The Residential Real Estate Buying Process in Austin Texas
The first step in buying a house is to try and understand what you hope to achieve. When you begin to think about buying a new house, there are many questions you should ask yourself such as: Why do I want to move? How soon do I want to move? How long do I plan on living in the home? For some people renting or putting off buying makes sense. Expect to commit to your home for 3-5 years if you want to avoid losing money on the home.
Needs Analysis
Once you decided that home ownership is right for you will want to decide a few things: What are the most important features to you in a house? How much do you want to invest in your home? Initially? Every month? Do you have lifestyle changes coming, such as adding a baby, having kids move out, or retiring? What part of town do you want to live in? What school district do you want your kids to go to school in? Once your goals are clearly defined you have your target.
Get Pre-Qualified
An important part of the home buying process is to be qualified for a loan. You should get a "pre-qualification" letter before you start actively looking for a house. Most lenders can provide this over the phone or with a simple 1-page questionnaire. This typically takes 20 minutes. Some data you should have ready is your and your spouse's name, address, phone numbers, social security numbers, and past two years of employment, residential, bank, asset and debt information. If possible, you should try to get pre-approved for a loan which is a more serious level of commitment from a lender than a pre-qualification. To receive a loan pre-approval, all employment and credit is verified. This will mean that you are approved for a loan, subject to a final credit check and an appraisal of the subject property.
Make sure to inquire about all loans costs (origination fees, discount points, etc) and find out about closing costs. Closing costs are the fees for services, taxes or special interest charges that surround the purchase of a home. They include up front loan points, title insurance, escrow or closing day charges, document fees, prepaid interest and property taxes. Studies show that the closing costs, which can average 2 to 3 percent of a total home purchase price, are often more costly than many buyers expect. Unless, these charges are rolled into the loan, they must be paid when the home is closed. Finally, make sure your lender provides a Good Faith Estimate according to the Truth in Lending Act (Regulation Z). This allows you to "compare apples to apples" between different lenders.
Home Search
After you've found a house that you like, fits your needs, and has potential, you'll need to prepare an offer. Determine whether or not the house is priced fairly by doing a thorough Comparative Market Analysis. Then review the seller's disclosure and make appropriate adjustments and write your initial offer. Offers should include an earnest money check (made out to a title company), and an option money check (made out to the seller).
Some of the words in the previous paragraph may not be familiar to you. Let's look at them:
Option Money - a check made out to the seller in exchange for the unrestricted right to terminate the agreement for a specified number of days. This is not found in many states.
Earnest Money - a check made out to a Title Company as a show of "good faith" that you are seriously intending to buy the house. The amount is usually around 1% of the home's value.
Escrow Account - a special account administered by the Title Company that holds your earnest money until closing.
Title Company - a company that verifies the validity of a title and offers insurance to protect against problems with any liens on a property or clouds on a title. This company also conducts the closing.
Closing - the actual process of transferring the title of a house from the seller to the buyer (including assigning any liens to lenders for mortgages).
Inspection and Repairs
To protect your best interests, have structural and systems inspections done by qualified inspectors of your choice. Your lender will typically also require a termite and wood destroying insect (WDI) inspection. The inspection is a great opportunity to ask questions about your prospective home and learn important information about where everything is and how it works.
When the inspection reports come in, you will need to decide if the home is acceptable "as is". If you require repairs to be made, then you will have to negotiate with the seller. At that point, you make a counter offer to the seller requesting either that the repairs be done before closing or extra money to be given to you at closing to cover repairs. The seller can either negotiate these points with us or decide to not continue to negotiate. If the seller rejects the offer and you do not want to buy the home as is, the contract falls through, the seller would be free to accept another offer, and your earnest money would be returned to you. If you come to terms an amendment to the contract will be made and we will waive our option to terminate. Then you will contact your lender to request an appraisal and start planning your move. A day before closing or on the same day, it is recommended that you walk through the house to make sure that everything is in order. This protects you from closing on a home that has been damaged in the move out process or that has been taken possession of by another party.
Closing
The exciting day is finally here! You will review the settlement statement (HUD-1) so that you can clear up any questions before closing. Possession of the home generally happens the same day that papers are signed, but sometimes a snag in the funding of the loan will cause a delay in possesion. For this reason it's best to allow an extra day (or more if we are closing on a Friday or day before a holiday) before you need to be able to move in.
After closing you should file a change of address. File an official change of address form at you local post office or online in the advance so that your mail delivery will not be interrupted. Many corporations, such as credit card companies and magazine subscriptions, take 1 or 2 months to process a change of address.
Congrats! You are now a proud homeowner!
แสดงบทความที่มีป้ายกำกับ Residential Real Estate แสดงบทความทั้งหมด
แสดงบทความที่มีป้ายกำกับ Residential Real Estate แสดงบทความทั้งหมด
วันพฤหัสบดีที่ 15 มกราคม พ.ศ. 2552
วันเสาร์ที่ 5 มกราคม พ.ศ. 2551
How to Sit Pretty in a Real Estate Buyer's Market
How to Sit Pretty in a Real Estate Buyer's Market
by Kristin Abouelata
Thinking of buying a home because opportunities abound and rates are low? Here are a few tips to get you what you want.......
It's a buyer's market right now. Rates are low, houses are available. There will always be people buying and selling homes. Opportunities abound from which to benefit. But, how do you make sure you're sitting in the catbird seat when the right opportunity is available to you?
Get your ducks in a row. First things first, review your credit. Now. Word on the street is 79% of all credit reports have errors. Some may be significant enough to prevent you from qualifying for a mortgage. You can pull a free report from each of the three bureaus every twelve months by visiting annualcreditreport.com. If you do see something that looks out of whack, address it immediately. Take your credit report seriously. Treat it with respect because your credit score and history are the most important indicators to be considered when applying for a mortgage.
Start saving money for a down payment. Sure, there are 100% loans still available, especially for the first time homebuyer. However, you are going to save money in the long run if you have a little something to put down. Mortgage insurance, required on loans with less than 20% down, is tiered. You will not pay the same monthly mortgage insurance for a loan with 5% down that you would if you put 10% down. And don't forget, you still may have to foot prepaid items like taxes, insurance, interest, etc. or a portion of the closing costs.
Make sure you really know what you make and are able to verify it. Also, know your true bank and asset balances. The days of stated income responses from underwriting engines are few and far between. There are exceptions, but who knows if you are one of them at this point? Better safe than sorry.
And here is a great bit of info to keep your credit score high. Try to keep your credit cards to under 25% of the available balance. Not always easy to do. I completely understand. However, if you are unable to pay it down, you may want to see if the creditor will raise your credit limit to tweak your ratios.
Ok, so here is the no brainer tip. Pay your bills on time. Always avoid paying over 30 days late. Always pay your mortgage first, then sweat the other bills. That one ding on a mortgage payment can completely knock you out of the lending arena.
After addressing the above, consult a good mortgage lender and see where you stand. It's important to be pre-qualified for a loan before you find a house. It really strengthens your offer when the seller knows you are a serious contender who can obtain financing. You negotiate from a position of strength.
Don't forget to ask around or use a realtor you know and trust. Just like a lender, the more experienced - the better. Work only with people with whom you "click" that listen to you and work hard for you.
It's a great time to buy. If you're so inclined, use these tips and be prepared to take advantage of the current housing climate!
by Kristin Abouelata
Thinking of buying a home because opportunities abound and rates are low? Here are a few tips to get you what you want.......
It's a buyer's market right now. Rates are low, houses are available. There will always be people buying and selling homes. Opportunities abound from which to benefit. But, how do you make sure you're sitting in the catbird seat when the right opportunity is available to you?
Get your ducks in a row. First things first, review your credit. Now. Word on the street is 79% of all credit reports have errors. Some may be significant enough to prevent you from qualifying for a mortgage. You can pull a free report from each of the three bureaus every twelve months by visiting annualcreditreport.com. If you do see something that looks out of whack, address it immediately. Take your credit report seriously. Treat it with respect because your credit score and history are the most important indicators to be considered when applying for a mortgage.
Start saving money for a down payment. Sure, there are 100% loans still available, especially for the first time homebuyer. However, you are going to save money in the long run if you have a little something to put down. Mortgage insurance, required on loans with less than 20% down, is tiered. You will not pay the same monthly mortgage insurance for a loan with 5% down that you would if you put 10% down. And don't forget, you still may have to foot prepaid items like taxes, insurance, interest, etc. or a portion of the closing costs.
Make sure you really know what you make and are able to verify it. Also, know your true bank and asset balances. The days of stated income responses from underwriting engines are few and far between. There are exceptions, but who knows if you are one of them at this point? Better safe than sorry.
And here is a great bit of info to keep your credit score high. Try to keep your credit cards to under 25% of the available balance. Not always easy to do. I completely understand. However, if you are unable to pay it down, you may want to see if the creditor will raise your credit limit to tweak your ratios.
Ok, so here is the no brainer tip. Pay your bills on time. Always avoid paying over 30 days late. Always pay your mortgage first, then sweat the other bills. That one ding on a mortgage payment can completely knock you out of the lending arena.
After addressing the above, consult a good mortgage lender and see where you stand. It's important to be pre-qualified for a loan before you find a house. It really strengthens your offer when the seller knows you are a serious contender who can obtain financing. You negotiate from a position of strength.
Don't forget to ask around or use a realtor you know and trust. Just like a lender, the more experienced - the better. Work only with people with whom you "click" that listen to you and work hard for you.
It's a great time to buy. If you're so inclined, use these tips and be prepared to take advantage of the current housing climate!
วันจันทร์ที่ 10 ธันวาคม พ.ศ. 2550
What is the Difference Between Commercial and Residential Real Estate Brokers?
What is the Difference Between Commercial and Residential Real Estate Brokers?
by Anthony Seruga and Yolly Bishop
If you are considering getting involved in real estate investing, you will have the choice to invest in commercial real estate, residential real estate, or maybe even both. However, there are actually many people out there that do not realize that a real estate broker who has been trained in residential real estate is not going to be capable of handling commercial real estate transactions. Before you get started in the field of investing it is important that you understand that the commercial real estate market is much different than that of residential real estate and the possible risks and issues involved in commercial real estate are much more complex. So, it only makes sense that there would be quite a few differences between commercial and residential real estate brokers.
Methods of Property Valuation One of the main differences between residential and commercial real estate brokers is the way that the properties are valued. When it comes to residential real estate, usually the properties are valued by using comparable sales. However, when it comes to commercial real estate, the income valuation approach is the common method used, with the exception of valuing raw land. Most of the time commercial property is purchased for investment purposes, so the valuation is usually based on an analysis of the investment potential.
This analysis of commercial real estate usually takes into account both the operating income as well as the operating expenses of the property. Then, the value of the property is calculated from the net operating income as well as the factor known as the capitalization rate. In some cases comparable sales are used to value commercial property; however, this is primarily used to determine the value of raw land, while most commercial properties are valued with the income valuation approach.
Different Issues When it comes to commercial real estate, there are very different issues to deal with for each property, which is another reason that there are differences between commercial and residential real estate brokers. There are far more issues to deal with when you are working with commercial properties. The broker will need to have extensive knowledge on each commercial real estate property type and various factors associated with that type of property. Some of the factors they must know include business trends, utilities, leasing practices, job growth, environmental impacts, regional transportation, and local zoning planning commission requirements.
Promise to Purchase Another difference between commercial real estate agents and residential real estate agents is that they have to be prepared to deal with very different issues when it comes to promise to purchase and how that promise may be terminated. Terminating the promise to purchase is much more difficult when it comes to residential real estate. Usually the conditions of a promise to purchase residential real estate include various financing conditions as well as the inspection. In some cases, the buyer may be able to cancel the promise to purchase by following a procedure that is quite strict and may include terminating the promise if the inspection reveals problems with the property.
When it comes to commercial real estate, the buyer has much more leeway when it comes to the promise to purchase. After the promise to purchase is made, the buyer goes through a period of due diligence, in which the buyer has various verifications of the property completed, including condition of the property, zoning, permits, verifying financial results, and going through environmental inspections. If the buyer is not satisfied with the outcome of the due diligence period, he may terminate the promise to purchase with no consequences.
As you can see, there are definitely quite a few differences between the practices that occur in residential real estate and practices that occur in commercial real estate. If you want to be successful, you will need to use a broker experienced in the type of property you are planning to purchase. If you are interested in commercial real estate, then you'll need a seasoned commercial real estate broker for the best results.
by Anthony Seruga and Yolly Bishop
If you are considering getting involved in real estate investing, you will have the choice to invest in commercial real estate, residential real estate, or maybe even both. However, there are actually many people out there that do not realize that a real estate broker who has been trained in residential real estate is not going to be capable of handling commercial real estate transactions. Before you get started in the field of investing it is important that you understand that the commercial real estate market is much different than that of residential real estate and the possible risks and issues involved in commercial real estate are much more complex. So, it only makes sense that there would be quite a few differences between commercial and residential real estate brokers.
Methods of Property Valuation One of the main differences between residential and commercial real estate brokers is the way that the properties are valued. When it comes to residential real estate, usually the properties are valued by using comparable sales. However, when it comes to commercial real estate, the income valuation approach is the common method used, with the exception of valuing raw land. Most of the time commercial property is purchased for investment purposes, so the valuation is usually based on an analysis of the investment potential.
This analysis of commercial real estate usually takes into account both the operating income as well as the operating expenses of the property. Then, the value of the property is calculated from the net operating income as well as the factor known as the capitalization rate. In some cases comparable sales are used to value commercial property; however, this is primarily used to determine the value of raw land, while most commercial properties are valued with the income valuation approach.
Different Issues When it comes to commercial real estate, there are very different issues to deal with for each property, which is another reason that there are differences between commercial and residential real estate brokers. There are far more issues to deal with when you are working with commercial properties. The broker will need to have extensive knowledge on each commercial real estate property type and various factors associated with that type of property. Some of the factors they must know include business trends, utilities, leasing practices, job growth, environmental impacts, regional transportation, and local zoning planning commission requirements.
Promise to Purchase Another difference between commercial real estate agents and residential real estate agents is that they have to be prepared to deal with very different issues when it comes to promise to purchase and how that promise may be terminated. Terminating the promise to purchase is much more difficult when it comes to residential real estate. Usually the conditions of a promise to purchase residential real estate include various financing conditions as well as the inspection. In some cases, the buyer may be able to cancel the promise to purchase by following a procedure that is quite strict and may include terminating the promise if the inspection reveals problems with the property.
When it comes to commercial real estate, the buyer has much more leeway when it comes to the promise to purchase. After the promise to purchase is made, the buyer goes through a period of due diligence, in which the buyer has various verifications of the property completed, including condition of the property, zoning, permits, verifying financial results, and going through environmental inspections. If the buyer is not satisfied with the outcome of the due diligence period, he may terminate the promise to purchase with no consequences.
As you can see, there are definitely quite a few differences between the practices that occur in residential real estate and practices that occur in commercial real estate. If you want to be successful, you will need to use a broker experienced in the type of property you are planning to purchase. If you are interested in commercial real estate, then you'll need a seasoned commercial real estate broker for the best results.
Westport Capital Partners Invests in Residential Real Estate in India
Westport Capital Partners Invests in Residential Real Estate in India
by propertiesmls
WestWestport Capital Partners LLC announced that it is developing a residential real estate complex in Hyderabad, India. Westport is working with a local development partner to build the project. Total development costs will be approximately $100 million.port provides domestic and international investment opportunities to institutional and private clients. Headquartered in Westport, CT, the firm also has offices in Los Angeles and Mumbai, India. Westport applies a fundamental, value-oriented approach to investing in real estate and maintains the flexibility to purchase real properties, mortgages, equity and debt in both private and public market opportunities.
The project, which sits on 60 acres of land, will consist of 330 villas of approximately 3,500 square feet each. Construction, to be done in phases, has begun and final completion will be in approximately four years. The villas are for sale to private owners and several of the units have already been reserved.
Hyderabad is a city of approximately six million people in southern India. Known for its educated workforce, rapidly improving infrastructure and proactive municipal government, it has developed dynamic Information Technology, Technology Services, and Biotech industries. In 2006, Information Technology job growth was 18%.
Greg Geiger, Westport Principal, said, "We are excited about the prospects for residential real estate growth in India, and in Hyderabad in particular. The demographics show a clear need for new housing and the rising income of the population will support developments such as this one. We will continue to look for opportunities in India."
by propertiesmls
WestWestport Capital Partners LLC announced that it is developing a residential real estate complex in Hyderabad, India. Westport is working with a local development partner to build the project. Total development costs will be approximately $100 million.port provides domestic and international investment opportunities to institutional and private clients. Headquartered in Westport, CT, the firm also has offices in Los Angeles and Mumbai, India. Westport applies a fundamental, value-oriented approach to investing in real estate and maintains the flexibility to purchase real properties, mortgages, equity and debt in both private and public market opportunities.
The project, which sits on 60 acres of land, will consist of 330 villas of approximately 3,500 square feet each. Construction, to be done in phases, has begun and final completion will be in approximately four years. The villas are for sale to private owners and several of the units have already been reserved.
Hyderabad is a city of approximately six million people in southern India. Known for its educated workforce, rapidly improving infrastructure and proactive municipal government, it has developed dynamic Information Technology, Technology Services, and Biotech industries. In 2006, Information Technology job growth was 18%.
Greg Geiger, Westport Principal, said, "We are excited about the prospects for residential real estate growth in India, and in Hyderabad in particular. The demographics show a clear need for new housing and the rising income of the population will support developments such as this one. We will continue to look for opportunities in India."
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