taxes: 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)

taxes: 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)

taxes: 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)

taxes: 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)

taxes: 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)

taxes: Tips To Sell Your Home - 09/02/21 08:07 AM
Many home buyers have regrets after they buy their new home.  Similar thing happens when seller trying to determine whether to sell their home.  Many sellers ask themselves what if?  Would it be better to wait to sell?  Should I negotiate differently?  Should I make more improvements to my property?  With a lot of money on the line and having little experience selling a home, you may want to pause and do some research before selling a house.  Following are some home selling tips:
Determine if you ready to sell – Selling your home is both a financial decision and emotional experience.  … (1 comments)

taxes: 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)

taxes: 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)

taxes: Reasons You Should Own a Home - 07/19/17 07:07 AM
In today’s world, one the primary goals for many people is to own their own home, and have it paid for by retirement age.  Achieving this goal will provide the homeowner additional flexibility during their retirement years to enjoy the fruits of their labor due to increased savings.  There are some positive reasons why many people desire to own their home versus renting:
Benefit from taxes – A homeowner is allowed to realize savings on their federal income taxes by deducting interest, property taxes paid on their homestead, and some expenses incurred when purchasing the property.
Benefit of appreciation – Over the long-run … (3 comments)

taxes: Housing Costs Than Can Cause Havoc with Family Budget - 04/26/17 06:30 AM
When purchasing a new home or living in your current home there will be unexpected expenses that occur that may put stress on the family budget.  Planning, researching, and having financial reserves for unexpected occurrences are key elements that need to be practiced in order to prevent financial disaster.  Areas where you need to practice conservatism to some degree: 
Home improvements – It is human nature, want to make improvements to your new home, or a home that is in excellent condition.  The reason for this, the desire to make the home uniquely yours, or give it a new look.  Need … (1 comments)

taxes: Important Information About Reverse Mortgages - 04/04/17 05:51 AM
Seniors who are 62 years or older have the ability to use proceeds from their current regular home loan or reverse mortgage to purchase another home.  If a senior has a reverse mortgage they still maintain ownership providing they pay their property taxes and live in the home.  Having a reverse mortgage still allows seniors to move to another geographical area to be closer to their children or buy a home that meets their physical needs.  At the same time, these seniors can eliminate making future mortgage payments. Another advantage seniors have available to them, creates a line of great that … (0 comments)

taxes: Reasons to Refinance Your Mortgage - 08/16/12 07:06 AM
Being in an economy that is struggling, this maybe the situation that would justify refinancing your existing home mortgage.  Before you refinance, know your financial goals so you can make wise decisions for you and your family.  Following are a list of situations that may justify refinancing your current mortgage:
·       If you are in an Adjustable Rate Mortgage that has high interest rate, or will increase dramatically in near future, this may be the time to refinance to a fixed-rate mortgage.  Remember, fixed interest rates are currently very low now, and this may be a great time to refinance.  By … (0 comments)

taxes: How to Sell Your Home Through a Short Sale - 08/01/12 12:03 AM
Over past several years there have been numerous buyers who have bought homes with the intent to live in the home for several years.  With a downturn in the economy, and buyers previously able to find easy financing, many have found themselves with insufficient funds to pay off their mortgage.  Many times buyers purchase a new home without thinking about unforeseen events happening that would force a move.  In addition, they did not take in account the cost of selling their home.  When something unforeseen occurs, this may lead to bankruptcy, foreclosure or a short sale.  The definition of a short … (2 comments)

taxes: Understanding Good Faith Estimate - 05/21/12 01:13 AM
Understanding Good Faith Estimate
Some home buyers do not understand the cost that is associated with purchasing property, and this may cause them to pay higher origination fees and closing costs.  In this article, I will try to explain the importance of a Good Faith Estimate (GFE), and how it can help the home buyer.   The whole purpose of the GFE is to identify the estimated cost associated with purchasing a house, and your estimated monthly mortgage payments.  In my opinion, prior to making an offer you should have in your possession a worksheet that reflects this important information.  The GFE … (0 comments)

taxes: Should I Buy a New Home versus an Existing Home? - 11/30/11 01:58 AM
When embarking on the process of buying a home, you will need to make a decision on whether to purchase a new home or an existing home.  There is no single right answer to this question.  I do recommend you spent some time looking at both new and existing homes prior to making your decision.  Sometimes the right decision is based on timing, because there are better deals available with either a new or existing home.  You may be drawn to a new home with its shiny new, energy-efficient appliances, more space, larger master bedrooms and closets, etc.  On the other … (1 comments)

 
John Watts (Keller Williams Realty)

John Watts

Austin, TX

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Keller Williams Realty

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

Office: (512) 751-3359

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