Holding a real estate agent’s or real estate broker’s license does
not make someone a REALTOR®. Here in Texas, membership in the National Association
of REALTORS®, the Texas Association of REALTORS®, and one of more than
90 local associations or boards entitles real estate licensees to use the term
“REALTOR®” on their business cards and in their marketing materials.
Hiring a Texas REALTOR® means you’ve retained someone who is committed
to continuing education, professionalism, and integrity. In addition to upholding
the strict REALTOR® Code of Ethics, many Texas REALTORS® (like me) hold
one or more professional designations—those letters behind our names indicating
advanced or specialized training in real estate.
Here are just a few of the various designations a REALTOR® may hold and
what they could mean for you:
The GRI designation is a mark of distinction that earns REALTORS® respect
and confidence from their peers and the general public, demonstrating their commitment
to advancing their knowledge in many aspects of the real estate profession.
Residential salespeople who hold the CRS designation specialize in listing properties,
selling, and investing, as well as mortgage financing and computer applications.
A buyer’s agent represents the buyer in a real estate transaction, just
as a seller’s agent is hired to obtain the price and sale terms sought by
the seller. The ABR is the only nationally recognized designation for buyer’s
agents.
The CRB designation is recognized in the real estate profession as the symbol
of management excellence and is awarded to brokerage owners and managers.
The e-PRO certification is the real estate industry’s first comprehensive
technology certification endorsed by the National Association of REALTORS®.
A $200,000 home costs more than a $185,000 home, right? Well, yes and no. Assuming
the same type of financing for both homes, the $200,000 home does cost more initially.
But many factors contribute to the overall long-term cost of a house. Here are
some things to keep in mind when trying to determine the true cost of purchasing
a particular home:
- Does it have a pool or hot tub that requires maintenance?
- How much yard maintenance is required and who will perform it?
- Are there trees that should be removed?
- What are the utility costs? Although your usage won’t be exactly the
same as the current owners, you may be able to get their utility bills for the
past year from them or directly from the utility company.
- How soon will the roof need to be replaced?
- Does the house need repainting?
- Does the electrical system need upgrading to handle the load for your appliances
and electronics?
- Does the home have aluminum wiring, lead-based paint, or other safety or health
hazards you will want to address?
- Does the house need new carpeting or flooring?
- What remodeling projects do you see as a must?
- Will appliances need replacing? What items convey?
- What are the estimated property taxes for the property?
Also, be sure to get a professional inspection to identify other potentially
costly problem areas.
Most
people probably only think of one or two questions to ask a home inspector: “How
much is your fee?” and “When can you be there?” But these only
scratch the surface. Here’s a list of suggested questions you might ask:
- What types of licenses do you hold?
- What kind of training do you have?
- Do you belong to a professional inspectors’ association?
- How long have you been licensed in Texas?
- Are you a full-time home inspector?
- How much do you charge?
- Do you also perform repairs? (If the answer is yes, that may indicate a conflict
of interest)
- What will the inspection include? (Get specifics. It should include the electrical,
heating, and central air conditioning systems; interior plumbing; visible insulation;
roof; walls; ceilings; floors; windows; doors; foundation; basement; and the visible
structure of the house.)
- Do you inspect gas lines, swimming pools, spas, septic systems, and wells?
(You can identify other atypical systems or items.) Do you charge extra for these?
- Do you charge extra based on the size of the home? Multiple AC units? Other
items?
- How much would you charge if I ask for a reinspection after repairs are completed?
- Will you supply a written report? (The inspector should.)
- Can I attend the inspection? (The home inspection is an opportunity for you
to learn about your new home and ask questions. If the inspector says no, find
another inspector.)
- Do you go up on the roof to inspect it?
- How long will the inspection typically take? (Anything less than two hours
is not long enough for a thorough inspection.)
- Can I call you with questions that come up later?
- Can you give me names and phone numbers of three people for whom you’ve
inspected homes recently?
The inspector may not inspect swimming pools, wells, septic tanks, and other
systems and items, and many inspectors will not conduct environmental tests or
wood-destroying insect inspections. You will likely need to arrange for these
inspections separately. You can find a blank copy of the standard inspector report
form at www.trec.state.tx.us
to give you an idea of what may or may not be covered in the inspection.
Credit problems can seem like an insurmountable barrier to getting a home loan.
It’s not an easy task, but with patience and some insight you can turn things
around. Here are four ways you can get on the road to credit repair—and
put yourself in a better position for homeownership.
Stop all credit transactions right now. It might sound harsh, but you should hide
or destroy all of your cards if necessary! Now you can manage your inflow of cash
and, more importantly, your outflow—money in and money out. Develop a flexible
budget. Consider all necessary expenses such as housing, food, and healthcare.
Then, eliminate expenses that can be trimmed such as entertainment and dining
out. For more help, contact a nonprofit credit counseling agency, such as the
CCCS at 800/308-2227 or www.moneymanagement.org
If you aren’t making timely payments, don’t wait for your account
to be turned over to collectors. Your creditors may be able to help you get on
a lower-interest payment plan or agree to a settlement. A helpful tip: If your
balance is unmanageable, offer a 30% settlement payment first. Some creditors
will take payments of 30%-40% rather than have you default. Make sure to get the
agreement in writing. Once you’ve paid in full, send the settlement letter
to each of the credit bureaus (Equifax, Trans Union, and Experian/TRW) for reference
so they will update your credit report.
Another approach to consider is acquiring a debt consolidation loan. This type
of loan will allow you to pay off your outstanding balances with one, lower-interest
monthly payment. A home equity loan for debt consolidation could allow the interest
you pay to become tax-deductible.
A last resort is bankruptcy because of its long-lasting effects. Bankruptcy can
make it difficult to attain future credit, life insurance, and sometimes even
a job. It does, however, offer a new start. The primary types of personal bankruptcy
are Chapter 13 and Chapter 7. Chapter 13 allows you to keep property that you
would otherwise lose, but pay off a default amount during a three-to five-year
period. Chapter 7 (straight bankruptcy) liquidates all of your assets that are
not exempt. Property is turned over to creditors or sold by a court-appointed
official.
There are lots of programs to help first-time and low-income homeowners, and even
those with spotty credit histories who want to realize the American dream of homeownership.
One is the Texas Cares program, which provides buyers 3%-6% of the downpayment
costs that they don’t have to pay back. Texas Cares is supported by the
Texas Association of REALTORS® Housing Opportunity Foundation. For more information,
ask your Texas REALTORS®.
There is a lot more to the mortgage process than getting a good rate. High costs
in fees and poor service can come as very unhappy surprises. Here’s a list
of suggested questions you might ask a lender:
- How large is your company, and how long has it been in business?
- Are you a licensed mortgage broker or loan officer in Texas?
- Is your company a mortgage banker or a mortgage broker? (A banker lends its
own funds; a broker searches mortgage sources and arranges for you to receive
financing from the lending entity.)
- What is the name, phone number, and e-mail address of the person who will
actually be processing my loan application? How accessible is that person?
- Tell me about all loan fees. What fees must I pay up front? What fees will
I have to pay at closing?
- How can you assure me I won’t pay any unnecessary “add-on”
fees?
- Do the costs you are quoting include the lender origination fee?
- Are there loans available with no origination fees? No closing costs? Reduced
closing costs?
- What are your interest rates?
- Is there a fee to lock in my interest rate? How long can I lock in the rate?
If interest rates go down, can I relock at the lower rate? If so, will there be
a fee for that?
- What information must I provide to get a mortgage loan?
- What documentation will I have to provide?
- Will you require current tax returns? (Take note of this especially between
Jan. 1 and April 15 if you haven’t prepared your return yet.)
- How long will it take to get complete and unequivocal loan approval and be
ready to close?
- I plan to stay in this house for ___ years. Can you show me the breakdown
of any ARM loans you offer vs. fixed-rate loans to see which could save me the
most money in my situation?
- What is private mortgage insurance? Other than a 20% downpayment, how can
I avoid the private mortgage insurance?
- In the last three months, how many loan applications have you taken and how
many have you been unable to close?
- Can you give me names and phone numbers of two or three people for whom you’ve
funded loans in the last two months?
Currently, Texas-licensed mortgage brokers must use the standard Conditional
Qualification and Conditional Approval letters when representing that an applicant
is prequalified or preapproved for a mortgage loan. Mortgage bankers may be required
to do so in the future.
Here are seven ways to cut the cost of your home insurance from helpinsure.com,
a Texas consumer-friendly Internet site:
Check with several different home insurance companies to get rate quotes. (An
independent insurance agent can provide rate quotes from a variety of companies.)
And definitely do it well before your policy expires, just in case you run into
any snags along the way.
The deductible is the amount of money you have to pay toward a loss before your
insurance kicks in. Home insurance deductibles usually start around: $250. However,
if you increase your deductible to:
$500, you’ll save up to 12% on your premiums
$1,000? Save up to 24%
$2,500? Save up to 30%
$5,000? Save up to 37%
Many companies will give what’s called a “multi-line” discount
if you buy both home insurance and auto coverage from them.
If you’re looking at buying a home, think about the cost of insuring the
home. A newer home’s electrical, heating, and plumbing systems and overall
structure are likely to be in better condition than those of an older home –
and can lead to a discount on your premiums.
While your home and its contents are at risk from fire, theft, windstorms, and
other perils, the land your home sits on is not. Don’t include the value
of the land in deciding how much home insurance you need to buy.
Items such as dead-bolt locks, burglar alarms, and smoke detectors can usually
bring discounts of 5% each. Your insurance company may also offer a significant
discount of 15% or sometimes even 20% if you install a sophisticated home-security
system.
Your policy should reflect the value of your home and belongings. If you review
your policy every year, you can easily make the necessary adjustments. If, for
example, you just sold a valuable painting, you won’t need the same amount
of personal property coverage. But if you’ve added a garage or other addition,
you’ll need to increase your dwelling coverage. |
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