mortgage: Better to Rent or Buy a House - 03/19/24 06:15 AM
Before buying a house there are several considerations a person must consider before deciding. Here I am going to review some of those considerations:
Financial – When you buy a home the buyer will have higher upfront costs that includes the down payment and closing costs. The closing costs will include such costs as application, inspection, and attorney fees, etc. Mortgage rates will have an impact on your ability to buy and monthly payments. Currently, mortgage rates are showing some signs of easing and allowing buyers the ability to buy.  In addition, a homeowner is responsible for all maintenance to the property, … (4 comments)

mortgage: Sell Home Now Before Spring Rush - 02/20/24 06:10 AM
If you are thinking about selling your home in 2024 selling your home early in the year may work to your advantage. Timing makes a difference because home prices rise and fall like stocks.  Following are a few thoughts to consider when making your decision:
Mortgage rates – In the past year sellers have been reluctant to sell because they would be paying a higher interest to replace their existing home.  Recently mortgage rates have begun to fall, and predictions are expecting interest rates to settle in the mid-6% range during 2024.  This means sellers will not lose as much when they … (0 comments)

mortgage: Ways Inflation Could Affect 2024 Housing - 01/09/24 06:29 AM
People across the nation have felt the effects of inflation. Mortgage rates have caused a slowdown in the housing market and home buyers have delayed purchasing a new one, but homes prices have remained strong during this period. Before deciding to sell your home examine the current market in your immediate area and listen to what experts are saying about inflation and how it will affect the housing market. For instance, Goldman Sachs is saying there will be strong income growth and interest rates hikes are a thing of the past for 2024. While Morningstar is expecting a decline in inflation … (1 comments)

mortgage: Buyers Can Save on Their Mortgage - 11/02/23 11:07 AM
Currently mortgage rates are in the 7% rate range.  Buyers are feeling a financial squeeze and need to find a solution so they can purchase a home. Many are predicting mortgage rates will begin to fall soon and some home buyers have adjusted to current interest rates and home prices. Still many cities are experiencing home affordability issues. One way for home buyers to fight home price increases is to have a great credit score.  This will allow them to get the lowest interest rate at that time therefore lowering monthly mortgage payment.  Following is a list of other techniques that … (1 comments)

mortgage: 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)

mortgage: Factors That Affect Your Credit Score - 03/07/23 06:23 AM
Most people are concerned about their credit score. Some of these people have credit scores that need to be improved while others have used good practices and have great credit scores.  Having a great credit score does not occur overnight, it takes long term financial practices to get yourself to that point.  Having a high credit score can save you a lot of money over the years.  It is especially important when you want to purchase a large ticket item that must be financed.  Following is a list of factors that play into credit score and how to improve your score:
On-time … (5 comments)

mortgage: Lesser-Known Fees That Factor into Buying a Home - 02/15/23 06:32 AM
Many home buyers are not aware of all fees charged that makeup the total cost of purchasing a home.  Some of these fees are normally paid prior to closing while others are paid at closing.  Fees paid at closing will be itemize on your closing statement which you should receive a copy to review prior to closing.  The fees that are lesser known to the general public will be reviewed below:    
Inspections of property – As a home buyer who is hiring an inspector to perform an inspection on property that you recently signed a written contract to purchase, you need … (2 comments)

mortgage: Home Buyers Should Negotiate - 01/17/23 06:30 AM
Home market shift has cause home buyers to focus on price as well as other things to make their home buying experience more attractive.   Buyers need to better understand the parts of the contract to create a win-win environment for themselves. Buyers now have more inventory and less competition when purchasing a house which means they have greater opportunity to negotiate with sellers.  Things buyers should consider negotiating with sellers:
Closing cost – These are fees buyers pay to close a real transaction. These fees are lender, appraisal, title search fees, taxes, etc. The amount of fees may arrange between 3-6% of … (1 comments)

mortgage: Tips When Buying a Home - 12/12/22 07:25 AM
Buying a home is stressful, whether you are buying a starter home, upgrading, or downsizing.  In a sellers’ market this can be extra stressful.  During that cycle, buyers compete in a multi-offer environment.  For some buyers it may be advisable to wait for the market to cool off. On the other hand, there may opportunities where buyers can purchase a home that meets their needs and desires.  Now let us define types of real estate markets:  a balance market is where supply of houses available to purchase is equal to the demand for homes.  Housing prices are stable, and houses sell … (3 comments)

mortgage: 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)

mortgage: Home Affordability Affected by Mortgage Rates - 10/14/22 06:31 AM
Mortgage rates are rising in today’s housing market, and this affects how much a home buyer can afford to purchase. Likewise, your credit score and down payment have a similar affect.  All of the above items have a direct effect on how large a loan you can get.  When in the market to purchase a home, need to watch and understand how a rise in interest rates affects your monthly mortgage payments.  This can quickly move your payment from affordable to unaffordable. Depending on your financial situation you may want to consider discount points when talking to a lender.  Discount points … (1 comments)

mortgage: Smart Home Shoppers Understand Credit Score - 09/27/22 06:19 AM
When shopping for a mortgage loan, credit score plays a key role in determining eligibility.  Therefore, it is necessary to understand the importance of a high credit score when preparing to purchase a home.  Lenders decide how likely you will repay your debt based on credit score.  Credit scores range from 300 to 850 points based your prior payment history and ability to pay on time.  Lenders also consider the total amount of debt you owe which includes credit cards, car loans, and student loans, etc.  Having several credit cards increases your liability and tends to reduce the credit score.  If … (3 comments)

mortgage: 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)

mortgage: Unusual Housing Market - 07/07/22 09:51 AM
National Association of Realtors (NAR) says in a report that we are in an unusual housing market.  Existing home sales have fallen recently, but buyers are still anxious to purchase a home.  Mortgage rates and sales prices are higher, and currently experiencing low inventory of existing homes for sale.  This leads to an affordability issue with many home buyers.  Number of homes for sale are rising, but homes sales are slowing down recently.  With higher home prices and mortgage rates, number of sales may continue to decline.  Recently, NAR published indicators in their housing report:  
Home prices – Home prices are … (1 comments)

mortgage: 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)

mortgage: Home Bidding Wars Are Rising in January 2022 - 03/10/22 06:18 AM
Competition for buying a home has been unseasonably hot this past year.  Buyers faced bidding wars with low inventories.  NAR reported that January 2022 had the fewest number of homes available for sale on record with most of these homes sold under a month.  Mortgage rates are anticipated to rise in the coming months which may cause home buyers to lock-in at earliest date to avoid further increases.  Since there are few homes on the market and townhomes appear to be creating the most competition in some areas. Current buyers desiring to buy a home are trying to locate a home … (2 comments)

mortgage: Major Issues Affecting Real Estate - 08/06/21 06:35 AM
Counselors of Real Estate provided a list of issues that they expect will affect real estate the greatest during 2021-2022.  The Covid-19 pandemic created changes in multiple areas: remote work and mobility, cybersecurity, supply chain, and price instability.  Below are issues that may be affected during this time:  
Working remotely and mobility – Covid-19 disrupted the workplace and where employees work from.  Now commercial properties may need realign the workplace adapting to more flexible and shareable space.  This pandemic has created significant changes to human behavior and how people have chosen to work.  Now that business is returning to business as … (2 comments)

mortgage: Expert Thoughts When Shopping for Mortgage - 02/26/21 12:31 PM
Currently mortgage rates are low, this is providing savings to people who are shopping for a new home or wanting to refinance their current home.  The mortgage process is not well understood by many borrowers. Borrowers should take some time to understand the mortgage process.  This could save the buyer thousands of dollars.  Before making a loan decision the annual percentage rate (APR) needs to be understood.  This rate includes fees that are charged by the lender and added to the quoted loan interest rate.  For example, the quoted loan rate may be 2.5% but your actual APR is 2.8%.  The … (1 comments)

mortgage: 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)

mortgage: How to Prepare Your Finances for Home Ownership - 12/15/20 06:34 AM
The day you decide to purchase a house, this is the day you need to start preparing yourself financially.  For many homebuyers, this takes time to prepare yourself for this financial undertaking.  First, you must develop a plan how to handle the most expensive undertaking of your lifetime.  Below are things you need to consider when preparing yourself to purchase your new home:  
Credit score – Most people understand a good credit score is needed to qualify for a home mortgage.  Potential buyer needs to prepare themselves financially, this means having a low debt-to-income ratio.  This ratio should be equal to … (0 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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