Kyle, TX

Home Loans: A Bridge Over Troubled Water?

Sometimes it's hard to believe that there are "normal" buyers and sellers out there. You listen to the news, read the blogs, hear the talk around the proverbial water cooler. Everybody has an opinion.

The market sucks. The foreclosures are everywhere, and the mess is about to get much, much worse. Maybe bits and pieces of what you hear are true in various areas across this great country of ours, but there is also another side to the housing market.

• 10 percent unemployment also means 90 percent of people are employed.
• Some people can afford to buy a normal home.
• Some people want to simply move up as their situation dictates.
• Some people prefer "move-in ready" over a sad, trashed house.

Sense Of Urgency: Mind Your Deadlines

Are you the kind of person who operates best with clear deadlines? With checklists? Rules? Great! The process that begins when a purchase agreement "clock" starts should be a piece of cake for you.

But if you don't like to be rushed, don't like pressure, like to put things of until later, well, these qualities might get you in a heap of trouble when buying a home.

After you make an offer, and it's accepted by the seller, the clock begins. There is a deadline to get earnest money to the title company, option money to the seller or their agent, inspections to be ordered, loans to be processed, etc.

If you miss a very important deadline, you might get stuck with a house that is in disrepair, or you may forfeit earnest money needlessly if the deal falls apart.

Stay focused, stay out of court, and start packing!

Buying A Home Isn't For Everybody

It may sound like kind of a weird thing to hear from a real estate agent, but it is my honest and humble opinion. An opinion that I believe is backed up by facts.

If you are a first-time homebuyer, the process of shopping for a home can be so fun and exciting that you sometimes can miss the forest for the trees.

I love working with first-time homebuyers, because I get caught up in their excitement. It's easy to do. But I also stay grounded, and always give advice that I believe is sound for their particular situation.

Sometimes, it's the perfect time to buy. Sometimes, it's better to rent a home for a while before making the big splash. Sometimes the down payment is too much, sometimes job, income or credit factors play a role.

Whatever it is, I will work with you to help you do what is best for you. I will stick with you if you need to rent now and help you set up a plan to make your dreams of homeownership a reality sooner than you may think is possible.

When you are ready, feel free to give me a call.

More Tips For Your Closing Happiness

The devil is in the details, you might have heard before. While I have to agree with that in almost every aspect of life, it is certainly true when it comes to the closing of a home purchase.

The transaction can come off without a hitch. But don't count on it.

One of the title companies I use said the closings that fall apart at the table are at about 25-30%, which is up from about 5% during the last housing boom.

If you are buying a new construction home, the procedures are pretty set in stone and easy to follow. But a resale home -- especially if it's currently occupied -- has a few potential issues you might face.

It's important to schedule a walk-though within 4-5 days of signing the closing documents. Use this time to see if required repairs have been completed to your satisfaction; that nothing other than normal wear and tear has happened to the home as the sellers have packed and prepared to move; that anything attached to the home that is contractually supposed to stay with the home is still on site.

I also recommend that you don't allow your closing agent to release funds until you are at the home and can make sure people have moved out and followed the rules in doing so.

Hold Off On That New Car If You Want To Buy A House Soon

If you follow the standard way of doing things that most people do in Central Texas, as well as other parts of the country, you buy a new car before you buy a house.

Back in the Good Ol' Days (meaning anytime before mid-2006), it probably didn't matter too much, because the loan products available then allowed for some pretty steep DTI ratios, so the new car payment didn't matter as much.

But think of it this way: When you buy a car, credit score is the main focus, along with job stability a close second. There is little thought given to debt-to-income ratio, unless there is already a car loan per person in the household.

But DTI is huge for buying a house. A $500 car payment kills you DTI and will take you from qualifying for a $100,000 house instead of a $175,000 house (sometimes less, sometimes more). That's a big difference.

So, be pound wise and penny wise, too -- don't buy a car until a week or so after your home closes.