Plano Homes gives great tips for 1st time home buyers

Plano Homes: Are you thinking now is the right time to take advantage of all-time low interest rates and buy your first home? If you are like most first time buyers you have a lot of questions about the process and what to expect when purchasing your first home. The HUD website has a great article with questions and answers that all home buyers should find helpful, especially those buyers making their first home purchase. I have attached the article to this post so just scroll down to check it out.

Plano Homes : FAQ for first time home buyers

1. Why should I buy, instead of rent?
   • Answer: A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you'll enjoy having something that's all yours - a home where your own personal style will tell the world who you are.
2. What are "HUD homes," and are they a good deal?
   • 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 ofHUD homes and homes being sold by other federal agencies.
3. Can I become a homebuyer even if I have I've had bad credit, and don't have much for a down-payment?
   • Answer: You may be a good candidate for one of the federal mortgage programs. Start by contacting one of the HUD-fundedhousing counseling agencies that can help you sort through your options. Also, contact your local government to see if there are anylocal homebuying programs that might work for you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can't find it, contact your mayor's office or your county executive's office. 
4. Are there special homeownership grants or programs for single parents?
   • Answer: There is help available. Start by becoming familiar with the homebuying process and pick a good real estate broker. Although as a single parent, you won't have the benefit of two incomes on which to qualify for a loan, consider getting pre-qualified, so that when you find a house you like in your price range you won't have the delay of trying to get qualified. Contact one of the HUD-funded housing counseling agencies in your area to talk through other options for help that might be available to you. Research buying a HUD home, as they can be very good deals. Also, contact your local government to see if there are anylocal homebuying programs that could help you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can't find it, contact your mayor's office or your county executive's office. 
5. Should I use a real estate broker? How do I find one?
   • Answer: Using a real estate broker is a very good idea. All the details involved in home buying, particularly the financial ones, can be mind-boggling. A good real estate professional can guide you through the entire process and make the experience much easier. A real estate broker will be well-acquainted with all the important things you'll want to know about a neighborhood you may be considering...the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more. He or she will help you figure the price range you can afford and search the classified ads and multiple listing services for homes you'll want to see. With immediate access to homes as soon as they're put on the market, the broker can save you hours of wasted driving-around time. When it's time to make an offer on a home, the broker can point out ways to structure your deal to save you money. He or she will explain the advantages and disadvantages of different types of mortgages, guide you through the paperwork, and be there to hold your hand and answer last-minute questions when you sign the final papers at closing. And you don't have to pay the broker anything! The payment comes from the home seller - not from the buyer.By the way, if you want to buy a HUD home, you will be required to use a real estate broker to submit your bid. To find a broker who sells HUD homes, check your local yellow pages or the classified section of your local newspaper.
6. How much money will I have to come up with to buy a home?
   • Answer: Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money- the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies. If you buy a HUD home, for example, your deposit generally will range from $500 - $2,000.
     The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price. That's why many first-time homebuyers turn to HUD's FHA for help. FHA loans require only 3% down - and sometimes less.Closing costs - which you will pay at settlement - average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won't be caught by surprise. If you buy a HUD home, HUD may pay many of your closing costs. 
7. How do I know if I can get a loan?
   • Answer: Use our simple mortgage calculators to see how much mortgage you could pay - that's a good start. If the amount you can afford is significantly less than the cost of homes that interest you, then you might want to wait awhile longer. But before you give up, why don't you contact a real estate broker or a HUD-funded housing counseling agency? They will help you evaluate your loan potential. A broker will know what kinds of mortgages the lenders are offering and can help you choose a lender with a program that might be right for you. Another good idea is to get pre-qualified for a loan. That means you go to a lender and apply for a mortgage before you actually start looking for a home. Then you'll know exactly how much you can afford to spend, and it will speed the process once you do find the home of your dreams. 
8. How do I find a lender?
   • Answer: You can finance a home with a loan from a bank, a savings and loan, a credit union, a private mortgage company, or various state government lenders. Shopping for a loan is like shopping for any other large purchase: you can save money if you take some time to look around for the best prices. Different lenders can offer quite different interest rates and loan fees; and as you know, a lower interest rate can make a big difference in how much home you can afford. Talk with several lenders before you decide. Most lenders need 3-6 weeks for the whole loan approval process. Your real estate broker will be familiar with lenders in the area and what they're offering. Or you can look in your local newspaper's real estate section - most papers list interest rates being offered by local lenders. You can find FHA-approved lenders in the Yellow Pages of your phone book. HUD does not make loans directly - you must use a HUD-approved lender if you're interested in an FHA loan. 
9. In addition to the mortgage payment, what other costs do I need to consider?
   • Answer: Well, of course you'll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. Your real estate broker will be able to help you get information from the seller on how much utilities normally cost. In addition, you might have homeowner association or condo association dues. You'll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment. Again, your broker will be able to help you anticipate these costs. 
10. So what will my mortgage cover?
    • Answer: Most loans have 4 parts: principal: the repayment of the amount you actually borrowed; interest: payment to the lender for the money you've borrowed; homeowners insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders; and property taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year. Most loans are for 30 years, although 15 year loans are available, too. During the life of the loan, you'll pay far more in interest than you will in principal - sometimes two or three times more! Because of the way loans are structured, in the first years you'll be paying mostly interest in your monthly payments. In the final years, you'll be paying mostly principal. 
11. What do I need to take with me when I apply for a mortgage?
    • Answer: Good question! If you have everything with you when you visit your lender, you'll save a good deal of time. You should have: 1) social security numbers for both your and your spouse, if both of you are applying for the loan; 2) copies of your checking and savings account statements for the past 6 months; 3) evidence of any other assets like bonds or stocks; 4) a recent paycheck stub detailing your earnings; 5) a list of all credit card accounts and the approximate monthly amounts owed on each; 6) a list of account numbers and balances due on outstanding loans, such as car loans; 7) copies of your last 2 years' income tax statements; and 8) the name and address of someone who can verify your employment. Depending on your lender, you may be asked for other information. 
12. I know there are lots of types of mortgages - how do I know which one is best for me?
    • Answer: You're right - there are many types of mortgages, and the more you know about them before you start, the better. Most people use a fixed-rate mortgage. In a fixed rate mortgage, your interest rate stays the same for the term of the mortgage, which normally is 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your mortgage payment will be, and you can plan for it. Another kind of mortgage is an Adjustable Rate Mortgage (ARM). With this kind of mortgage, your interest rate and monthly payments usually start lower than a fixed rate mortgage. But your rate and payment can change either up or down, as often as once or twice a year. The adjustment is tied to a financial index, such as the U.S. Treasury Securities index. The advantage of an ARM is that you may be able to afford a more expensive home because your initial interest rate will be lower. There are several government mortgage programs,including the Veteran's Administration's programs and theDepartment of Agriculture's programs. Most people have heard of FHA mortgages. FHA doesn't actually make loans. Instead, it insures loans so that if buyers default for some reason, the lenders will get their money. This encourages lenders to give mortgages to people who might not otherwise qualify for a loan. Talk to your real estate broker about the various kinds of loans, before you begin shopping for a mortgage.
13. When I find the home I want, how much should I offer?
    • Answer: Again, your real estate broker can help you here. But there are several things you should consider: 1) is the asking price in line with prices of similar homes in the area? 2) Is the home in good condition or will you have to spend a substantial amount of money making it the way you want it? You probably want to get a professionalhome inspection before you make your offer. Your real estate broker can help you arrange one. 3) How long has the home been on the market? If it's been for sale for awhile, the seller may be more eager to accept a lower offer. 4) How much mortgage will be required? Make sure you really can afford whatever offer you make. 5) How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted. In some cases, you may even want to offer more than the asking price, if you know you are competing with others for the house. 
14. What if my offer is rejected?
    • Answer: They often are! But don't let that stop you. Now you begin negotiating. Your broker will help you. You may have to offer more money, but you may ask the seller to cover some or all of your closing costs or to make repairs that wouldn't normally be expected. Often, negotiations on a price go back and forth several times before a deal is made. Just remember - don't get so caught up in negotiations that you lose sight of what you really want and can afford! 
15. So what will happen at closing?
    • Answer: Basically, you'll sit at a table with your broker, the broker for the seller, probably the seller, and a closing agent. The closing agent will have a stack of papers for you and the seller to sign. While he or she will give you a basic explanation of each paper, you may want to take the time to read each one and/or consult with your agent to make sure you know exactly what you're signing. After all, this is a large amount of money you're committing to pay for a lot of years! Before you go to closing, your lender is required to give you a booklet explaining the closing costs, a "good faith estimate" of how much cash you'll have to supply at closing, and a list of documents you'll need at closing. If you don't get those items, be sure to call your lender BEFORE you go to closing. Be sure to read our booklet on settlement costs. It will help you understand your rights in the process. Don't hesitate to ask questions. 

Plano Homes gives tips for Thanksgiving

Plano Homes presents tips for Thanksgiving.The day after thanksgiving is typically one of the busiest days to be a plumber. Roto-Rooter has some awesome tips that can save you from having to call a plumber this black Friday with a clogged drain or a busted pipe.

Turkey Day Tips from Nation's Top Plumbing and Drain Service Specialist

Roto-Rooter braces for their busiest time of year

CINCINNATI, Nov. 15, 2010 /PRNewswire/ -- The day after Thanksgiving is the single busiest of the year for Roto-Rooter's residential plumbers. Big holiday meal preparation and cleanup can lead to a lot of unwanted waste in the kitchen drain and garbage disposal. Also, a house full of holiday guests who require additional clothes washing, showers and toilet flushes puts a strain on household plumbing.

"Often, the case is that a house already has partially clogged drains that go unnoticed, until holiday guests arrive and overwhelm the system," Paul Abrams Roto-Rooter representative said. Hectic houses full of people and frantic hosts quickly and easily lead to plumbing problems throughout the holiday season.

"Even more problematic is that virtually every traditional Thanksgiving dish is a supreme drain clog culprit," Abrams continued.

Incoming calls to Roto-Rooter, for kitchen jobs alone, will jump 50% above the average Friday. The four-day Thanksgivingweekend averages a 21% increase over any other Thursday through Sunday period during the year. Roto-Rooter is prepared with additional staff to address the increase in calls and jobs, saving consumers from long waits with guests in the house and outrageous holiday service charges.

Thanksgiving hosts can avoid a visit from their plumber over the holiday weekend by following these clog-preventing tips:

• Never pour fats or cooking oils down drains. They solidify in pipes. Instead, wipe grease from pots with paper towels and throw in trash.
• Avoid putting stringy, fibrous or starchy waste in the garbage disposal. Poultry skins, celery, fruit & potato peels, for example, cannot be sufficiently broken down.
• Make sure the disposal is running when you put food into it. Don't wait until it's full to turn it on.
• For homes hosting weekend guests, it's a good idea to wait ten minutes between showers so slow drains have time to do their job.
• Never flush cotton balls, swabs, hair or facial scrub pads down a toilet. They don't dissolve and will cause clogs.
• Try to address any plumbing problems before the holiday and before guests arrive. However, in holiday emergencies, don't hesitate to ask up front about extra holiday service fees.
• As always, know your limits. Often, minor plumbing problems turn into plumbing catastrophes if not handled properly.

About Roto-Rooter

Roto-Rooter was established in 1935 and operates businesses in 117 company-owned territories and 500 independent franchise territories serving approximately 91 percent of the U.S. population and 55% of the Canadian population. For more information, please visit www.rotorooter.com or follow them on Facebook.

Plano Home Prices Still Holding Steady

Corelogic released it's latest report on Friday and while it show continued downward pressure on home prices in many areas, the DFW and Plano area are still showing flat to slightly lower prices.   The 12 month Home Price Index for the DFW-Plano-Irving area shows a -1.25% decrease when adjusted for distressed properties.  When foreclosures and other types of distressed sales are taken out of the equation the index shows a gain of .33%. 

As a state, Texas is in better shape than most of the country as well.  Texas ranks 12th in terms of states with the best 12 month HPI scores.  The five states showing the greatest depreciation were Idaho (-14.04%), Alabama (-8.9%), Mississippi (-8.3%), Florida (-7.68%) and New Mexico (-7.47%). The mean was -2.81%.  and the average was -2.79%.

The State of Texas, DFW metroplex, and the Plano area in general continue to show a balance in pricing.  September's index is the first negative index for Texas this year.

Plano Homes : Tips to get your home ready for winter

Plano Homes presents easy tips to get your home ready for the winter. The winter is fast approaching. Leaves are changing colors and falling off tress as the temperature starts to dip lower and lower. For most of us that means dragging down the winter jackets and warm sweaters from the top shelf and replacing them with the bathing suits and shorts we wore all summer. It is not just your wardrobe that needs preparing for the winter though. Right now is an important time to get your house ready to face the harsh elements winter brings with it. Nobody wants to come home on that first 32 degree night to find a house with a broken heater or windows letting cold drafts in. I have found a great article that gives some wonderful suggestions every homeowner can use to prepare their home for the winter. To check the article out go to Plano Homes: Tips for winter. If you know any tips that aren't in the article please feel free to share them in our comments section so all our readers can benefit from each others knowledge.

Plano Homes Remodeling Tips

Anyone who has ever had to pay for a new air conditioner or fresh coat of paint for their home knows the bills can add up quickly. A major home renovation can quickly and easily start to add up well into the thousands of dollars. There are however certain thing you can do to save some money on your next project. CNN and Money magazine have put together an article with great tips for all homeowners. To check the article out go to Plano Homes Remodel Tips. And as always if you have any advice that might help our fellow readers please feel free to leave it in the comments section below.

Thinking of Buying a Foreclosure? READ THIS FIRST!!!!

Thinking of buying a home through foreclosure? Then you need to be aware of all the facts. Most people assume that a foreclosure is the BEST way to get a “deal” in todays real estate market. And while in some cases this is a correct assumption, a lot of times a foreclosure can become a hassle not worth the money you thought you were saving. I have found an awesome article, actually Amber Boyd of Keller Williams Rockwall found  the article, that busts 5 of the most common myths of buying a foreclosure. Check the article out at Plano Homes 5 Foreclosure Myths Busted. If you have had any experience in buying a foreclosure we would love for you to share your story in the comments section below.

Plano Area will Lead in Growth

IHS Global Insight released a report today that shows Texas will lead the nation in job growth in the years to come.  They estimate that Texas will expand job growth by 1.8% next year which will tie them with Nebraska for the number one spot among states.  Because the Plano area is one of the leading job growth areas in the state, Plano and  the surrounding communities will certainly be leaders in the job growth market.  This bodes well for Plano home values and Plano real estate.

The report does caution that the recovery from this past recession will be a slow and lingering process.  Unemployment numbers are expected to be above historical averages for some time to come.  IHS Global expects the state jobless rate in Texas to remain above 6% for the next 4-5 years.   This would translate to a Plano area jobless rate in the 5s.  

Texas has regained some 145,000 of the more than 350,000 jobs lost last year.  It is expected that the Plano area will continue to be one of the states top job growth areas.

Jim Diffley of IHS Global also pointed out that Texas is expected to one of four states that will reach pre-crisis payroll levels by the end of next year.  He maintains that Texas leads the nation in may factors.

Delinquincies on Mortgages Continue to Decrease

Fannie Mae has released new numbers that show a continued fall in the amount of seriously delinquent mortgages across the country.  Rates for Plano homes continue to be below the national averages and the foreclosure rate for the area continues to improve.  Fannie's latest number for seriously delinquent mortgages fell to 4.70 from a high of 5.59 in February of this year and is now the lowest percentage since September of 2009.

TransUnion credit also reports that the rolling rate ( the payments on mortgages that rolled from 30 days past due to 60 days past due and the number of 60 day past dues that rolled to 90 days past due) peaked in July of 2009.  All of these numbers are supportive of a slowly improving economy.

The interesting note is that mortgages that had a line of credit or home equity loan attached actually showed a worse rate of delinquency than  those that did not.  Conventional wisdom used to consider a line of credit as a strength ( a buyer with deeper pockets).   Those lines of credits are now showing these borrowers as weaker than those that do not have them.   

In further news Fitch Ratings estimates that the "Shadow Inventory" may take 40 months to liquidate at current offtake rates.  This shadow inventory will most heavily affect California, Nevada, Arizona, Florida and Michigan. 

Plano area foreclosure rates continue to be more manageable than the harder hit areas of the country.