Category: House Buying

Decided To Have A Texas House? Here’s Initial Payment You Should Prepare

The Down Payment You Should Pay When Purchasing A House In Texas

Down payments are initial payments made when buying something under some form of hire purchase This means that a buyer first pays the initial installment, usually the highest amount of money, after which they can pay the rest in intermittent installments. When it comes to purchasing a house, the down payment you set aside is critical.

Lenders consider the amount that you pay upfront to be the stake you’re willing to put on your new home, hence it will influence the loan amount. The down payment also determines the probability of private mortgage insurance (PMI) as a requirement by the lender. As a rule of thumb, most, if not all lenders will require PMI if the downpayment is less than 20% of the house’s value. It also affects the interest quota. Without a doubt, the higher the down payment, the lower the rate of interest.

Evidently, there’s a lot to think about with regards to making down payments when purchasing a new home. Primarily, the amount to pay initially depends on the cost of the home and the loan program you’re working with. Normally, the amount will be anywhere from 5% to 20%, but lenders vary, and so do their percentages. Some key aspects to consider include:

1. The Loan-To-Value Ratio

The initial installment is used by your lender to calculate the loan-to-value ratio (LTV) of the home. This is one of the factors a lender considers in extending a client’s credit. They also look at debt to income ratio as well as personal credit scores in relation to the LTV. This makes the LTV an important consideration when deciding the amount of down payment to make.

The loan to value ratio is the amount you’re obligated to pay after making the first deposit on the house. It is usually represented a percentage, which is, in essence, is the ratio between the principal amount, to be paid in installments at regular intervals and the estimated value of the house. The higher the initial payment, the lower the loan amount, hence the lower the loan-to-value-ratio. In detail, it is calculated as:

loan-to-value (LTV)= Loan amount/appraisal value or purchase price (The lesser amount is used)

Consider the following scenario:

Mr. & Mrs. Smith wish to buy a house whose purchase price is $200,000 while it’s appraised value is $205,000. The former, being lower will be used by the financial institution to decide the loan amount. If Mr. & Mrs. Smith decide to pay a downpayment of $40,000, she needs an additional loan of $160,000 to fulfill the asking price. In this case, the loan to value equation will be:

loan-to-value (LTV)= Loan amount/appraisal value or purchase price so,

LTV= $160,000/$200,000

LTV= 0.8 which in percentage(multiply by 100) is 80%

2. Private Mortgage Insurance (PMI)

As stated before, a down payment of less than 20% requires a backup PMI. This is because the financial institution stands to lose a lot in case you decide to default the loan, having financed an impressive 80% and above of your purchase. With an LTV as high as this, the lender is investing a tremendous amount, and to protect their risk, comes the insurance. Paying PMI, in turn, increases your monthly installment amounts.

Conclusion

Before deciding on the down payment for the property, assess the pros and cons that come with lending institutions. Would you rather pay a private mortgage insurance every month, even without knowing whether you’ll manage to be a homeowner in the long run, or does it make more sense to wait till you have a surmountable amount to pay as a down payment? With these two financial aspects to consider, the ball is in your court.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today!

Important Things To Do Before You Purchase A Texas House Part III

What Do You Need To Do To Buy A House In Texas

Part 3

7. Find The Right Home

The initial process of finding the perfect home is to know exactly what you want. Write down your needs and your wants and give them a score on how important they are. This usually includes the size of the yard, the number of rooms, or how close the house is to a school district or your workplace.

Dallas texas brick home bought with assistance paymentsTo refine your search, look for the homes that are advertised online. When you check on the online listings, it will give you an idea of the houses currently available for sale and prescreen the homes in your preferred price range. This will ensure you only visit the homes you are actually interested in.

If you are finding it difficult to find homes that you like, speak to a realtor. Real estate agents are experienced in helping buyers to find homes, and they are knowledgeable about the housing market in your area. They can also assist you when it comes to setting expectations that are realistic and they can keep you confident and motivated when you feel like you will never find a home that you really love.

8. Make An Offer

As soon as you find a home that you see yourself living in, do not hesitate. Your realtor will assist you with the details on how to make an offer. You need to decide on the amount you are prepared to pay. If the market is hot, negotiations may not be an available option, which means you might have to pay for the asking price in order to secure the sale. In a cold market, you may be able to negotiate down to a lower price or specific seller concessions. Ask your realtor for advice when working out each detail of the offer.

Your offer has to state the terms linked to the sale, which needs to include any contingencies. A contingency will mean you can cancel the deal if a circumstance has not been met. This could include an inspection of the house that reveals that the home requires costly and significant repairs.

9. Prepare To Close

The next step is to ensure your mortgage is approved. The lenders you are dealing with might ask for updated or additional documentation. If the pre-approval expired, your lender will probably assess your credit score again.

The lender will then arrange an appraisal. This includes a professional that will evaluate the home and then compare the property to other properties that are similar in that area and then make a decision on the value of the home. This is a process that protects the lender and the buyer from overpaying for a property. You should also arrange for a home inspection during this time.

If the appraisal price is less than what you offered to pay, the seller may need to lower the asking price or you would need to cover the shortfall from your own pocket to close the deal. On approval of your mortgage and every detail is worked out, you are now ready for closing day.

Final Thoughts

Find out what is needed for the closing, and whether you need to pay the down payment in advance. You will usually need your passport or driver’s license, a certified or cashier’s check that covers the closing costs. You might also need to prove that you have insurance along with any other supporting documents.

When it is time to sign off the deal, you need to take your time to read over all the paperwork. Read over everything carefully as this is a really large purchase. From here you will be given the keys and remotes to your house. Enjoy every moment, and feel relieved that your buying process is finally over.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today! Click here to go to the first article in this series.

Important Things To Do Before You Purchase A Texas House Part II

What Do You Need To Do To Buy A House In Texas

Part 2

4. Save For Your Down Payment

Saving for a down payment may take some time, especially when you are saving for a 20% down payment.

Fortunately, there are many options for people that cannot save that type of cash. For example, an FHA loan only requires a 3.5% down payment, and some of the options for conventional loans offer down payments as low as 3% provided mortgage insurance is included. If you happen to qualify for either USDA or VA loan, you could secure a property with 0% down.

The reason that 20% is often the quoted number has to do with that this is a minimum amount you need to put down in order to avoid mortgage insurance. In addition to this, if you are able to put down a large down payment, it will lower the monthly payments.

When working out how much to save, remember the closing costs. The closing costs usually vary according to your situation. However, it is usually around 2 to 5% of the value of the home.

You will also need to provide bank statements over a period of 2 months to show you have had the funds for a down payment in your account for a minimum of 60 days so that these funds become eligible for use. Lenders will ask for this documentation to make sure you haven’t taken out a loan in order to cover the down payment.

5. Get Pre-Approval

Once you feel confident that you are ready to approach a lender, getting pre-approved is the next step in the process. Pre-approval will indicate the amount you are able to borrow and it also shows a seller that you are serious.

For your pre-approval, lenders take into account your current credit report to ensure your credit score qualifies and to ensure you do not have major blemishes or debts like bankruptcy. The lenders also look at your debt-to-income ratio and they will also ask for information associated with your assets and income. You should have documents ready such as a recent W-2, bank statements, and paystubs, and other paperwork that may be relevant to ensure the entire process goes as smoothly as possible.

Once you receive pre-approval, make sure that you do not engage in making major changes when it comes to your credit profile. This could include switching jobs or taking on more debt as this may risk your chances of approval.

6. Find A Reputable Real Estate Agent

A qualified and experienced realtor will take you through the entire process, making everything go smoother and faster. They can also help to lower the anxiety that many first time buyers go through.

When you start looking for a realtor, in-person interviews or online reviews can be extremely helpful. You want to find someone that honors what you want and is happy to advocate on your behalf. They should also be honest and assist you in setting up realistic expectations.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today! Click here to go to the next article in this series.

Important Things To Do Before You Purchase A Texas House Part I

What Do You Need To Do To Buy A House In Texas

Part 1

Buying a home is amongst the things that most of us eventually do at some stage, but not many people know how to go about this task. You may already know that you will need to tour homes, find a good realtor and obtain a loan, but you may not be clued up on where you should be going or who you should be talking to about these things, or the order in which you should be doing each task.

This is why we have formulated a step-by-step guide to buying a home.

1. Make Sure Your Finances Are In Order

You might be thinking about house hunting, loan pre-approval, and a real estate agent, yet the steps to prepare to purchase a property actually begins many months or even a year or two before you can actually look at the appropriate mortgage rate.

You have to make sure you are financially ready. This will mean assessing your financial situation currently and making sure that it matches up to what a mortgage lender wants from a borrower. You also need to work out what is affordable for you and you need to save for closing costs and your down payment.

2. What Do Lenders Look For?

Below is a list of the standard requirements that you will need to match up to, in order to ensure your mortgage is approved. This is just a general guideline and it can vary according to the lender along with the type of loan they are prepared to offer:

  • For conventional loans, your credit score should be 620 or higher, or 580 for an FHA loan.
  • Your credit history must be good.
  • You need to prove that you receive a consistent and reliable income.
  • Your income-to-debt ratio must below 50%

If you are only matching up to the bare minimum requirements, it might be a good idea to first improve your score before you start applying for mortgages, as it can improve your chances of getting a better rate.

3. Work Out How Much You Can Afford

You first need to obtain pre-approval for your mortgage to find out the exact amount that you can spend on your home. Working out your budget on a monthly basis and what it will be once you have a mortgage can assist you when it comes to deciding on whether you are able to afford a house.

Today there are home-affordability calculators that provide an estimate on the amount you can afford to spend on a house along with what your payments might be every month. You might discover that your payments every month may be lower than what you are paying currently towards rent. However, homeownership does come with many other new costs. This includes the maintenance of your home, insurance, and taxes. You need to factor these into the overall costs.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today! Click here to go to the next article in this series.

Purchasing A Home In Texas: What Credit Score Do You Need?

The Ideal Credit Score That Allows You To Buy A Texas House

Part II

What’s The Minimum Score Unlikely To Affect My Mortgage Eligibility?

Corpus Christi texas classic home bought with assistance paymentsIf you are not a veteran who automatically qualifies for a home loan from Veteran Affairs, a credit score of at least 500 is a must. The same minimum is required in order for you to qualify for a 10% down-payment for a loan through the Federal Housing Administration.

If you don’t meet those requirements, it’s not the end of you. You can get a parent, spouse, or friend with better credit to cosign for your loan. This could help better your chances of approval for a traditional mortgage. If that’s not the case, follow suit and work to improve your credit score before proceeding to apply for a mortgage.

What Credit Score Do Lenders Check?

Almost 90% of lenders use your FICO Score. For your information, this is the credit score that’s most widely used. Though, depending on the type of loan, different versions of the FICO Score are used.

The following scores are likely to be in your lender’s checklist when you are applying for a mortgage loan:

  • FICO Score 2 based on Experian data
  • FICO Score 5 based on Equifax data
  • FICO Score 4 based on TransUnion data

What’s the Interest Rate You Are Likely To Get With Your Credit Score?

For simplicity, credit scores are broken down into categories. This helps you get to know the quality of your creditworthiness and steps you’ll move to boost it.

  • Poor – 300 to 579. With a poor credit score, it’s unlikely for you to get mortgage approval. But things may work out for you if you have a cosigner or an underwriter willing to accept you. With these terms, if you’re lucky to find a lender, be ready to cover high-interest rates on your loan.
  • Fair – 580 to 669. Though you’ll qualify for a loan with a fair score, your interest rates will probably remain high, a bit higher than with a good or very good score.
  • Good – 670 to 739. This is an awesome score that’s unlikely to affect your interest rate that much. Your rates are likely to range within 0.25% to 0.5% with such a score.
  • Very good – 740 and higher. Get the lowest interest rates and the best payment terms in the market with this score.

Is It Necessary To Check For Credit Report & Score Before Searching For Houses?

Sure thing. Having a rough idea of your credit score is vital for your home buying process.

With knowledge on your credit report and score you’ll be able to:

  • Make corrections of inaccurate information in your report before applying.
  • Make a prediction of whether you’ll get approved or not, and approximate your interest rate.
  • Find out the areas to improve your creditworthiness before buying.

How Can You Improve Your Score Before Applying For A Mortgage?

There are tactics that are likely to work for you in order to improve your credit and enjoy low-interest rates and the best terms when you apply for a mortgage. Let’s review them:

  • Accumulate savings for a large down payment
  • Keep a close eye on your credit report.
  • Ensure to pay your bills at the right time
  • Look for the services of credit repair experts
  • Hold off on other credit.
  • Reduce your credit utilization ratio.

You can use any of the interactive features on our website or call us anytime to speak to a diligent mortgage professional directly. We hope to work with you soon! Click here to go to the first article in this series.

Purchasing A Home In Texas: What Credit Score Do You Need?

The Ideal Credit Score That Allows You To Buy A Texas House

Part I

If you’re not well conversant with the real estate industry and beginning to think of purchasing a home, it’s good you know that your credit score can affect your ability to get a mortgage. Though it doesn’t mean the world, a good credit score is vital. It boosts interest rates and improves loan terms. However, it doesn’t mean that you need perfect credit in order to own a home. There’s much still hope.

Knowing everything, in terms of the impact your score has on your mortgage rate, you’ll be able to grow your credit in advance before you proceed to own a home.

How Does Your Credit Score Affect Your Mortgage Rate?

Fort Worth texas brick home bought with assistance paymentsLet’s face it! Before a lender settles on a decision of approving you for a mortgage, he/she must consider your credit score. Moreover, they put into consideration your accumulated savings, debt-to-income ratio, and the amount of money you readily have available to give as a down payment.

Your scores go beyond determining whether you’re eligible for a mortgage. The interest rates and payment terms you get are largely influenced by your score. A credit score ranging anywhere from 650 to 699 – which is below average – means lenders may bring in risk-based pricing while stating details regarding your mortgage.

In order to cancel out the perceived risk of having to deal with a borrower whose credit score is low, a lender may take the step of increasing the mortgage rate. What does this mean? It means a credit score of 650 is likely to get a higher interest rate than a credit score of 720. This could cost you a fortune more throughout the life of your mortgage.

What’s The Required Credit Score To Buy A House?

It’s estimated that with a score of 660 you’ll probably qualify for a home loan. Though it’s not certain. On the other hand, scores of 660 and below, means you have to deal with a high-interest rate and poor loan terms.

With a minimum credit score of 580, you qualify for an FHA loan. 3.5% of your purchase amount goes to the down payment. However, you’ll be good to go in case of an underwriter intervention. The underwriter assumes the financial risk, and may only require you to carry minimal debt and prove to have a significant amount of savings.

At the moment, the average American’s credit score is 695. That’s relatively high. In case you desire top-level rates, focus on reaching a credit score of about 740 before even thinking of how you can apply for a mortgage.

  • With a credit score of 620 or higher, you’ll comfortably work with conventional mortgages.
  • A credit score of 640 or higher is needed for USDA loans.
  • No minimum credit score is necessary for Veteran Affairs loans.

You can use any of the interactive features on our website or call us anytime to speak to a diligent mortgage professional directly. We hope to work with you soon! Click here to go to the second article in this series.

Comprehensive Guide To Qualify For A Mortgage In Texas

6 Skilled Ways To Increase Your Chance Of Qualifying For A Texas Home Loan

Who can qualify for an FHA loan? some people qualify for home loans and purchase the property of their dreams. On the other hand, many people end up having their applications denied. If you are interested in becoming a homeowner and you are worried about whether or not you will be successful, here are 6 tips that will increase the chances of things going in your favor.

1. Get Your Financial Records In Order

When you apply for a home loan, you will be asked to supply proof of all money you have made in the past two years, This includes wages you have earned from your job as well as things like alimony, child support, and bonus earnings. Your W-2 statements and your tax returns will be key, so make sure that you have copies of all this available. Applying for a mortgage without having this available is a surefire way to end up with a denial. There are different types of home loans so you should know which loan is best for first time home buyers.

2. Verify Your Current Income

This part is twofold, so make sure that you pay close attention. It will be necessary for you to gather your last few pay stubs to prove the amount you are bringing home weekly. Also, it is likely the lender will contact your boss to make sure that you work there. While they are not allowed to ask for most personal information, they will ask about the dates you started work as well as the amount of your salary. For this reason, you must be totally honest when you are filling out all of your paperwork.

3. Focus On Your Credit

Owning a home in Texas is quite hard. There is no way that you will qualify for a loan if your credit is in bad shape. If you know that your score is not as high as it could be, this is something that you should take care of before you even bother to apply. Also, if your credit is in decent shape, try your best to keep it that way. This means that you should avoid applying for credit cards, making big purchases, and anything else that can hurt your credit rating.

4. Try Getting A Raise

The more money you make, the more likely is lenders will be willing to take a chance and offer you a loan. If you have been working at the same place for quite some time, you should consider asking your boss for a raise. Even if it is only a dollar or two more, this will look great when it comes to determining whether or not you will be able to keep up with monthly mortgage payments.

5. Save More Money

When you have more money available for a down payment, this means that the lender will not have to approve you for such a large amount. As a result, you are much more likely to be funded. Having more money yo pay upfront means that the lender will have less liability, which would make you a far more appealing candidate for a loan. While most people aim to have about 15-20 percent of the purchase price available, having 10-15 percent more means that you can look forward to lenders who are more willing to work with you and monthly payments that are far more affordable.

6. Move Quickly

Once your application is accepted, you should move forward with the home buying process as quickly as possible. There are occasions when things happen and mortgages fall through. You can avoid having this happen to you if you avoid hesitating. The longer you wait to complete the process, the more opportunities you are giving the lender to change their mind.

Keep in mind that appraisals can take quite some time; speak to your lender about this to see if there is anything they can do to expedite things.

Buying a home is a common process, yet many are not able to do so because the loan process is far too complicated. If you are interested in applying for a home loan you must learn what are the different types of home loans that would suit your budget. If you also want to increase your chances of faring well, make sure to keep all of this information in mind.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today!

Is It Okay For Non-Married Couples To Purchase A Texas House Together?

Buying A Home With Your BF Or GF Might Just Be A Smart Move In Texas

Some of you may think that it’s a crazy idea, but it has numerous benefits too.

Traditionally, couples would wait to tie the knot before deciding they’d purchase a property together. These days, it has been found out that around 25% of serious couples now consider buying a home even before marriage.

When it comes to real estate and its laws, they rule in favor of married couples. However, this doesn’t mean that unmarried couples don’t have legal rights – they do, but they have to perform certain legal steps. If you’re thinking of buying a residential property with your partner, here are some things that you should always remember:

You Get To Qualify For Better Loans

The lender, whether it be a third party lender or a bank, will take into consideration not just one person’s credit score – but they will look into both applicants separately. This means that there are higher chances that you could both get a larger loan amount, as compared if you’ll be applying for a loan individually.

Expenses Are Split Into Two

This is one of the best things about this – you split your expenses into two. This means that you get to save a couple of bucks here and there, making it easier to save money for your future. This could also be beneficial when we’re talking about your down payment since you don’t have to shoulder everything by yourself.

The Risks of Buying A Texas Home Together

If there are benefits, there could also be a couple of downsides when buying a home if you still aren’t married, and some of these are:

  • The Possibility Of A Breakup

Of course, no one wants to think that they would be breaking up. However, a simple mistake and some misunderstandings can make things a little bit complicated. This is why it is important that you have a legal agreement prior to buying a home to make things less complicated.

  • Could Damage Your Credit Score

During the application process, your name and your partner’s name will also be listed in the mortgage forms and the title as well. Your credit will then rely on your partner’s actions such as them forgetting to make a payment. If you two break up and your ex-partner stops paying, then both of your credit scores will be affected.

  • How To Protect Your Investment

While we’re saying that there’s nothing wrong with buying a home with your boyfriend or girlfriend, there are steps that you can take on your own to make sure that your investment is protected. There’s no denying that this is a great way for you to save money for your future, and there’s no perfect time to start investing in the home of your dreams. However, this decision can also damage your finances just in case the relationship goes south.

With that being said, always seek legal help and talk with an attorney for a legal agreement before you start the purchasing process. You should have at least a contract that outlines how the homeownership works, what happens if the relationship turns sour, or if one of the partners dies. This is the first and the most important step that you shouldn’t skip if you’re planning to buy a house with your boyfriend or girlfriend.

Apply For A Home Loan From The Texas Mortgage Pros

When applying for a home loan, it is important that you go with the right company that consists of a team of experienced and reliable mortgage professionals within Texas. The Texas Mortgage Pros not only has this team of experienced professionals, but they are committed to making sure that they provide their clients with services that will put their interests first before anything else. Not only that you’ll get multiple loan programs available, but they also offer the lowest rates within San Antonio, The Woodlands, Spring, Tomball, Austin, Dallas, and Houston, TX. Our team of impeccable mortgage professionals who’ve been working with us for years will make sure that they will personally handle your case and meet with you in person to make sure that you’ll get the home loan that is well-suited for your needs. 

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today!

Helpful Guide For Buying Your First Home In Texas

7  Steps To Take Prior To Buy Your First Texas Home

One of the most significant milestones in many people’s journey into adulthood is buying a home.

1. Credit

One of the things that you should start off doing is checking your credit. If you have a credit card, you might be able to check through your provider. If not, you can always get a free credit report. When checking, if you find issues that hinder your score, you will be punished with having a higher interest rate. If you find any inconsistencies or wrong accounts linked to your credit, you will want to get full documentation to dispute it. Mortgage companies will always take this into account when they are looking to decide whether or not to provide you with financing. If you don’t have a favorable rating, you want to look for ways to improve it prior to even getting started with the buying process. By raising your credit even a few points, you will be able to drastically improve your rates.

2. Budget Analysis

Understand the numbers. You want to factor in the total amount you have available to spend. Think about everything from how much you are spending on rent, debt, and other fixed costs that you have. While you might believe you can pay for a mortgage, it’s important to go into the process knowing you can. By examining your paycheck and where it is going, you will be able to see where you can improve your budgeting and you will be able to make adjustments to correct issues.

3. Debt Percentage

When you are examining your debt percentage, you want to look to see if you meet the qualifying criteria. A mortgage company is likely going to require that you have 33 percent of your monthly income that you can devote to the cost of the mortgage. Whereas, 38 percent can include consumer debt. If you aren’t within this range, you are likely not going to qualify.

4. Your Down payment

The mortgage company will look very closely at your down payment and its source. They will look at everything from bank statements to money being transferred in and out of your accounts. Because of this, you want to ensure that you are not spending money gifted from friends or family instantly. Rather, you will want to wait for it for a long period of time. The company will also want to be certain that you have the funds available, but also that you are able to cover any and all of the closing costs associated with the sale.

5. Know The Other Costs

When you are looking to purchase a home, you want to be familiar with the other costs that are involved with the home buying process. It’s important that you have considered them. While you might have been paying rent on a monthly basis, you will be taking on a lot of additional costs including but not limited to real estate taxes, a potential association maintenance fee, utilities, homeowner’s insurance, and annual maintenance and repair costs. These costs are likely to be brand new to you have never been a homeowner.

6. Interest Rate & Mortgage

When you enter any mortgage site, you will be presented with so many choices it will make your head spin. Not only will you see different types of rates, but you will also see varying lengths and more. Along with this, you will have to figure out whether you want to lock the rate in or allow it to float throughout.

7. Local Market

You need to understand your local housing market in the area where you are looking to buy. If homes are at an all-time high and the bids are skyrocketing, be wary of jumping in. Housing prices are in a constant state of flux and by purchasing at the wrong time, you can be costing yourself thousands.

Contact our expert mortgage professionals, call us today or use our interactive tools that are on offer on our site. We cant wait to meet you.

Why Buying A Texas Home Is The Next Best Thing

Benefits Of Owning A Home In Texas

A home is one of the most significant investments anyone can make. Many believe that owning a home is a gateway to both short and long-term financial success. Owning a home means you get to build equity over time (long term) as well as enjoy potential tax breaks. You also never have to worry about rent or the landlord knocking on your door. The peace of mind that comes with owning a home is simply worth it.

First-time homebuyers get to notice the difference in financial success firsthand. Homeownership is not only transformative but also helps one build personal wealth through home equity. You can also work towards increasing your home’s market value through renovations and other advancements. The fair market value of the house is also deemed to increase with time; another reason why more people are willing to invest in their homes.

Many millennials today prefer regions with a warm climate and proximity to the ocean, among other factors. This makes Texas one of the most preferred cities to live in the country. With several large universities in Texas and biotech presence, more youths will do anything just to own a home here. The warm weather, beautiful restaurants, extensive neighborhoods, etc. are some of the factors that make Texas one of the first places a new homeowner will consider to settle.

While life in Texas may be exciting (not forgetting the beaches), rental houses here can be quite expensive. Interestingly, vacancy rates in Texas apartments are also very low despite rents increasing by the day. The high rent rates and low income, however, makes it hard for renters to find the perfect place to live, especially with the limited supply of rentals. Buying a home here is the next best thing you can do with your money. Use the money that would have otherwise gone to rent, on mortgage payments. The long-term benefits of owning a home are far much better than renting an apartment.

A home is an asset. Making timely payments for your mortgage increases its equity which will work in your favor in many ways. For starters, paying your mortgage improves your credit score as well as tax benefits. The anticipated growth in housing market rates works in your favor too. The same cannot, however, be said for paying rent each month.

A mortgage works in favor of your credit score. The fact that you have a home loan alone diversifies your credit profile, meaning you’d be able to access larger loans in the future. Many credit companies consider mortgage a ‘good’ debt and will be willing to work with you. One of the reasons for this is the fact that the loan is tied to the house (asset). Your credit score will, however, only improve if you have a positive payment history for the mortgage. Making mortgage payments on time helps improve your credit rating and reputation as a responsible borrower as well.

Going for an affordable home comes with several tax benefits as well. This is because you are allowed to make deductions for your mortgage interest from your income. Other deductions allowed by the IRS include closing costs and annual property taxes. Some of these tax incentives are geared to help homeowners grow their wealth.

A house, like any other asset, can appreciate in value over time. The strategic placement of Texas, with the scenic beaches, good weather, and the port is what attracts many people here. With Texas growing by the day, chances of your property gaining value are high. Other factors that make Texas attractive, and the ideal place to buy a home, include location, young population, and strong business presence. Statistics also show that properties in Texas will be more expensive several years down the line, thanks to its strong business presence and growth.

There is more to buying/owning a home than just the transaction bit. The first step is finding out how much you can afford for a house. The next step is to identify the type of available loans and fees that come with the same. A Home Loan Calculator is a handy tool that anyone can use to figure out how much they can afford, as well as interest rates from the loan amounts. Be sure to use the Texas Mortgage Pro’s infographic for help on how to buy a home. We also have a Down Payment Calculator that lets you estimate how much you can put down upfront, and the expected total interest to be paid within the life of the loan.

Homeownership is a process that requires lots of support and information. The Texas Mortgage Pros are happy to provide you with all these. All you need to do is use our online application portal to start the process of getting a home loan.

We have a team of mortgage experts all over Texas willing to help you every step of the way. We are always committed to providing our clients with the best quality service possible for their mortgage needs. We also offer multiple loan programs at the lowest rates in San Antonio, Spring, Tomball, Dallas, The Woodlands, Houston, and Austin in Texas. With many years’ worth of experience in this field, we can make your dream of owning a home come true by helping you get a home loan specifically meant to meet your expectations and situation. Our program officers will help you with anything from refinancing an existing mortgage, loan consolidation, and if looking to buy your first home.

Our goal is to not only help you own a home, but also create a lasting relationship with all our clients. We also guarantee total privacy with your information. Give us a call or contact us today for whatever help you need to make your dream of owning a home a reality.