Posts Tagged ‘homes’

Reverse Mortgage Pros and Cons

August 22nd, 2010

House With a tough economy, lowered social security benefits and weak retirement accounts, many Americans are turning to reverse mortgages for extra cash.  A reverse mortgage is a special type of home loan that allows you to take a piece of the equity from your home and convert it into cash.  No repayment is required until you no longer use the home as your principal residence (i.e. move or die).

According to Dr. James Gaines, research economist for the Real Estate Center at Texas A&M University, “Reverse mortgages are based on the home’s current value, borrower’s age and existing interest rates.  Borrowers can choose to receive loan proceeds in a single, lump-sum payment, as periodic predetermined payments, a line of credit or both.”  But before rushing into the lure of this “free cash” there are risks that need to be considered.

AARP offers up five questions to ask before considering a reverse mortgage:

1.            Do you really need a reverse mortgage?

2.            Can you afford a reverse mortgage?

3.            Can you afford to start using up your home equity now?

4.            Do you have less costly options?

5.            Do you fully understand how these loans work?

Understanding the pros and cons of a reverse mortgage need to be considered before moving forward.  The Real Estate Center at Texas A&M Unversity offers the following list of pros:

  • A reverse mortgage has no fixed due date.
  • No repayment is required as long as the home remains the borrower’s principal residence.
  • Loans become payable upon death, sale, ceasing to live in the home or failure to keep taxes, insurance or maintenance current.
  • Borrowers cannot be foreclosed on.
  • Reverse mortgages are nonrecourse loans. The amount owed can never exceed the selling price.
  • Borrowers continue to hold title to the property.
  • There are flexible payment options.
  • Loan proceeds are not taxable.
  • Underwriting and approval do not depend on the borrower’s current income or employment status.
  • Would-be borrowers are required to meet with an independent financial counselor prior to getting a loan.
  • The lender’s lien on the property is removed if the lender fails to make loan advances according to the agreement.

Even though there are many positive aspects of the reverse mortgage, it isn’t always the right fix and there are many negatives associated with a reverse mortgage.   Truly, reverse mortgages should not be entered into lightly and people thinking about moving forward with one, need to realize that when they die, whoever inherits the house will be responsible for paying off the reverse mortgage including all interest and costs associated with the loan.   Also homeowners must be at least 62 years old and either have a high home equity or own the home outright.   Reverse mortgages can be complicated since they are very different than forward purchase mortgages.  Also these mortgages often require high up-front costs and borrowers will need to stay in the home longer to reap the benefits.   Homeowners are still responsible for the home and all of the upkeep, maintenance, utility bills, insurance and taxes associated with it.  Also, a home can still be foreclosed on if the homeowner ceases to live in the home for 12 consecutive months or defaults on taxes, insurance, etc.

Homeowners considering a reverse mortgage should weigh all of their options, consult with their family members, and understand the risks associated with any loan process.

Are you interested in finding a home in Texas?  Search our extensive new homes database for free at SaveOnANewHome.com!

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Posted in Mortgages

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Is a Housing Shortage Coming?

July 3rd, 2010

For several years anyone trying to sell a house could tell you that it’s been a buyer’s market.  With so many recent foreclosures coupled with a weak job market and tightened lending practices, the country has seen a glut of houses just begging to be sold.  But could that all change as the economy turns around and more people find themselves with jobs, a little bit of savings, and a desire for homeownership?

Home ConstructionAccording to a June 15, 2010 CNN Money article, “The nation is simply not building enough homes to keep up with potential demand.   Just 672,000 new homes were started in April, an annualized rate and less than half the long-term run rate needed to meet the nation’s natural population growth.”   Along that same vein, Brian Wesbury, chief economist at First Trust Advisors said in an interview with Steve Forbes, “We need one and a half million houses per year just to keep up with population growth.”

Perhaps the panic of a housing bubble may be years away, or may not even be a realistic issue.  The fact that fewer new homes have been built can be explained by simple looking at supply and demand: less demand means less supply.  The National Association of Home Builders reported that new home sales plunged 33% to their lowest level on record in May.  With so much current surplus inventory and a myriad of glum economic reports, many doubt the validity of a true housing shortage.

Those who continue to support the idea that a housing shortage is coming look to the fact that many of the homes available from foreclosure may not be inhabitable or that people may not be willing to live in the areas where these houses are.  According to the U.S. Census Bureau as many as 7 million homes are vacant, but not for sale.  It could be that when employment levels stabilize and people are able to save for a down payment, they may want a new home and not a foreclosed one that has been sitting vacant for years.

Others have noted many individuals and families have moved out of their unaffordable or foreclosed homes and moved in with parents, relatives, or friends.   When the economy recovers, these people will likely want to move into their own homes.  Combine this with an ever-growing population and it is possible that a housing bubble could be on the horizon.

Are you in the market for a new home?  We have a wide selection of homes which have been reduced by thousands just waiting for you.  Start your free search now.

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Posted in Housing Bubble

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Best Places to Eat in San Antonio

July 2nd, 2010

San Antonio is an amazing city full of historic sites, lively entertainment and beautiful places.  Add in a dash of culture, a heap of flair, and a pound of talent and San Antonio reveals itself as the home of some of the most amazing cuisine in the country.  From bakery delights to Mexican marvels and pizza pizzazz to unbelievable burgers, San Antonio has something to whet everyone’s appetite.

Here are just a few restaurants that have made the San Antonio Current’s Reader’s Choice “Best Of” list for 2010 and are among my personal favorites.

Best Barbecue – Rudy’s Country Store and Bar-B-QRudy's Barbeque

Started in 1989 in Leon Springs, Rudy’s Barbecue is one of those restaurants that seems like it’s been around for 100 years.  It’s a barbeque staple among many.  Rudy’s brisket will melt in your mouth and the cream corn will make you smile.  If you are looking for true Texas barbeque and an old country store feel, Rudy’s is a place that you have to try.

Best Local Burgers – Chris Madrid’s

Over thirty years and running strong, Chris Madrid’s is that local mouth-watering hangout that everyone knows about.  The menu offers burgers, a grilled chicken sandwich, chalupas, and nachos.  That’s it, and that’s all you need!  (Oh, of course they also offer the tastiest homemade fries this side of the Mississippi too!)   Their specialty is the Tostada Burger made with homemade refried beans, chips, onions, and creamy cheddar cheese on a beef patty.   The cheddar cheesy is also a big favorite, with gobs of cheddar cheese dripping off that delicious patty and set just so between a buttery bun –yum.  If you really want your fill of Chris Madrid’s, they also offer the “Macho” which is the ½ pound version of their regular burgers.  They also sell t-shirts that you can buy that say, “I’ve Eaten the Macho at Chris Madrid’s.”

Best Tamales – Delicious Tamales

I think I’ve tried every tamale in town and though Ruben’s Homemade Tamales on Rigsby has a decent tamale, the Delicious Tamales are consistently good and are plumb and oh-so savory.  They have multiple locations around town and you can always walk in and pick up a dozen or so hot, fresh tamales.

Best Italian – Paesanos

Paesanos has some of the most amazing Italian food and it also topped the Current’s Reader’s Choice for 2010 beating national chain Olive Garden (3rd) and local favorite Capparelli’s.  (By the way, Capparelli’s is also one of my favorites and has some of the best pizza in town!)  Paesanos sports three locations, including one right on the San Antonio River Walk.  The menu offers an impressive selection including pasta, seafood, chicken, beef, and veal. Of course, you can’t visit Paesanos without trying out their classic Shrimp Paesano, a lightly breaded, savory shrimp in a white wine lemon butter sauce.

Braodway Daily Bread - Chocolate Cupcakes

Braodway Daily Bread - Chocolate Cupcakes

Best Bakery – Broadway Daily Bread

If you are trying to diet, you might not want to walk into this bakery.  It’s hard to resist all they have to offer and the smell of all of that amazing bread is just too much!  Of course, they offer healthy whole wheat, specialty and seasonal breads too.  If you walk into Broadway Daily Bread you must try one of their amazing chocolate cupcakes.  The chocolate icing must be at least an inch thick atop the moistest chocolate cupcake you’ll ever bite into.  Their muffins, kolaches, and sandwiches are pretty impressive as well.

I’d tell you more about the best restaurants in San Antonio, but I’ve made myself so hungry I’m going to have to take a break and get some tamales and chocolate muffins.

Are you interested in finding a new home in San Antonio? Take a look at what MySANewHome.com has to offer and start searching today for a fabulous deal.

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Posted in San Antonio Restaurants

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The Home Buying Process in Texas

June 20th, 2010

If you are thinking about buying a home in Texas, there are some steps that can help make the process run smoothly, and it’s important to understand how the buying process works before you proceed.

Find a Real Estate Agent

The first thing you will probably want to do is find a licensed real estate agent.  You can start your search online or by asking friends, family and/or neighbors about any Texas REALTOR® who might make a good fit for you.  You may want to speak to several agents to find one who specializes in the buying process and who is familiar with the area in which you are looking.  A licensed real estate agent will guide you through every step of the buying process.

Family in front of home

Prioritize Your Desires For Your Home

Once you’ve found a real estate agent that fits your needs, you’ll need to decide on what specifics you’ll want included in your home.  Things you may want to consider include location, price range, taxing jurisdiction, school district, commute time to work, and proximity to shopping, hospitals and major highways.   You may not be able to find a home that meets your exact wants and needs in your given price range, so it is important that you prioritize your list to find the best match possible.

Pre-Qualify For A Loan

After you’ve narrowed your requirements down, you will probably want to pre-qualify for a loan before you make an offer on a house.  Dealing with a mortgage broker or bank before you make an offer on a house is a smart step, because then you will have a much better idea as to how much home you can afford.  This will also be the time you will decide how much down payment you have the funds for and how much you will actually qualify for.  You’ll need to make sure that you have all of your financial documents for the last couple of years which outline your income, assets and any outstanding credit you may have.

Find Your Home and Make An Offer

Once you pre-qualify, you are ready to find that perfect home.  You and your real estate agent will probably look at many homes before deciding on one.  Once you find one you like, you will make an offer on the home.  Your real estate agent will sit down with you and fill out all of the standard state required paperwork in order to make an offer.  The seller has the right to accept, reject or make a counteroffer.  If there is a counteroffer, it may take some time to negotiate a fair deal.  If your offer is accepted, the paperwork will become a binding contract and it will be one of the most important documents you sign in the process since it outlines the terms and conditions of the transaction.

Have An Inspection

After your offer is accepted you will want to get the home inspected by a qualified inspector.  This is also a good time to have a termite inspection performed as well.  You may want to ask you real estate agent to request that the seller include a one year residential service contract as part of the deal.   This is often done with an existing home to ensure that certain items will be repaired if there are any issues with the home after you move in.

Secure Financing

Next, you will secure a loan to finance the purchase of the home.  If you pre-qualified for a loan before your search began, much of the paperwork may already be done.  If not, you will need to provide income, asset and credit information to complete the loan application and lock a rate. If you put down less than 20% you also will be required to pay PMI, Private Mortgage Insurance, which protects the lender if you default on the loan.

Check  the Title

The contract will then be sent to a title company and the title will be investigated to make sure there are no legal issues with your property.  An implied easement or an existing lien may be issues that could surface.  In Texas, according to lawyers.com liens on a piece of property may include the following:

  • Abstract of judgment
  • County assessments for road improvements
  • County litter lien
  • County weed and sanitary lien
  • Deed of trust or vendors lien
  • Federal estate tax lien
  • Federal income tax lien
  • Federal judgment lien
  • Federal lien securing a judgment imposing a criminal fine
  • Homeowners’ association lien for assessments
  • Mechanic’s lien by affidavit
  • Mechanic’s lien contract
  • Miscellaneous state tax liens
  • Municipal assessments for street improvements
  • Municipal assessments for water/sewer systems
  • Municipal demolition lien
  • Municipal utility services lien
  • Municipal weed and sanitary lien
  • Solid waste facility remedial lien
  • State inheritance taxes
  • Surface coal mining reclamation
  • Unemployment taxes
  • Water district standby fees
  • Water district taxes
    (Source: http://research.lawyers.com/Texas/Buying-a-House-in-Texas.html)

Having the title researched is an important step and protects you.  The title company will notify you of any issue with the property and will issue you title insurance to further protect your rights as a homeowner.

Go to the Closing

Once the title clears and the financing is secured, you’ll be informed of the closing costs for which you will be responsible. The money you will need to close the deal will include your down payment, inspection costs, title insurance, and any other fees associated with the closing of the home.  You’ll schedule a time with the title company to sign all of the paperwork, bring in closing costs and finalize the loan.  The seller will also sign papers to transfer the rights and validate the information they disclosed about the home.

The last step is to pick up your keys, move in and enjoy your new home!

If you are looking for a new home and need excellent buyer representation, check out Save On A New Home to start your search today.

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Posted in Buying Process, Uncategorized

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What You Need to Know About Foreclosures in Texas

June 11th, 2010

The number of foreclosures in Texas is up and according to new RealtyTrac data, 1 in every 861 housing units received a foreclosure filing in May 2010, bringing the total of foreclosed homes in Texas to over 79,000 units.  The hardest hit areas seem to be in the San Antonio, Austin, and Dallas/Fort Worth areas.  In less populated areas, like West Texas, the results have been less dramatic.

Choices for Homeowners Facing Foreclosure

Homeowners faced with foreclosure have several options they may want to consider before giving up completely.  According to the Texas A&M Real Estate Center, homeowners have a few choices available to them before they must leave their home.   First, if a homeowner has the resources, he may end the foreclosure process by paying off the debt before the lender sells the home.  This is called equity of redemption.

Another option is for the homeowner to seek financing from another lender.  This may be a difficult task, especially since stricter lending practices are in place and the homeowner needs to have good credit to secure the loan.

The homeowner can try to sell the home and pay off the debt with the money from the sale.   There is usually little time for this, and the homeowner will have to get the home up for sale before the foreclosure process begins.

According to Texas A&M, an option that is worth trying is a DIFL (deed in lieu of foreclosure).  This occurs when the homeowner gives the property back to the lender in exchange for the cancellation of the debt.  In a tough economy, with so many foreclosures, it may be difficult to convince the bank that it should forgive debt in exchange for the home.   Short sales, where the lender agrees to sell the property at a slight loss, are a growing trend which many lenders may consider before foreclosing.

Buying a Foreclosed Home SafelyForeclosures

If you are not facing foreclosure, but are interested in getting a good deal by investing in one, now is a great time to look at what the market has to offer.   With loans at record lows and foreclosures at an all time high, now may be the perfect time to buy that dream home you never thought you could afford, or to purchase those investment properties you always wanted.

With that said, the foreclosure market is not one to go into lightly.  Do your research and find out as much as you can about the home/homes in which you are interested.  A good deal at first may turn into a money pit if there are lots of repairs and issues with the home.  There may be back taxes, liens, or even tenants who refuse to leave the foreclosed property.  Sometimes foreclosed homes are run-down or vandalized by prior owners, angry from being thrown out.   Good bargains can still be found, but gain as much information about the property before bidding on it.

If you don’t have time to do the research or are intimidated by the prospects of foreclosure, a safer, more reliable option exists: bank-owned foreclosures.  Foreclosed properties owned by banks are usually listed with real estate agents and don’t have all of the potential risks associated with other foreclosed properties.  The lender may be willing to offer low lending rates, lower down payments or reduced closing fees.  These properties may not fetch rock-bottom prices, but they will be a bargain in their own right and you might be able to sleep soundly once you purchase one.

Remember whether you are facing foreclosure or looking for one, there are many options to consider.

Are you looking for a home in the San Antonio area?  Start you search now.

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Posted in Foreclosures

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