The real estate market is always changing, but if you’re able to purchase a home, doing so is almost always a good long-term investment. When you rent, you’re giving money to someone else every month; when you buy, you’re paying down your equity, and therefore, investing in your own future.

Working with a real estate agent is very helpful and can assist in eliminating unnecessary worries and stress during the homebuying process. It is highly recommended to have an agent represent you when buying a newly constructed home from a builder. A good real estate agent will not only help you locate a home that aligns with your wants and needs, but the agent will also help you understand the numerous real estate terms, contracts, and your obligations during the home-purchasing process.

For conventional loans, a credit score of at least 620 or higher is recommended. Some lenders will approve buyers with a 580 score, sometimes even lower. A higher credit score offers better lending terms. But with FHA, VA, or USDA loans, you may be able to qualify with a lower score. Your loan officer will be the best source to give you a current answer for today’s lending requirements.

There are various down payment Assistance Programs in the Houston and surrounding areas. The Texas State Affordable Housing Corporation (TSAHC) provides mortgage loans, down payment assistance grants, and second liens to eligible homebuyers through the following programs:

• Homes for Texas Heroes Home Loan Program: for teachers, fire fighters and EMS personnel, police and correctional officers, and veterans.
• Homes Sweet Texas Home Loan Program: for Texas homebuyers with low and moderate incomes.
• The Southeast Texas Housing Finance Corporation (SETH) offers Texas residents the Home Star Program, which helps eligible applicants with down payment and closing cost assistance. SETH provides up to 4 percent of the total loan amount in the form of a down payment assistance grant.

PROGRAM BENEFITS

• A 30-year fixed interest rate mortgage loan, several rates and loan options are available
• Down payment assistance (DPA) provided as a grant (never needs to be repaid) or repayable second lien loan
• DPA available for up to 6 percent of the loan amount
• You do not have to be a first-time homebuyer
• Available statewide through a network of participating lenders
• Income limits vary by county. Expanded income and purchase price limits are available in targeted areas.

Consult with your preferred local lender to see which program will be beneficial for you.

Like the down payment, the better your credit, the more likely you’ll secure a loan with favorable terms. However, there are some loan options available for those with less-than-ideal credit, too. Talk to your lender to learn more.

Below are a few upfront costs associated with buying a new home that you should be aware of:

• Earnest Money: Earnest money is a deposit a buyer gives to a seller as a show of good faith. The deposit shows that the buyer is serious about buying the home and will hold up to their end of the purchase agreement. Earnest money is usually held in an escrow or trust account until closing where the funds are used towards the purchase price of the home. It is not to be confused with a down payment or closing costs. The amount of earnest money will vary depending on the market. There is no set amount, but usually it equates to 1%-2% of the purchase price of the home. In some cases, however, there are times in which an escrow deposit of $1,000 will do. It all depends on the seller. As a buyer, you should always try to get away with the smallest amount of money possible in the event you need to back out of the contract. With that said, sellers will be trying to get a larger earnest deposit.
• Down payment: Your lender will recommend a percentage of the sales price to be used as a down payment that’s best for your financial situation. This can be as low as 3.5% and can go up to 20% (and sometimes less and sometimes more).
• Home Inspection: A general home inspection typically costs anywhere from $175 and more. The cost varies per square footage of the home. You’ll also have the option of buying additional inspections such as radon, well & septic, water, and termite inspections.
• Home Warranty: It’s usually best to negotiate whether the seller is to pay for a home warranty. If a seller declines to pay for a home warranty, you may purchase one yourself, which start at $400. Everyone uses a home differently which is why we strongly suggest buying a home warranty.
• Closing Costs: You are sometimes able to negotiate with the seller to pay your closing costs. If the seller decides not to pay your half of the closing costs, your costs may vary anywhere from $1,500-$4,500 (and sometimes more or sometimes less). This varies depending on the location of the home, price of the home, and the lender you choose. Before you decide to make an offer on a home, we’ll get an estimate of the amount of closing costs you would pay.

Talk to your mortgage lender to learn more about upfront costs.

There are multiple types of loans available. There are also FHA mortgages, conventional mortgages, VA mortgage loans, USDA rural housing loans, and more. Your lender will be able to tell you exactly which types of loans you’re eligible for and provide more information about each one so you can make an informed decision.

While both have certain advantages, buying a brand new home means a new home warranty, fewer maintenance and repair costs, and fewer worries about existing damage.

The closing process is the last step in the home buying process and involves an exchange of funds and keys. During closing, all documents will be finalized and signed. You will enter contract to pay back your mortgage loan, and any other legal matters will be addressed during this time. In addition, we will be there for you even after you close on your home.

No. If you prefer a lower-priced offer, perhaps with a better-qualified buyer and/or more attractive terms, you can accept that offer instead. You can also give counteroffers to one or more of the buyers. Beware, however, that if you turn down a full-priced offer, you may owe your agent a full commission even if you decide not to sell your home.

You must consider the prevailing state of the real estate market and especially local market conditions. The real estate market continually changes, and market fluctuations affect property values. So, it is critical to determine your listing price based on the most recent comparable sales in your neighborhood. It would be a great idea to get a CMA also known as a Comparable Market Analysis from one of our agents.

These are recently sold properties that are similar in size, location, and amenities to the home for sale. These properties help an appraiser to determine the fair market value of a property.

This frequently asked question cannot be answered with a simple or general answer. Every real estate market is different; therefore, the best time to sell a home will be different from real estate community to real estate community. In most cases, the spring months are the best time to be selling a home. The spring months will vary from community to community.

Since every home seller’s situation is different, you should discuss the timing of your home sale with your Realtor. In some cases, selling a home during the fall and winter months may be better than waiting until the spring real estate market. This is due to a combination of many factors including lower competition and that serious buyers are always looking for a home.

Well, several factors may come into play:

• You might help sell similar homes that are priced lower.
• Your home may be on the market longer.
• You could lose market interest and qualified buyers.
• You might create a negative impression of the property.
• You may lose money as a result of making extra mortgage payments while incurring taxes, insurance, and unplanned maintenance costs.
• You may have to accept less money.
• A potential buyer may face appraisal and financing problems resulting from inflated price.

It is not recommended to sell your home any higher than the appraised value unless demand is high in your area. Ask one of our experienced agents which price would be right for your home.

An appraisal is a report made by a qualified person setting forth an opinion or estimate of value. The term also refers to the process by which this estimate is obtained. In conventional mortgages and in the HUD-FHA Direct Endorsement Program, the lender receives a copy of the contract report showing the basis for the appraiser’s estimate. In VA cases and in HUD applications processed by HUD, the lender receives only a statement of the estimate of value without any detailed supporting data.

A counteroffer is an offer made by one party in response to the original or latest offer of the other party.

This type of listing is the most commonly used and is the most effective. With this type of listing, the agent does the most work to sell your home. They usually advertise your home, place it into the MLS, market your home to other agents, and even hold open houses for your home. Only with this type of listing does an agent expect to earn money back on their investments on selling your home.

An Exclusive Agency Listing allows your agent to market your home and enter it into the MLS. The agent will receive commission if your home sells through any real estate company or by another agent. The agent will NOT receive a commission if you, the seller, find a buyer on your own. Because a commission is not guaranteed, your agent may not be highly motivated to market your property. Thus, this type of listing is not common and should be avoided.

A buyer ordering one or more home inspections doesn’t obligate the seller to make repairs or modifications as a result of those inspections. However, the inspection report is typically used to negotiate repairs of major problems, or environmental or safety hazards that may be noted. The purchase contract should provide guidance for these negotiations.

A real estate agent is more than just a salesperson. A real estate agent may act on your behalf, providing you with advice and guidance when buying or selling a home. Due to the constant changing of the market, the information available on listings is not always 100% accurate. There are times when you need the most current information about what is on hold or for sale, and the only way to get that is with a real estate agent. You don’t need to use a commissioned real estate agent to sell your home, but you may want to consider the benefits of having a real estate agent versus not using a real estate agent.

In addition, may people would rather use an agent due to the complexities of modern real estate transactions since they usually incorporate legal and financial attributes, which takes them well beyond more simple transactions. There are several advantages when using a real estate agent to sell your home, such as your listing will be added to the Multiple Listing Service (MLS) so that large numbers of buyers will have access to the seller’s property. In addition, your real estate agent absorbs all the costs of advertising, marketing, and screening potential buyers. The agent will also handle the details of the negotiation.

If you feel fully confident that you can handle all the details, then you may well want to attempt selling your house on your own. If not, you most likely will want to use one of our experienced real estate agents and leave the details to us.