What is my Home Worth??

What Do Appraisers Look For When Determining A Property’s Value? Most people are surprised to learn what appraisers actually look at when determining the value of a real estate property. A common misconception homeowners generally have is that the value of their home is determined after the appraiser has completed their physical property inspection. However, the appraiser actually already has a good idea of the property’s value by the time they have scheduled an appointment to stop by the property. The good news is that you don’t have to worry so much about pushing back an appointment a few days just to “clean things up” in order to help influence the value of your property. While a clean house will certainly make it easier for the appraiser to notice improvements, the only time you should be concerned about “clutter” is if it is damaging to the dwelling. The Key Components Addressed In An Appraisal The Site: Location, view, topography, lot size, utilities, zoning, external factors, highest and best use, landscaping features… Design: Quality of construction, finish work, fixed appliances and any defining features Condition: Age, deterioration, renovations, upgrades, added features Health & Safety: Structural integrity, code compliance Size: Above grade and below grade improvements Neighborhood: Is the property conforming to the neighborhood? Functional Utility: Is the property functional as built – style and use? Parking: Garages, Carports, Shops, etc.. Other: Curb appeal, lot size, & conforming to the neighborhood are obvious to the appraiser when they drive down into the neighborhood pull up in front of your home. When entering your home, they are going to look at the overall design, condition, finish work, upgrades, any defining features, functional utility, square footage, number of rooms and health and safety items. Be sure to have all carbon monoxide and smoke detectors in working condition. Since the appraisal provides half the weight in any credit decision involving the security of real estate, the appraisal should be done by a qualified, licensed appraiser whom is familiar with your neighborhood, and the type of home you are buying, selling or refinancing. We hope you found this information helpful. For more information about our company please visit www.txpremiermortgage.com, or give us a call at 281-907-6401 and we would be happy to assist you!

Be an All Star Player- Hit a Home Run With Your Mortgage

Mortgage Rates Change All Day, Every Day. Mortgage bond prices-- similar to stock prices -- are random. They can't be predicted with any sort of certainty, and they change from minute-to-minute. Facts like this are big deal to people like you and me because mortgage bonds are the basis of everyday mortgage rates -- from conforming to FHA. Mortgage rates are in constant flux. As a real-life illustration, mortgage rates changed every 4 hours and change last month. It makes life tough for people looking to shop for the lowest mortgage rates possible. Mostly because it can take more than 4 hours to do your shopping (and do it right). Shopping lenders is always a good idea. You never know which bank will have the lowest rates, or lowest fees, or widest selection of programs. But, when it comes to physically lock your rate; to find the best possible mortgage rate that you can with the lowest set of closing costs, you're going to need more than just "good shopping skills". You're going to need good luck. Mortgage rates can change at any time, and often do. While you're shopping for a loan, for example, rates could be rising. And not just by an eighth-percent here and there. I'm talking big jumps. There have been a half-dozen days in the past year on which conforming mortgage rates rose 0.375. There have also been days when rates have dropped by as much. It reminds us of an important Mortgage Rate Axiom: You can't shop for good luck. • Some days, mortgage rates happen to rise • Some days, mortgage rates happen to fall • Some days, mortgage rates do nothing And then, there are the days when mortgage rates do all three. You're at the market's mercy and the market is merciless. Want Good Mortgage Rate Luck? Do Good Research. Since you can't shop for good luck in mortgages, you can at least shop for good information. Talk with multiple loan officers well before you have a need to lock-in, and gather as much data as possible -- about yourself, about your home, and the process, and about the mortgage market drivers. Then, after having these conversations, two things will happen. First, you'll get a very close approximation of your final closing costs and rates. This is important for comparison's sake. You need to know which lender is consistently in the ballgame, and which lender never is. Second, you'll get a feel for the loan officers to whom you're talking. Who's a professional, who's a hack, and who fails to return a phone call. Then, when it is time to lock-in, you won't have to screw around with the shopping process. You'll already know your "A List" of lenders and can choose the one that gives the best combination of rates and fees at that given moment. Just make sure, though, that when you shop for rates, you do it the right way. Let your lender pull your credit for pete's sake. It's not going to harm your score and your lenders need to know this stuff. If you're in the market for a mortgage, or know you'll need one soon, start your shopping here. Get a rate quote based on your parameters, and follow-up for more information. Oh, and do it with some other lenders, too. The trick to getting low mortgage rates is to do a fair amount of research, to pick a "good" lender, and to have a little luck. You can make it happen. You just have to start strong. Give us a call so we can help you! Find out more on our website here.

How Obtaining a Pre-Approval Helps You

Many buyers get frustrated when their Realtor asks if they have been pre-approved. They think, “all I want to do is look at houses, we can worry about the pre-approval later.” We understand your frustration, but let us help explain why the pre-approval process is so important. A preapproval is different from a prequalification. With a prequalification, the lender relies on information provided by the buyer to estimate how much the borrower could qualify for. With a preapproval, the lender verifies the borrower's information and documentation to determine exactly how much it would be willing to lend to that borrower. The documents to get preapproved are the same documents that you would need to get a mortgage. • Pay stubs. • Last 2 years' W-2s. • Last 2 federal returns. • Two months' worth of bank statements of all types of accounts. • Your credit report. A preapproval is not a loan commitment, but it helps speed up the underwriting and loan approval process. A Pre-approval Letter shows that you can buy a house. Unless you plan on buying a house for cash, you will need some sort of financing. If you cannot obtain the financing, say hasta luego to the idea of buying a home, for now. There is not much more that is frustrating (to buyers and Realtors alike) than to look at houses for several days only to find out that you cannot obtain financing to buy one. Therefore, we usually ask for a pre-approval so we can both have reassurance that you can buy a house. Second, a Pre-approval Letter helps define your search. It lets you know what you can spend, so it saves time and energy from searching for houses that you cannot afford. Think of the emotional drain of finding the house of your dreams and then the bank says that you cannot afford it. We would rather you not look at those houses that you cannot afford. If you can only afford a $100,000 house, we need to make sure you are only looking in that price range. If you look at too many houses outside of your price range, you will not enjoy the houses in your price range as much. A Ford Focus never looks as good after you drive a Lamborghini. Having the letter allows you to have more leverage in negotiations with the seller Having a pre-approval letter really makes your offer look good to the seller of the house. They are more willing to negotiate with someone who is pre-approved than someone who isn’t. Plus, if there are multiple offers on a house, yours will be ranked higher due to the fact that you are already pre-approved. It is less risky for the seller than looking at an offer from someone who isn’t. A Pre-approval letter is better than being pre-qualified. Many banks will give you an informal estimate of what you can afford, and this is known as pre-qualification. It is not a statement of fact, but rather an opinion. Make sure you get an official Pre-Approval letter. This is a statement of fact, and will hold a lot more weight than a pre-qualification letter. It takes more work to get pre-approved, but it will save you a lot of time in the long run. We hope this gives you a few reasons why it is so important to get pre-approved. If you have a hard time starting the pre-approval process, give us a call at 281-907-6401, and visit us at TxPremierMortgage.com, and we can help lead you in the right direction. Most of our pre-approvals can be given to you within the same day as long as all information is provided by you upfront.

Texas Premier Mortgage - Mortgage Blog - The Woodlands, Texas: What is the Job of a Mortgage Underwriter?

Texas Premier Mortgage - Mortgage Blog - The Woodlands, Texas: What is the Job of a Mortgage Underwriter?: Here’s some Q&A with regard to the home loan approval process: “What do underwriters do?” Once you actually apply for a home loan, your...

What is the Job of a Mortgage Underwriter?

Here’s some Q&A with regard to the home loan approval process: “What do underwriters do?” Once you actually apply for a home loan, your mortgage application will be organized by a loan processor and then sent along to a loan underwriter, who will determine if you qualify for a mortgage. The underwriter can be your best friend or your worst enemy, so it’s important to put your best foot forward. The expression, “you’ve only got one chance to make a first impression” comes to mind here. Trust me, you’ll want to get it right the first time to avoid going down the bureaucratic rabbit hole. Put simply, the underwriter’s job is to approve, suspend, or decline your mortgage application. If the loan is approved, you’ll receive a list of “conditions” which must be met before you receive your loan documents. So in essence, it’s really a conditional loan approval. If the loan is suspended, you’ll need to supply additional information or documentation to move it to approved status. If the loan is declined, you’ll more than likely need to apply elsewhere, with another bank or mortgage lender. Now you may be wondering how underwriters determine the outcome of your mortgage application? Well, there are the “three C’s of underwriting,” otherwise known as credit reputation, capacity, and collateral. Credit reputation has to do with your credit history, including past foreclosures, bankruptcies, judgments, and basically measures your willingness to pay your debts. If you’ve had previous mortgage delinquencies or even non-housing related delinquencies, these will need to be taken into account. Typically these items will be reflected in your three-digit credit score, which can actually eliminate you without any further underwriting necessary if you fall below a certain threshold. Your history supporting significant amounts of debt is also important; if the most you’ve ever financed has been a plasma TV, the underwriter may think twice about approving your six-figure loan application. Capacity deals with a borrower’s actual ability to repay a loan, using things like debt-to-income ratio, salary, cash reserves, loan program and more. This covers whether the loan is interest-only, an adjustable-rate mortgage or a fixed-rate mortgage, cash-out refinance or simply rate and term. The underwriter wants to know that you can repay the mortgage you’re applying for before granting approval. If you’ve had previous mortgage delinquencies or even non-housing related delinquencies, these will need to be taken into account. Typically these items will be reflected in your three-digit credit score, which can actually eliminate you without any further underwriting necessary if you fall below a certain threshold. Your history supporting significant amounts of debt is also important; if the most you’ve ever financed has been a plasma TV, the underwriter may think twice about approving your six-figure loan application. Capacity deals with a borrower’s actual ability to repay a loan, using things like debt-to-income ratio, salary, cash reserves, loan program and more. This covers whether the loan is interest-only, an adjustable-rate mortgage or a fixed-rate mortgage, cash-out refinance or simply rate and term. The underwriter wants to know that you can repay the mortgage you’re applying for before granting approval. Mortgage Underwriter FAQ. Do underwriters work for the bank/lender? Yes, underwriters are employees of banks, lenders, and mortgage bankers. They work on the operational side of things, making loan decisions after the sales team brings the loan in the door. Why do underwriters take so long? Hmm…I don’t know, because they’re approving a six-figure loan amount, or seven, to a complete stranger. The actual underwriting might not take that long, but the amount of available underwriters (humans) might be low. So you could just be in the queue. A clean loan file will get approved faster and with fewer conditions so get it right before the underwriter even sees it. Do underwriters verify employment? While employment is generally verified nowadays when you take out a mortgage, it might not be the underwriter verifying it. Instead, the loan processor may obtain the verification of employment (VOE). Many use the “The Work Number,” an independent third-party employment verification company now owned by credit bureau Equifax. Have more questions? Give us a call at 281-907-6401, or visit us online at TxPremierMortgage.com.

The Woodlands Mortgage Expert: What is Debt To Income- DTI?

Debt-to-Income (DTI) is a lending term which describes a person's monthly debt load as compared to their monthly gross income. Mortgage lenders use Debt-to-Income to determine whether a mortgage applicant can maintain payments a given property. DTI is used for all purchase mortgages and for most refinance transactions. It can be used to answer the question "How Much Home Can I Afford?" Debt-to-Income does not indicate the willingness of a person to make their monthly mortgage payment. It only measures a mortgage payment's economic burden on a household. Most mortgage guidelines enforce a maximum Debt-to-Income limit. How do lenders calculate monthly income? Mortgage lenders calculate income a little bit differently from how you may expect. There's more than just the "take-home" pay to consider, for example. Lenders perform special math for bonus income; give credit for certain itemized tax deductions; and apply specific guidelines to part-time work. The simplest income calculations are applied to W-2 employees who receive no bonus and make no itemized deductions. For W-2 employees, if you're paid twice monthly, your lender will take your last two pay stubs, add your gross income, and use this sum as your monthly household income. If you receive bonus income, your lender will look for a two-history and will average your annual bonus as a monthly figure to add to your mortgage application. For self-employed borrowers and applicants who own more than 25% of a business, calculating income is a bit more involved. To calculate income for a self-employed borrower, mortgage lenders will typically add the adjusted gross income as shown on the two most recent years' federal tax returns, then add certain claimed depreciation to that bottom-line figure. Next, the sum will be divided by 24 months to find your monthly household income. Income which is not shown on tax returns or not yet claimed cannot be used for mortgage qualification purposes. In addition, all mortgage applicants are eligible to use regular, ongoing disbursements for purposes of padding their mortgage income. Pension disbursements and annuities may be claimed so long as they will continue for at least another 36 months, as can social security and disability payments from the federal government. As always, our qualified mortgage loan officers are always a step ahead of you and ready to assist you at anytime. Give us a call 281-907-6401 or visit our website at TxPremierMortgage.com for more information.

10 Mortgage Mistakes You Should Avoid

Here is a list of the top 10 mortgage mistakes individuals should avoid if planning on financing a new home purchase or refinancing an existing mortgage. Anything on this list should be avoided at all costs to ensure your credit score is as high as possible and that you don’t run into any qualification problems when it comes time to get that sparkling new mortgage. Otherwise you could end up with a higher-than-necessary mortgage rate, or simply get declined! 1. While this may be a no-brainer, it still reigns supreme. Avoid bankruptcy and foreclosure. Either could keep you out of the mortgage game for several years for obvious reasons. Also avoid mortgage lates. Even if your credit score is up to snuff, late mortgage payments that show up on your credit report can disqualify you with many banks and lenders. Makes sense doesn’t it? 2. Not locking your mortgage rate. If you fail to (or forget to) lock the interest rate on your mortgage, it could go up. A lot. Yes, you have the choice to lock or float, but make sure you understand both options and keep an eye on interest rates before and during the home loan process. [See the latest mortgage rates from dozens of lenders, updated daily.] 3. Listing your property on the MLS and then attempting to refinance that same property within six months (or longer). Lenders don’t love the idea of giving you a loan on something you don’t actually want, or tried to get rid of just months before. [See more common refinance mistakes if you already own a home.] 4. Applying for a mortgage with charge offs and collections, especially medical collections, on your credit report (many consumers have these, often in error, and they can easily be removed via credit bureau disputes. They crush your FICO score!). Regularly review your credit report to ensure there are no surprises long before you begin the mortgage process. Put simply, a low credit score will lead to a much higher mortgage rate, and even disqualification if it drives your monthly mortgage payment high enough. Also steer clear of credit counseling. (Even if it doesn’t lower your credit score, many banks won’t lend to borrowers who have used these services in the recent past.) 5. Not figuring out how much you can afford well before beginning your property search. You should get pre-qualified or pre-approved before you even start looking at homes. Once you know how much home you can afford based on your salary and assets, you can properly assess the situation. Otherwise you could just be wasting your time and setting yourself up for disappointment. 6. Opening new credit cards or making excessive charges on existing credit lines before and during the loan application process. This can hurt your credit score and increase your debt load, which could lead to disqualification. See debt-to-income ratio for more on that. You can buy your new leather couch and big-screen TV once the loan is funded and closed. 7. Attempting to get a mortgage with less than two years consecutive employment in the same occupation or field (unless you’re a recent grad with proof of future income). You must prove to lenders that you will actually continue to make the money you’re currently making to obtain a mortgage. 8. Trying to get a mortgage without documented 12-month housing history or your own verifiable assets that cover at least two months of your proposed mortgage payment, including taxes and insurance. Yes, lenders want to know that you paid your rent on time previously and have enough in your bank account to cover future payments. Oh, and the money needs to be in your account, not under your mattress. 9. Not establishing your credit history. You generally need at least three credit tradelines (that show up on your credit report) with a minimum two-year history on each. Yes, credit is the root of all evil, but also a necessary one in the mortgage world, that is, unless you plan to pay for your expensive house with cash… 10. Not shopping around. If you don’t take the time to comparison shop, as you would any other product you buy, like a big-screen TV or a car, you’re doing yourself a major disservice. Put in the hours to ensure to find the right bank to work with and snag the best deal. Bonus tip: Don’t forget to compare different loan products, such as fixed-rate mortgages vs. ARMs, and conventional loans vs. FHA loans. Both have their pros and cons, and should be carefully considered before applying for a mortgage. There is no one-size-fits-all approach folks. For more information contact one of our senior loan officers who can help you through the mortgage loan process!