real Estate Group – (832)800-4760
Renting vs Buying a Home
Source – Yahoo Finance by Mandi Woodruff
According to an article by Mandi Woodruff with Yahoo Finance, “the cost of renting and buying varies so widely across the U.S., you have to take reports like these with a healthy dose of salt. In some metro areas, like San Antonio and Phoenix, it’s actually much cheaper to buy a home than rent.”
But the reality is that the cost of renting across the country is on the rise, straining the budgets of many renters. In the largest 25 metro areas in the U.S., rents increased by 5.5% in 2013, eating up more than 40% of the average renter’s household income, according to Trulia. Most financial experts recommend spending less than one-third of income on housing.
“Once [rent] is over 30%, that’s when you start getting into the danger zone financially,” says Helen Stephens, a certified financial planner in Dallas. “And the problem when you’re renting is that you may be in a lease for a year, and at the end of that year your landlord has the right to raise the rent on you.”
For renters who aspire to own a home one day, the biggest hurdle they’ll face is mastering cash flow — ensuring that the money coming in can not only cover their bills, but also leave them with wiggle room to save. Unfortunately, today’s renters have a lot less capital to work with than existing homeowners. According to FINRA, 74% of renters earn less than $50,000 a year, vs. 60% of homeowners who earn more than $50,000.
From Rent to Mortgage
Another challenge facing prospective homebuyers: the daunting down payment — typically 20% of the homes purchase price. And Stephens advises her clients to build up an emergency maintenance fund of at least a few thousand dollars in case any unexpected repairs are needed once they’ve moved in.
As for the best place to save for a down payment, Stephens recommends a regular bank account. Banks are offering paltry interest rates on savings now, but it’s a wiser option than investing it in the stock market, she says.
“I don’t believe in investing money in the market that you’re going to need for the short term,” she says. “I know it may not earn much [interest] in a bank but it is secure and it’s for a very targeted expense.”
Preparing financially isn’t the only step to homeownership. Buying a house is a complex, long-term endeavor that requires a lot of mental prep work. In a FINRA survey of more than 25,000 homeowners and renters, 40% of renters answered a basic question about 15-year and 30-year mortgages incorrectly, compared to just 19% of homeowners.
“No one should buy a home if they can’t understand basic finance,” says Ilyce Glink, author of “100 Questions Every First-time Home Buyer Should Ask”. “The quick way to bankruptcy is to buy a house you can’t afford, get locked into mortgage payments, real estate tax bills, and maintenance and upkeep expenses.”
Glink has written dozens of articles available for free with tips for first-time homebuyers. But even she recognizes that homeownership isn’t for everyone. Sometimes, renting just makes more sense.
“Choose renting if you don’t know where you’re going to want to live in five years, if your employment situation isn’t stable, and if you can’t currently set aside 20% of your after-tax income into a savings account,” she says. “You might also choose renting if you’re currently dating someone and hope to be in a long-term stable relationship that involves living together because otherwise you might buy a condo that’s too small for your expanding family.”
For more information on purchasing on home contact us anytime!
Jewel Johnson, Realtor®
Champions Real Estate Group
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By G.M. Filisko – National Association of Realtors
In late September, Chase will introduce fixed-rate and adjustable jumbo loans with a maximum 85 percent LTV. Maximum loan amounts will be $1.5 million with a minimum 740 FICO score. Chase will also offer fixed and adjustable jumbo loans with 80 percent LTV. Maximum loan amounts are $2 million; these also require a 740 minimum FICO score.
Guaranteed Rate is offering 80-10-10 jumbo loans of up to $1 million, in which borrowers put 10 percent down and then do a first mortgage of 80 percent of the home’s value coupled with a second mortgage for the remaining 10 percent. Borrowers need a minimum 720 FICO score and will pay about 1/8 percent more on their interest rate than if they’d have put 20 percent down.
HomeTrust Mortgage is also offering asset-based adjustable mortgages for borrowers with a FICO score of at least 680 who have substantial assets but not necessarily adequate income to qualify for a mortgage. Perhaps retirees have $400,000 invested in the stock market. HomeTrust will take 70 percent of those invested assets—but not amounts in checking or savings accounts—and divide that number by 60 to arrive at an income it imputes to the borrowers. That income, plus any actual monthly income, allows borrowers to qualify without drawing from or pledging the asset.
77433, Beazer Homes, Builders, buy a home, buyer agent, buying real estate, Canyon Lakes West, Cypress, Home Buying, home ownership, New Homes, Open House Canyon Lakes West, Open House Cypress, Perry Homes, real estate, TX
Join us for an OPEN HOUSE on Saturday, 9/29 – 12 p.m. – 4:00 p.m. at 20519 Keegans Ledge Lane, Cypress, TX 77433. Beautiful New Showcase Home built by Beazer Homes. 1.5 Story home with with 4 bedrooms, 3 baths plus game room and master suite.
Phone: (832) 800-4760
What to know about “Mortgage Rate Shopping.”
Looking for a mortgage? Auto or student loan may cause multiple lenders to request your credit report, even though you are only looking for one loan. To compensate for this, FICO, the scoring model used by lenders ignores mortgage, auto, and student loan inquiries made in the 30 days prior to scoring. So, if you find a loan within 30 days, the inquiries won’t affect your score while you’re rate shopping. In addition, the FICO model also looks on your credit report for mortgage, auto, and student loan inquiries older than 30 days. If it finds some, it counts those inquiries that fall within a shopping period of 45 days as just one inquiry when determining your score. For FICO scores calculated from older versions of the scoring formula, this shopping period is any 14 day span. For FICO scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span. Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO score.
For more information or if you need to apply for a mortgage here is Don’s contact information:
Don Watts – NMLS #348482
Office: 281-693–LEND (5363)
Apply Online: http://www.elgloans.com