Pearland Podcast

Your monthly payment...the real amount

YOUR MONTHLY PAYMENT…THE REAL AMOUNT Hey everyone and welcome back to this week’s Podcast called your monthly payment, the real amount. I’ll tell you what I mean by that. Below is everything involved in calculating your monthly payments…

Mortgage Payment ( including principal and interest )

Taxes

Insurance

HOA Dues

I’ve seen many times buyers who are given a quote for their monthly payment and they’re excited because it’s much less than what they expected. Sometimes that is indeed the case but other times… When we looked at the insurance quote we noticed it looked really low. Then we got an actual quote from an insurance expert and found out that the insurance policy is much higher than the quote the buyers were given. So their true monthly payment ended up being around $150.00 a month more because they were under quoted.

So make sure you get an estimate from your lender, but then get your own estimate from an actual insurance expert, for your insurance.

Something else I’ve seen people doing is calculating 1% of the purchase price and thinking that’s what their monthly payments are going to be. That is not the most accurate way to calculate your payments but if you aren’t worried about $100-$200, then it’s not a bad way to estimate. For me, there are too many variable factors involved for that to be an efficient way to get your monthly payments. The best thing to do is get an estimate from your lender, then get your insurance quotes from your insurance advisor, and use the numbers from the home you’re interested in. For example… If you financed a house for $150,000 and were using the 1% rule, your payments would be estimated at $1500.00 a month. But if you ran the numbers the correct way, your monthly payments would actually come out to $1354.00 a month. Mortgage Payment $851.68 @5.5% Interest rate Insurance - $120.00 Taxes - $350.00 HOA - $33 _______________ $1354.00 Depending on your budget, the 1% rule can either be very close, or far enough off that you think you can’t afford to finance $150,000. Let’s say your budget is $1400 a month, maximum. The 1% rule will tell you your payments will be $1500… but if you calculate everything the right way, your payments are actually $1354.00 which is under your budget.

I hope this helps you with calculating your monthly payments and reminds you that there are too many variable costs involved to guess at your payment. If you need help with crunching some of these numbers you can email us at josh@searchpearland.com or call 409 739 7709 and we’ll help you out. Until next time…

10 real estate terms and what they mean

10 REAL ESTATE TERMS AND WHAT THEY MEAN TO YOU Welcome back to this week’s Pearland Tx Podcast where we are going to talk about 10 different real estate terms you might have heard, or will hear during your transaction, and explain what they mean to you.

1) Earnest Money – The first term we’ll talk about is called earnest money. This is typically $1000.00 and is held by the title company chosen for your transaction in the form of a cashier’s check. It is basically a good faith deposit stating you’re serious about purchasing the property. If you are buying the home and you end up cancelling the contract during your 7 day option period, this earnest money will be refunded back to you. If you get through the option period and close on the home, this will be credited back to you at that time.

2) Option Fee – This is typically $100.00 paid to the seller in the form of personal check. This is also like a good faith deposit and will be kept by the seller should you back out of your contract during your option period. It’s considered compensation for the seller’s time lost on the market, as well as for the time you’ve locked the property under contract and the seller couldn’t sell it to anyone else.

3) Option Period – This is a typical 7-10 day time frame that starts after both parties have agreed on price and terms, and have signed and dated the contract. This is sometimes referred to as the inspection period. With that being said, this is the time you will conduct your inspections to make sure the property is in satisfactory condition.

4) Executed Contract – This just means that both parties have agreed on price and terms, and both have signed and dated the contract. Once you have both signatures and the date filled in, the contract is considered to be executed.

5) Title Insurance – There are 2 types of title insurance… Lenders Policy and Buyers Policy – which protects the lender and the buyer against losses that could arise during dispute over ownership of the property. This is typically a sellers expense. So when you’re buying a home, the owner of the property will pay for a title company to issue title insurance.

6) Mortgage Insurance – Insurance that covers the lender against some of the losses incurred as a result of a default on a home loan. It protects them in case they have to foreclose on your property.

7) COMPS ( Comparables ) – These are homes that are similar in square footage, year built, area, style, and amenities. This is typically how appraisers and real estate agents place a value on a property.

8) Buydown – In some cases a buyer might be interested in buying down their interest rate. You will pay thousands of dollars for this and you should crunch the numbers to make sure it’s the right thing for you to do. These amounts are not cheap and you will need to consult with your lender before doing something like this.

9) Lien – A lien is a liability or legal claim on a property that must be paid off when it is sold. If there is a mortgage on the home, it is considered a lien because it has to be paid off. If someone doesn’t pay their taxes, there can sometimes be a tax lien on a property.

10) Loan to Value ( LTV ) – This is the maximum amount that a lender is willing to loan you for your home. On a normal conventional loan, the buyer has to put a minimum of 5% down for the down payment. Which means the lender will loan you up to 95% of the homes appraised value, as long as you cover your 5% up front. So if you’re buying a home for $150,000, you will put 5% down which is $7500.00. Then your loan amount will be $142,500 ( $150,000 minus $7500.00 ) So the lender loaned you 95% of the homes value. So that’s it for this week and if you’ve heard a term that you need to know and it isn’t on here, or you need clarification on something, email us at josh@searchpearland.com and we’ll help you out. Until next time, take care!

10 Common Home Buying questions...answered

10 COMMON ASKED QUESTIONS… ANSWERED

Hey everyone and welcome back to another Pearland Tx Podcast. This week we are going to answer 10 very common questions we get from buyers during their buying experience.

1) What is the difference between Pre-Qualified and Pre-Approved? This is a great question and some agents don’t even know the difference. When you talk to a lender and tell them how much you make and how much you want to get approved for, then they tell you they ‘think’ you are okay with a loan, that’s Pre-Qualified. When you sit down with a lender and talk to them about your loan options, they go over your credit report with you, you give them your W-2 forms, they verify your income, and you give them any other required paper work, they run your information through their underwriting department, then they give you a letter verifying your approval… that is getting Pre-Approved. This also holds water with the home you decide to make an offer on because your lender is stating they have verified your information and you’re approved for a loan.

2) Do I need a Realtor to represent me? This really depends on your knowledge of the buying and selling process. If you are very comfortable with buying and selling property and you understand exactly what to do, how to protect yourself, how to negotiate, and how to prevent things from happening, then you probably don’t need an agent to help you. On the other hand, it doesn’t cost you anything to have an agent help you when you’re buying a home. If you are listening to this then chances are, you probably will welcome an agent to your team with open arms.

3) If we submit an offer, can someone else get the property? This can be a heartbreaking experience for some people. A lot of times a real estate agent is scared to advise their clients to make their best offer, for fear of sounding too pushy or like a salesperson. The problem with not telling the buyer they should submit their best offer, is the buyers think they will get a second chance. The truth is, it depends on the situation and several factors. Sometimes the seller will counter back and the buyer can come up on their offer price if they choose, but other times the seller will accept another offer and the buyer who didn’t submit their best, won’t get a second chance.

4) How long will it take to hear back about our offer? This depends on if you’re dealing with a home owner, a short sale, or a bank property. If it’s a home owner it shouldn’t take longer than a day or two. If it’s a bank foreclosure, they usually take 5-10 business days. If it’s a short sale, they can take months to get a response.

5) What’s the difference between option pending, and pending for a property? If you’ve been using har.com to search for your home and you’ve seen a status that says ‘pending’ or ‘option pending’… When a buyer enters into a written agreement, they usually have 7 days to conduct inspections and make sure the property is in acceptable condition. This is called their ‘option period.’ So when they are in this part of the process, the house will be in ‘option pending’ status. Buyers can back out during this time for any reason so keep an eye on a property that has this status. Pending means they have gone through their option period and they are now headed toward closing. It is more rare for a house to not close once they reach this point, but it’s still possible for the buyers financing to fall through.

6) Our offer was accepted, now what do we do? Now that your offer has been accepted and you have entered your option period, it’s time to schedule your inspections. Your real estate agent should be able to recommend some good inspectors for you, if you don’t know anyone.

7) Can we back out if we don’t like the inspection report? Absolutely. If something comes back on the inspection report that is a major issue, then yes. Usually what happens is your agent will go over the report with you and the inspector, then decide what things need to be addressed and re-negotiate your offer. If the report comes back and everything is fine, then you will just move forward to closing.

8) How much should we offer? Your offer should be based on what similar homes are selling for in the area. It’s not a good idea to low ball home owners and expect people to take you serious. Be fair with your offer and expect to compete with other buyers during the current market we’re in.

9) How much are my closing costs going to be? This is another great question considering it’s one of the two biggest costs you will have when buying a home. The majority of your closing costs depend on the fees your lender will charge you for giving you a loan. You can relax a little bit though because your local lenders are going to stay in the same ball park with their fees, as their competitors in the area. So don’t think that you have to interview 100 loan officers to compare their fees, they will be about the same. So your lender will give you a good faith estimate that will have a breakdown of what your closing costs will be.

10) The home we’re looking at is not that old, do we still need to have an inspection? It’s very important to have an inspection on any home, even if it’s brand new. There are a lot of things that the average person overlooks that could cost you thousands of dollars in the long run, if it isn’t done in the beginning. So get your inspections done no matter how old your home is.

So that’s it for this week. Make sure you email us any question you might have that isn’t on here, and we’ll get it answered for you. Our email is josh@searchpearland.com or you can call to talk at 409 739 7709. Until next time, take care!

2 Ways we can help you save out of pocket

2 WAYS WE CAN HELP YOU SAVE ‘OUT OF POCKET’ MONEY WHEN BUYING A HOME

Hey everyone, welcome back to this week’s Pearland’s Texas Podcast where we are going to give you 2 ways to help you save ‘out of pocket ‘ money when buying your home. There are several expenses associated when buying a home and each person’s situation might be a different story. So let’s look at two of the major ones instead of trying to list all of the possible costs you may or may not have.

1) The first expense we’ll talk about is what your closing costs will be when you close on your home. Your lender will give you an estimate that has the estimated breakdown of what you’re looking at for closing costs. One thing you can do is find a home that’s under your maximum price range, then pay a little more for the home but ask the seller to pay your closing costs. Let’s say your budget for a home is $150k… You find a home for $140k…. Instead of negotiating the price of the home you can pay them $140k and ask for $5k in closing costs. Then you won’t have to bring very much to the closing table at all and you’re still under your maximum budget for your mortgage.

2) Your down payment is of course the other ‘big’ closing cost for you. A few years ago you could get 100% financing, have the seller pay your closing costs, and get into the property for virtually nothing out of pocket. Unless you buy a very specific kind of property, or you qualify for a special program, those loans are no longer available. So there are 2 ways you can get help with your down payment – If you go the route of an FHA loan the down payment is a minimum of 3.5% and it’s required. The lender will allow that 3.5% to come from a family member, inheritance, or a gift from anyone. The other way to help with your down payment is if you qualify for the first time home buyer tax credit ( email us at josh@searchpearland.com ) if you need more information about that. There is now a program where the lender will give you a temporary loan of $7000 up-front to help you with your down payment. Then when you get your $8000 check from the government, you simply pay back the loan.

So there are a few ways to help you with your out of pocket expenses when buying a home. Please email us your questions at josh@searchpearland.com or call 409 739 7709. Until next time, take care!

What does a real estate consultant do for me, and how much does it cost?

WHAT DOES A REAL ESTATE CONSULTANT DO FOR ME, AND HOW MUCH DOES IT COST?

Hey everyone, welcome back to this weeks Podcast called “what does a real estate consultant do for you, and how much does it cost?” First of all, an agent can only represent someone in one of three ways…

1) Sellers Agent – The agent represents the home owner selling their property.

2) Buyers Agent – The agent represents the buyer.

3) Intermediary – This is when 1 real estate agent acts as the middle person between two parties. The agent must get written permission from both the buyer and the seller to act as their intermediary. The agent will also not be able to give advice or guidance to either party during this kind of representation. It can be really tricky and you should fully understand it should you find yourself in that position, before you agree to anything.

So with that in mind, when you’re buying a home and being represented by a buyer’s agent, it costs you nothing to have them on your team. The owner who hires a realtor to list their property and find a buyer is the one who pays the commission to get their home sold. That commission pays the sellers agent, and the buyer’s agent. Basically we are compensated in two ways…

1) The first way we’re compensated is by you introducing us to the people you care about who need our help, before you even close on your new home.

2) The second way is from the owner of the home, in which they pay the commission which is split between both real estate agents. So again, it doesn’t cost you anything if you’re buying a home.

Now let’s talk a little bit about what a real estate consultant does for you…

1) Consulting – As real estate consultants, we will ask a lot of important questions. Maybe you’ll notice they’re the types of questions the typical agent might not ever take the risk of asking you. A skilled consultant will ask probing and intelligent questions because discovering what’s really important to you, is important to us. We will lead you through the process of clarifying your values because when your values are clear, your choices are easy. And I’m sure you want to make good and easy choices.

2) Negotiating – Our second role is to negotiate on your behalf. You, like me, know that money is an emotional issue and to represent yourself is kind of like representing yourself in court. Unless you’re an expert it should be delegated to someone you trust and respect. Now this doesn’t mean we can get the other party to throw in a golden gate, but it does mean that we will fight for you on the right things.

3) Transactional Details – The third role is to oversee all of the transactional details. In the days, weeks, and even months ahead during your process, I’m sure you will see and appreciate our role as overseeing all of the details. As you can imagine every I must be dotted and every t crossed because there are hundreds of pieces of paper requiring signatures and initials, and making a mistake can be very costly. Every transaction alone can have 100’s of phone calls and emails, not to mention all of the critical deadlines involved. We actually give our clients a list called ’88 different types of turbulence’ that describes all of the possible bumps or problems you may or may not ever know about because it’s handled behind the scenes by us.

So the idea is to help your transaction run as smooth as possible. So that’s basically what we do for you in a nut shell. Please email us with any questions or concerns at josh@searchpearland.com , or call 409 739 7709. Until next time…

5 quick tips that can help you save thousands

5 QUICK TIPS THAT COULD SAVE YOU THOUSANDS

Hey everyone and welcome back to this weeks Podcast which will hopefully show you some basic things to do, that could save you thousands of dollars. These are very basic things but you would be surprised to see how many people take them for granted and convince themselves that they can save a few hundred dollars by not doing something they should have. So lets take a look at these one by one…

1) Sit down with a trusted lender and let them help you choose the right loan policy for you. Whatever you do make sure it’s a 30 year fixed rate. Unless you’re an expert buyer and you know exactly what you’re getting into with an adjustable rate mortgage, stick to the 30 year fixed.

2) While on the subject of mortgage payments… another tip is to pay $100.00 a month extra toward your principal note balance. So if your total mortgage payment is $1000.00 a month, pay $1100.00 a month and you will knock years off your mortgage and 10’s of thousands of dollars off of interest. For example, if you have a loan amount of $100,000, at 6% interest, your mortgage payment will be about $600.00 – and when you paid your last payment after 30 years, you will have paid a total of $215,838 because of the interest. Now if you pay an extra $100.00 a month, you will pay off your loan 9 years sooner and you will save $40,000 in interest. You can visit http://www.mortgageloan.com/calculator/mortgage-payoff-calculator and play with the numbers.

3) Have an inspection – Now you may be saying to yourself, “I would always have an inspection” but again, you’d be very surprised at the people who try to save a few hundred dollars because they ‘think’ the home is fine. An inspector will be able to see all the red flags that the average person won’t see, and won’t know about until the A.C unit goes out and you have to purchase a new one. Or something was wrong with the plumbing, electrical, etc.

4) Sit down with an insurance expert you’re comfortable with and find out what the best policy will be for you. There are certain numbers in certain categories that an insurance agent can play with, that can increase and decrease your monthly payment. For example, if you don’t need a $500,000 insurance coverage for your personal belongings, you might be able to lower that to $100,000 and lower your monthly payment.

5) Get Flood insurance, no matter where your house is. Especially in Pearland Tx area, we’ve seen what a big rain can do and if you get caught with rising water in your home, the only thing that will save you is flood insurance. It’s too cheap not to get. It’s usually about $300 a year. Ask your insurance agent what is and what isn’t covered by your flood insurance.

So there are 5 quick tips that can save you thousands of dollars. Please email us with your questions or concerns at josh@searchpearland.com or call us at 409 739 7709 Take care!

3 things that probably scare you most about buying a home

3 THINGS THAT PROBABLY SCARE YOU MOST ABOUT BUYING A HOME

Welcome back to this weeks Podcast called 3 things that probably scare you most about buying a home… Unless you buy and sell property on a regular basis, you will more than likely have some fears and concerns with the process. So what we would like to do is help you realize these fears up-front, let you know they are completely normal, and help you to move past them as much as possible.

1) The Cost – This is a big one for most people because you may not have bought or sold a home in a very long time and if you haven’t, you typically won’t realize the price homes are going for in today’s market. You might not be sure how much you can actually afford because of interest rates being different, taxes, insurance, closing costs, etc. , so this is a big concern or an unknown factor for you. The secret to dealing with this fear is to talk with a great lender and get Pre –Approved before you start looking at homes. And you should of course be realistic about what you’re willing and able to spend.

2) The commitment – Of course buying a home is a HUGE responsiblility and probably a life changing decision. It deserves you taking the time to sit down with a trusted real estate advisor who will give you your options based on what you’re trying to accomplish. They will represent YOU and help you along the way. If your job isn’t completely stable or your income fluctuates too much right now, you might consider waiting until you can have more options available. The best thing you can do in this situation is to make sure you can purchase a home that will still be in good shape 5 and 10 years down the road. It wouldn’t be a great idea to buy a house that’s 40 years old if you won’t be able to get your equity back when you sell it later on. This way you will be more confident that you have a home you’ll be able to comfortably sell down the road.

3) The People – Trust is a big word and a big issue for a lot of people. So who can you trust in this home buying process? Obviously I don’t need to tell you that this is a big investment we’re talking about. And it may seem that everyone is out to make as much money as possible off of YOU. There are a lot of ‘strangers’ involved in your process and if you weren’t introduced to your real estate consultant by someone you know and trust, then they too are strangers. It’s no secret that all of these people have a vested interest when you buy a home. That’s why you will need to trust your real estate consultant that has good references, to recommend these other professionals to you. Just because your real estate agent is commission based, doesn’t mean that they won’t have your best interest at heart. In fact, they will more than likely be in touch with you long after you close on your home, and hope to help your family, friends, and neighbors out too, which will put them in the position to make sure they treat you right during your transaction, and do the best job they can for you. This is our philosophy behind working “ By Referral Only” As always,

I really hope this helps you to take note of your natural fears for this process, and how to deal with them. If you want to email us your fears about this, you can send it to josh@searchpearland.com or call us at 409 739 7709. Take care!

I'm the one buying a home, who are all these other people?

I’M THE ONE BUYING A HOME – WHO ARE ALL THESE OTHER PEOPLE?

Hey everyone, welcome to this weeks podcast called I’m the one buying a home, who are all these other people? As you may or may not know, buying a home is a big decision and the choices you make now can impact you the rest of your life. There are many people involved from different industries in the buying process. All of them have a specific job description designed to help you and make the buying process as smooth as possible. So I’ll mention a few of them to you and describe who they are, why they’re important, and most importantly… what they do for you.

1) The first one I’ll talk about is the Real Estate Consultant. As I was saying before… the decisions you make now will impact you the rest of your life, and it all starts with choosing the right real estate consultant who will use their knowledge and expertise to recommend people for you ,that are involved in the process. Unless you have your own team of experts you’re comfortable with, you will probably want to get a recommendation from your agent.

2) Another important person who is involved in your process is your lender. You need to be especially careful with this decision because you will be stuck to your terms for 30 years. They are also advisors and will be helpful in helping you determine what the right loan option is for you. They will be able to help you determine how much house you can afford, what your monthly payments should be, an estimate of your closing costs, and of course what your interest rate is.

3) A real estate Attorney is always needed in order to draw up the legal documents that the title company will have you sign at closing. They are also the ones who wrote the real estate contracts you will use for making offers. In a normal transaction you will not need to meet face to face with a real estate attorney, unless of course you pay them to look over the contract, or if there is a problem with someone not following through with their end of the deal.

4) The title company will make sure the property you’re buying is free and clear of any outstanding taxes due, or liens that aren’t paid. They will also make sure that the property transfers ownership correctly through title insurance.

5) A third party appraiser will be hired after you have come to an agreement on price and terms for your home. This has to verify for your lender that you’re not overpaying for the property. If the appraisal comes back under the amount you have agreed on, your agent will probably have to re-negotiate the price. Your lender wants to know that if they had to foreclose on your property, they can recoup some of the costs. It’s not a very big expense, usually around $400 for an appraisal.

6) There may or may not be a surveyor involved with your new home. If the home owner does not have a survey, then usually the buyer will have to pay for a new one. Or if the current survey the owner has isn’t valid for the title company to use, then the buyer will have to pay for a new one. This also isn’t that big of an expense, usually about $400.

7) Highly recommended for anyone buying a home is to have an inspection done during your option period. They will look at Plumbing, electrical, A.C units, roofs, attics, foundation, etc. They are not experts in every department but they will be able to notice red flags and also recommend to you if you should have a specific inspector come out to investigate further.

That’s typically what you will go through for buying a home. Of course every situation is different and sometimes there are more people involved than this that are behind the scenes during your transaction. I hope this helps and please email us your questions at josh@searchpearland.com or call 409 739 7709.

Take care!

NEW Countryside Foreclosure

This house just came on the market for $104,000. It's a great starter home at 1258 square feet and the best part is it may qualify for only $100 down payment! For more information or to schedule an appointment email us at josh@searchpearland.com or call 409 739 7709 and we'll get you set up.

I'm thinking of selling my home, should I protest my property taxes?

I’M THINKING OF SELLING MY HOME, SHOULD I PROTEST MY PROPERTY TAXES?

Hey everyone welcome back to another Pearland Podcast which talks about – should you protest your property taxes if you’re thinking of selling your home? A friend of mine actually wrote a very good article on this subject and the long story short, he said to “go ahead and protest your taxes, your new buyer will be glad you did.” That’s really the best way to look at it. Remember that once you put your home on the market, you have to think in terms of impressing other potential buyers, not to mention that it might help you out for few months while you’re still the owner.

The local tax appraisal is based on information from homes that have sold in the previous tax year. They are a year behind what’s currently happening in the market. When you get your taxes in the mail and you feel they are too high, there will be instructions for you to protest. So here’s what you’ll need to do in order to protest your taxes…

1) Once you receive your tax appraisal around April 1st and you feel your taxes are too high… You will have until May 31st to protest your taxes. Go to your local tax appraisers web site and request a formal hearing. You can go to www.galvestoncad.org for Galveston county, or www.hcad.org for Harris county. They will have specific instructions for protesting your taxes. You can also call them to set up your appointment at 866 277 4725 Ext. 407 (Galveston County )

2) You can also go to http://www.hcad.org/howtoisettle.asp to watch a video for protesting your taxes in Harris County Tx.

3) Gather any information you will need to help you prove your taxes are too high. It’s not a good idea to just go into your hearing empty handed and expect the board to lower your taxes. You will need comparable homes that have sold in your neighborhood in the previous year. Call us or email us so we can help you with pulling some recent solds in your area. This will give you a really good idea as to what your home should be worth, and whether or not your taxes are too high.

So that will get you in the door for getting your taxes protested. Once you get your taxes lowered, the changes will usually take place around the end of July. I hope this helps you and please email us with questions or concerns at josh@searchpearland.com or call 409 739 7709

See you soon!

How much home can I really afford?

HOW MUCH HOME CAN I REALLY AFFORD?

Hey everyone welcome back to this weeks podcast called How much home can I really afford? The truth is, you can usually get approved for a certain amount but whether or not you are comfortable with that amount is a different story. In other words, just because you can get approved for a $200k dollar house, doesn’t mean you will be comfortable making those payments. You might be much more comfortable with a house around $150k or so. So be careful with trying to buy too much home just because your lender said you could. Here are 4 things you should do to help you decide on your price range…

1) Get a Pre-Approval on the maximum amount you think you’re comfortable spending. That way you will know your worst case scenario for your monthly payments and holding costs for the property. If your monthly max is $1400 a month and that gets you approved for $175k house, then you’ll know the most you will purchase is $175k. Then maybe you can find homes under that amount, which will typically lower your monthly payments.

2) Another thing you should do is make sure you have your lender give you an estimate on your monthly payments on the home you’re making an offer on. Just to get a more accurate idea because of the variable costs with Insurance, Taxes, etc. You should also get a quote from your Insurance Advisor once you find a home too.

3) You should also have a breakdown of all your monthly bills and get a very close estimate to how much it costs you to pay your bills every month, right now. Then add your potential house numbers to that and see if you are increasing your bills, decreasing, or staying about the same. Obviously if you’re decreasing your bills or staying the same, you’re in good shape. If your bills are increasing you need to figure out by how much, and ask yourself if you can comfortably handle those expenses.

4) Even though your lender will take into account your Job security, you still need to have a good handle on your Job for the future. Do you know something the lender doesn’t know about your Job? Have you heard rumors about them going bankrupt? If you lost your job, would it be easy for you to find another one? These things need to be taken into consideration in case something happens.

So there you have 4 important things to do to help you decide how much home you can afford. I hope this helps you on your journey. Best of luck, see you next week!

6 Signs that could mean expensive trouble

SIX SIGNS THAT COULD MEAN EXPENSIVE (HIDDEN) TROUBLE

Hey everyone I hope you had a great week! This week we’re going to talk about 6 different signs or red flags to look for while you’re shopping for a home… Cracks, bulges, stains, odors, squeaks, and tilting are easy to spot and can mean a little or a lot of trouble in any home.

The first sign of trouble that you should look for is in the foundation. You can do this by looking around the outside of the home. If you can see cracks, bulges, mold, or wood rot, there may be problems with the foundation. Keep in mind that all concrete and asphalt will crack as it settles, hairline cracks are acceptable; anything larger is not. These things could mean a large foundation settlement because of soil instability, or because the builder didn’t use steel reinforcements.

You’ll have to look high to see the second sign. Are shingles rough, broken, curled, bubbled, warped, or split? Are there rotted eaves, or fascia? Make sure to look for old, faulty gutters that can hide these problems. These things could indicate a leaky roof, or one that will need to be replaced in a short amount of time.

The third sign of trouble hits you when you walk in the door. How does it smell? If it smells like Fluffy or last night’s dinner – that can be fixed by carpet cleaning, and a little time and fresh air. A moldy smell could suggest mold in the ductwork, which would more than likely require a complete replacement to remove.

You’ll feel the fourth sign of trouble as you walk around inside the house. Are you walking on a slant? Do the floors squeak when you step down? Can you feel or see lumps, breaks, or cracks? As you look at the joining of the floors and walls, is there a separation? These things can indicate a problem with the sub-flooring or an underlying moisture condition – either a leak or a moisture problem beneath the floors.

Look to the walls and ceilings for the fifth sign of trouble. Walls that are cracked can indicate a problem with the foundation – particularly around doors, windows, and ceilings. The cracking, peeling, and bubbling of paint can indicate mold or moisture in the walls or above the ceiling. Is there a round-shaped discoloration? Is there any bubbling, cracking, or bowing in the sheetrock or paint? All of these things can indicate moisture – any sort of water leak. Depending on how big and how long the leak has been there, the damage can be as little as discoloration or as much as rotten framing wood.

The sixth sign is in the bathroom. Take the time to flush each toilet and run water in each sink. If the water pressure is overly high or overly low, there’s rusting, or poor drainage, there could be a problem with aging pipes or sewerage. These six things are easy to spot, but a professional home inspector can tell you the real underlying problems and estimate the cost of repairs. If you have any specific questions or concerns with a homes condition, please email us at josh@searchpearland.com and we’ll get you set up. You can also call us at 409 739 7709 if you prefer.

Until next time, take care.

How to get a yes when you apply for a loan

HOW TO GET A ‘YES’ WHEN YOU APPLY FOR A LOAN…

Welcome back to this weeks podcast called how to get a ‘yes’ when applying for a loan. Lenders approve loans based on their impression of your ability and intent to pay it back. In order to determine this, they look at 5 things…

1) Credit worthiness

2) Income

3) Job longevity

4) Job stability

5) Future income prospects

Lets take a look at each one individually…

Credit Worthiness – This is your history of borrowing and repaying back your debts, making payments on time – things like loans, credit cards, rent, and whether you’ve ever filed for bankruptcy. You can call your trusted lender and ask for a copy of your credit report. Be very careful with going online to just ‘anyone’ who offers your credit report for free. If you aren’t sure, email us and ask us before you request your copy. If there’s any mistakes on your report, your lender should help you dispute them. Sometimes it can take up to 90 days to reflect a change but if you have proof of debts that have been paid off, that’s all the lender will need to help you.

Income – Of course lenders want to know that you have a good history of sufficient and consistent income, so that you’ll be able to repay the loan. So be sure to bring a letter verifying your employment along with your last 2 paycheck stubs, and your last two W-2 forms.

Job Longevity – Lenders are looking for borrowers who have a stable source of income. If you can show that you’ve been employed for at least 2 years at the same company, that’s a good thing.

Job Stability – Again, lenders like stability and they tend to think that your loan payment behavior will reflect your employment behavior. So don’t make unnecessary job moves just for the sake of moving if you’re looking at getting into a home. If you do change jobs, do it for advancement or a salary increase.

Future Income Prospects – I thought this was a little weird when I first read it, but now it makes more sense. Because most loans will take 20 to 30 years to pay back, lenders are interested in people who will have income for that amount of time. Young people who have skills that are high in demand, are the most appealing because their income will likely increase over the life of the loan. If you can demonstrate that you have a career plan that only gets better over time, you’ll be in a stronger position to borrow.

So basically pay your bills on time, stay with an employer for as long as you can, and have a career that has room for advancement and you’re in the best position to get a ‘yes’ on a loan. Until next time…

Make sure you email us with your questions or topics that you would like to hear about at josh@joshhayles.com. Or you can call us at 409 739 7709.

How to pay your mortgage off years sooner

Welcome back to another Podcast where we’re going to talk about how to pay your mortgage off years sooner. I’m sure you’ve heard of doing this, it’s not anything new or creative, but I thought if you could see these numbers in front of you, it might encourage you to re-think how much interest you’re willing to pay on your home. This is assuming you financed at a normal 30 year fixed rate.

So lets say you financed $100k on a 30 year loan at 6.5% interest and you have 30 years left on your mortgage, you just moved in. Mortgage Payment - $632 a month.

If you add $208 a month to your $632 of your minimum payment, that brings your total payment to $840 a month.

Keep in mind If you just paid the minimum payment of $632 for the entire 30 years, it would end up being $227,543 by the time you paid off your loan.

Now if you add the $208 to your $632 payment and paid $840 a month, not only will you have paid your mortgage off in 16 years instead of 30, but your total amount paid will be $160,959 instead of $227,543. That’s a total savings of $66,584 just by adding $208 a month to your minimum payment.

I don’t know about you but that seems pretty attainable and worth the extra $208 dollars a month to me. If you just can’t afford an extra $208, let’s take a look at what an extra $125 a month will do for you… Keeping the scenario the same as above with $100,000 mortgage for 30 years at 6.5% interest.

If you pay an extra $125 a month, which totals your payment to $757 a month, you will have paid the mortgage off in a little over 19 years instead of 30, and your savings will be over $51,000. Now here’s something else to think about.

Let’s say you move into your new home with a 30 year mortgage but you wait 5 years before you decide to put anything extra toward your principal amount. So you have 25 years left on your mortgage and you’ve paid nothing but the minimum payment for the first 5 years so far. If you invest that same $125 a month, your savings at the end of the loan go down to $34,000 instead of $51,000. You will save $17,000 more dollars if you start investing the $125 a month in the very beginning of your loan.

You can play with these numbers all day long but the point is putting as little as an extra $125 dollars a month toward your principal amount will save you thousands of dollars and years worth of interest.

I hope this was helpful for you and if you would like us to run some numbers for your current situation, or a hypothetical one for your future purchase, just email us at josh@joshhayles.com with your numbers and question and we’ll help you figure it out. Until next time, take care.

How to make sure you own your home after you buy

How to make sure you own your home after you buy. You may have heard horror stories about someone purchasing a property and something happens, they find out they don’t really own it! How can this happen and what can you do to prevent it from happening to you? There are a few things I want to share with you…

1) What types of policies are available to you as a homeowner to protect your investment? • Owner’s policy of Title Insurance The owner’s policy of Title insurance protects your investment or equity, as the owner of the property. This is typically a fee associated with the owner who is selling their property to someone else. When you’re at the point in your buying process that you have entered into a written agreement with an owner to buy his property, you will then be assigned ( or sometimes you can choose ) a Title Company who will provide both parties with the protection that the property is free and clear from all liens, and will transfer from one owner to another. Unlike other forms of insurance, Title Insurance will protect you from claims and liens that have been filed on the property in the past, it will not protect you from losses that might happen in the future. It is now part of ‘normal’ real estate procedure for both parties to agree on a Title company so that title insurance and transfer of ownership will be done correctly.

2) What are the risks if you don’t get Title Insurance? First of all you won’t find very many owners or Real Estate agents that will be able to help you if the purchase is not transacted through a Title Company. If you don’t hire a title company to conduct a title search on the property, you could think you own it but some title problems may take years to show up after the original purchase of the property. Some examples that could cause loss of title or an expensive lawsuit are…

• Forged deeds, releases, wills, or other legal documents

• Failure of spouses to join in conveyance

• Undisclosed or missing heirs

• Deeds from minors, aliens, or persons of unsound mind

• Errors in indexing of public records

• Liens for unpaid taxes including estate, inheritance, income, or gift taxes

3) How does title insurance protect against these hidden risks and defects? Title insurance defends you in a lawsuit attacking your title and either corrects the title problem or pays the insured’s losses up to the fact amount of the policy. The policy also protects you after you sell the property for the defects occurring prior to your ownership that cause a loss to a purchaser if the title was warranted by you. The policy guarantees that at the date the deed was filed for record, placing title in the name of the insured, the title was free of defects. Also that there are no buildings or other improvements belonging to someone else located on the insured land when an acceptable survey is furnished to the title company.

 I hope this helps you to understand a little better how property is transferred from one owner to another. If you would like more free reports like this one, send me an email at josh@joshhayles.com or call us at 409 739 7709 and let me know what would help you during your path of home ownership.

10 Common Myths about buying a home and why they aren't true

Welcome to another podcast where this week we’re going to talk about 10 common myths about buying a home, and why they aren’t true.

Myth 1 – “ Lets make a low ball offer, we can offer more when they counter.” Now this is definitely not true because the owner ( especially if you’re dealing with banks and foreclosures ) is not obligated to counter at all if they choose. A lot of times it will offend them and they won’t take you serious as a buyer.

Myth 2 – “ We don’t need to get Pre-Approved, we’ll find the house first and worry about it then.” This is also a common situation we come across. The home owners these days want to know more than ever that buyers are Pre-Approved through a reputable lender. The mortgage market has been all over the place lately and it’s probably harder than it’s ever been for someone just scraping by to get approved. You can expect to submit a Pre-Approval letter along with your offer.

Myth 3 – “ I found the home, our agent didn’t have to do anything.” Actually, searching for homes has never been easier with the internet. In fact, it’s people from the real estate industry who you should thank for setting up the capabilities and giving you access to search for your home on websites like har.com and realtor.com. You have been given access because it helps you. Because of that, it’s very common for the client to actually find the home before their agent. Where your agent will be very valuable is to offer ‘sneak peeks’ on the homes that are not on the market yet, that fit your criteria. The work for the real estate agent really is just beginning after your home is found. Their skills lie in advising and consulting with their clients, negotiating, and overseeing the transaction’s details to make sure your buying process is as easy as possible.

Myth 4 – “ If I don’t have a real estate agent, I’ll get a better deal on something.” I’ve heard this a few times and I always ask them, would you get a lighter sentence if you represented yourself in court? Probably not, and it’s the same with buying a home. Sometimes it’s literally the opposite, where you will actually get a discount because you have an agent representing you. Granted if you’re an expert buyer and understand real estate contracts, you can represent yourself if you choose but you won’t get a better deal because of it. Even if you found an owner willing to discount their asking price because you didn’t have an agent, it’s going to be a for sale by owner and you are completely on your own, so you better understand the buying process and how to protect yourself. With that said, it would be a very rare occasion with limited choices for the buyer to choose from.

Myth 5 – “ It’s a buyers market, we can get a steal on anything right now. “ This is also very common and usually due to the national news telling everyone how bad the real estate market is. But what they don’t tell you are the areas that are not only doing well, but have shown some price increases and heavy buyer activity. The truth is, sometimes you can find a deal on something, but most of the time you will have to pay market value. It depends on the clients goals and what they’re trying to accomplish. Do you want a home to live in for a long time? Or are you looking for an investment property? The answer to those questions will help determine how many options you’ll have, and where you will need to look.

Myth 6 – “ We will never have to offer full price for a home. “ This will depend on a few things… 1) Your time frame for closing on a home. 2) The current market conditions and how many buyers are competing with you on that property. 3) What houses are selling for in the area, and if they’re currently overpriced, underpriced, or priced right. 4) Your budget and maximum price range you’re comfortable spending. 5) Your emotional attachment to the home So if you’ve been looking for a while and you need to close soon to get into a home before school starts for the kids, there are several offers on the house already and you have to compete, the house is priced really well, it fits within your budget, and you have fallen in love with the home, then you may have to offer full price for your home.

Myth 7 – “ This is a foreclosure, the bank will do whatever we ask because they want to get rid of it. “ This is something I come across often as well. A bank will never agree to do repairs, and sometimes they won’t pay anything toward the buyers closing costs either. They sell the properties AS IS and expect the buyer to adjust for the repairs on their asking price, if the bank hasn’t done so enough already. They usually have their own set of rules and hoops you have to jump through if you want to deal with them.

Myth 8 – “ I can look at 20 or 30 homes a week until we find one. “ I applaud your work ethic and eagerness to find a home but the truth is, looking at that many homes ( if you even have all those options ) will only make every house start looking the same. You will mentally exhaust yourself and start to settle for things you wouldn’t normally settle for under normal circumstances. We usually recommend around 10 homes a week, give or take. You will need time to digest all the information about each one.

Myth 9 – “ The seller got a steal on this property when they bought it, we can offer a little more than what they paid for it.” Your offer should not be based on what the seller paid for the property, it should be based on the condition, location, and what other homes are selling for in the area.

Myth 10 – “ Our agent is just trying to sell me and get a deal closed so they get paid. “ Now I can’t speak for every real estate agent because like any industry there are some bad apples. However from our point of view, we will give you our best advice based on the goals you’re trying to accomplish. Sometimes it means going forward with a decision on a home and sometimes it means you shouldn’t go forward with something. But don’t think just because our advice is to move you in the direction of buying that we don’t have your best intentions at heart. We will give you the same advice we give our friends and family when they allow us to represent them. So there are 10 real estate myths and why they aren’t true. When you meet someone who might benefit from this kind of information, they can go to www.freehomebuyinginformation.com to sign up.

How to beat other buyers to the puch once you find your home

Welcome back to this weeks podcast called ‘How to beat other buyers to the punch, once you find your home.” I can’t tell you how many times I see properties that people fall in love with get sold right out from under them when it might have been avoided with a few simple changes. Now every situation is different so these things may or may not be necessary, but they are some ways to improve your chances on getting a home…

Number 1 - Offer more Earnest Money than the normal amount of $500 or $1000. If you offer $2000 or $2500 not only will it increase your chances of the owner considering your offer over others, but it’s money that will be credited back to you at closing anyway. It’s just a good faith deposit that you’ll get back later and it gives the seller a sense of security that you will actually go through with what you say you will.

Number 2 – Don’t ask for a home warranty. Home warranties these days are around $350 and if a seller is on a tight budget and considering other offers, that $350 may put you in the number 1 slot. Your best coverage is going to be through insurance anyway.

Number 3 – Get Pre-Approved before you make your offer by a reputable, known lender and submit a Pre-Approval letter with your offer.

Number 4 – Get Pre-Approved through a big bank or lender like Chase, Bank of America, or many others because people know that you’re more likely to be truly approved by one of these companies submitting a letter for you.

Number 5 – Being flexible with your closing date and any other ‘little’ thing that isn’t really a big concern, but might be very helpful to a seller.

Number 6 – Work with a real estate agent who has a good reputation and knows how to present offers and negotiate on your behalf. Sometimes just having someone on your team that other people in the industry like and respect, can definitely increase your chances.

Number 7 – Work with a real estate agent who might know about some homes that aren’t on the market yet. Sometimes you can get a ‘sneak peak’ about these and be the first one to make an offer. That’s it for this week and I hope this information was helpful for you. Make sure you tell your friends and family if they are interested in this kind of information to go to www.freehomebuyinginformation.com and sign up. If you would like this report or any other report you see on Pearland Podcast emailed to you, you can email us at josh@joshhayles.com and put the report you would like, along with your name in the message and we’ll get it to you right away. You can also call us at 409 739 7709 for specific questions. Take care, see you next week.

6 stages in the home buying process

- The 6 Stages in the home buying process, and what to expect- Welcome back to this week’s Pearland Podcast which is called ‘The 6 stages in the home buying process, and what to expect’. I know if you talk to 10 different people and ask them to give you a list of the stages involved with the home buying process, you’ll get 10 different answers and stages. So it usually comes down to a personal taste or preference as to how we define the buying process. We start the process at the point where you’ve made the decision that buying a home is what you’re going to do. Obviously there are months and sometimes a couple of years of information gathering, looking online, driving around, making sure your job relocation is going through, and many other things before you actually made the decision to buy a home. So lets start with, you’ve now made the decision to buy a home ____ months from now or whatever your target moving date is, and you are meeting with a Real Estate Consultant to discuss your options and find out what you need to do next. So here’s the 6 stages in the home buying process and what to expect from our clients experience… STAGE 1 – Information Stage – This is when we sit down and discuss the goals you plan to accomplish for your up-coming move. This is probably the most important time we will spend together because it’s really the opportunity for you to share your desires with us so we can provide you with the help that’s focused on your goals. What to expect… During this time, we will listen to everything you have to say, answer all your questions, ask you some important questions, discover what’s important to you, and then lay out your options based on our conversation. Then we will give you our advice on what we think your next best step should be. It’s important for you to know that this time is based on a theme called… ‘What’s important about buying a home to you?’ This experience is about you and we will be with you every step of the way, but we can’t help you unless we know where you’re headed. This usually doesn’t take longer than 45 minutes to an hour. This is also the time where we will get you set up with a Preferred Lender, Insurance Expert, and anyone else who may be necessary to help you. Giving you access to one of our preferred lenders will provide you with a detailed Home Loan Report. This will lay out all of your financing options starting with the right loan for you, interest rate, getting an estimate for your closings costs, as well as an estimate for your monthly payments. STAGE 2 – Searching Stage – This starts once we have decided to work together and ends once a home has been found. This is the stage where us and our clients work together and are actively searching for your new home! What to expect… During this time you may experience many ups and downs depending on market conditions, personal concerns, etc. But it’s very important to keep focused on the goals you discussed with us in the Information Stage and not lose sight of them. It’s easy to run into some ‘set backs’ during this time and give up on the very things you set out to accomplish. As your consultant, we will provide you with daily updated property lists, show you houses, give you inside ‘sneak peeks’ on homes that are not on the market yet., and give advice and consulting when necessary. You can access your daily listing at www.pearlandmarketwatch.com STAGE 3 – Deciding Stage – This starts once the search has ended ( the home has been identified) , and lasts until the decision has been made to make an offer. This is where you will weigh your final options carefully. What to Expect… Everybody is different but this could be the time where you can experience some pressure, depending on your situation and what the market is currently doing. We will offer our best advice and guidance depending on market conditions and your goals. We will provide you with a market analysis on the property in question, which will give you an idea as to what the home is worth. This will help you with your decision. We will also give you an in depth analysis with your lender to help you with your closing costs and monthly payments. You will have done this in the Information Stage but it’s always a good idea to run the final numbers on the chosen house because taxes and insurance are variable costs. This is another area where we will help you as skilled negotiators and consultants with identifying the right game plan and approach for your situation. We are not a team who will use the strategy of ‘low balling’ home owners just to see if they will take it. For so many reasons that’s not a good approach. For starters no one will take you seriously, and you will also offend people. But together we will all discuss the right terms and conditions and present them to the seller. We will go over the contract forms with you and explain what will happen next once the offer is submitted. This is also the time to get your insurance and other quotes lined up, if you haven’t already, so you will know what your monthly payments will be. STAGE 4 – Details Stage - Starts when the offer has been made and lasts until the transaction details are concluded. This includes everything that happens once your offer has been accepted. What to Expect… As our clients you will get our support and assistance with all of the details that are involved during this stage. Once your offer has been accepted and the contract has been signed by both parties, it is time to order your inspections. Once the offer is submitted it shouldn’t take more than a day or two to get a response. (unless it’s a foreclosure) You will be notified immediately of the news once we have an answer for you. This is the time where you will need 2 checks – (1) in certified funds for the Earnest money, and the other as a personal check for the option fee. Every transaction is different but typically the Earnest money is $1000 and the option fee is $100. We will recommend inspectors to you or you can use someone we aren’t affiliated with, it’s entirely up to you. We recommend people on our team for your benefit, we do not get any incentives or kickbacks. This is also the time to have other inspections you would like… Termite inspection, environment inspection, mold, etc. Once your inspections are complete, you will get your report back within 24 hours or so, then you will discuss the report in detail with your inspector and consultant. If there are any issues that need to be resolved via the inspection report, we will go back and discuss them together. Then we will re-negotiate necessary items that need to be addressed. Once both parties are satisfied with terms and conditions once again, and the option period has come to an end, we will move forward to the next stage. STAGE 5 – Finalizing Stage – This begins when all contract details are final, and goes through to the close of the transaction. What to Expect… We will provide you with updates as to the details of your transaction. We may or may not hit some turbulence during this time, but it’s important to know that we will update you weekly at the least. This is where your lender, the title company, the Attorneys, both real estate agents, and everyone else involved in your transaction is completing paper work, ordering appraisals, sending emails, making phone calls, etc. You will start getting your movers planned and ready to go, make sure your lender has everything they need, reviewing documents, get utilities scheduled in your name, and a few other things. STAGE 6 – Celebration Stage – This is the time where you will meet at the Title company at a scheduled time and date, sign & review all the documents, wait for the loan to fund, then get your new keys! So that’s our vision of the home buying process and how we guide our clients through it, usually without too much pain. I know it can seem like a lot but that’s what we’re here for, to help. So come back next week for more information about buying or selling a home in today’s market. Take care.

BREAKING NEWS-NEW program loans $7k up front

Hey there! We have some good news we just heard yesterday morning about the buyers who qualify for the $8k tax credit this year. If your credit is good, your job security and income are both good, your debt to income ratio is in line, you qualify for this years $8k tax credit, and everything else is good but you just don’t have enough money saved up for your down payment and closing costs… Banks have now added a program that could be very helpful for you, here’s how it works… Your lender will loan you up to $7k upfront to help you with your down payment and closing costs. There are some requirements such as completing a buyer’s class, and filing the correct paperwork, but it’s pretty simple. So when you receive the $7k you can use that for your down payment and closing costs, ( of course if your down payment and closing costs exceed the $7k, you simply have to make up the diference.) When you get your $8k check from the government, you then will pay back the $7k to your lender. So it’s just an advance to help you if all you’re lacking is your down payment to get into a home. This advance is a 90 day loan that must be paid back within the 90 days. If it isn’t paid back, it becomes a $7k loan at 10% interest over 2 years… and you don’t want that to happen. That can add over $300 a month to your bills. There are some more details about the loan so if you’re interested in talking about your options, you can email us at josh@joshhayles.com , or call at 409 739 7709 and ask for Josh. I hope this was helpful, best luck!

How to put $8000 in your pocket when you buy in Pearland, Texas!

Pearland, Texas -- 

NEW : $8,000 for homebuyers

First-time purchasers get a tax credit if they buy before December.
First-time buyers can claim a credit worth $8,000 – or 10% of the home’s value, whichever is less – on their 2008 or 2009 taxes.

A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill – the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns – was less than that amount. But there has been a lot of confusion over this provision. Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking:

“I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?”

The short answer? Yes, he would get back the $8,000 plus what he’d overpaid. The long answer? It depends. Here are three scenarios:

Scenario 1: Your final tax liability is normally $6,000. You’ve had taxes withheld from every paycheck and at the end of the year you’ve paid Uncle Sam $6,000. Since you’ve already paid him all you owe, you get the entire $8,000 tax credit as a refund check.

Scenario 2: Your final tax liability is $6,000, but you’ve overpaid by $1,000 through your payroll witholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.

Scenario 3: Your final tax liability is $6,000, but you’ve underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.

To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as “first time” buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.

Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)

Applying for the credit will be easy – or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
The housing industry is somewhat pleased with the result because unlike previous tax credits, this credit does not have to be paid back.

The $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors.

The credit could also create a domino effect, he said, because each first-time homebuyer sale will lead to two more trade-up transactions down the line. “I think there are many homeowners who would be trading-up but they have had no buyers for their own homes,” so that will benefit them.

Who won’t benefit, according to Mark Goldman, a real estate lecturer at San Diego State University, are those first-time homebuyers struggling to come up with down payments. The credit does not help get them over that hurdle – they still have to close the sale before claiming the bonus.

But there are people working on some revisions for FHA loans to allow people to use this tax credit upfront for their down payment. So once I get more information on that you can come back and get the latest news.

If you would like this free report emailed to you, you can either call me at 409 739 7709, or email me at josh@joshhayles.com and let me know.

Take care!

How to buy your Pearland home for low down payment!

Pearland, Texas -- 

Welcome to the first Buyer’s Stash Podcast where you will get brand new information every month right here, all related to the subject of everything you need to know about buying a home in today’s market. I’ll have a different topic every month based on what people have asked me, or have recently asked me about the home buying process.

My name is Josh Hayles and I would like to get started with this month’s theme which is called, How to buy a home for low down payment…

Now I started this service because many people still think they need 10’s of thousands of dollars to buy a $150,000 to $250,000 home these days. You may have talked to Realtors or lenders that told you you will need 15, 20, or even 30 thousand dollars to buy a home! 5 years ago that may have been the case but it’s no longer true. As a matter of fact, right now there are several government backed home loans that enable you to buy with as little as 3.5% down! So lets look at our options…

Option 1: FHA Loans

Although this isn`t a “No Money Down” option, the FHA
loan is by far one of the best alternatives for people who
want to buy a home and don`t have much money to put
down. With an FHA loan, you could put down as little as
3.5%. Plus, FHA loans are easier to qualify for.

Now, 3.5% may seem like a lot to come up with, but many
people find that when they put their minds to it, 3.5% is
actually possible. While you can`t “borrow” the 3.5%, you
can get a “gift” from a family member or borrow from your
401k, for example.

FHA loans do have requirements and restrictions. Not all
townhomes and condos qualify, and there is a maximum
loan amount you can get. But if you`ve been dreaming of
a new home and think you might be able to “scrounge up”
3.5%, this is a great way to go.

Option 2: HDA Loans

Some Housing Development Authorities have a first-time
homebuyers` program that offers below-market, fixed-rate,
15- or 30-year loans. There are restrictions as to
maximum household income, as well as the price of the
home you are buying. Not to mention these loans are rare.

The only disadvantage with this loan is that if you sell the
house before the end of the loan term, you may have to
“pay back” a portion of the subsidy used to get the lower
interest rate. However, if you`re a first-time homebuyer,
this may be an option to consider.

Option 3: Special Negotiating

Special negotiating means that if you find the right house
And the right seller, you may be able to pay more for the house
and have the seller pay all of your closing costs! That
would mean all you have to bring to the table is your
3.5% down payment! So, how do you find out what type of loan programs are
available for you right now? The best way is to work with
an experienced real estate consultant who keeps up to speed on these
things.

Option 4: Owner Financing

Owner financing means exactly that: The owner (or seller)
finances a portion of your home purchase. For example,
you might borrow 80% of the value of a home from a
lending institution, and “borrow” the other 20% from the
owner. In this situation, the owner “carries back” a second
mortgage.

Owner financing can be advantageous, especially to
investors who buy up properties and then rent them out.
For the average homebuyer, however, owner financing is
difficult to find and requires some tricky negotiating. Even
after successfully negotiating a transaction, it requires
some detailed work by qualified attorneys in order to
protect the interests of all parties involved.

While you shouldn`t rule out owner financing, keep in mind
that by looking for someone who is willing to help finance
your purchase, you severely limit your choices. There are
a lot of houses for sale today, but not a lot where owner
financing is an option.

Option 5: Lease-To-Own
With a lease-to-own, you essentially lease a home, but
make larger payments in order to begin accumulating a
down payment. For example, if a house would normally
lease for $800, you might lease it for $1,000/month, with
$200/month going into a special account. At the end of a
specified period, you buy the home using the money in that
special account as your down payment. However, if you
decide somewhere along the line not to purchase the
home, all of the money in the special account then
goes to the seller.

Think of this option as renting with a forced savings
account. If you can find someone willing to do this, it`s
not a bad option. However, most people who are selling
their homes need their money out of it in order to buy
their next home, so finding someone who is willing to lease
to you may prove more difficult.

Where To Begin

Now that you have five good options for buying a home for
little money down, where is the best place to begin?

The first step is getting pre-approved. And the best way to
get pre-approved is to let us refer you to a Mortgage Consultant who is
dedicated to helping people like you get into the home of
your dreams. So if you’re curious about your financing options please call
us at 409 739 7709 or email me at josh@joshhayles.com and we’ll set up
a specific time for you to meet and talk with one of our mortgage advisors.
Until then, thank you for listening and make sure you subscribe to Buyer’s Stash
so you are kept up to date with new news and information.

Or - you can simply fill our the form for a Home Loan Report from www.SearchPearland.com

Take care.