Homebuyers
Home Buying
Pre-qualification is an estimate of how much you might be able to borrow based on a quick review of your finances. Pre-approval involves a more detailed look at your finances and credit history to give a more accurate figure of the mortgage amount a lender is willing to provide.
A mortgage lender is a financial institution that provides the loan. A broker acts as an intermediary, helping you find the best loan from various lenders. A banker, or mortgage banker, works for a specific financial institution and offers loans from their institution only.
Yes, getting pre-approved for a mortgage requires a lender to perform a credit check, which is a hard inquiry. This can temporarily lower your credit score by a few points.
Whether to buy or rent depends on your financial situation, long-term goals, and lifestyle. Buying is good for long-term investment and stability, while renting offers more flexibility.
Pre-approval letter can give homebuyers an idea on how much they can borrow, which can help narrow down the price range of homes to consider. It also shows sellers that the buyer is serious and financially capable of purchasing a home.
It generally takes 30-45 days from when your offer is accepted to when you close on the house, assuming it is a resale house and there are no major issues arise.
A high score increases the chance of approval and can get you lower interest rates. A low score may limit your options or result in higher interest rates.
Yes, you can buy a house while having a student loan. However, your debt-to-income ratio, including your student loan payments, will impact the amount you can borrow, and the mortgage terms you are offered.
A real estate agent assists in buying or selling properties by offering expertise on pricing, negotiation, and the local market. Using one is not mandatory, but it can simplify the process and potentially provide better deals, especially for first-time buyers or sellers.
The amount to save for a down payment varies, but traditionally it’s 20% of the home’s price. Some loan types allow for lower down payments, but saving more can reduce your monthly mortgage payments and possibly eliminate the need for mortgage insurance.
It can take from a few hours to a few days, depending on the lender and your preparedness with the required documents.
Look for communication skills, local market knowledge, and a good track record. Check reviews and references.
Research is key. Visit at different times of the day, talk to residents, review school ratings, and consider proximity to work, amenities, and services.
These terms define ownership as much as property style. Single-family homes provide more privacy. Condos often have more services and shared amenities, while townhouses offer a balance of both.
Building a new home may incur additional or increased costs due to the longer timeline. To mitigate this, buyers are advised to opt for a lump-sum contract that puts the risk of cost overruns on the builder.
While both brokers and agents can help with real estate transactions, brokers have additional qualifications and can run their own brokerage, while agents work under a broker’s supervision.
Brokers typically earn a commission, which is a percentage of the property’s sale price. The commission is usually split between the listing broker (representing the seller) and the buyer’s broker.
No, it is illegal in Texas to do dual agency.
Closing costs are fees paid at the end of a real estate transaction. They typically range from 2-5% of the loan amount and include expenses like loan origination fees, appraisal fees, and title insurance.
Mortgage
A mortgage is a loan taken out to buy property or land. The property or land is used as collateral until the loan is fully repaid over a specified term.
To qualify for a mortgage, you generally need a stable income, good credit score, low debt-to-income ratio, and a down payment. Lenders also consider your employment history and the type of mortgage you’re applying for.
There are several government programs for first-time home buyers including FHA loans for lower down payments, VA loans for veterans, and USDA loans for rural property. Ask your mortgage lenders for specific Texas programs that offers down payment assistance and tax credits.
There are a few things to consider when choosing a lender for your mortgage, including: The interest rate and terms of the loan, the lender’s reputation and experience, the lender’s fees and closing costs, the lender’s customer service. It is important to compare quotes from multiple lenders before deciding. You can also ask your real estate agent for recommendations.
There are many different types of mortgages available, each with its own set of features and benefits. Some of the most common types of mortgages include: Conventional mortgages, FHA mortgages, VA mortgages, USDA mortgages, Jumbo mortgages, Adjustable-rate mortgages (ARMs), Fixed-rate mortgages. It is important to choose the type of mortgage that is right for your financial situation and needs.
A pre-approval letter is a document from a lender that states how much money you are qualified to borrow for a mortgage. To get a pre-approval letter, you will need to provide the lender with some information about your financial situation, such as your income, debt, and assets. The lender will then use this information to calculate how much money you are qualified to borrow. The pre-approval process is usually free and can be done quickly. It is a good idea to get pre-approved for a mortgage before you start shopping for a home.
A down payment directly impacts your mortgage amount, interest rate, and monthly payments. A larger down payment reduces the loan amount, can secure better interest rates, and lowers your monthly payments. It can also help you avoid paying for private mortgage insurance.
No, it can be challenging to find and qualify for down payment assistance programs.
Factors such as income limits and location play a significant role in determining eligibility for down payment assistance.
No, down payment assistance must be a gift, and using a loan for the down payment may affect your mortgage approval amount.
Yes, typically, if you put down less than 20% of the home’s purchase price, you’ll be required to pay Private Mortgage Insurance (PMI). However, there are some loan programs, like VA and USDA loans, which don’t require PMI, regardless of your down payment amount.
In mortgage terms, ‘points’ refer to prepaid interest on the loan. One point is typically equal to 1% of the total loan amount. By paying points upfront, you can lower your ongoing interest rate, which can save you money over time. Whether to consider points depends on how long you plan to live in the house. If it’s long-term, points might be beneficial; for a short-term stay, they may not be worth it.
An escrow account is set up by your lender to hold funds for property taxes and home insurance. It helps ensure these expenses are paid on time and allows for easier budgeting.
Yes, you can negotiate certain terms of your mortgage, such as closing costs and fees. Shopping around and being willing to negotiate can potentially help you secure better terms.
To lower your mortgage payment, you can consider refinancing, extending the loan term, making a larger down payment, removing PMI, appealing property tax assessment, or making extra payments towards the principal balance. Consult a mortgage professional to find the best option for you.
Yes, you can pay off your mortgage early by making additional payments or paying more than the required amount each month. Check for any prepayment penalties or restrictions in your mortgage terms. Early payoff can save on interest and provide financial flexibility.
You need to submit a mortgage application to a lender, along with documents that verify your income, employment, assets, and debts. The lender will also check your credit score.
It lasts for 3 months.
Consider income, expenses, credit score, down payment, and mortgage rates. Your mortgage payment should not exceed 28% of your gross monthly income.
Both buyer and seller usually have closing costs. Home buyer’s costs might include the home appraisal, origination fees, prepaid interest, and more. This is often negotiable and sometimes sellers agree to cover some of the buyer’s closing costs.
The Closing Disclosure is a form that provides final details about the mortgage loan you’ve selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage.
By law, the final total of certain costs cannot be more than 10% higher than what was listed in the loan estimate. However, some costs can change without limit, like prepaid interest.
Yes, you can access your home equity through options like a home equity loan or a home equity line of credit (HELOC). These allow you to borrow against the equity you have built in your home.
Yes, home equity can be lost if property values decline or if you take on additional debt against your home. It’s important to make wise financial decisions to protect and grow your home equity.
Yes, homeowners can use their home equity to invest in other properties, start a business, fund education expenses, or make other significant investments. However, careful consideration and financial planning are advised before using home equity for such purposes.
Contract
Check the structural integrity of the house, including the roof and foundations. Inspect for pest issues, electrical system, plumbing, HVAC system, and potential mold problems.
These systems’ age and condition can influence their efficiency and performance, impacting utility costs and possibly leading to costly replacements.
Both new and existing homes can come with warranties to cover appliances and mechanical systems until the buyer takes possession. New homes often include a builder warranty that covers workmanship and materials.
New home construction is typically supervised by a developer, an architect, and the builder’s representatives.
It will cost between $350-$500.
Yes, if the home inspection uncovers significant issues, you can renegotiate the price, ask the seller to make repairs, or even withdraw your offer, depending on the terms of your contract.
Usually, the contract will specify that the property must be in the same or better condition at closing as when the offer was made. If significant damage occurs, it could affect the terms of the loan or even lead to cancellation of the sale.
If the home appraisal comes in lower than the sale price, it can affect your financing. You may need to renegotiate the price, make up the difference in cash, or cancel the purchase contract.
If your financing falls through before closing, you may need to delay the closing date, apply with a different lender, or back out of the sale. Your course of action will depend on your specific circumstances and the terms of your contract.
Home Sellers
Pricing Your House
The value of your home will depend on a number of factors, including the location, size, condition, and amenities. A real estate agent can help you determine the market value of your home by doing a comparative market analysis (CMA).
The value of your home is an estimate of what it could sell for in the current market. The actual sale price may vary based on negotiations and market conditions at the time of sale.
Factors include location, size, condition, amenities, recent sales of similar properties, market conditions, and any improvements made to the home.
Online estimators can provide a rough estimate, but they may not capture the specific details and nuances of your property. Consulting with a real estate professional is recommended for a more accurate assessment.
Marketing
It varies greatly depending on the market conditions, location, price, and the condition of your property. On average, it can take between 45 to 60 days.
Yes, in most cases, sellers are legally required to disclose any known issues with the property, such as previous water damage, a leaky roof, or the presence of lead paint.
Typically, spring and summer are considered the best times to sell, as families prefer to move when the children are out of school. However, market conditions can vary, and in some cases, you might be able to achieve a good price outside of this period.
There are a few things you can do to prepare your home for sale, such as decluttering, cleaning, and making minor repairs. You may also want to consider staging your home to make it look its best.
Some common mistakes that home sellers make in Texas include pricing their home too high, not preparing their home for sale, and not working with a real estate agent. It’s important to avoid these mistakes to get the best possible price for your home.
There are a few things you can do to find a good real estate agent in Texas, such as asking for referrals from friends or family, checking online reviews, and interviewing a few agents before making a decision.
There are two main types of listings in Texas: exclusive listings and non-exclusive listings. Exclusive listings mean that the agent has the sole right to sell your home. Non-exclusive listings mean that you can list your home with multiple agents and your right is not fully protected.
We list your house on multiple website including the reputable MLS, advertising it online on all our social media platforms, and holding open houses. You may also want to consider working with a home stager to make your home look its best.
Contract
Closing costs are the fees associated with the sale of a home. They typically include things like title insurance, appraisal fees, and recording fees. The exact amount of closing costs will vary depending on the property and the lender.
When you sell your home, you may be subject to capital gains taxes. The amount of capital gains taxes you owe will depend on the profit you make on the sale and your income tax bracket.
There are a few legal requirements you need to follow when selling a home in Texas. These include getting a real estate license if you’re selling the home yourself, providing a disclosure statement to the buyer, and completing a title transfer.
There are two main types of offers that you can receive: cash offers and financing offers. Cash offers are typically more attractive to sellers because they are less likely to fall through. Financing offers may be more attractive to buyers because they allow them to get a mortgage.
The closing costs that you will have to pay will vary depending on the property and the lender. However, some common closing costs include title insurance, appraisal fees, and recording fees.
There are two main ways to close on your home in Texas: in person and remotely. In-person closings are typically the most common, but remote closings are becoming more popular.
Ask for proof of pre-approval, check their credit score, and make sure they have a good history of closing on deals.
Buyers who are asking for a lot of concessions, buyers who are not pre-approved, and buyers who are making unreasonable demands.
Landlords
Leasing
This is one of the most important questions for landlords, as good tenants will pay their rent on time and take care of the property. There are a few things you can do to find good tenants, such as:
- Screen potential tenants carefully, including running background checks and credit reports.
- Ask for references from previous landlords.
- Interview potential tenants in person.
The rent you charge should be competitive with other rental properties in the area. You can also consider factors such as the size and condition of the property, the amenities it offers, and the location.
As a landlord, you are responsible for providing a safe and habitable rental property. This includes things like making repairs, maintaining the property, and complying with all applicable laws and regulations.
Your tenants also have rights, such as the right to a habitable rental property, the right to privacy, and the right to a security deposit. It is important to be familiar with your tenant’s rights so that you can avoid any legal problems.
As a landlord, you are responsible for making repairs and maintaining the rental property. This can be a time-consuming and expensive task, but it is important to keep the property in good condition to avoid any major problems down the road.
If your tenants don’t pay rent, you will need to take steps to collect the rent. This may involve sending a written notice to your tenants, filing a lawsuit, or evicting them from the property.
As a landlord, you will need to pay taxes on the income you receive from rent. You may also be able to deduct certain expenses, such as repairs and maintenance costs.
You can protect yourself from liability as a landlord by screening your tenants carefully, having a written lease agreement, making sure the property is in good condition before the tenant moves in, and having insurance.
Marketing
Tenants have a number of rights, such as the right to a habitable rental property, the right to privacy, and the right to a security deposit. It is important to be familiar with your rights so that you can protect yourself.
Tenants also have responsibilities, such as paying rent on time, keeping the property clean and in good condition, and not disturbing other tenants. It is important to be aware of your responsibilities so that you can avoid any legal problems.
If your landlord does not fix a problem, you may need to take steps to address the issue yourself. This may involve filing a complaint with the landlord-tenant board or taking legal action.
If you do not pay rent, your landlord may evict you from the property. Eviction is a legal process, and you will have the right to defend yourself in court.
When your lease ends, the landlord will need to give the tenant written notice of the intent to renew the lease at least 30 days before the lease expires. The tenant can renew the lease, move out, or negotiate a new lease agreement.
The rent can be legally increased when the lease expires or when there is a change in the rental market. The amount of the rent increase must be reasonable and must not be discriminatory.
A security deposit is a sum of money that a tenant pays to a landlord to cover any damages to the property that may occur during the tenancy.
In Texas, landlord cannot enter a tenant’s apartment without at least 24 hours’ notice, except in case of an emergency.
