Whether you choose to sell your home on your own or purchase a home that is for sale by owner (FSBO), then it’s important to think about all of the pros and cons of a for sale by owner property. We’ll break it down for both sides – being a seller and being a homebuyer interested in a FSBO property. 

Buying a For Sale by Owner Home

A home that is for sale by owner is directly sold by the homeowner without any help from a listing agent. Here are the steps to follow if you are buying a FSBO home:

• Find a lender and get approved for a mortgage
• Consider working with a buyer’s agent who can guide you through the process and look out for your best interest – this person will negotiate on your behalf and handle all the complicated paperwork for you
• Make an offer on the property – if you are working with an agent, they will guide you on putting together a competitive offer. If you are representing yourself, take a look at the comps in the area to guide you as you decide how much to offer
• Take your time looking around the property and be diligent about home inspections 
• If you are not working with an agent, be a strong negotiator to make sure you get what you ask for
• Be aware of the required paperwork to close and be thorough when filling everything out accurately

As there are with any other situation, there are pros and cons for buying a for sale by owner home, the pros include:

• You avoid paying real estate agent fees and commissions by buying direct from an owner
• You have the opportunity to be directly in contact with the owner, which can lead to a smooth negotiation

The cons of buying a for sale by owner home include:

• Unless you or the seller are licensed agents, it is likely that neither of you are experienced with the minutiae involved in a real estate transaction, including the paperwork and time necessary to navigate the process
• Misunderstandings during negotiations can lead to legal actions
• You can overpay for a property if you don’t do research into market comps
• You run the risk of the seller not being 100% honest about the property – especially for things that could potentially lower the value of the home

Buying a FSBO home isn’t always a great opportunity for a buyer – even though you may save on agent commissions, you may run into other problems during the home sale process. 

Selling a For Sale by Owner Home

There are many reasons why homeowners will choose to sell their own home without the help of a licensed real estate agent. In Texas, if you sell your own home you can save anywhere between two and six percent in commissions. FSBO is an option that allows many people to take charge of the selling process, call the shots, negotiate their own terms and who don’t want to pay an agent any commission. It may seem easy enough – you list your home, put out a yard sign, the offers start coming in, you pick a buyer, negotiate and close – right? Unfortunately, if it really were that simple then there wouldn’t be a need for the real estate agent profession, and everyone would be doing it their own way. Selling your own home can be considered as a viable option if you are an experienced home seller who is willing to put in the time and effort that it takes to do it right. Some of the key benefits of selling your own home include:

• Direct control over how the property is sold – including your pricing strategy, scheduling showings and negotiating with potential buyers
• You save on commissions and end up with more money in your pocket
• For sale by owner sellers who find a buyer that is not being represented by a buyer’s agent will save an additional amount of money – about 2.84%, which is the average buyer’s agent commission rate in Texas. 

While it’s very appealing to save money, FSBO does have some significant risks that are worth pointing out. Research shows that homes that are sold by the homeowner will usually sell for about six percent less than those that are listed with an experienced real estate professional. Additionally, it takes a lot longer to sell a FSBO home because homeowners are not equipped with the marketing tools or network connections that agents have, and it is more likely to fall out of escrow even with an accepted offer. 

Real estate laws and processes are different across the country so it’s important to be familiar with the local market and laws if you choose to sell your own home. Here are some details on what you need to do in Texas to complete a FSBO transaction successfully:

• Before you list your home for sale you have to prepare it by completing any necessary repairs, doing a deep cleaning and staging your home to make it stand out and look nice. 
• Once the home is ready to be listed for sale you will want to work on your pricing strategy by looking into comparable sales within the last six to 12 months in your neighborhood. This means that you need to see what other home similar to your own sold for in this time period. The comps you look at need to have the same bedroom and bathroom count and combination as your own home, be similar in size, have comparable upgrades and be within one mile of your own property. Accurately and competitively pricing your home is key to getting it sold quickly. 
• When your home is officially listed for sale on the market you have to be diligent about marketing the home with an attention-grabbing description, high-quality pictures, cross-listing it on different websites and promoting it on social media, in print ads and via word of mouth. You will also want to work on scheduling an open house for interested buyers and private showing appointments. Make sure to let your neighbors know that you are selling your home so they can share the information with their friends and family, etc. 
• When a potential buyer comes along with an offer, you have to vet them to make sure they are qualified and can afford the home. If you accept an offer from an unqualified buyer, the sale will fall through and you’ll have to start from scratch with marketing and showing the home. 
• The closing process can get really tricky if you are not experienced in the real estate process – there is a lot of paperwork that needs to be completed accurately, including:
  • A signed purchase agreement, as well as any addendums that list the agreed upon changes
  • A detailed statement of all the costs associated with the sale and who is responsible for paying them
  • A signed deed to legally transfer your property to the new owner (the buyer)
  • A bill of sale that is basically a receipt that includes your information and the buyer’s
  • A notarized document that states that you own your home and there are no liens on the property and that you are not trying to sell it to someone else
  • If you have a mortgage on your home, you will need to provide loan payoff information – if you don’t owe money on the property then you need documentation that proves that
  • If your home is part of an HOA, you will need to share the HOA codes, restrictions and financial information with the buyer
  • If you completed any major repairs or renovations on the home you will want to provide these receipts to the buyer, as well as contact information about who to contact if future repairs are necessary
  • A copy of the home warranty service agreement to explain what is covered and for how long

There are various other documents that may be required so you will have to be diligent about getting all the proper paperwork together and executed before closing. 

At the end of the day, buying a for sale by owner home or selling your own property without professional guidance is not for everyone. But now that you know what to expect, whether you are buying a FSBO home or choosing to sell your home by yourself you can feel confident about the process and the potential challenges you may encounter. In order to successfully complete a FSBO transaction you will need to make a plan, dedicate the necessary time, hustle and know when you need to seek out professional advice if you get stuck. Our team is always available if you are seeking guidance, please contact us if you have any questions about listing your home for sale or inquiring about a home that is listed for sale by owner. We look forward to working with you and assisting you with all of your real estate needs!

Have you heard about short sale properties? Maybe you’ve been told that they offer a wonderful opportunity to buy a great home and become a homeowner at a discount, or you may have been told to steer clear of short sales because of the hassle. No matter what you have heard it’s important to note that purchasing a short sale home is a very different process than traditionally purchasing a property that is listed for sale. There are very few short sales that are completed within 30 days, and the process can be tricky and frustrating. The main benefit of buying a short sale property is that you can get a steal of a deal on a great home. 

Before we get into how to buy a short sale property in Bryan College Station, TX let’s take a look at what a short sale is. A short sale can be compared to a foreclosure home, but they are not the same. When a home is available at a short sale, the bank or the mortgage lender will agree to allow the current homeowner to sell the house for less than what they owe. In order for a home to be considered a short sale, two things need to happen:

• The homeowner is extremely behind on payments and won’t be able to catch up
• The housing market is suffering and has significantly gone down so that the house is worth less than the remaining balance on the mortgage

In most cases, the lender and the homeowner would prefer to go through with a short sale process in order to avoid a complete foreclosure. 

A common misconception when it comes to short sale homes is that many people believe the lender would like to get rid of the home as fast as possible and move quickly in order to get as much money back as possible. The truth is that banks and lenders will take their time in order to recover their losses as best they can – just because a property is listed as a short sale doesn’t mean that the lender will accept your offer, even if the seller agrees to your price and terms. Although potential buyers will negotiate with the homeowner throughout the short sale process, all of the details must be reviewed and approved by the lender in order for the sale to go through. This is what makes the process so unpredictable and lengthy – everything has to be approved by the lender even if the homeowner and buyer agree on their own terms. 

Before you get excited about the opportunity to buy a home below market value you need to pick up the phone and call your real estate agent. Your agent will be able to look into the property and research the details behind the short sale that they can then share with you. Here is a quick breakdown of the process that takes place during a short sale transaction:

• The homeowner initiates a conversation with their real estate agent and lender about the possibility of selling the property via short sale. The owner will have to prove to the lender that they can no longer make payments towards the mortgage and that they have no assets to sell that would help them catch up on the payments. 
• The agent and homeowner list the property for sale, and eventually put together and execute a sales contract with the interested buyer. Remember that even if a contract is executed this does not mean that the sale will make it to the finish line – the lender has to approve the price and terms.
• The lender will review the sales agreement and either approve the offer, reject the offer, reject the offer but outline what they would agree to or simply choose not to respond at all.
• Once the lender responds to the sales agreement it’s back to the buyer to either accept or reject the new terms outlined by the lender. If the contract is approved, then the sale will continue and eventually close, and the home will be transferred over to the new owner. The lender will receive the proceeds from the sale and release the original homeowner from their mortgage loan, even if the full balance was not paid off by the sale of the property. 

If you are considering buying a short sale property in Bryan or College Station, here is a more in-depth outline of what you can expect throughout the process:

• The first step is to find the property that you are interested in. Whether you come across a short sale while you’re looking for homes for sale or if you are specifically searching for these types of opportunities, you should not be doing it on your own. Working with a qualified and experienced agent can make all the difference between a smooth transaction and a difficult and frustrating experience. An agent will check the title, find out whether a foreclosure notice has been filed, determine how much is owed to the lender and gather additional information to help you put together a competitive offer. Our team at Brazos County Realty has more than 25 years of experience in the real estate industry and will gladly offer up our knowledge and expertise to guide you through any real estate transaction – no matter how complicated it may be!
• Unless you are planning on paying for a short sale home with cash, you will still need to go through the steps of getting approved for a mortgage. If you don’t have financing secured, then the lender will most likely dismiss your offer and you’ll miss out on the home. Getting pre-approved is a relatively quick and easy process – most lenders can verify your credit and financial information within a day or two. Once you submit the paperwork and you get pre-approved the lender will write you a letter that you can use to make a credible offer on a home. 
• When you are ready to make an offer on a short sale home you need to make sure that it is competitive – your real estate agent will be there to guide you and help you put this together. A good offer on a short sale home includes:
  • The purchase agreement that will be signed by you and the seller
  • The earnest money deposit to show that you are a serious buyer
  • The pre-approval letter from your lender, unless you are paying all cash
  • A comps package for similar properties in the area to show that your offer is strong
  • Proof of funds showing that you have enough money to purchase the home and make mortgage payments if you are getting a loan

Putting together a low offer will not work in your favor – remember that everything has to be approved by the lender that holds the mortgage on the home even if the seller accepts your offer. Underpricing is the number one reason that banks will reject offers on short sale homes. 

• Make sure that you and your agent put a list of contingencies together – these are conditions that must be met before the sale closes. For example, state how long you are willing to wait for short sale approval, the amount you will pay in closing costs, how many days you need to complete a home inspection, etc. 
• Keep in mind that short sale homes are sold “as is.” Unlike in a regular real estate transaction, in a short sale you can’t ask for credits from the seller or for them to lower the price if you uncover issues that will be expensive to repair. This doesn’t mean that you shouldn’t get a home inspection, you should always get a thorough inspection from an experienced inspector because this may uncover deal-breaker problems that may change your mind about going through with the sale. 
• Short sales usually take longer to close than a traditional sale – you can expect an average of 60 to 90 days for a lender to approve the terms of your offer. There are so many variables that can happen during this process that can extend the time it takes to complete the transaction. This is why it is important to work with an agent who is experienced in short sales so they can manage your expectations and guide you through the process. 
• There are various issues that can come up during a short sale, but some of the most common ones include:
  • The bank will accept a competing offer
  • The seller backs out of the deal
  • The seller owes multiple debts to different lenders, and the junior lender (smaller debt) will block the sale

Finding a short sale home can be difficult to begin with and the process of purchasing it is also lengthy and unpredictable. Despite these challenges, if you make it to the finish line then you know that you got a great house at an incredible price. If you are interested in learning more about short sale properties or are in need of a real estate professional to guide you through a short sale, please contact us. 

Investing in real estate is a popular strategy among many Americans who are trying to make more money and grow their wealth. Do you know why? Because property is very valuable and is considered to be a great long-term investment – the one thing that holds people back is that investing in and owning real estate is a big commitment that requires a lot of time and money. The great American dream tells us that a big part of it falls in homeownership, which means that most people will save up money to have enough for a down payment on their first home. Then they’re likely to sell that first home and take the profit they made and invest it back into a larger home. 

If you are looking to buy your first home, but you don’t necessarily love the homes or the neighborhoods that you can currently afford, then you should consider buying an investment property in Bryan, TX instead. Here are some reasons why many first time buyers are investing in real estate instead of taking the traditional route of buying their first home. 

• Home values are at an all-time high and are consistently increasing year over year. While we don’t know how the COVID pandemic will impact the real estate market and home values long-term, at this point in time the market is still strong in Bryan College Station. 
• Interest rates are historically low, which means that your monthly payments will also be fairly low. The interest rate that you qualify for largely depends on your credit score, the down payment amount and your debt to income ratio. Most first time buyers will put down between three and five percent, but it is best to put down 20% so you can avoid mortgage insurance, qualify for a lower interest rate and enjoy lower monthly payments. When it comes to credit score, banks want strong borrowers with a score above 740. If you are having a hard time qualifying for a low interest rate due to a small down payment, lower credit score or other issues then you should consider working with a smaller bank that may have more flexibility in lending than a big national bank. 
• One of the main reasons why buyers wait to pull the trigger on buying a home is that the home they want or the neighborhood they are interested in is not affordable. With home values on the rise many first-time buyers find it impossible to purchase a home they like in an area they like so they end up settling for a smaller home or a less than desirable area. If you find yourself in this scenario you should consider buying an investment property in Bryan that you can rent out. This allows you to get your foot in the real estate door, generate monthly cash flow and build equity until you can afford to buy the home of your dreams in the neighborhood that you like. 
• Owning real estate that you operate as a rental offers many tax benefits and write offs that can help you save money long term.
• When you operate a home as a rental property you can charge rent that is higher than your mortgage, which helps you cover your monthly expenses as well as getting extra cash flow that you can set aside for the down payment on your dream home.
• Another reason why buyers choose to invest in property is because they want or need flexibility in their lifestyle. Owning a home can limit your ability to relocate if you need to, which might not be a good fit for your current lifestyle. Buying an investment property in Bryan, TX gives you the freedom to move if you want to, but you won’t miss out on growing your real estate portfolio and equity. 

Investing in Property

Investing in real estate can mean many different things – you can own a single-family property, a condo or townhome or you can invest in apartments, retail and land. The best decision is dependent upon your unique situation and what your investment goals are. Let’s take a look at the most common ways that people invest in real estate:

• Buying a single-family property is the most common type of real estate investment. It is a wonderful way to create additional revenue on a monthly basis, and it could also earn you a nice profit if and when you choose to sell. The key to being successful in this type of investment is to buy in a good location that has potential for growth. For example, buying a home or a condo near Texas A&M University is a great opportunity because there is always a need for student and faculty housing in the area. 
• Another common real estate investment is flipping homes. What does this mean? This is when you buy a home that is usually a fixer upper, put some money into it for renovations and improvements and then sell it quickly for a profit. Flipping homes is an appealing investment because the profit turnaround is quicker than renting out a property for years. The risk with this investment is that you could lose money if the market changes before you are able to sell for a profit. They key to being successful with flipping homes is to buy low, make only necessary improvements and don’t overspend on the renovation and to sell quick. 
• There are other opportunities to invest in real estate, including commercial properties like apartments, retail shops and more, but those can be more difficult and come with a higher price tag. 

How to Invest in Real Estate

You might be wondering when the best time to invest in real estate might be, and the answer is whenever you are financially ready. Keep in mind that investing in real estate is the same as buying a home – except that when you invest the goal is to make money back on this property so you can begin to build wealth. If you can own multiple rental properties that you have cash flow from, as well as your own family home then you are all set. Here’s a quick guide to help you get started when buying investment property in Bryan, TX. 

• Save up for a down payment of at least 20% so you can avoid mortgage insurance, qualify for a low interest rate and keep your monthly payments low. The lower your monthly payments are the more cash you’ll be able to make from rent. Take your time shopping around with your lender for the best rate. 
• If a real estate portfolio is part of your long-term plan for growing wealth, then you should diversify your investments. This means that if your whole net worth is invested in real estate any ups and downs in the market will throw you into a panic. Keep your money spread out in other investments like a 401(k), Roth IRA or other savings accounts. You can also diversify your money by investing in different types of real estate – like apartments, retail shops, etc. 
• While it is possible to own investment property all over the country successfully, if you are just getting started then we recommend you stay local. Even though you will most likely hire a property management company to take care of your property, to assess damage and make repairs, at the end of the day you are the only owner and it’s important to keep tabs on your investments.
• Be prepared for risks and to lose some money. Renting out a property sometimes means that the home will stay vacant for a few months until you find new tenants. During this time, you are responsible for making the mortgage and utility payments, which can be tough to do if you are not prepared. Even when you have tenants in your investment property you will still need to be ready to make repairs and to take care of it if something breaks. 
• Hire a real estate agent before you make any decisions. A professional realtor will help you understand the local market, they’ll know what areas you should look into and what hurdles you may face as an investor. They will also help you through the purchase process once you find the perfect investment property, and they can also help you find tenants once you are ready to operate it as a rental. 

There are many pros and cons to investing in property and real estate – it isn’t for everyone! If you are debating on whether or not buying an investment property is right for you, we encourage you to discuss this opportunity with your financial planner and a real estate expert. Our team has more than 25 years of experience in the real estate market and we’ll be happy to answer your questions about investing in property and help you find the perfect homes to start with. If you would like to learn more about us or to explore our current listings, please contact us. We look forward to hearing from you soon! 

Texas A&M University is located in College Station, TX and is well known as the state’s first public institution for higher education. The campus was established in 1876 and today it offers more than 130 undergraduate degree programs, 170 master’s degree programs, 93 doctoral degree programs and five professional degree programs. With more than 62,000 students the school is considered to be very large, and it’s also very spacious as it covers more than 5,200 acres in College Station. Texas A&M is best known for its business, agriculture and engineering programs – and it also has one of the more prominent programs in recreation, park and tourism management. The school boasts a graduation rate of 82% and alumni tend to really thrive economically after graduating from the school. 

Texas A&M is a top-notch school and a very prominent establishment in Brazos County, which is why it is also a leading employer in College Station. There are various options for on-site residence for both students and A&M faculty, but there are also other housing options available if A&M employees are looking to work and live in the area. The type of residence that is best for A&M employees is based on personal preferences and the unique wants and needs of the individual. Here are a few questions to ask yourself before you determine what type of home you are looking for:

• Do you want to live in an apartment?
• Do you want to own or rent a property?
• Are you ok with paying monthly HOA fees if you find the perfect home located in a condo or townhome community? 
• Do you want a single-story or two-story home? 
• Will you be living here short-term or long-term?
• Do you want to continue owning the property even if you decide to move out? Will you keep it as an income or rental property?
• Are you interested in a quiet, suburban neighborhood or do you prefer to live near a downtown-like area where you can have easy access to nightlife, restaurants and entertainment?
• How far are you willing to commute? Do you prefer to live closer to the campus?
• Do you have a family? If not, are you planning on starting a family in the near future?
• Do you prefer to be in a neighborhood where there are good schools, parks and playgrounds?
• Do you want a smaller home like a condo or townhome, or do you prefer a more expansive property with an impressive backyard?
• What amenities are important to you? Things like a pool, stainless steel appliances, a deck, big yard, etc. are important to take into consideration when searching for homes. 
• How much can you afford? How are your finances? How much of a down payment will you be comfortable with?
• Do you want a home with a view?
• Do you have pets?

There are various other questions that are important for you to answer as you embark on your home search. It’s also important that you work with an experienced and professional lender who can help you sort out your financial situation. Getting pre-approved for a loan is an important step in the home buying process and one that you should not skip. Your lender will walk you through the process of applying for a mortgage, check your credit score and collect important documents like paychecks and tax returns to determine how much you will be able to afford when looking for a home in College Station, TX. 

Once you know what you are pre-approved for you can confidently work with your real estate agent and being looking at homes for sale. There are various homes and properties for sale in Bryan College Station for you to consider, these include:

• Luxury homes and condos
• Townhomes
• Fixer upper properties
• Single family homes
• Investment properties
• Multi-family homes
• Apartments
• Waterfront properties
• Golf course homes
• Farm and ranch land 
• Foreclosure properties
• And so much more!

Rental properties are popular among A&M employees, simply because it allows them to live in a comfortable home that is located near the campus without a long-term commitment of owning it. If you are not prepared to buy a home then you should consider looking into rentals near Texas A&M. Looking for homes for rent in College Station, TX is similar to looking for homes to purchase – the main difference comes down to the negotiations. Here are some tips to help you find the perfect rental in College Station:

• Make sure that every bit of your negotiation is put down in writing in your lease agreement
• Discuss how rent increases will happen, especially if you plan on renting the home for a couple of years
• Carefully review every part of your lease agreement, including special terms and conditions to make sure that you understand them and are comfortable with them
• Discuss pets early and make sure you understand the policy in regard to pets. It is common for landlords to request an additional pet deposit as well as pet rent. There may also be restrictions for specific breeds and pets that are above a certain weight. 
• Pay special attention to the appliances in the home and make sure to report any cosmetic defects right away to ensure that you are not liable for any damage that was present before you moved in. Discuss who is responsible for the repair and maintenance of all items once you sign your lease agreement. 
• Work with a real estate agent who can help you find a rental property that fits your wants and needs and can assist with the lease negotiation to ensure you are protected and won’t have to deal with unpleasant situations while you live in this home

Another popular option for homes for Texas A&M employees includes looking into fixer upper opportunities. Buying a home that needs some serious TLC is both exciting and a lot of work, but you can really create the home of your dreams if you are smart about it and put some elbow grease into the renovation. The most important thing to keep in mind when buying a fixer upper is that even though you will save money on the down payment and monthly mortgage payments, you need to ensure you have the funds necessary to complete the renovations on the home so that it meets your expectations. Buying a fixer upper and rehabbing it instantly increases the value of the home, which can be very beneficial if you choose to sell it in the future. Here are some things to keep in mind when buying a fixer upper home in College Station, TX. 

• Most fixer upper homes are sold “as-is,” which means that you will not receive credits or a discount on the price even if a home inspector finds issues. 
• Make sure that you have the time to put into the renovation. As a Texas A&M employee we encourage you to look for properties outside of the academic year so that you can have the time to supervise your contractor and tackle big projects during the summer break. 
• Even if you enjoy DIY projects, we highly recommend working with professionals on big things like HVAC, electrical, reconfiguring the layout and others. 
• Before you begin a renovation develop a timeline and determine what absolutely needs to be done and what can be fixed at a later time. For example, structural issues and things like plumbing and electrical work should be done right away whereas cosmetic updates like resurfacing the cabinets or painting the window frames can be done later. 
• Be realistic about your budget – a fixer upper can end up being a very expensive project. There is always a chance that when you begin renovating the property you will come across surprises and unexpected issues that can cost you a small fortune to repair. 

College Station is a picturesque town in the heart of Texas where you can enjoy a wonderful lifestyle in a tight-knit community. There is much to do, see and enjoy in the area as well as incredible opportunities for employment at Texas A&M. If you are new to the area we encourage you to take a look at our resources page to help you prepare for life in this beautiful city – we’ll help you find the best restaurants, transportation options, medical resources and so much more. If you are an employee of Texas A&M University and you are looking for homes for sale, properties for rent or additional housing options in College Station, then you have come to the right place. Our team at Brazos County Realty is here to help with all of your local real estate needs, and we’d be happy to answer any questions you may have about the area, the real estate market and to offer guidance as you find the perfect property to call home.

Buying a new home, whether you are a first-time homebuyer, or a return investor, is an exciting experience. Visiting open houses and exploring floor plans, planning out renovations and picturing your life in a new house is made up of equal parts stress and fun. Settling on a house to buy is a big decision and a big financial investment, even if you are moving from one house into another one. Buying a house is the biggest financial decision and purchase you will ever make, so it’s important that you do your due diligence and make sure that you are picking the perfect property for your family and for your bank account. There are countless beautiful, luxury homes for sale in College Station that range in size, are scattered in amazing locations and neighborhoods and offer various amenities. Some incredible master planned communities where you can find luxury homes for sale in College Station include Miramont and Nantucket.  

One of the biggest challenges of house hunting, also the most important, is finding the right home in the right neighborhood. The “right” home is totally subjective, and it means different things to different people, and we’re happy to share that in College Station and Bryan, TX there are various incredible neighborhoods and subdivisions that have something to offer for every buyer. One community that we would love to introduce you to is Miramont – an exclusive destination that is also a stunning country club. Miramont offers residents the best of everything – the luxury of a country club lifestyle, elegant architecture and beautiful homes, the finest amenities and a friendly, relaxed and refined atmosphere. Some of the incredible neighborhood features at Miramont include sidewalks for pleasant walks, jogging and biking, ponds, creeks and lakes among meticulously manicured landscaping and more. Additionally, residents can also enjoy a picturesque golf course, tennis courts, swimming pool, fitness center, fine dining and a spectacular 93,000 square foot club house.

This master planned country club community is located just a few short miles from Texas A&M University but offers a quiet retreat that masterfully blends an elegant, easy-going atmosphere with modern day amenities and development plans. The 527-acre development has approximately 400 home sites and real estate options range from grand estates, to luxurious chateaus, elegant villas and custom developments. Pricing for real estate in Miramont starts at around $600,000 and goes all the way to over a million dollars. Homeowner’s Association (HOA) fees are $920 per year for each home, and properties that offer direct access to the golf course contribute an additional $100 per year for maintenance. These are the available real estate options:

• The Villas at Miraloma are a collection of exquisite luxury homes clustered in an intimate neighborhood at the heart of the community. There is separate gated access to this part of the community where homeowners can find the finest homes perfectly blended into the countryside. Inspired by the architecture of provincial France, there are seven floor plans available ranging in size between 2,900 – 3,900 square feet.
• The Villaggio of Miramont homes are graceful, elegant and offer the finest of indoor/outdoor living. Interested buyers can choose from six different floor plans that offer three to four bedrooms and high-quality interior finishes and details.
• The chateaus of Miramont begin at 2,000 square feet and are the perfect vacation property or home away from home where families can gather to celebrate holidays and special events. The chateaus offer low maintenance living but can also be designed to meet the unique needs and wants of every family.
• If the above options don’t satisfy your real estate desires, then you can always opt for a custom home site at Miramont. These plots of land offer the opportunity to create and build your dream home that is perfectly tailored to your specifications. Ranging in size from one-third to over an acre, these home sites are generously proportioned to accommodate personalized building plans that take advantage of everything that Miramont has to offer.

There is no doubt that living in the Miramont community provides residents with a one-of-a-kind, first class, family focused, refined and exclusive lifestyle that is parallel to none.

Another fabulous and highly desirable neighborhood where you can find luxury homes for sale in College Station is Nantucket. Nantucket is a short eight miles away from the Texas A&M University campus and perfectly located near prime shopping, dining and entertainment. There are 230 homes in the Nantucket subdivision and the properties range in price from $330,000 all the way to $800,000 and above. The price mirrors the home lot size that is available, with larger properties ranging in size from one acre all the way up to five acres. These lot sizes are bigger than most other neighborhoods around College Station, which allows residents to enjoy a simple, rural lifestyle. The houses also range in size from 2,000 square feet all the way to well over 4,000 square feet. The architectural style and character of the homes in Nantucket span from traditional, colonial and stunning Cape Cod designs.

One of the biggest advantages to living in Nantucket is having unparalleled access to the beautiful 33-acre, gated community park, which also features a private fishing lake. Throughout the neighborhood residents will find walking trails that wind through the wooded scenery, allowing a peaceful and beautiful escape from the hustle and bustle of everyday life. The Nantucket community is the ideal place to call home for a young couple, a family with children or empty nesters looking to enjoy their golden years together.

Once you’ve selected the neighborhood that you would like to shop around for a house, it’s time to start visiting open houses, explore online listings of homes and work with your real estate agent in identifying properties that you might be interested in and can afford. Here are some things to look out for when you know you have found the right house. 

• You are eager to go inside the home and explore what it has to offer. First impressions really count so when you feel excited as you pull up to the curb of the house that is a really good sign. It means that something about this property appeals to you. 
• As you walk into a home that is listed for sale you will know right away if you feel comfortable and if the house is welcoming and warm. Does it feel like home? Does it invite you to explore further? 
• Bathrooms are weird rooms to explore during a home tour – most buyers will open the door and poke their head in to see what it looks like, but they’ll feel uncomfortable doing it. It’s a good sign if you walk into the bathroom and feel comfortable looking inside the shower, touching the vanity and familiarizing yourself with the room confidently. 
• If you begin feeling defensive about the property when others point out small or big flaws it could be a sign that you are getting attached to the home – almost as if it is already yours. Just remember that it is important to acknowledge any things that need fixing and determine if you’ll be able to fix them or live with them if you end up purchasing the property. 
• You may have walked into your future home if you begin envisioning the arrangement of your furniture, where you would place family pictures and seeing yourself enjoying a morning cup of coffee in the backyard. If you can see yourself living in this house and building a life, then you may have found the right house. 
• If the house checks off the boxes for the most important needs and wants on your list, it’s a good sign that you’ve found the right place. If the home has the right number of rooms, a good floor plan, is spacious and has the amenities you are looking for then it’s time to make an offer. 
• If you’re ready to stop looking at other homes and you can’t wait to start bragging about your house to your friends and family, then it’s a sure sign that you have the found the perfect property for you and your family. If you feel this way about a property, then it’s important to act fast and work with your agent to draft up an offer immediately. If you love the house, then chances are that someone else does as well. Once you submit an offer and open escrow you will get a chance to do inspections, visit the house again and dive deep to ensure that it’s still as perfect as you imagined it to be. If something is off, then you can re-negotiate or cancel escrow, but getting your offer accepted is the first big hurdle to get over. 

House hunting and looking for luxury homes for sale in College Station is an exciting experience, but it’s important that you have the guidance and expertise of a professional real estate agent to help you. If you are looking to buy a new luxury home in College Station, interested in selling your current property or just have questions about the current real estate market in Bryan College Station then please contact us. We look forward to hearing from you and assisting you with your real estate needs. 

Listing a home for sale is the first step in the sales process, and the road to closing escrow and passing the keys to the new owners can be a long one. There are many different ways to market the property and attract buyers, but open houses have been a tradition and a tried-and-true approach to selling a home for a very long time. Are open houses still considered to be a top tier marketing tool for selling a home? Yes and no! Open houses can be valuable because they increase exposure of the property, but the reality is that an open house will not increase the chances of selling the property faster. If you are listing your home for sale, it’s important to understand the pros and cons of an open house before you agree to this popular marketing method. 

Pros of an Open House

• Exposure

A listing agent’s most important job is to ensure that their client’s home gets maximum exposure and reaches a wide audience that might be interested in making an offer and purchasing the home. There are many ways that a realtor can increase exposure through marketing, passing out fliers, door knocking around the neighborhood, reaching out to other colleagues in the business and hosting an open house. Agents can also host a separate broker’s open house where they only invite real estate professionals to view and tour the home so they can bring in their interested buyers and quickly sell the home. Without exposure the chances of selling a home decrease significantly. While most homes for sale are listed on the MLS, this is not always enough to encourage potential buyers to submit an offer. The more people that see the listing in person, the more likely you will find the right buyer quickly. 

• Convenience

While a good portion of open house visitors will have planned on stopping by and exploring this specific listing, there will also be a significant group of buyers who drop in from the street. This is why street signs are so important to point interested buyers in the right direction. There are many buyers who will stumble upon an open house sign on their way to the grocery store, lunch with friends or while walking around a neighborhood over the weekend. Open houses are so convenient and encourage just about anyone to stop by, take a look around and ask for more information about the listing. 

• Open to Larger Audience

Open houses are available to more than just a potential buyer. Other agents and brokers are also invited to open houses so they can look around and see if they can find a buyer for the property. This encourages agents to work together so they can sell the home faster. Other people who may be interested in attending an open house can include neighbors in the community who can then pass on the information to their friends and family. This in turn increases the pool of who might be interested in learning more about the listing and maybe even making an offer. This ties back to the exposure you achieve when hosting an open house – the more people that it is open to the wider your reach and the better the chances of quickly finding an interested, motivated and qualified buyer for the property. 

• Allows Buyers to Browse

Most buyers will always look at homes for sale online first, then they’re likely to look at listings that their agent will send them. But nothing beats browsing a home in person, even with modern technology allowing for high quality 3D virtual tours seeing a property firsthand is preferable for most buyers. Attending an open house in person allows the buyers to comfortably browse the home from room to room without the pressure of a third party. Even though the listing agent will be present to make sure the home is safe and secure during the open house, they are there to answer questions and provide additional information. If a buyer is interested in the property and serious about making an offer, they can always make an appointment for a private showing where they can spend more time looking around and asking any unanswered questions. 

Cons of an Open House

• Security Concerns

One of the main concerns over hosting an open house is opening up a private home to strangers who may have ulterior motives for visiting. Vandalism, theft and break-ins are likely to take place during or after an open house, which is why it is important for the sellers to make sure any valuables and high-quality items are safely stored away. It is nearly impossible for a real estate agent to keep an eye on every single person that walks through an open house or supervise them as they explore the property. Open houses of vacant properties are also at an increased risk for criminals to break in and vandalize the property when no one is around. 

• Lookie Loos

One of the positives of an open house is that it will attract neighbors to stop by and then share the information with their friends and family who may be looking to buy a new home. Unfortunately, one of the downsides of an open house also happens to be the fact that they attract neighbors. Inquisitive neighbors may stop by just to look at your house and compare it to their own – these types of lookie loos will visit the house, explore the property but with no intention to make an offer or share the information with their friends and family. If the property is a high-end or luxury home, it can be especially appealing for some people to stop by and waste some time on the weekend. 

• Attract Unqualified Buyers

Open houses can attract many unqualified buyers, which is a waste of time and energy for the real estate agent. One of the first things a buyer should do, before they start looking at homes listed for sale, is to get a pre-approval from their lender. A pre-qualification or pre-approval for a mortgage gives an idea of how much house the buyer can afford. This can help narrow down the choices so that buyers aren’t wasting time looking at houses that they cannot afford. Many people who attend open houses have not yet taken this important step, and chances are that they won’t be able to afford to buy the home. There’s no way to pre-screen open house visitors or determine whether they are pre-approved at first glance.

• Lowers the Chance of Sale

Although open houses are an outstanding marketing tool and will increase the exposure of a listing, it won’t exactly increase your chances of selling the house. In fact, most home sales are not a direct result of an open house. A potential qualified buyer could attend the open house and convert into a sale, but chances are that interested buyers are more likely to make a private appointment to come by and explore the property on their own time without the distraction of other people. An open house is unnecessary for a home to sell, but it is a great tool to gain exposure and basically get the word out that this home is listed for sale. The best way to bring in interested and qualified buyers is to directly schedule private showings. When you schedule private showings, you ensure that you are working with qualified, pre-approved buyers who you have financially vetted and who are serious about making an offer and seeing the sale through. 

When you list a home for sale with a real estate professional, you need to sit down with them and weigh the pros and cons of holding an open house before you decide whether or not you would like that to be part of the marketing plan. Keep in mind that a good real estate agent will be able to sell your home regardless of whether you host one or not. There are many other ways to market a property and attract interested and qualified buyers. Some of the best ways to market a property listed for sale include:

• Listing the property on the MLS
• Sharing information, pictures and videos on social media pages like Facebook and Instagram
• Run paid promotions on social media websites to reach a larger audience
• Develop an email marketing campaign complete with neighborhood information, videos, virtual walk throughs and more
• Use drone photography to showcase the property and neighborhood from different angles
• Host a broker’s open for colleagues and professional partners only
• Create a website dedicated to the property

If you are interested in listing your Bryan College Station home for sale, please don’t hesitate to contact our team to learn more about our expertise and approach to selling real estate. We have more than 25 years of experience in the industry and we are committed to helping our clients achieve their real estate goals quickly, efficiently and effectively. We look forward to hearing from you soon!

There’s nothing better than being prepared ahead of time for a new experience. While it’s fun to be spontaneous and make spur of the moment decisions, certain situations require a bit of research and information in order to be informed so you can make educated decisions. Buying and selling a house is one of those life moments where it’s important to be informed and receive guidance from a professional, experienced real estate agent. The process of buying or selling a home can be very easy, or it can be very complicated depending on the unique situation of both parties involved. One of the main stages of purchasing a home is the escrow process, which begins as soon as an offer is accepted and ends when the keys are transferred and title is signed over to the new owners. There are numerous steps involved throughout the escrow process, some are optional while others are mandatory, but in this blog post we’re going to comb over the escrow process in detail and explain every aspect of it as it relates to buyers and sellers. 

The escrow process is facilitated by an escrow agent – this is a neutral party that holds onto the buyer’s funds and ensures that the terms and conditions of the purchase contract are met by both the buyer and seller. Once escrow verifies that all parties have completed their obligations as stated in the signed purchase agreement, then the buyer’s funds will transfer to the seller and ownership will be transferred to the buyer. 

Escrow companies are licensed and regulated by the state, which provides oversight into how the company is managed and that they fulfill their duty as a third party to any real estate transaction. Because large sums of money flow through escrow companies on a daily basis, there are strong security measures in place to protect buyers and sellers and to keep the funds safe from hackers and scammers. The reliability and performance of an escrow company are absolutely vital to protecting the interests of all parties are involved in a real estate transaction. 

The Escrow Process Explained

Step 1 – Open Escrow

The first step in the process is to select a property that you like, submit an offer, go back and forth on negotiations and have a signed purchase agreement on the home between both the buyer and the seller. Once both parties have signed the contract and the real estate agent delivers it to an escrow agent the escrow process can begin. The buyer must submit a deposit, also known as earnest money, to the escrow company who holds on to the money until the close of escrow. The seller will then produce a list of property disclosures with their agent, which will be reviewed by the buyer who can either accept or reject them. Seller disclosures will often include information about the property including any flaws or issues with the home, information about previous improvements and repairs, as well as any potential environmental hazards. Sellers are given a disclosure packet to fill out before they even list a property for sale so they can be prepared – defects and issues with the home must be disclosed to a buyer before their offer is accepted. 

After the buyer reviews all disclosures they can choose to complete a home inspection by a professional and experienced home inspector, which will be shown in the contract as the inspection contingency. The buyer will have a specific amount of time allotted to complete the inspection, which will include a thorough inspection of the roof, sewer system, chimney, pool, pest inspection and general overview of the entire home. Buyers also have the option to obtain additional inspections by professionals for a pool or other special area of the home. Once the inspection is complete, the buyer can renegotiate certain terms of the purchase agreement, including asking for a reduction in price to cover any necessary repairs that came up during the inspection. The seller has the opportunity to respond to these requests by either agreeing to them, submitting a counteroffer with a different solution or to decline the changes. If the buyer and seller cannot come to an agreement on this renegotiation then the transaction will fall out of escrow and the earnest money deposit will be returned to the buyer. 

Step 2: The Mortgage Escrow Process

If the buyer is borrowing funds for the purchase of the property, the escrow process takes longer and can sometimes become complicated. The buyer will submit a loan application directly to their lender or through a licensed mortgage originator. Most buyers will have a pre-approval letter from their lender showing how much they are qualified to borrow and at what price they can afford to buy a home. In order to obtain a pre-approval buyer must prepare a comprehensive list of personal financial documents, including:

• Several monthly bank statements
• Federal tax returns for the last two years
• Verification of employment
• Explanations about any credit inquiries 
• Information about divorce settlements, owed child support, bankruptcies, liens and anything that could potentially affect their ability to pay their mortgage

Once all this information is submitted then the lender can either approve or reject the application for a home mortgage loan. If the buyer is approved then they will receive a loan commitment letter, which shows that the lender will fund the mortgage and requires a property appraisal to confirm the current market value. If the home appraises for less than the purchase price, the buyer will have to put down a bigger down payment and renegotiate their loan terms. The purchase agreement will outline specific dates by which the buyer must meet their loan contingency and appraisal contingency. The final portion in this mortgage escrow process is for the buyer to secure homeowner’s insurance that needs to be submitted to the lender. 

This step of the escrow process is lengthy and there are many details and steps to follow. Our team can easily navigate this process, walk you through all the terms and conditions and ensure that you meet every deadline in a timely and stress-free manner. The most important thing to keep in mind during the escrow process is to avoid major financial commitments or life changes, including switching jobs, opening new credit card accounts or buying big ticket items like a new TV or a car – this could put your loan approval in jeopardy and can derail the entire purchase transaction. 

Step 3: Closing Escrow

The buyer has the right to complete a final walk through of the house before escrow is scheduled to close. This allows the buyer to make sure that any agreed upon repairs were completed and that the home is in the same condition as it was at the beginning of escrow. Once the walk through is done the buyer will have to sign all of their loan documents and complete any necessary paperwork that is remaining prior to the loan funding. A title search will also be done to determine that the seller is the owner of the home and that there are no liens that are tied to the home – if the title search is clean then the closing process will continue. At this point in the process there is a lot of paperwork involved for both the buyer and the seller – once all of the paperwork is completed and signed the buyer will pay any remaining closing costs and the title deed will be recorded with the appropriate government agency and transfer title, or ownership, to the buyer. At this point in the process escrow will pay out all parties involved in the transaction including the seller, real estate broke and/or attorney and anyone else who participated in the sale. The keys to the home will be delivered to the buyer who can then proudly take possession of their new home!

If the seller needs to stay in the property beyond the close of escrow, then there must be a signed agreement with the buyer granting them permission to stay at the home with details showing how long they can stay, how much per diem rent will be paid, etc. 

The escrow process is undoubtedly the most daunting part of a real estate transaction, for both a buyer and a seller. There are many moving parts, many things that need to be done in a timely manner and often at the same time, and there are many things that can go wrong. This is why it’s important to take the time to interview real estate agents and work with someone who is professional, experienced and who you feel comfortable with. For more information about the escrow process, or if you are interested in buying or selling real estate in Bryan College Station, please contact us. We would love to show you around, explore current listings, guide you through your real estate transaction from start to finish and assist you in making your real estate dreams come true – whether you are buying or selling a home.  

There are so many things you need to think about and purchase when you become a homeowner – besides furniture and household items. Homeowners insurance, getting a professional inspection and home warranty are all things that should not only be considered but that we highly recommend and encourage our clients to invest in. Do you know what a home warranty is and what it covers? A home warranty is basically a policy that a homeowner will pay for that will cover the cost of repair for home appliances should they break down or need additional maintenance. If you think about it, most products come with a manufacturer’s warranty in case they break down – cars, phones, computers, TVs, etc. Home warranties provide financial protection for homeowners who may face issues with their appliances and unexpected maintenance and repair costs from service providers. 

Some people could get confused and compare a homeowner’s insurance policy to home warranty, but it’s important to note that a home warranty is not the same thing as an insurance policy, and it does not replace it. A homeowner’s insurance policy is meant to protect you in the event of unforeseen damage to the home from something like an earthquake, fire or storm – it can even protect your high value belongings like art and jewelry depending on what is included in your policy. A home warranty policy protects the appliances in your home as they age, which helps you save money if you need to replace a dishwasher or service a water heater that unexpectedly stops working.  Home warranty policy does work similar to an insurance policy – every year that you have coverage under the warranty you have to pay an annual premium, which can range in price depending on the size of your home. You can choose to pay for additional coverage, and you may have a deductible that you need to pay each time something breaks down – this depends on the terms of your warranty. When you file a claim the home warranty company will send out a service person who will evaluate the product and make any necessary repairs, or even replace the appliance if necessary. 

Most buyers will purchase a one-year home warranty plan when they close escrow on a home, especially since this type of protection helps to provide some much-needed peace of mind that they won’t get hit with a high service bill within days, weeks or months after moving in. This type of protection, similar to homeowner’s insurance, is very beneficial because once you own a home taking care of it and maintaining it becomes a big priority. The benefits of purchasing a home warranty for College Station homes is that you can rest easy knowing that if something breaks down then a professional will come and fix it – no questions asked! For this reason a home warranty is a good idea for homeowners who are not very handy, and it is very beneficial for first time home buyers who may not be familiar with all the systems and appliances in their new home. With a home warranty there are very few costs that will come as a surprise, which makes it a sound financial investment. You will know exactly how much your premium is and the expected deductible for any repairs or replacements that are covered under the warranty – this makes it easier to deal with any unexpected breakdowns. Some of the items and appliances typically covered under home warranty include:

• Plumbing
• Electrical
• Heating and cooling systems
• Water heaters
• Washer and dryer 
• Kitchen appliances like the oven, range, refrigerator, built-in microwave and the garbage disposal 

There is one thing to keep in mind when purchasing a home warranty, and that is that similar to an insurance policy unfortunately not everything will be covered. You will need to read over the specific terms of your warranty to understand what is included and any specific exclusions. Most warranties will not cover appliances and items that have not been properly maintained and this often becomes a point of contention between homeowners and home warranty companies because proper maintenance is subjective. For example, if the previous owner did not take care of the appliances “properly” then the new homeowner will be left hanging and responsible for the service repairs or replacement even if they pay for home warranty. Another issue with home warranty is that they often expect payment upfront assuming that repairs will take place throughout the life of the warranty, but this is not always the case. Some years there will be plenty of repairs that are necessary, but most of the time everything will work out fine and the homeowner will have paid the premium regardless. A home warranty is also typically not necessary in newly built homes, because most appliances will already be covered under the standard manufacturer’s warranty. 

There are various benefits of purchasing home warranty for College Station homes – here is a breakdown of what you can expect, for both buyers and sellers:

Home warranty benefits for buyers:

• Reliable service from certified repair vendors – there’s no need to spend time researching and asking for referrals for companies to repair or replace your appliances. Your home warranty company will have qualified service professionals on standby and available to offer convenient, quick and quality service. 
• Peace of mind and protection from unexpected costs – home warranty ensures that any repairs or replacement of a covered appliance or system will be handled by a service professional without additional costs to you. 
• Home warranty is available for renewal annually so that your home appliances and systems can continue to receive coverage long term. 

Home warranty benefits for sellers: 

• Adding a home warranty while your home is listed for sale could help reduce any out-of-pocket expenses that may come up after an inspection.
• A home warranty purchased by the seller is attractive to buyers and can serve as a powerful marketing tool because it shows that a buyer’s budget and the property are protected from unexpected high repair and replacement costs.
• A home warranty can prevent any uncomfortable disputes after the sale is completed. Buyers will be directed to the home warranty company directly instead of the seller in case an appliance or system requires replacement or service. 

Before you purchase a home warranty for your home, it’s important to do some research so you can choose the best option possible for your home. Here are some questions to ask yourself before you select a home warranty:

• Do you already have protection? New appliances and new homes will already be covered by a manufacturer’s warranty, which will cover repairs and replacements. Even if your appliances are not brand new, they may still be covered under warranty if they were purchased with a credit card. Some credit cards extend the warranty, for example American Express card purchases can add up to an additional two years of coverage. 
• How much will a home warranty cost? This really depends on what type of coverage you are looking for and the provider you choose to work with. You can typically choose three different types of home warranty – protection for a single appliance or system, a plan for all appliances or a plan for all appliances, plumbing and electrical systems. Apart from your premium price you will also have to budget for a copayment whenever a service provider comes out to your home to do any work. 
• Make sure you understand exactly what is and is not covered under the warranty – read the terms and conditions carefully. You will want to make sure that your warranty covers the things that are important for you, for example some home warranty plans will cover a refrigerator but not the ice maker! Sometimes if an appliance stops working due to certain conditions, like a power outage, it may not be covered by the home warranty plan; or if the appliance was not maintained properly or has a pre-existing issue then the warranty provider could refuse to pay for repairs.
• Most of the time a home warranty provider will choose to replace an item that is broken if the repairs are too costly. However, they may replace the appliance with a lesser base model, meaning you will be responsible for the difference. 
• Make sure to find out what the limits are on how much the home warranty provider will pay out for repairs and replacement. For example, over a year-long term a warranty provider will pay up to a certain amount to inspect, diagnose, repair or replace each item that is covered under the plan. 

A home warranty plan provides a safety net for homeowners to protect them from costly repairs on their appliances and systems, but they don’t cover everything. Ultimately, it’s up to you if you would like to invest in this type of protection, but make sure you do your research before you make any final decisions. For more information and guidance on selecting a home warranty for your home, please don’t hesitate to contact us. 

Are you ready to dive into homeownership this year? Are you asking yourself what are the different types of mortgages available? It’s helpful to understand some of the most common types of mortgages available, as well as some unique options so you can be prepared when you meet with your lender. 

Interest-Only

Interest only payments mean that you are not paying off the principal on your property. These types of mortgages are popular among first time homebuyers because it allows them to pay a lower monthly payment for the first few years of ownership. This type of loan does not restrict the owner to only paying interest, if you choose to you can also pay more every month so that extra money goes towards your principal.  

Fixed Rate (Conventional) 

A fixed rate loan is the most common type of conventional loan – this option provides the homeowner with a single interest rate and monthly payment for the entire term of the loan, which is typically 15 or 30 years. This type of loan is ideal for the buyer who is looking to plant roots and doesn’t want to be surprised by fluctuating payments. This loan type is very easy to understand, and many buyers appreciate it because they don’t have to worry about their monthly payments changing at any point in time, unless they choose to refinance. The biggest benefit of a fixed rate mortgage is that even if interest rates go up, your payment will not change. 

Adjustable Rate Mortgage (ARM)

An adjustable rate mortgage (ARM) offers interest rates that are usually lower than what you would get on a fixed rate mortgage for a specific period of time. For example, the first ten years will have one interest rate and for the remainder of the loan it will adjust once a year in accordance with what current interest rates are. This means that if interest rates skyrocket so will your monthly payments, and if they drop then your payments will also be lower. This type of loan is best for the home buyer who is purchasing a starter home with the intention of moving on within a few years, or someone whose lifestyle involves constant moving around. There are different options for how long the fixed rate period will last in an adjustable rate mortgage – it could be fixed for five years, seven years, ten years or other options depending on what the bank or lender can offer. This means that your rate is fixed for that amount of time and then it will adjust once a year for the remainder of the loan. Adjustable rate mortgages typically carry a 30-year term. 

FHA 

An FHA loan is a mortgage that is insured by the Federal Housing Administration, and this is one of the most popular low-down payment loans available to buyers. Buyers love this option because it allows them to purchase a home with as little as 3.5 percent down. FHA loans also make it possible to qualify for a mortgage with lower credit and higher debt than some other programs. These types of loans are typically reserved for low income buyers or first-time home buyers, but you don’t have to be a first-time home buyer to be able to use one – many lenders are authorized to issue FHA loans to other borrowers. To qualify for an FHA loan, you will need to meet these requirements:

• If your credit score is 580 or higher, you will need to put down at least 3.5 percent
• If your credit score is between 500-579, you will need to put down at least ten percent
• A debt-to-income ratio of 50% or less
• Steady employment and income
• You must live in the home and use it as a primary residence
• You have not had a foreclosure on your record within the last three years

These eligibility requirements are a lot more lenient than other mortgages, which means that it provides a wider selection of individuals the opportunity to fulfill their dreams of becoming homeowners. 

Veteran (VA)

A VA, or Veteran Affairs loan, is a type of loan that is available to individuals who have served in the United States military. If you qualify for a VA loan, then you can become a homeowner of an incredible property with no down payment and no mortgage insurance requirements. This type of loan is backed by the U.S. Department of Veterans Affairs and there are certain eligibility requirements you have to meet, including:

• You are currently active duty military, or you are a veteran who has been honorably discharged
• You completed at least 90 consecutive days of active service during wartime, or at least 181 consecutive days of active service during peacetime
• You have more than six years of service in the National Guard or Selective Reserve

You may also be able to qualify for this type of loan if you have a spouse who died in the line of duty. In order to go through the process of qualifying for a VA loan you will need to receive a Certificate of Eligibility and then fill out paperwork to determine how much you will be able to borrow. While every lender has their own set of criteria for underwriting and approving borrowers for a loan, those who are applying for a VA loan typically have less strict requirements to fulfill aside from those for eligibility. Borrowers will need to show that they have the income necessary to make their mortgage payments, they shouldn’t have a massive amount of debt and while there is no minimum credit score requirement it would be difficult to get approved with a FICO score that is lower than 620. 

Balloon

This type of loan has some significant pros and a very big downside to take into consideration. A balloon loan is any type of financing that includes a lump sum payment that is due at any point during its term – this usually happens at the end of the loan. A balloon mortgage can be interest-only, which means you will owe the entire balance of the loan at the end of the term, or you can choose to pay interest and principal so that the lump sum payment is smaller at the end. One of the main benefits of a balloon mortgage is that your monthly payments will be lower, which can be a big incentive for many people to become homeowners. The downside of this option is that it is a higher risk loan for both the buyer and lender, the rates are not as favorable as they are on traditional loans and it may be difficult to refinance if you choose to. 

Jumbo

A jumbo loan is in reference to a mortgage that is too big for the federal government to guarantee. The current limit is around $500,000, which means that a borrower would not be able to qualify for lower interest rates that are available on smaller loans. This type of loan is also known as a non-conforming conventional mortgage, but they are considered riskier for lenders since they won’t be protected from a loss if the borrower defaults on their payments. The underwriting guidelines for jumbo loans are very strict – borrowers must have the following to qualify:

• A credit score higher than 700
• A low debt-to-income ratio, unless the borrower has plenty of cash reserves
• Savings in the bank – some lenders will require borrowers to have at least a year’s worth of mortgage payments saved to qualify
• Additional documentation
• Some lenders may require more than one appraisal
• A higher down payment – at least 20%

Bridge

A bridge loan is known as “gap financing,” and it’s something that many homeowners utilize if they are trying to buy a new home before selling their current property. This type of loan is secured by your existing home and it “bridges the gap” between the sales price of a new home and the new mortgage. What happens is that essentially you end up borrowing your down payment on a new property before your current property has sold. The benefits of using this type of loan include:

• It allows a homeowner to buy a new home without stressing out about selling their current property. 
• Some bridge loans might not require monthly payments for a few months, and they offer flexible payment options. 

Some of the drawbacks of a bridge loan include:

• A bridge loan is typically more expensive than a traditional home equity loan.
• The borrower must be able to qualify to own two homes at the same time. 
• It’s stressful keeping track of and maintaining two mortgages at one time in addition to the interest from the bridge loan. 

Qualifying for a bridge loan doesn’t follow specific guidelines and requirements, most lenders will follow an approach of “does it make sense?” 

If you’re ready to pull the trigger on homeownership contact us today – we’ll help you navigate the entire process from start to finish – including helping you secure the best mortgage option available.