Kathie Erickson-Temple

THE HOME BUYING PROCESS

Buying a home can get quite detailed. Here are the steps to take to ensure you’re prepared for the exciting road ahead.

I am a Broker Texas REALTOR.
I can help you with all the following steps and more. I will save you time and money by researching properties based on your criteria, helping you secure the best mortgage rates, counseling you on the offer amount and terms most favorable to you, and negotiating on your behalf.

Decide What You Want
Before you start looking, make a list of what you want. Then assign each item a priority. Some areas to consider are:
• Location: How close do you want to be to your job, shopping, the kid’s schools, or entertainment?
• Type of home: A single-family house typically provides the most space and gives you fewer restrictions on customizing your home. But a condo offers amenities without yard work—for a price.
• Age of the home: Existing homes have mature yards and established neighborhoods; however, they require more maintenance. Although new homes aren’t always without problems, they usually require less maintenance initially. Of course, you may have to put in landscaping and endure nearby construction.
Know What You Can Afford
Consider these factors:
• Downpayment: Most loans require a downpayment. The amount varies, but 20% of the purchase price is typical. If you’re a first-time buyer or fall below certain income thresholds, you may qualify for affordable-housing programs. Generally, a higher downpayment means better loan terms and a lower interest expense on the mortgage.
• Qualifying for a loan: A lender will determine how much he thinks you can afford based on your income, employment history, education, assets (e.g., bank account balances, other property, insurance policies, pension funds), and debt. Check your credit report before the lender does to clear up any problems.
• Your comfort level: You don’t have to spend $200,000 on a home just because the lender says you can afford a $200,000 home. Do some math and determine what you’re comfortable spending.

Make an Offer
You’ve figured out your home-search criteria and what you can afford. Now find a house and make an offer. Your Texas REALTOR® is invaluable in this part of the process that involves many steps, including:
• Preparing a contract and the myriad details on it
• Handling negotiations with your best interests in mind
• Juggling inspections and option periods.

Secure Financing
Unless you’re paying cash for the home, you’ll need a loan. Keep in mind the true price of financing goes beyond the interest rate alone. Consider items such as points, total lender fees, term of the loan, and penalties for early payment. The lender will likely require an appraisal to verify that the home is worth the cost of the loan as well as a physical survey. Repairs may be required. Insurance must be purchased. All these conditions and others must be satisfied before a transaction can close.

Close the Deal
After weeks or even months of research and decision-making, you close the transaction, usually at the title company's office. The title agent ask you to sign many, many documents and will explain each one. You’ll present a cashier's check to the seller, sign another document that itemizes closing costs (the lender will have given you an estimate in advance), and pay your share of the closing costs. In return, you will receive a deed, transferring ownership rights to you.

Got questions? Call me today at 972.672.4768!

2016: Your Homeownership GPS (complete with hazard guide)
JANUARY 6, 2016
BY TOM SALOMONE

Submitted to NerdWallet.com

This is the season for resolutions, but it isn't all about promises to eat better or hit the gym.

For a lot of people it's time to get those finances in order and finally set out on the road to homeownership.

That isn't just conjecture from someone who's been a licensed real estate agent for over 40 years, either. It's right there in the numbers.

Recent survey data found that 94 percent of renters under the age of 34 want to buy a home in the future.

Chances are you're one of them. So, exactly what's coming down the pike for potential homebuyers in 2016?

Set the cruise control
Potential homebuyers have a mostly smooth road they can depend on, and that's likely to continue into 2016, but there are obstacles to watch out for. Buckle up and we'll go through a few of the big ones:

Low interest rates:
Yes, the Federal Reserve just raised interest rates, but mortgage rates don't move in lock-step with the rates the Fed increased and still remain historically low. Expect a gradual increase in mortgage rates as the economy improves and the Fed continues rate increases. The result: Costs for borrowing in 2016 will likely rise gradually.
Low down payment programs:
Credit is still hard to come by, but conventional mortgages backed by government-sponsored enterprises are available for down payments as low as 3 percent. That's good news for borrowers, as many creditworthy borrowers still struggle to come up with a down payment, especially in high-cost markets.
Continued job creation:
A stronger job market means more people with steady income. That translates into more opportunities for homeownership and better access to mortgage credit.
Lower mortgage insurance premiums for loans backed by the Federal Housing Administration:
FHA announced a 50-basis point decrease for their Mortgage Insurance Premium in early 2015.As a result, more buyers were given access to this important financing option. We expect the positive effects will continue in 2016.
So, that's all good news, right?

Not so fast. Potential homebuyers are in a strong position to do well, but don't take your eyes off the road.

Hazards reported ahead!
It probably isn't news to anyone that affordability is an ongoing challenge in the market. Or in sticking with our metaphor, it's the big tire in the middle of the road.

If you're buying a home in 2016, odds are good that you'll have to navigate around at least one of these affordability issues:

Student debt:
If you have student loans, you know that shelling out hundreds of dollars every month can make it hard to save for a down payment. Student debt also adds to a potential buyer's debt-to-income ratio, which reduces the amount of additional debt a mortgage lender can let you take on. And if you have an adjustable-rate mortgage, you may see that ticking up this year.
Tight supply:
All the good news about falling unemployment rates and a strengthening economy has brought people back into the housing market, driving demand. That's great, but housing supply hasn't kept up, and significantly more construction is required to ease the developing housing shortage. Once the spring homebuying season returns this year, the pressure will be on to move quickly in many markets.
Higher rents:
Rents have risen steadily as housing availability has fallen. And sure, that's a good reason to buy a home, lock in your monthly payment, and start building equity. But for many potential homebuyers, high rents are exactly the reason that saving for a down payment is so hard.
Rising home prices:
Current homeowners should be glad that in many markets, home values continue to rise. As current homeowners build equity, the incentive to "trade up" for a bigger home will increase, creating openings for potential new homeowners. However, as prices rise, so do the costs. Even if price growth continues at a moderate pace in 2016, this will pose an ongoing challenge for buyers.
Consider riding shotgun
Worried? Don't be. You don't have to do all of the driving. In fact, I'd be remiss if I didn't point out that across the country there are REALTORS®, members of the National Association of REALTORS®, who would be happy to help guide you to your new home.

But spending some time in the passenger seat and letting an expert navigate the backroads for you is even better than your onboard GPS.

A REALTOR® can help you pick a lender, find a home that meets your needs, and tackle that intimidating pile of paperwork that shows up in your inbox. To find one, just visit realtor.com®, where property listings and expert advice are just a click away.

After all, homebuyers have a lot to consider. And while it's too early to say exactly what's down the road in 2016, it's never too early to start planning your route.

So if you're resolved to join the millions of homebuyers out there this year…get ready, put the top down, and grab those aviators. We're on this road to homeownership together, and I like where we're headed.

For Renters, Market Likely to Get Pricier Rising demand and a tightening supply is continuing to force both commercial and residential rents upward. 

First, the good news…

So, you might be wondering, “what’s the market like”? I get asked that question all the time, and really the answer depends on which “market” you are referring to. Depending on where you are in the metroplex, or what city you live in, the answer can be vastly different. Fortunately for most of us here in north Texas, existing home sales are slightly up over last year, home prices are stable, and the builders are busy building again. As I said, this varies from area to area, and If you want to know what’s going on in your neighborhood, please send me a note, and I’ll be glad to send you specific information.

A little more good news...

Our job market is starting to grow. We have insanely low rates at 3.75% for a 30 year fixed mortgage. Homes are very affordable. Rent rates continue to increase in the apartment industry (up 10%+ over last year in the better communities), which is moving people toward home buying once again. For those who have been holding off on selling, prices are stable and the housing inventory has decreased by 23% over last year according to MLS (Multiple Listing Service). And finally, experts are saying that we have reached our bottom and home prices are not going to drop any further.

Now for the bad and worse...

We have all had our fill of negative reports about the housing market, and I’m going add to that for just a moment. Speaking frankly, if our government doesn’t do something to turn things around, we could be stuck in this mess for the next 5-10 years. According to Mark Dotzour, Chief Economist with the Real Estate Center at Texas A & M University, there are 4.5 to 6 million homes nationwide that are in various stages of foreclosure and are being held back as a shadow inventory that is not listed in the MLS system for sale. Until those properties are released into foreclosure and placed on the market, we will see no really big improvements in the housing industry. If you are wondering why these homes being held back, it is because the banks don’t want to face losing $600 billion in second mortgages that will not get paid when the foreclosures take place. And when they do, some banks will be put out of business.

Historically speaking, the time period to foreclose on a property has been about 280 days. Now, however, it takes an average of 680 days. And if that’s not bad enough, a trend is taking place where homeowners are moving out of their homes, leasing their properties, taking the cash, and refusing to make their mortgage payments.

What’s up with that?

Thanks for taking the time to read. I’m here if you need anything. Hope your 2012 is off to a great start.

Kathie

Big changes are taking place in 2012!! I have joined Howell Holland Company, a very prestigous Real Estate Boutique with Cameron Holland, as the principal broker! Cameron is very creative and energetic and brings a wealth of expertise as well as fresh and fun ideas to the process of real estate buying and selling! I am thrilled to be a part of this firm!

Oh, and by the way, I am never too busy for your referrals!

7901 Trixie Trail