Comprehensive Real Estate

BUYER’S GUIDE

Presented by:

Joshua Hough

114 Pacific, Forney TX 75126
[email protected]
972-757-1837

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Joshua Hough

Broker

We are honored to have you visit our website.  I look forward to our brokerage building a long lasting relationship with you and your family.  If you need any assistance please reach out to me directly so I may help and assist you. 

Housing Expectations for 2018

The NAR publishes some great data every year in regards to housing expectations.

Housing Outlook

Existing Home Sales:

to 5.6M

Median Home Prices:

up 5.5%

Mortgage Rates:

to 4.4%

GDP Growth:

to 2.2%

Potential Speed Bumps

Tight inventory conditions

Increasing home
prices

Rising mortgage
rates

Waning consumer confidence

* MANY REASONS FOR OPTIMISM

New housing starts are only now returning to levels seen previous to the last major housing downturn, resulting in low inventory conditions that persist in single family home resales. Expect home prices to continue to climb throughout 2018.

7 Things to consider before buying a home

Buying a home is a big decision to make, and can have an impact on a variety of areas of your life. Here’s our top 7 of our best suggestions to consider before committing to a purchase.

Before you buy, strengthen your credits score

Remember, higher credit scores will have lower down and monthly payments. This can represent tens of thousands of dollars in savings over the course of a mortgage.  

Determine how much home you can afford, first

Buy housing that runs about two-and-one-half times your annual salary. Prior to looking at homes, speak with a reputable loan originator who can pre-qualify you.

Know where you want to be

Think about your lifestyle, and how it is now. How it might be in 5-10 years? Will the location or property you are interested in still be adequate in that timeframe?

Don't buy if you can't stay put

If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet.

Carefully review your offers and counter offers

Make sure you understand all facets of the offer to purchase, and any counter offers you may receive from a seller. Speak with your buyers agent about any questions you have.

Get a home inspection

A home inspector will provide you a detailed report of the property condition and outline repair recommendations. Get this ordered early so you have time to carefully review the condition of the home prior to removing contingencies.

Make sure you love your buyers agent

A great buyers agent can take the stress out of a home purchase. The goal is to ensure you find the perfect property, get the best possible deal, and enjoy a worry free experience for the entirety of your purchase transaction.

Purchasing a property VS Renting

Which fits your style? Here’s a breakdown of some of the differences that effect whether it’s the right time for you to buy a home. Take a look at some of the categories, and ask yourself which side you fall under.

Reasons to rent:

Length

I will be in my home for less than 3-5 years.

Lifestyle

I want to stay mobile or flexible.

Time

I don’t have time for home maintenance.

Credit Score

My credit score is below 720.

Available Capital

I don’t have enough money for a downpayment and closing fees.

Reasons to buy:

Length

I will be in my home for more than 3-5 years.

Lifestyle

I want to start building home equity.

Time

I have time and energy for home maintenance.

Credit Score

I have little/no debt, and good credit.

Available Capital

I do have money saved for a home purchase and repairs.

8 Steps to buying a home

Purchasing a home can be quite easy. If this is your first time you will find that there are only a handful of key decisions to make in order to hold the keys to your own home.

01

Pre-approval
Get pre-approved by a mortgage lender.

02

Real Estate Agent

Select a professional and trusted buyer’s agent.

03

Loan Terms

Work with your lender to decide the right loan type.

04

Go shopping

Shop for the perfect properties to write an offer on.

05

Enter contract

Get an accepted offer on a property.

06

Open Escrow

Complete all inspections, disclosures & terms.

07

Fund the loan

Work with your lender to complete the loan funding process.

08

Close Escrow

Close escrow with the seller on your new home and ENJOY!

What you don’t know about credit

You‘ll need a credit report to make sure your score and reporting are accurate. Work directly with a lender on your credit score. They can help provide recommendations, work with scoring agencies, and improve your score when you obtain your loan.

General Guidelines when it comes to a loan

Good credit matters

Higher credit scores have lower borrowing costs.

Be prepared

Focus on your credit score long before your loan.

Improve your score

Credit score differences add up to thousands of dollars.

Pay down debts

Pay close attention to your debt to income ratio.

How your credit score effects you

SLEEP ON THE COUCH
Few quality loan programs exist. Work to improve your score.

BUYER BEWARE
Subprime Mortgages are available, but carry high fees.

MUCH BETTER TERMS

Mimium score for a loan with good terms with low fees.

SHOP WITH CONFIDENCE

Best loan programs and lowest borrowing costs on the market.

Other useful information

Points and Rate on a mortgage:

Borrowing money costs money. Loans require interest, which can be paid over time, or up front as additional points. Paying the interest ahead of time results in a lower overall monthly payment. This requires up front cash and is not a payment towards principal. Paying additional points is only recommended for purchases where ownership is long term.

You don’t need a 20% down payment:

Traditional loans requiring 20% down are no longer your only options. Plenty of public and private lenders off er a variety of loan programs that can provide you a great loan with as little as 3% down. First-time homebuyers have additional state and federal programs available.

Why you need a buyers agent

Purchasing a home actually involves a lot of legal contractual knowledge, organization and negotiating skill. Don’t jump into any deal without consulting an expert buyers agent who can get you the best possible results.

An experienced advocate

A right agent can help with your purchase as well as recommend other trusted professionals.

Legal Safety

A local Realtor® will help you navigate the requirements of a written offer, as well as the complexities of closing of escrow.

Maximize your investment

Home upgrades, repairs, and resale questions can be investigated anytime.

Market Conditions

Your agent understands factors that impact you, and can provide advice on when, and how to purchase.

Ongoing relationship

You can still continue to communicate with your agent long after the close of escrow.

Local Knowledge

An expert in your desired neighborhoods will provide important details you may not know.

What not to do when buying a home

It is incredibly easy to mismanage funds or your alter credit and doing so during the loan and escrow period can greatly impact your both your borrowing costs and can even keep you from funding the loan in some cases.

Don’t apply for a new Credit Card

Don‘t apply for any unsecured debt if possible during the loan and escrow period.

Don’t go furnish the home before you own it

Nothing is set in stone until close of escrow. Do not make plans that cannot be cancelled if the deal fails to close.

Don’t buy a new car

This will alter your debt to income ratio. Changes to your credit score of even a few points can mean thousands in fees.

Avoid changing jobs

Lenders are looking to see that you can show proof of job security. That new opportunity may need to wait.

Don’t close any credit accounts

A significant portion of your score is how much available credit you have. Always leave open credit available to you.

Don’t get behind on any monthly payments

Make sure you stay on top of your credit card, car and any other monthly payments.

Don’t move money without a paper trail

You will need to provide your lender documentation of your finances. This will include things like savings accounts, or investments.

Don’t spend your savings

Your lender will want to see that you have something set aside for a rainy day. Do not spend capital you have set aside for loan approval prior to loan funding.

The home inspection

For a new resale home purchases, aprofessional home inspection is recommended. The inspection will include but ay not be limited to the items outlined below.

Appliances
Plumbing
Electrical
Climate
Ventilation
Roof and Attic
Foundation
Building Codes

Don‘t expect the report to catch every minor defect. The inspector is looking for serious problems that require repair, or will lead to serious problems if a repair is not completed in a reasonable time-frame.

Pass or fail?

A home inspection is just a report of the repairs recommended for the property. It is not a pass or fail test. However, some lenders do require certain repairs be completed in order to fund the loan.

Handling the repairs found in a home inspection

A completed report can have an effect on the purchase price, your interest in the property, and which repairs need to be addressed prior to close of escrow. The seller may be willing to negotiate terms, and your lender may or may not require some repairs be completed in order to fund your loan.

Choosing the right inspector

Home inspections can vary by company, as well as by inspectors individually. Always use a trusted recommendation for a professional that will give you the information you need.

Be there!

The day of the inspection, be present with your buyers agent and the inspector. This will help you understand the items that appear on the report, and will give you an opportunity to see the home through the eyes of an objective third party expert.

Contract to close

Once your offer is accepted, the buyers agent will help coordinate with everyone needed to make sure purchase requirements and all quoted time frames are met.

Earnest money

This is a deposit that shows you are serious about the purchase. It is held in the escrow account, and is non-refundable after contingencies are waived.

Document review

The inspection period will be specified in your accepted offer. During this time all property inspections, disclosures from the seller, and repair negotiations must take place.

Mortgage approval

Approval for your loan will require an appraisal. Your lender will send a neutral third party to prepare a determination of it’s current market value.

Obtain homeowner's insurance

Homeowners insurance is often required to obtain your loan. you may already do business with an insurance broker, or you may elect to use one recommended to you.

Home warranty

A home warranty id recommended for all at least the first 2 years of home ownership. The first year can often be negotiated to be paid by the seller during the escrow period.

Title insurance

Title Insurance protects you the lender from the possibility that the title is not free and clear. It is typically a requirement for the loan.

Final walkthrough

Just before close of escrow, a final walk-through of the home will be conducted by you and the agent. This is a check to ensure the condition of the property has not changed.

The settlement statement

You will want to double check the settlement statement carefully for the various items you’ll need to pay for at closing. Have a check ready for the amount required.

Closing day

Closing day is usually straightforward. You will typically need to bring blank checks, your drivers license, and meet at the title company. Your homeownership awaits!

After the closing

Despite closing escrow marking the end of the property purchase process, it also marks the beginning of an ongoing relationship. Keeping in touch with the agent allows you to continue to use this value able resource of information whenever you need.

An ongoing relationship with my clients

A fantastic agent focuses on a continuing relationship that offers you convenience, opportunity and value.  You can always rely on your agent after the closing to help you answer questions about home ownership, provide resources, offer advice, and provide tools to ensure your home ownership experience is a positive one. 

Your referrals are key!

Maintaining an ongoing client relationship is just part of an overall commitment to provide a level of service well above and beyond expectations. Your agent relies on word of mouth referrals for additional business, and good referrals allow the agent to devote more time to helping clients and less time to finding them. If your experience is amazing, be sure to tell your friends!

Ask a question

If you have a question, we would love to help answer it.  We love working with buyers and helping them purchase their dream homes. If you’re looking to conduct your home search soon and find a new residence, please get in touch via the form below.

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