All About Plano Real Estate

There are many types of mortgages available to Dallas home buyers. Although the mortgage industry has changed there are still an array of mortgage programs available.  Many of these mortgage programs are listed below with an explanation or description of each one. Popular Types of Mortgage Programs·         Fixed Rate MortgagesThe fixed rate mortgage is one of the most sought after loans of them all. You can choose from 10-year, 15-year, 20-year-, 30-year and even 40-year fixed rate mortgages.  All of which have a interest rate that stays fixed through the term of the loan and are fully amortized. ·         FHA MortgagesFHA mortgages are insured by the government. First-time home buyers are ideal candidates for an FHA loan because the down payment requirements are minimal and FICO scores can be lower than with other loan.  In fact, many are calling FHA the new sub-prime lender. ·         VA MortgagesVA mortgages are also insured by the government and is available to veterans who have served in the US Military. The requirements vary depending on the year of service and whether the discharge was honorable or dishonorable. The main benefit to a VA loan is the borrower does not have to have a down payment. The loan is guaranteed by the Department of Veteran Affairs, but funded by a conventional lender. ·         Interest Only MortgagesThese mortgages are not really interest only, meaning the borrower pays only interest on the loan. Interest-only loans contain an option to make an interest-only payment. The option is available only for a certain period of time. These types of mortgages give you some flexibility with your payments.  If you are very disciplined this type of mortgage may work well for you.  If not, stick with the fixed rate mortgage. Hybrid Mortgages·         Adjustable Rate MortgagesAdjustable-rate mortgages (ARM’s) have interest rates that fluctuate. It can move up or down monthly, semi-annually, annually or remain fixed for a period of time before it adjusts. ·          Combo / Piggyback Mortgages This type of mortgage consists of two loans: a first mortgage and a second mortgage. The mortgages can be adjustable-rate mortgages or fixed-rate or a combination of the two. Borrowers take out two loans when the down payment is less than 20% to avoid paying private mortgage insurance. ·         Mortgage Buy DownsBorrowers who want to pay a lower interest rate initially can get a mortgage with a buydown feature. The interest rate is reduced because fees are paid to lower the rate. Buyers, sellers or lenders can buy down the interest rate for the borrower.  These loans are great for people who know they will be earning more money in the next one to three years.Specialty Mortgages·         Streamline MortgagesLike the 203K loan program, FHA has another program that provides funds to a borrower to fix-up a home by rolling the repair cost into one loan. The dollar limits for repair work are lower on a Streamlined-K loan, but it requires less paperwork and is easier to obtain than a 203K. ·         Reverse Mortgages Reverse mortgage are available to any person over the age of 62 who has enough equity. Instead of making monthly payments to the lender, the lender makes monthly payments to the borrower for as long as the borrower resides in the home. The interest rate can be fixed or adjustable.  This may be a great way for seniors to support themselves for many years.·         Equity Mortgages Equity loans are second in position and junior to the existing first mortgage. Borrowers take out equity loans to receive cash. The loans can be adjustable, fixed or a line of credit from which the borrower can draw funds as needed.

For most Dallas Real Estate buyers, unless they are in a position to pay all cash for a Dallas Home, mortgage financing is a necessity.  Choose the mortgage program that you are comfortable with, a payment you know you can comfortably afford so you Dallas Home doesn’t become a Dallas Foreclosure.  You also do not want to end up in a position where you have to sell your Dallas Home to one of those We Buy Houses Dallas companies that can only offer you 50 to 60 cents on the dollar.

Dallas Real Estate homeowners who are planning to move up often have a tough decision to make: "Should we sell first or buy first?"  Many Dallas Real Estate agents will advise you to buy before you sell, but that's rarely in your best interest. It's in that agent's best interest because if you buy, you must sell, and the agent will be guaranteed two sales and two commissions, regardless of how much money and stress it costs you to do it this way.  For most sellers, the smart thing to do is to sell before you buy. Reasons to Sell First and Then Buy·         Higher Sales Price. If you aren't under pressure to sell quickly you will be able to get a higher sales prices because buyers will realize that you aren’t desperate to sell.  ·         Ability to Negotiate. By selling first, you have time on your side. You don't have to take the first offer that you receive because you already have a place to live, your home. ·         Contingent on Simultaneous Closing. By making the sale of your home contingent on closing concurrently with your new purchase, you have basically said to the buyer, I can stay or I can go.  I’m not selling my home at a cut rate price. ·         Contingency Period. What if the buyer's agent is smart enough to strike a simultaneous closing clause from the contract. The next best thing to ask for is a time period during which you are free to find a replacement home. A contingency period will give you the right to cancel the contract during that time period if you so choose, which can range, on average, from 10 to 30 days. ·         Renting After Closing. Some sellers who want to take their time to find the perfect home will often opt to rent back their home after closing. If the buyer doesn't require immediate occupancy, the seller might rent back their own home for the amount of the buyer's new mortgage payment.

Considering selling your home as a Dallas For Sale By Owner?  The added stress to save some commission probably will not be worth it.  Leave the job to a professional Dallas Realtor.  You don’t want to get yourself in a position where you have to sell your home to a DFW We Buy Houses company and receive a fraction of what it is worth.  The same goes if you are selling Plano Real Estate.  Take a deep breath and thing all of this through before you make the decision that is best for you.

There are plenty of “We Buy Houses” companies that are professional and reputable and can help get you out of a jam if you need to sell a house quickly.  But beware, there are just as many companies, would be investors, that will steal your house and run.  If you need to sell a house fast, here are a few rules for protecting yourself from these scammers. Work with Professionals, OnlyThe best way to protect yourself from scammers is to only work with professionals who have an established history of buying homes. Now days, anyone can order a book from the internet or an infomercial and become a "investor,"   The real professionals have been in business for many years and have closed dozens of real estate transactions. Their primary focus is the growth of their business, and they will not risk their business by cheating you or treating you unfairly. Check the Buyer OutIf you have any concerns about the buyer, check them out. Contact your states Real Estate Commission, Attorney General's office or your District Attorney's Consumer Office. If they are an established business, check them out with the Better Business Bureau. Always Read the Paperwork and Understand What You're SigningNot asking questions because you are afraid of looking stupid could end up costing you tens of thousands of dollars or maybe even your home.  You don’t want to end up in a deal that wasn't what you thought it was. A lawyer, Realtor or even your mortgage company can help give you some advice.  Never sign a contract that you don't understand. Get Everything in WritingIf a disagreement arises about a verbal agreement, the issue becomes your word against theirs and often must go to a court of law to be settled. All real estate contract must be in writing to be enforceable. Be Willing to Walk Away from the DealIf you have any doubts about the buyer or the contract just walk away. It's never worth the months of future headaches to sell your house a little bit sooner.There are several professional real estate buyers serving the Dallas Real Estate and Plano Real Estate markets.