Sunday, February 07, 2010
Wednesday, May 09, 2007
GETTING A LOAN? KNOW YOUR OPTIONS FIRST
GETTING A LOAN? KNOW YOUR OPTIONS FIRST
While shopping for a home is exciting, it also means you need to do some research to find the best loan. Finding a good loan can make a huge difference in your monthly payment as well as the overall process.
Here are some tips to help you along your way:
Being pre-approved for a loan is by far one of the best choices you can make. First, there is no cost and no obligation. Second, it allows you to have a little more advantage when shopping in that the seller knows you are a "serious buyer." This is different from a pre-qualification that only gives you an idea of what you might be able to afford. Being pre-approved means that you have done all of the qualifying paperwork at the front end of the process, freeing you up to shop.
Flexible underwriting guidelines can help a couple out in qualifying for a larger or nicer home. The way this works is that if one spouse has not yet secured employment where they're moving but can produce two years of past employment history, the underwriter can use the past history inconsideration for the amount you would qualify for. This gives you the flexibility of looking for the home you really want and gives the spouse time to find the right job.
Rate-lock options are something you might want to look into. The shorter the lock time, or the less time between when you agree on a mortgage rate and when you go for settlement, the lower interest rate you might be able to lock into.
Negotiable Lender Fees are something to talk about with your lender. When you buy a house, there are always extra fees such as underwriting fees, processing fees, or commitment fees. A good lender will negotiate these fees to try to save you money.
Quick loan processing is offered by some lenders and consists of you being approved in just five to seven days. If you are in a hurry, this is a great option and might even save you a step in the moving process. For example, if you've sold your house or you have terminated your rental lease but your new home won't be ready for you to move into immediately, you might have to find temporary housing for a month or two in the interim. However, with this option, it's possible to get the processing done quick enough to eliminate the need for the temporary housing step.
Quick close: if you agree to close quickly to help the seller out, they will agree to cut percentage points.
Look at an Adjustable Rate Mortgage (ARM). It's true that the loan may fluctuate somewhat, but you will also enjoy lower monthly payments.
Paying points is if you are willing to pay some of the interest up front. This would allow you to get a fixed-rate mortgage at a lower interest rate.
Good credit does count. If you have top-notch credit, you are a lender's dream. Keeping your credit in perfect order allows you to negotiate for better rates, inspection fees, commissions, and points. Good credit is a huge advantage.
Rate sheets are a tool used by loan officers in determining the cost of a loan to the officer, not the buyer.
For example, on a 30-year fixed-rate loan, this rate sheet shows the interest rate and cost to the loan officer represented in points. In other words, one point is equal to one percent of the loan. Here is what the rate sheet would look like:
Rate Cost 6.250% (2.000) 6.375% (1.500)6.500% (1.000) 6.625%( 0.500) 6.750% (0.000) 6.875% (.500) 7.000%(1.000) 7.125% (1.500) 7.250% (1.875) 7.375% (2.125) 7.500%(2.375)
As you conduct your search for an agent, some standard questions you should ask include:
1. Are you able to help me with an easy and free pre-approval?
2. Am I able to get preferred access to special low down payments, interest rates, and monthly payments?
3. Will I be able to get advance notice of listings matching my criteria?
Once you sign on the dotted line, you've locked into some serious financial obligations. Be prepared and work with a good agent and lender to ensure they take everything into account in securing the best loan for you.
For the premier online real estate site for the Dallas Fort Worth, DFW Texas Area, designed to inform you on how to be a pro in the real estate market and how to avoid the common pitfalls that are so very costly, go to C21-Inman.com, the articles and tools throughout the site are FREE.
Bill Inman - Realtor
CENTURY 21 Mike Bowman, Inc.
4101 William D. Tate Avenue, Suite 100
Grapevine, Texas 76051
Telephone Direct 817-328-2390
Direct Fax, Toll Free 877-326-9965
E-mail Bill@C21-Inman.com
Web Site www.C21-Inman.com
"It does not cost you more to hire #1, but you get so much more!"
Bill Inman is a multi-million dollar producer and was awarded the prestigious CENTURY 21 Masters Emerald Award.
Bill Inman is proud to be associated with CENTURY 21 Mike Bowman, Inc. the #1 CENTURY 21 Office in the WORLD for Homes SOLD AGAIN in 2008, and the #1 Office in the WORLD 11 times since 1993!
While shopping for a home is exciting, it also means you need to do some research to find the best loan. Finding a good loan can make a huge difference in your monthly payment as well as the overall process.
Here are some tips to help you along your way:
Being pre-approved for a loan is by far one of the best choices you can make. First, there is no cost and no obligation. Second, it allows you to have a little more advantage when shopping in that the seller knows you are a "serious buyer." This is different from a pre-qualification that only gives you an idea of what you might be able to afford. Being pre-approved means that you have done all of the qualifying paperwork at the front end of the process, freeing you up to shop.
Flexible underwriting guidelines can help a couple out in qualifying for a larger or nicer home. The way this works is that if one spouse has not yet secured employment where they're moving but can produce two years of past employment history, the underwriter can use the past history inconsideration for the amount you would qualify for. This gives you the flexibility of looking for the home you really want and gives the spouse time to find the right job.
Rate-lock options are something you might want to look into. The shorter the lock time, or the less time between when you agree on a mortgage rate and when you go for settlement, the lower interest rate you might be able to lock into.
Negotiable Lender Fees are something to talk about with your lender. When you buy a house, there are always extra fees such as underwriting fees, processing fees, or commitment fees. A good lender will negotiate these fees to try to save you money.
Quick loan processing is offered by some lenders and consists of you being approved in just five to seven days. If you are in a hurry, this is a great option and might even save you a step in the moving process. For example, if you've sold your house or you have terminated your rental lease but your new home won't be ready for you to move into immediately, you might have to find temporary housing for a month or two in the interim. However, with this option, it's possible to get the processing done quick enough to eliminate the need for the temporary housing step.
Quick close: if you agree to close quickly to help the seller out, they will agree to cut percentage points.
Look at an Adjustable Rate Mortgage (ARM). It's true that the loan may fluctuate somewhat, but you will also enjoy lower monthly payments.
Paying points is if you are willing to pay some of the interest up front. This would allow you to get a fixed-rate mortgage at a lower interest rate.
Good credit does count. If you have top-notch credit, you are a lender's dream. Keeping your credit in perfect order allows you to negotiate for better rates, inspection fees, commissions, and points. Good credit is a huge advantage.
Rate sheets are a tool used by loan officers in determining the cost of a loan to the officer, not the buyer.
For example, on a 30-year fixed-rate loan, this rate sheet shows the interest rate and cost to the loan officer represented in points. In other words, one point is equal to one percent of the loan. Here is what the rate sheet would look like:
Rate Cost 6.250% (2.000) 6.375% (1.500)6.500% (1.000) 6.625%( 0.500) 6.750% (0.000) 6.875% (.500) 7.000%(1.000) 7.125% (1.500) 7.250% (1.875) 7.375% (2.125) 7.500%(2.375)
As you conduct your search for an agent, some standard questions you should ask include:
1. Are you able to help me with an easy and free pre-approval?
2. Am I able to get preferred access to special low down payments, interest rates, and monthly payments?
3. Will I be able to get advance notice of listings matching my criteria?
Once you sign on the dotted line, you've locked into some serious financial obligations. Be prepared and work with a good agent and lender to ensure they take everything into account in securing the best loan for you.
For the premier online real estate site for the Dallas Fort Worth, DFW Texas Area, designed to inform you on how to be a pro in the real estate market and how to avoid the common pitfalls that are so very costly, go to C21-Inman.com, the articles and tools throughout the site are FREE.
Bill Inman - Realtor
CENTURY 21 Mike Bowman, Inc.
4101 William D. Tate Avenue, Suite 100
Grapevine, Texas 76051
Telephone Direct 817-328-2390
Direct Fax, Toll Free 877-326-9965
E-mail Bill@C21-Inman.com
Web Site www.C21-Inman.com
"It does not cost you more to hire #1, but you get so much more!"
Bill Inman is a multi-million dollar producer and was awarded the prestigious CENTURY 21 Masters Emerald Award.
Bill Inman is proud to be associated with CENTURY 21 Mike Bowman, Inc. the #1 CENTURY 21 Office in the WORLD for Homes SOLD AGAIN in 2008, and the #1 Office in the WORLD 11 times since 1993!
FIXER UPPER MYTHS & FACTS - What You Should Know BEFORE You Buy
FIXER UPPER MYTHS & FACTS - What You Should Know BEFORE You Buy
"A home will only sell for what the market can bare. What this means is that no matter how many upgrades were made, or how much money has been invested in the upgrades, a home will only sell for what the majority of homebuyers are willing to pay."
Before deciding that your next home must be a fixer-upper, you should do some homework into what to expect when purchasing these types of homes. Many prospective homebuyers tend to have a romanticized version of the entire process, and are quite shocked when confronted with the hard reality. Fixer Upper homes can often represent a good deal, but there are some points that a homebuyer should be aware of before making that offer.
MYTH #1 . . .
I can make a "killing" in the real estate market by buying a run-down home, for tens of thousands of dollars less than the average home, fixing it up, and then immediately selling it for full price, or more.
FACT #1 . . .
Most homeowners looking to sell their "fixer upper" home understand that they will have to list their home at a price that reflects the cost involved in restoring the home to its original condition. The asking price of a fixer upper is usually calculated so that the savings represented by the lower than average market price is roughly equal to the amount of money that a buyer could expect to spend on necessary renovations. Updating the "look" of a home, or upgrading to higher-end finishes, is not included in these calculations, and you should be careful not to spend so much money on renovations that you are unable to recoup your investment.
MYTH #2 . . .
If I'm buying a fixer-upper home, I don't need to bother with the added cost and aggravation of a home inspection because I already know what I'm getting.
FACT #2 . . .
A home inspection should always be included in an Offer To Purchase and Sell agreement, and it is arguably even more important to include one when you are looking to buy a fixer upper. Structural defects are normally not visible to the untrained eye, yet will cost much more to repair than the obvious cosmetic fix-ups. Most licensed home inspectors will not only detail the defects that they uncover, but can also give you a good idea of the costs involved in fixing them.
MYTH #3 . . .
It's better to pay a lot less and buy a "fixer upper" in an undesirable area, than to pay more for a comparable "fixer upper" in a better neighborhood.
FACT #3 . . .
Most of us have heard the quote, "the three most important things to look for when buying a home are: location....location...and location!" While this is obviously meant to be funny, and is a somewhat oversimplified rule of home buying, it does drive home the point of how important it is to consider where you will buy your home. Purchasing a fixer upper in a desirable neighborhood will cost you more initially, but the payoffs -- personal peace-of-mind and higher return on your home investment when you sell -- should not be overlooked.
MYTH #4 . . .
Once I fix this house up, I can turn around and sell it for double the price I paid.
FACT #4 . . .
A home will only sell for what the market can bare. What this means is that no matter how many upgrades were made, or how much money has been invested in the upgrades, a home will only sell for what the majority of homebuyers are willing to pay. Factors to consider when calculating your possible return on investment:
1. Location: What kind of a neighborhood is the home in?
The type of neighborhood will determine which type of buyers you will attract when you decide to sell. For example: An area consisting of mostly "first time buyers" will attract buyers who have a strict and limited budget. They are looking for affordability above all else - including high-end finishes and perfectly landscaped gardens.
2. Neighbors: What are the neighboring homes like?
A beautiful home surrounded by unkempt, run-down homes will sell for much less, than a beautiful home surrounded by well kept, nicely maintained homes.
3. Surroundings: What are the surrounding features?
Buyers are willing to pay more for a home that is in a convenient, yet quiet locale. While you may find it convenient to side onto a school, many potential buyers would eliminate such a location due to the noise level associated with the presence of hundreds of excitable children, and the congestion caused by school buses and parents dropping off and picking up students.
MYTH #5 . . .
I can make a lot more money by turning this single family home into a multi-family dwelling.
FACT #5 . . .
While this statement is for the most part true, it may not be possible. Most towns and cities have strict zoning laws that not only dictate the maximum allowable occupancy within any given area, but also dictate the size and design of a home when building new, or creating additions to an existing structure.
Once you have thoroughly investigated the pro's and con's associated with purchasing a fixer upper home, and you have decided that it's right for you, be sure to "run your numbers".
1. List Price of Fixer Upper
2. Average Recent Sale Prices of Similar "Non Fixer Upper" Area Homes
3. Estimated Cost of Repairs from Reputable Source (e.g. referred Renovation Company)
4. Buffer Amount for "Unexpected" Repair Costs (usually 1/2 of estimated total)
5. Selling Expenses (real estate fees, lawyer fees, closing costs)
6. Amount of Profit You Desire versus Amount of Actual Profit
For example:
1. $200,000.00 = List Price of Fixer Upper
2. $255,000.00 = Average Sales Price
3. $ 25,000.00 = Estimated Repairs
4. $ 12,500.00 = Buffer for Repairs
5. $ 17,000.00 = Selling Expenses
6. $ 20,000.00 = Desired Profit Versus ActualProfit of $500.00
If your intent was to purchase the house shown in the example above, make the repairs, and immediately list the house for sale, your Actual Profit shown is only $500.00. If, however, your intent was to purchase the same house, but actually live in it for a few years before selling, you would normally expect to turn a much better profit for two reasons:
• First, historically speaking, the real estate market normally goes up over time and your anticipated sale price would be higher - affording you more profit.
• Second, the money that you would have been paying in rent to live elsewhere - with no return - is actively paying down your mortgage and increasing your equity.
As with all investments, though, nothing is guaranteed. So when looking to finance a home, keep in mind that the real estate market has taken some big hits in the past. Never overextend yourself financially.
Please note that the figures in the calculations shown were used for example purposes only. Local housing prices, repair costs, and selling costs will vary greatly from one location to another. It is recommended that all Buyers thoroughly research their local costs and legal restrictions before purchasing.
For the premier online real estate site for the Dallas Fort Worth, DFW Texas Area, designed to inform you on how to be a pro in the real estate market and how to avoid the common pitfalls that are so very costly, go to C21-Inman.com, the articles and tools throughout the site are FREE.
Bill Inman - Realtor
CENTURY 21 Mike Bowman, Inc.
4101 William D. Tate Avenue, Suite 100
Grapevine, Texas 76051
Telephone Direct 817-328-2390
Direct Fax, Toll Free 877-326-9965
E-mail Bill@C21-Inman.com
Web Site www.C21-Inman.com
"It does not cost you more to hire #1, but you get so much more!"
Bill Inman is a multi-million dollar producer and was awarded the prestigious CENTURY 21 Masters Emerald Award.
Bill Inman is proud to be associated with CENTURY 21 Mike Bowman, Inc. the #1 CENTURY 21 Office in the WORLD for Homes SOLD AGAIN in 2008, and the #1 Office in the WORLD 11 times since 1993!
"A home will only sell for what the market can bare. What this means is that no matter how many upgrades were made, or how much money has been invested in the upgrades, a home will only sell for what the majority of homebuyers are willing to pay."
Before deciding that your next home must be a fixer-upper, you should do some homework into what to expect when purchasing these types of homes. Many prospective homebuyers tend to have a romanticized version of the entire process, and are quite shocked when confronted with the hard reality. Fixer Upper homes can often represent a good deal, but there are some points that a homebuyer should be aware of before making that offer.
MYTH #1 . . .
I can make a "killing" in the real estate market by buying a run-down home, for tens of thousands of dollars less than the average home, fixing it up, and then immediately selling it for full price, or more.
FACT #1 . . .
Most homeowners looking to sell their "fixer upper" home understand that they will have to list their home at a price that reflects the cost involved in restoring the home to its original condition. The asking price of a fixer upper is usually calculated so that the savings represented by the lower than average market price is roughly equal to the amount of money that a buyer could expect to spend on necessary renovations. Updating the "look" of a home, or upgrading to higher-end finishes, is not included in these calculations, and you should be careful not to spend so much money on renovations that you are unable to recoup your investment.
MYTH #2 . . .
If I'm buying a fixer-upper home, I don't need to bother with the added cost and aggravation of a home inspection because I already know what I'm getting.
FACT #2 . . .
A home inspection should always be included in an Offer To Purchase and Sell agreement, and it is arguably even more important to include one when you are looking to buy a fixer upper. Structural defects are normally not visible to the untrained eye, yet will cost much more to repair than the obvious cosmetic fix-ups. Most licensed home inspectors will not only detail the defects that they uncover, but can also give you a good idea of the costs involved in fixing them.
MYTH #3 . . .
It's better to pay a lot less and buy a "fixer upper" in an undesirable area, than to pay more for a comparable "fixer upper" in a better neighborhood.
FACT #3 . . .
Most of us have heard the quote, "the three most important things to look for when buying a home are: location....location...and location!" While this is obviously meant to be funny, and is a somewhat oversimplified rule of home buying, it does drive home the point of how important it is to consider where you will buy your home. Purchasing a fixer upper in a desirable neighborhood will cost you more initially, but the payoffs -- personal peace-of-mind and higher return on your home investment when you sell -- should not be overlooked.
MYTH #4 . . .
Once I fix this house up, I can turn around and sell it for double the price I paid.
FACT #4 . . .
A home will only sell for what the market can bare. What this means is that no matter how many upgrades were made, or how much money has been invested in the upgrades, a home will only sell for what the majority of homebuyers are willing to pay. Factors to consider when calculating your possible return on investment:
1. Location: What kind of a neighborhood is the home in?
The type of neighborhood will determine which type of buyers you will attract when you decide to sell. For example: An area consisting of mostly "first time buyers" will attract buyers who have a strict and limited budget. They are looking for affordability above all else - including high-end finishes and perfectly landscaped gardens.
2. Neighbors: What are the neighboring homes like?
A beautiful home surrounded by unkempt, run-down homes will sell for much less, than a beautiful home surrounded by well kept, nicely maintained homes.
3. Surroundings: What are the surrounding features?
Buyers are willing to pay more for a home that is in a convenient, yet quiet locale. While you may find it convenient to side onto a school, many potential buyers would eliminate such a location due to the noise level associated with the presence of hundreds of excitable children, and the congestion caused by school buses and parents dropping off and picking up students.
MYTH #5 . . .
I can make a lot more money by turning this single family home into a multi-family dwelling.
FACT #5 . . .
While this statement is for the most part true, it may not be possible. Most towns and cities have strict zoning laws that not only dictate the maximum allowable occupancy within any given area, but also dictate the size and design of a home when building new, or creating additions to an existing structure.
Once you have thoroughly investigated the pro's and con's associated with purchasing a fixer upper home, and you have decided that it's right for you, be sure to "run your numbers".
1. List Price of Fixer Upper
2. Average Recent Sale Prices of Similar "Non Fixer Upper" Area Homes
3. Estimated Cost of Repairs from Reputable Source (e.g. referred Renovation Company)
4. Buffer Amount for "Unexpected" Repair Costs (usually 1/2 of estimated total)
5. Selling Expenses (real estate fees, lawyer fees, closing costs)
6. Amount of Profit You Desire versus Amount of Actual Profit
For example:
1. $200,000.00 = List Price of Fixer Upper
2. $255,000.00 = Average Sales Price
3. $ 25,000.00 = Estimated Repairs
4. $ 12,500.00 = Buffer for Repairs
5. $ 17,000.00 = Selling Expenses
6. $ 20,000.00 = Desired Profit Versus ActualProfit of $500.00
If your intent was to purchase the house shown in the example above, make the repairs, and immediately list the house for sale, your Actual Profit shown is only $500.00. If, however, your intent was to purchase the same house, but actually live in it for a few years before selling, you would normally expect to turn a much better profit for two reasons:
• First, historically speaking, the real estate market normally goes up over time and your anticipated sale price would be higher - affording you more profit.
• Second, the money that you would have been paying in rent to live elsewhere - with no return - is actively paying down your mortgage and increasing your equity.
As with all investments, though, nothing is guaranteed. So when looking to finance a home, keep in mind that the real estate market has taken some big hits in the past. Never overextend yourself financially.
Please note that the figures in the calculations shown were used for example purposes only. Local housing prices, repair costs, and selling costs will vary greatly from one location to another. It is recommended that all Buyers thoroughly research their local costs and legal restrictions before purchasing.
For the premier online real estate site for the Dallas Fort Worth, DFW Texas Area, designed to inform you on how to be a pro in the real estate market and how to avoid the common pitfalls that are so very costly, go to C21-Inman.com, the articles and tools throughout the site are FREE.
Bill Inman - Realtor
CENTURY 21 Mike Bowman, Inc.
4101 William D. Tate Avenue, Suite 100
Grapevine, Texas 76051
Telephone Direct 817-328-2390
Direct Fax, Toll Free 877-326-9965
E-mail Bill@C21-Inman.com
Web Site www.C21-Inman.com
"It does not cost you more to hire #1, but you get so much more!"
Bill Inman is a multi-million dollar producer and was awarded the prestigious CENTURY 21 Masters Emerald Award.
Bill Inman is proud to be associated with CENTURY 21 Mike Bowman, Inc. the #1 CENTURY 21 Office in the WORLD for Homes SOLD AGAIN in 2008, and the #1 Office in the WORLD 11 times since 1993!
Tuesday, April 25, 2006
Colleyvile Texas Real Estate Web Sites
If you are wanting to buy a home in Colleyville, TX, sell a home in Colleyville, TX, finance, refinance a home in Colleyville, TX, get a list of forecloures in Colleyville, TX, etc.
For the premier online real estate site for the Dallas Fort Worth, DFW Texas Area, designed to inform you on how to be a pro in the real estate market and how to avoid the common pitfalls that are so very costly, go to C21-Inman.com, the articles and tools throughout the site are FREE.
Bill Inman - Realtor
CENTURY 21 Mike Bowman, Inc.
4101 William D. Tate Avenue, Suite 100
Grapevine, Texas 76051
Telephone Direct 817-328-2390
Direct Fax, Toll Free 877-326-9965
E-mail Bill@C21-Inman.com
Web Site www.C21-Inman.com
"It does not cost you more to hire #1, but you get so much more!"
Bill Inman is a multi-million dollar producer and was awarded the prestigious CENTURY 21 Masters Emerald Award.
Bill Inman is proud to be associated with CENTURY 21 Mike Bowman, Inc. the #1 CENTURY 21 Office in the WORLD for Homes SOLD AGAIN in 2008, and the #1 Office in the WORLD 11 times since 1993!
For the premier online real estate site for the Dallas Fort Worth, DFW Texas Area, designed to inform you on how to be a pro in the real estate market and how to avoid the common pitfalls that are so very costly, go to C21-Inman.com, the articles and tools throughout the site are FREE.
Bill Inman - Realtor
CENTURY 21 Mike Bowman, Inc.
4101 William D. Tate Avenue, Suite 100
Grapevine, Texas 76051
Telephone Direct 817-328-2390
Direct Fax, Toll Free 877-326-9965
E-mail Bill@C21-Inman.com
Web Site www.C21-Inman.com
"It does not cost you more to hire #1, but you get so much more!"
Bill Inman is a multi-million dollar producer and was awarded the prestigious CENTURY 21 Masters Emerald Award.
Bill Inman is proud to be associated with CENTURY 21 Mike Bowman, Inc. the #1 CENTURY 21 Office in the WORLD for Homes SOLD AGAIN in 2008, and the #1 Office in the WORLD 11 times since 1993!
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