insurance: Strategies for Maintaining a Home - 07/11/23 06:29 AM
Recent bank failures should be a wakeup call to all homeowners and people who have deposits in their bank that are above $250,000.  The Federal Deposit Insurance Corporation (FDIC) does not insure amounts that are above this amount.  Homeowners must maintain all their assets which includes maintenance of their hard assets such as their home and investment property and financial            assets they have deposited in financial institutions. For most people homeownership represents their largest asset, and they need to manage these assets to maintain long-term sustainability.  Homeowners should follow the following risk mitigation strategies that are normally followed by banks to … (1 comments)

insurance: Tips to Determine How Much Mortgage - 05/16/23 06:30 AM
Before committing to a home mortgage be sure to calculate how much mortgage you can safely fit into your budget.  Homeownership should make you feel secure and safe.  This means not taking the largest mortgage that your lender will permit.  As a buyer, look ahead to anticipate life event desires and how that might influence the budget.  These could include going back to school and/or having a child.  Factor these lifestyle issues into the budget.  Remember many lenders will not understand or consider your current and future financial personal goals.  Lenders base their loan approval on a formula.  Following are tips … (4 comments)

insurance: Home Improvements - 04/11/23 06:14 AM
When you decide to do a home improvement many times you ask yourself whether I should do it yourself (DIY) or hire a pro.  Doing it yourself usually brings a sense of self-accomplishment and saves money.  Sometimes it is wise to have a professional contractor handle the job especially when it is complicated, lack of experience, and/or when you do not have proper tools.  Following tips when to DIY improvements: 
Small projects – If not experience at home improvement projects only consider small projects at first. Before starting the project, do research on how to successfully do and complete the project. … (4 comments)

insurance: Home Buyers Understanding Closing Cost - 11/03/22 07:02 AM
Before starting the home buying process, be sure to take time to understand costs associated with purchasing property.  These costs include down payment and closing cost.  Closing cost include both prepaid and actual expenses to close the deal.  Most loan types, the buyers’ credit score and down payment will be a major decision maker to determine how large a loan the buyer will qualify for.  Down payment which is part of the closing cost will range between 3-20% of the purchase price of the property.  Closing costs are fees charged by people involved in the purchase of the property such as: … (4 comments)

insurance: Understand What You Can Afford When Purchasing Property - 09/07/22 07:30 AM
One of your early steps in your home buying process is to fully understand your finances.  This is not a fun step, but a very necessary to determine how much you can afford to avoid future financial problems.  This requires gathering financial information to answer questions from a mortgage lender.  These questions will include such things as: gross income, monthly expenses, credit card debt and how much you have in savings.  Some mortgage lenders recommend home buyers should not spend more the 28% of their gross income on house payments. Your mortgage house payment includes principal, interest, taxes, and insurance.  Understanding … (1 comments)

insurance: Competition of Faster Rising Home Prices Versus Seller Power and Wages - 04/26/22 06:25 AM
Income required to meet the new home affordability standard is growing at a faster rate.  This is resulting in less potential home buyers being able to afford higher median home prices and high mortgage rates.  At same time, there are sellers that are recognizing some buyers are being priced out and their listing price is too high therefore are dropping their price.  Affordability is determined by the amount income needed to cover homeowner expenses which includes mortgage, property taxes, maintenance, and insurance for median-priced single-family house.  The past few years low mortgage rates and increase wages helped to offset rising home … (2 comments)

insurance: First-Time Home Buyers Budget - 11/02/21 06:40 AM
The past several months soaring housing prices has brought double-digit gains and locked out many home buyers.  This is especially true for first-time home buyers and caused them to stretch their budgets to a dangerous level.  By August 2021 per National Association of Realtors (NAR) median home price for existing homes reached $356,700.  This is an increase of 15% from prior year.  Recently, there has been increase of inventory on the market, but first-time home buyers are still finding it difficult to afford these higher home prices so they can become homeowners.  Per NAR, this past year first-time home buyers comprised … (1 comments)

insurance: Pros and Cons Mortgage Escrow - 02/09/21 06:57 AM
Many times, buyers who are purchasing a home need to decide whether they need or should setup a mortgage escrow account when they close on their new home.  The purpose of a mortgage escrow account is to allow the mortgage company to pay the homeowners property taxes and homeowners insurance premiums when due.  These premium amounts are included in the homeowners’ monthly mortgage payments.  A buyer who is putting down less than 20% usually has no choice but to have an escrow account due to lender requirement.  Most lenders require a buyer to have an escrow account until buyer has at … (0 comments)

insurance: Explanation of Home Closing Costs - 02/06/20 06:35 AM
When buying or selling your home all buyers and sellers incur closing cost associated with the transaction.  Normally, closing cost (need to include commission and if 5% down payment) are about 8% to 12% of the property purchase price depending on the type of transaction, other than full cash transaction which may be less.  Shortly after signing a contract between a buyer and seller of property, many lenders are willing to provide a good faith estimate of proceeds involved in the transaction.  Your real estate agent should be making that request for their client.  The final closing disclosure of cost should … (1 comments)

insurance: Myths That May Keep Home Buyers on Sidelines - 10/30/18 06:51 AM
Consumers in today’s market tend to have a lot of assumptions about the housing market.  Many times, assumptions are incorrect and cause them to miss out on a great property deal.  Following are some of the assumptions and opposing viewpoints on some assumptions:
20% Down Payment - Some buyers want to wait until they have a 20% down payment.  This may cause them to miss out on a good deal.  Historically homes prices keep rising over the long run, therefore, their 20% down payment becomes larger.  Since this is true, need to move forward purchasing a house in order to build … (0 comments)

insurance: Know The Important Facts About Title Insurance - 05/08/18 06:00 AM
Title policy will be required whenever you purchase a home and have a mortgage loan on the property.  Normally, the policy is purchased by the seller of the property.  Title policy is an insurance policy that protects the homeowner from fraudulent claims made against their ownership, mistakes made in earlier sales, such as, misspelling of names or inaccurate location descriptions of property.  The title policy will also protect the lender for defects in the title cause by mistakes made at the local tax office, forged documents, and claims from other parties.  It ensures that the mortgage documents are valid and enforceable.  … (1 comments)

insurance: Recognizing A Qualified Buyer - 03/28/18 06:50 AM
When home sellers receive an offer to purchase their home, one of the first questions they should ask, has the potential buyer been pre-qualified or pre-approved for a loan.  A letter of pre-qualification or pre-approval should accompany an offer to purchase a home.  If there is no letter, this is a red flag.  At this point, need to determine why there is no letter and if a letter is fore coming from a financial institution.  The letter should state how much the potential buyer is approved for and some financial terms.  If buyer is a cash buyer, then the home buyer … (1 comments)

insurance: Homeowners Insurance Does Not Cover - 11/16/17 06:35 AM
Homeowners need to understand what home insurance covers and does not cover.  Important to understand what is covered, and how to read your insurance policy. There are four parts to an insurance policy.  Two of the parts are the most important sections: inclusion and exclusion sections.  The inclusion section identifies what perils are insured within your insurance policy.  Then it becomes necessary to review the exclusion section.  This section defines what coverages have been eliminated, or limited within your home insurance policy.  If exclusion section does not limit or take away the coverage, then you are covered for the peril.  This … (0 comments)

insurance: Questions to Ask When Interview Home Mortgage Lenders - 08/18/17 05:41 AM
Prior to shopping for a home, it is wise to shop several mortgage companies.  Different companies have different products, and may offer different interest rates.  During this phase, you should be asking the following general questions: find out what is the most popular mortgage each company offers, and why these loans are popular.  Find out from each company if their rates, terms, and closing cost are negotiable.  Ask if company offers discounts for inspections, home ownership classes, automatic payment options, under what circumstance will the buyer be required to purchase mortgage insurance, and the term length required to make mortgage insurance … (0 comments)

insurance: Tips to Lower Home Cost Loans - 06/07/17 07:19 AM
When applying for a home loan, a potential buyer may discover that they will be unable to get as large loan as they had originally desired.  This occurs when a person is getting pre-qualified or pre-approved.  Following are some reasons why this occurs:
High monthly mortgage payment – Buyer may realize the monthly mortgage payments may be too high for their budget to feel comfortable.  This may result of not taking into account interest, taxes, insurance and homeowner dues.  In addition, the location they desire may be too expensive.  At this point, the buyer will need to make some concessions and/or decisions.  … (0 comments)

insurance: Keep Your Vacant Home Safe - 12/20/16 06:39 AM
As a homeowner, if you plan to leave your home for more than 30 days, need to contact your insurance agent.  The home vacancy could be result of a job relocation, and vacation, etc.  Your insurance agent can advise you what additional coverages you may need, and which endorsement(s) should be added to give proper protection during the period of time the home is vacant.  Many times, insurance providers will ask a couple questions to determine what coverages you may need in order provide proper protection: will there be anybody living in your residence, and how much personal property being left … (0 comments)

insurance: Understanding and How to Prevent Paying Mortgage Insurance - 10/05/16 10:39 PM
Many people, especially when buying their first home are unable put down 20% of the sales price plus pay the buyer’s closing cost.  Before a mortgage lender will approve a potential home buyer they must verify they will have sufficient equity in the property.  The lender is insured and wants to be able to re-sell property without incurring a loss if necessary due to foreclosure, etc.  The insurance carried by mortgage lender is call Private Mortgage Insurance (PMI) when using conventional financing.  The homeowner will be required to pay PMI until they have accumulated more than 20% equity in the property.  … (1 comments)

insurance: Understanding Home Buyer Terms - 07/29/15 05:54 AM
As a home buyer it is important to understanding concepts and terms prior to buying property. Throughout the buying process a buyer will be exposed to new terminology and needs the ability to understand these terms.  Following is a list of some important terms:
Abstract of Title – Historical record of legal ownership of the property.
Adjustable Rate Mortgage (ARM) – Variable rate loan where the interest rate changes based on an index.
Agreement of Sale – Written contract for sale signed by both parties which the buyer and seller agree to specified terms to transfer ownership of property.
Amortization – Process of reducing the … (1 comments)

insurance: Think Before You Refinance - 07/06/15 11:29 PM
We all want to save money, and one way to do this is to refinance your home.  If done right you can save thousands of dollars in interest, reduce number of months of mortgage payments, and possibility reduce the amount of your monthly mortgage payment.  Before refinancing, there are some considerations you should evaluate prior to refinancing as indicated in the following list:
·    Do not chase interest rates, and do not refinance more than 3 times during the life of your loan.  Interest rates are currently low, and be sure to use criteria that justifies refinancing within the current market.
·        Major … (0 comments)

insurance: Suggestions for Making a House Move - 06/26/14 11:05 PM
Many people will be making a move into a new home in the future.  Before purchasing or leasing your new home you need make plans on moving from house to house.  The plans should include as much detail as possible.  Following are some suggestions on how to make a move from house to house:
·    First, you must decide whether you are going to either do a full service, partial service, or move yourself.  Your answer will depend on your lifestyle, budget, and amount of items to be moved, and amount of time to accomplish everything.  If hiring a moving company, … (1 comments)

 
John Watts (Keller Williams Realty)

John Watts

Austin, TX

More about me…

Keller Williams Realty

Address: 12515-8 Research Blvd, Ste. 100 , Austin, TX, 78759

Office: (512) 751-3359

Mobile: (512) 751-3359



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