Buying a house is a monumental occasion and one that you should certainly look forward to with anticipation and excitement. However, according to the financial experts at Texas Lending, there are a few key indicators that you should wait before signing up for a first mortgage.
1. A disappearing down payment
According to Texas Lending mortgage professionals, many first-time homebuyers hopefuls don’t consider the fact that they will need between 3.5% and 20% of the property’s purchase price in cash at closing. Even at the lowest end, that is more than $10,000 on a home priced at the national average of $300,000. Those seeking a conventional mortgage will likely have to put down three times that. Continue reading
If you are ready to sell, a poor appraisal can ruin your excitement and take away from the equity you’ve worked so hard to build. But, according to the mortgage lending experts from Texas Lending, you have the right and obligation to dispute an unexpected dollar value. Read on as the Texas-based company answers a few common questions regarding appraisal disagreements.
Q: What is the first thing I should do if my appraisal does not come back with the valuation I expected?
Texas Lending: Your first line of offense is to meticulously scour the appraiser’s records. An appraisal is made up of two primary components: the actual value of the home and the data upon which that value was established. An issue with the latter can significantly affect your home’s potential sales price.
The professionals financial advisors at Texas Lending understand that buying a home is a daunting and exciting process. Here, the Texas-based mortgage provider offers information on loan types for the first time buyer.
Q: Are all home loans the same?
Texas Lending: Absolutely not! Home loans are as different as the properties they are meant to help purchase. There are more than half a dozen different types of loan, each with pros and cons. Our agents specialize in helping each client determine which loan is right for their situation.
What is a balloon payment? Texas Lending answers this and more in the following brief Q&A, which sheds light on some of the most misunderstood mortgage terms in the industry.
Q: Is a mortgage broker the same thing as a lender?
Texas Lending: No, a mortgage broker is the person or business who works with the buyer to arrange funding and negotiate contracts. Brokers don’t actually loan any money but are paid a fee, called a commission, for the service of helping the buyer obtain a loan. Similarly, a real estate broker does not own the properties he or she represents, they simply help facilitate the transaction and earn a small percentage of the sale.
Your appraisal is the dollar value assigned to your home by a real estate professional. It alone determines the value of your property and what others are willing to pay. Or does it? According to TexasLending.com, the appraisal is not necessarily a fixed number and it is possible to successfully dispute a lowball estimate. Here’s how:
Investigate every detail.
If you’re not happy with the value the appraiser has noted, TexasLending.com experts suggest taking the time to study his or her notes meticulously. Separate the appraisal into two distinct categories: the home’s determined value and the data that value was based upon. Look at every detail and check for errors. Appraisers are, after all, human, and may miss something in their review.
You don’t have to pull a Walter White to save money. Reps from TexasLending.com, a mortgage lender headquartered in Dallas, say bad financial habits are a state-of-mind and breaking them is a matter of will.
According to TexasLending.com representatives, people save best when they have a clearly defined purpose. In other words, those who want it bad enough, are the ones who are most successful in their savings campaigns. For instance, a mother saving for her daughter’s tap dance lessons may work twice as hard and give up a few small luxuries for what’s most important to her: her child’s happiness.
Negotiations may not always be pleasant, but they are a necessary part of the home buying process. This according to Texas Lending mortgage professionals, who say the purpose of negotiations is to get the best price for all parties concerned.
Q: Should I use a buyer’s agent or approach the listing agent on my own?
Texas Lending: It’s always a good idea to have an agent on your side. A good buyer’s agent will be familiar with the market and offer you advice on trends and comparable properties so that you can make a more informed decision when it’s time to place an offer.
Q: What are comparable properties?
Texas Lending: Comparable properties, or comps, are properties of similar size, age, condition, and amenities in a particular area, usually within a few miles of the subject property. Your real estate agent should have a comparative market analysis (CMA) on-hand for you to review before making an offer. One of the main benefits of assessing comparable market properties is that it gives you a baseline value per square foot and therefore a better footing from which to hold your negotiations. Continue reading