Waco association of Realtors has a key to every property on the MLS
Answer: HUD homes can be a very good deal. When someone with a HUD insured mortgage can't meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then we sell it at market value as quickly as possible. Read all about buying a HUD home. Check our listings of HUD homes and homes being sold by other federal agencies.
Buyer's Real Estate Roadmap
Interested in Buying? Why do you want to buy? Are you tired of paying rent Would you rather live in a different area Your parents & friends tell you to buy Feel like you’re throwing money away on rent You want a bigger yard Investment vs. personal•••Have a clear sense ofyour reasons for buying•••
Benefits of Home Ownership• Pride of Ownership• Appreciation• Mortgage InterestDeductions• Property TaxDeductions• Capital Gain Exclusion• Mortgage ReductionBuilds Equity
Home Buying RoadmapStep 1: Hire a Buyer’s Agent A Buyers Agent will represent only you and have afiduciary responsibility to look out for your best interests. Find an agent you trust & feel comfortable with. Buyers agents may ask you to sign a buyer’s Brokeragreement, but it is the seller who pays the commission. A Realtor® can show you any home whether it is listedwith an agency, a builder, or even a For Sale By Owner.
What is a Realtor ® ? A REALTOR is a real estate agentor broker who belongs to theNational Association ofREALTORS, or NAR. Members ofthe NAR subscribe to a strictCode of Ethics and belong tocertain state and local tradeassociations. If you have anycomplaints regarding aREALTOR, you can file acomplaint with the local NARboard.
Types of Agency Listing Agent / Seller’s Agent Represent the seller Buyer’s Agent / Selling Agent Responsible for protecting theinterest of the buyer Intermediary Agent serves as a transactionagent. The agent does notrepresent either party. Legal in Texas
Home Buying RoadmapStep 2: Get Preapproved Estimate closing costs & down payment Shop around Lenders charge different fees Discuss different loan options Different areas may qualify for specific financing Estimate Monthly Payments Include Principle, Interest, Taxes & Insurance
Home Buying RoadmapStep 3: Start Shopping Discuss ‘must haves’ Consider resale value Ask agent for additional input on top properties Observe Open House Etiquette Consider all homes on the market, including fixer-uppers,REOs, foreclosures, short sales and those overpriced homeswith longer DOM.
Distressed Properties: A SHORT SALE occurs when a homeowner sellstheir home for les than (short of) what they stillowe on their mortgage, and their bank hasagreed to accept the proceeds from the sale aspayment in full of the loan balance. A FORECLOSURE occurs when a homeowner hasdefaulted on the mortgage, and lender initiates aforeclosure against the property. The property willeventually be put up for sale at auction. A REAL ESTATE OWNED (REO) occurs when thebank has successfully foreclosed on the propertyand the foreclosure auction did not result in a saleto an outside bidder. Thus the lender ends up asthe new ‘owner’ of the home.
Home Buying RoadmapStep 4: Write a Purchase Offer Have your Agent compile an accurate CMA Review Sellers Disclosure Notice Sales Price & Sellers Concessions are negotiable: TitlePolicy, Survey, X amount of $ towards loan costs & downpayment, residential service contract and more. Have your agent coordinate with loan officer Your offer should contain contingencies Inspection Period, Termite Inspection, Financing approval Submit prequalification letter with offer
Step 5: Finalize Negotiations Have all parties sign Get Option Fee to seller Not a contract unless $$$ changes hands Send executed contract to mortgage company Receipt earnest $$$ with the appropriate party Usually takes 30 – 45 days to close from executed dateHome Buying Roadmap
Home Buying RoadmapStep 6: Home Inspection Hire a reputable inspector toevaluate the homes majorsystems. This is typically doneduring the option period Attend the home inspection Realize no home is perfect - andthe inspector will find faults Negotiate Repairs
Home Buying RoadmapStep 6: Open Escrow / Order Title Title Company & Escrow Holder:Neutral third party holding allinstruments necessary to thesale, including funds and deeds Order home owners insuranceearly. Sometimes previous claims bya home owner can make it difficultto get insurance
Home Buying RoadmapStep 7: Comply with Lender Requirements Order Appraisal If you receive a low appraisal, discuss options with your agent Ask for a copy of the appraisal Lenders may ask for additional information Do not alter your financial situation while in escrow!!! Such as new credit cards, furniture shopping, new car When the file is complete, the lender will submit it for finalunderwriter approval
Home Buying RoadmapStep 8: Close on Property Transfer Utilities &Services Final Walk-Through Be prepared to sign alot of paperwork Example of HUD
Home Buying RoadmapStep 9: Post Closing You will receive therecorded deed in themail about a week afterclosing Will receive letter fromTax Assessor Your mortgage will bedo the following month
What we lend on: Credit: Your history of handling debt Income: Your past, present and future earnings Assets: Your money verified to close on the home Property: Is it a secure asset for a lender to lend on?
Types of Loans Conventional loans: 3% to 20% down Minimum credit of 640 to 720 depending on down payment Tougher standards FHA: 3.5% down Minimum credit of 640 Easier Standards Tougher on home quality
More loans VA: 0% down Better deals for Vets! 640 minimum credit USDA loans: 0% to 20% down Minimum credit of 640 Rural Property, approved upfront only!