It is Tax Season: Tax Breaks for First Time Home Buyers

Are you thinking about purchasing your first home? Tax breaks available for first-time homeowners may make it worthwhile. Consult your accountant or tax professional about which of these conditions apply to you. You may be able to deduct the total amount of interest paid on your mortgage. If you make a down payment of less than 20% of the home’s purchase price, you will need private mortgage insurance – which may be deductible. Mortgage insurance on government-backed mortgages may also be deductible in the same way as mortgage interest. You may be able to deduct local real estate property taxes you pay on your new home. Check to see if you are able to deduct points and charges you paid to your lender to obtain the mortgage for your first home purchase. As your lender, Texas Premier Mortgage loan officers would be happy to assist you with this! If you choose to install renewable energy systems in your home, such as solar panels, you may be eligible for deductions of up to 30% of the installation costs. If you purchased your first home for a job opportunity and moved more than 50 miles for it, you may be able to deduct your moving expenses. If your new home required some upgrades, you may deduct the value of donated construction materials or demolition waste donated to a qualified charity.

The Golden Rule of Mortgage Lending

You have heard of the saying of the golden rule, "Do unto others as you would have them do unto you." The real question is, when we apply this to our everyday lives, towards our friends, co-workers, boss, family, clients, do we really practice it? In order to be successful in any line of work, you must always put this rule first. Forget about what anyone may think about you, but just do the right thing for your customer. This principle is really simple. This is why we continue to have referral partners and repeat customers over and over again. Think of others first, and the rest will fall into place. At Texas Premier Mortgage, we take pride in knowing we provide the best service we can to all of our customers.

We appreciate the fact that our customers are willing to give us a chance to assist them, and in return will always apply the golden rule for them, and anyone we provide a service for. Who can you apply the golden rule for today in your life? In ours, its simple...everyone!

Benefits of a VA Loan

VA mortgage rates can be 100 basis points (1.00%) or more below rates for comparable conventional home loans, especially for borrowers with less-than-perfect credit. This is because VA mortgage rates are the interest rates assigned to loans which are guaranteed by the Department of Veterans Affairs under its Home Loan Guaranty program. The VA Home Loan Guaranty program protect mortgage lenders against loss, which allows banks to offer reduced rates to borrowers. VA mortgage rates are often the lowest mortgage rates of all rates linked to government-backed mortgage programs, including conventional loans, FHA loans, and USDA loans. There is a "right program" for every mortgage borrower, but for many home buyers, the VA loan stands apart for its combination of low rates, aggressive underwriting, and secondary benefits. VA loans are available via any approved VA lender and are a key part of today's housing market. The VA Loan: Better Than FHA and Conventional Loans? Backed by the U.S. Department of Veterans Affairs, VA loans are designed to help active-duty military personnel, veterans and certain other groups become homeowners at an affordable cost. The VA loan asks for no down payment, requires no mortgage insurance, allows flexible guidelines for qualification among its many other advantages. Here's an overview of the 10 biggest benefits of a VA home loan. 1. No Down Payment On A VA Loan Most home loan programs require you to make at least a small down payment to buy a home. The VA home loan is an exception. Rather than paying 5, 10, 20 percent or more of the home's purchase price upfront in cash, with a VA loan you can finance up to 100 percent of the purchase price. The VA loan is a true no-money-down opportunity. 2. No Mortgage Insurance For VA Loans Typically, lenders require you to pay for mortgage insurance if you make a down payment that's less than 20 percent. This insurance, which is known as private mortgage insurance (PMI) for a conventional loan and a mortgage insurance premium (MIP) for an FHA loan, protects the lender in the event that you default on your loan. VA loans require neither a down payment nor mortgage insurance. That makes this a VA-backed mortgage very affordable upfront and over time. 3. VA Loans Have A Government Guarantee There's a reason why the VA loan comes with such favorable terms. The federal government guarantees that a portion of the loan will be repaid to the lender even if you're unable to make monthly payments for whatever reason. This guarantee encourages and enables lenders to offer VA loans with exceptionally attractive terms to borrowers that want them. 4. Your Ability To Shop and Compare VA Loans VA loans are neither originated nor funded by the VA. Furthermore, mortgage rates for VA loans aren't set by the VA itself. Instead, VA loans are offered by U.S. banks, savings-and-loans institutions, credit unions and mortgage lenders -- each of which sets its own VA loan rates and fees. This means you can shop around and compare loan offers and still choose the VA loan that works best for your budget. 5. VA Loans Don't Allow A Prepayment Penalty A VA loan won't restrict your right to sell your home if you decide you no longer want to own it. There’s no prepayment penalty or early-exit fee no matter within what time frame you decide to sell your home. Furthermore, there are no restrictions regarding a refinance of your VA loan. You can refinance your existing VA loan into another VA loan via the agency's Interest Rate Reduction Refinance Loan (IRRRL) program or switch into a non-VA loan at any time. 6. VA Loans Come in Many Varieties A VA loan can have a fixed rate or an adjustable rate. It can be used to buy a house, condo, new-built home, manufactured home, duplex or other types of properties. Or, it can be used to refinance your existing mortgage, make repairs or improvements to your home, or make your home more energy efficient. The choices are yours. A VA-approved lender can help you decide. 7. It's Easier To Qualify For VA Loans Like all mortgage types, VA loans require specific documentation, an acceptable credit history and sufficient income to make your monthly payments. But, as compared to other loan programs, VA loan guidelines tend to be more flexible. This is made possible because of the VA loan guaranty. The Department of Veterans Affairs genuinely wants to make it easier for you to buy a home or refinance. 8. VA Loan Closing Costs Are Lower The VA limits the closing costs lenders can charge to VA loan applicants. This is another way that a VA loan can be more affordable than other types of loans. Money saved can be used for furniture, moving costs, home improvements or anything else. 9. The VA Offers Funding Fee Flexibility VA loans require a "funding fee", an upfront cost based on your loan amount, your type of eligible service, your down payment size plus other factors. Funding fees don't need to be paid as cash, though. The VA allows it to be financed with the loan, so nothing is due at closing. And, not all VA borrowers will pay it. VA funding fees are normally waived for veterans who receive VA disability compensation and for unmarried surviving spouses of veterans who died in service or as a result of a service-connected disability. Interested in learning more? Contact us today! 281-627-4222 or www.txpremiermortgage.com. Visit with us today to find out more.

Student loans? Don't Let it Stop You From Becoming a Homeowner!

If you’re like many of today’s college graduates, student loan debt is a burden. The average student graduated with nearly $30,000 in student loan debt in 2013 — a modest down payment amount to say the least. You might think you’re stuck renting until you can get those loans paid off, but simply having debt doesn’t preclude you from qualifying for a home loan. To find out if buying a home makes sense for you now, the first step is to determine your current debt-to-income ratio. Say you and your spouse make about $6,000 each month, before taxes. Your monthly student loan payments are $400 and you have about $200 in other debt, which includes payments on any credit cards or auto loans. Thus, you’re currently spending 10% ($600) of your monthly income on debt. Now, imagine what debt-to-income ratio you are comfortable with. Adding a mortgage payment of $1,200 brings your new debt payments to 30% of your monthly income. In the above scenario, there are various types of home loans for which you can qualify, including FHA loans, which have an average ratio of 28% for housing payments (the front-end ratio) and 41% for total debt payments (the back-end ratio), as of the first quarter of 2014. Further, FHA loans allow for low down payment options. The average conventional loan has a front-end debt ratio of 22% and a back-end ratio of 34%. You went to college to get ahead — don’t let student loan debt hold you back. Applying for a mortgage and finding the home that is right for you is a complex process, but I am here to help. Even if you believe you have to pay down your debt before buying your first home, contact a mortgage professional who can show you exactly what it will take to become a homeowner.

Looking to Buy a New Home in 2016? Follow These Easy Steps!

1. Improve your creditworthiness Your credit profile is important to a lender. While you're preparing to buy a home, be sure you're responsibly managing your current debt. Always pay your bills on time and chip away at your outstanding balances by paying more than the minimum. In most cases, lenders like to see a borrower with a debt-to-income ratio of 36% or less. 2. Save for a down payment Although a 20% down payment on a mortgage is ideal, it's not mandatory. Many lenders expect buyers to put down at least 3%, aside from the Federal Housing Administration, which requires a 3.5% down payment. However, if you're interested in building sizable equity right away, stash a hefty amount of cash to take to the closing table. Additionally, do your due diligence to find out about any local down payment assistance programs. 3. Seek preapproval Before you rush into house-hunting mode, get a mortgage preapproval. This process is used to help determine how much money you're qualified to borrow for a home purchase. Once you're preapproved, you'll have a more realistic expectation of which for-sale houses fall within your budget. You may qualify for a loan that is roughly 3 times your gross annual income. 4. Shop for a lender The home buying process involves more than just chasing a favorable interest rate. You have to find the best mortgage lender for your financial situation. No two sets of lender fees are alike, so it's important to get loan estimates from multiple lenders before making a decision. But the most important thing is realizing that individual brokers will provide you and your family with a more personal service, whereas most banks do not have a lot of the extra time to do so. Check out our website and get access to a personal loan officer who can answer your questions. 5. Research loan types A fixed-rate mortgage isn't right for every homebuyer. Neither is an adjustable-rate mortgage. If you plan to stay put in a home to raise a family, you might consider a 30-year loan. Conversely, if you're moving in 10 years or less, an adjustable-rate mortgage, or ARM, could better suit you. Interest rates on ARMs are fixed for the first several years of the loan and often start out lower than rates on 30-year fixed loans. There are also jumbo loans, which are typically used to purchase luxury homes. 6. Consider your lifestyle When you purchase a home, you're also investing in the community that surrounds it. More importantly, your home becomes central to every other aspect of your life. As you shop for homes, consider your work commute, nearby schools and any extracurricular activities in which you and your family might participate. 7. Remember to budget Your monthly mortgage payment won't be the only expense you have as a homeowner. There's also homeowners insurance, property taxes, maintenance costs and, more than likely, homeowners association fees, which is why it's necessary to stick to a budget. See what you can afford here. 8. Consult a professional The homebuying process is a challenging one, which is why it helps to have the assistance of qualified professionals. Ask questions of your lender and real estate agent, and reach out to a local lender who is qualified and has expertise in the area you are looking to buy in. Visit us at www.txpremiermortgage.com. 9. Don't forget the closing costs Not only do you need a solid down payment for a home purchase, you'll have to pay closing costs. The loan estimate you receive after applying for a mortgage gives you an idea of the "cash to close," or the money you need to complete the transaction. There are some closing costs for which you can shop and save money, and others that are fixed. 10. Beef up your savings account It's unwise to drain your savings to fund your down payment or closing costs and leave nothing in the account to cover emergencies. A useful rule of thumb is to stockpile 3 to 6 months' worth of living expenses. This deters you from tapping credit cards or loans and amassing more debt. Last but not least, be sure to make 2016 a great year and start it off with experiencing our A+ red carpet service which we provide to all of our clients! We would enjoy helping you and your family be able to make your new home dreams come true!

Want and Easy Loan Application Process? Follow These Simple Steps:

Follow these steps below to help keep your loan process smooth and easy! Have all of your funds used to close in one account without any recent large deposits – Even small deposits and transfers to your account may sometimes have to be sourced. Underwriters must prove that this money is not borrowed and that it can be hard unless you save checks, stubs, deposit slips and make copies of everything. It’s a lot less work if you simply use one account that is dedicated to your transaction and put all of your needed funds into that account at least 2 months prior to your transaction. Save your pay stubs and other financial documentation – Pay statements are one of the ways that income is verified and monitored. Currently, underwriters often want these updated within 30 days of the closing so get or get in the habit of hanging onto them and have them ready to transmit when requested. The same goes for all other financial documentation from bank to retirement statements, tax returns, fund transfers, asset sales, etc. Don't change jobs or switch from salary to commissions – It’s not always enough to simply have income, ideally, it’s best when it’s been received from the same employer for two years or more and it’s consistent or growing. We understand that things can change, yet, voluntary moves during the mortgage process can often equal difficulty and at the least, will make verifications more complex and time consuming. Save all pages of your bank statements - We know that banks love to include blank pages or advertisements in their statements. The problem is when they put a number on this page such as “1 of 8″ or “5 of 5″ – you may know their is nothing there but how will an underwriter if she or he can’t see the page? So, save even these and include them when you provide your statements. Don't apply for any new credit cards, car loans, furniture financing, etc – While purchasing a new home often goes hand in hand with buying furniture, lawn mowers or gas grills, that 10% discount the salesman wants to grant you by opening a new charge card can not only cost you far more money than you save; in extreme cases, it can even cost you your loan approval. If you need more detail, just ask but to be the ideal borrower, just don’t do it. Save your purchases until after close and you may be far happier. This is the most important thing of all – and that is to simply accept the process for what it is regardless of how crazy it may seem and enjoy your closing! Last but not least: Choose a mortgage company that understands the mortgage rules and regulations, and who can easily guide you through the process with their expertise. You also want a company who has been in business at least 5+ years and is up to date on all the newest regulations in the industry. Here at Texas Premier Mortgage, our Loan Officers are the best trained in the business to provide you with the utmost up to date information regarding your mortgage needs. We have 10+ years experience in the industry, allowing us to have all the knowledge it takes to get you a good deal and get it done for you in a timely manner. Why delay? Call today!! 281-627-4222. www.txpremiermortgage.com

Be Your Home Mortgage TEAM CAPTAIN

Getting approved for a mortgage can be stress-free experience for borrowers who take the time to prepare, and who approach the approval like a job. This is because, as a borrower, you become an integral player on a team where every member's goal is the same -- to have a successful closing. It could be argued that your role as "borrower" is more important, even, than the roles of loan officer, loan processor, home appraiser, loan underwriter, and closer. As the borrower, you're the team captain, and the way that you engage and participate with your loan is more important in getting your loan closed on-time (and without problems) than you may realize. Let's think of your loan approval in terms of a sporting team, where every player plays a specific part in the team's success. First, there's the loan officer. Sometimes called a "loan originator", the loan officer's role is to assess your situation and make a game plan. Your loan officer will ask questions of you, and use its mortgage market knowledge to determine which mortgage options may best suit your needs. The options may include fixed-rate or adjustable-rate financing; or, a recommendation to consider an FHA loan or VA loan. Your loan officer will be non-biased in presenting your options. It will be your choice as the borrower, ultimately, to choose the loan you like best. As a mortgage borrower, the way that you engage and participate with your loan is more important in getting your loan closed on-time (and without problems) than you may realize. Let's think of your loan approval in terms of a sporting team, where every player plays a specific part in the team's success. First, there's the loan officer. Sometimes called a "loan originator", the loan officer's role is to assess your situation and make a game plan. Your loan officer will ask questions of you, and use its mortgage market knowledge to determine which mortgage options may best suit your needs. The options may include fixed-rate or adjustable-rate financing; or, a recommendation to consider an FHA loan or VA loan. Your loan officer will be non-biased in presenting your options. It will be your choice as the borrower, ultimately, to choose the loan you like best. Often, but not always, a loan officer will work with an assistant to help coordinate the handling of a loan. This assistant may have any of the following titles : Loan Coordinator, Loan Assistant, Production Assistant, Production Manager, or some other title entirely. However, the role of this assistant is the same -- to help you close your loan as quickly and cleanly as possible. The team will also include a Loan Processor -- sometimes two! Loan Processors are the unsung heroes of the mortgage approval process. From the onset, they're busy collecting paperwork, reviewing documentation, making calls and requesting verifications, and keeping "the file" clean. Loan processors are also responsible for ordering home appraisals, when they're required. Notable exceptions include the VA Streamline Refinance and FHA Streamline Refinance, neither of which require a home appraisal. Appraisals, meanwhile, are handled by another member of the team -- the home appraiser. The role of the appraiser is to support your opinion of your home's value. The appraiser will visit the home you're wishing to mortgage and will perform a full assessment to determine its Fair Market Value. The value of your home becomes the basis for the loan. Your loan-to-value (LTV) ratio uses the appraiser's findings, for example, and all of the information collected to-date is passed to the Loan Underwriter. The Loan Underwriter's role is to review all of the information provided by you, the borrower; by the credit agencies and your employer(s); by the appraiser; and by anybody else who provided information in support of your loan approval. This may include your attorney, your accountant, your homeowners association (where applicable), and others. With all of the information in-hand, the underwriter then confirms that it adheres to the allowable rules for the loan you selected at the start of the approval process. The "allowable rules" are known as mortgage guidelines. You must meet mortgage guidelines in order to get approved. Loans which meet mortgage guidelines are approved, and issued a "clear-to-close". Clear-to-close means your loan has been issued a final approval, at which point a Closer is assigned to the team. The closer's role is to officiate your settlement, presiding over your signing and ensuring that all documents are signed where required. Documents are delivered from the underwriter to the closer only after a loan is clear-to-close. On a purchase mortgage, the closer will make sure that home is legally transferred to you, the borrower, after all papers are signed. With a refinance, the closer will ensure your old lender gets paid off, and that your former mortgage is retired. You are the most important player. To close on a loan -- whether purchase or refinance -- large groups of people must work as a team. There's your loan officer, your production assistant, your processor, your appraiser, your underwriter, your closer, and there's also you -- the Most Important Player. As the borrower, your job goes beyond choosing the loan program which is best for you. Once that loan is selected, your job is to provide the necessary paperwork and signatures to meet the terms of the loan. That means, in most cases, giving proof of income; proof of assets; and, proof of employment to help with underwriting. It may also mean providing supporting paperwork for a missed mortgage or credit card payment; or proof that a prior lien was released on your home. There are other items for which you'll be asked, too, and when those requests are made, your job as borrower is to respond to those requests as quickly and thoroughly as possible. The faster you reply back to your lender, the faster your loan can close. Closing quickly can get you access to lower mortgage rates. Closing slowly can ruin your loan. Truly. The internet is littered with stories of home buyers who failed to close on their original rate lock, and were forced to accept a higher rate at closing. Be proactive about your loan. Set a weekly appointment to speak with your loan office. Find out where you loan is in-process, what paperwork is still missing, and what's left to be done. Ask what you can do to move things forward. When you're asked for additional documentation, provide it with no question asked. Lenders don't want to request additional documents from you any more than you want to provide them. If they're asking, they need it. Be involved with your loan and the team will thank you. Your hustle and heart and be rewarded. You will see other team members working in-kind. Everyone will bring their "A" game to match your effort and interest. Championships are won when a whole team consistently puts forth its best effort. Therefore, find a lender who knows how to do just that, and who has your best interest at hand. To find out more and to see what interest rates are doing these days please click here. The loan officers at Texas Premier Mortgage are trained to work as a team, assisting you with a smooth home buying process. Contact Steve Head, President and Top Producer of Texas Premier Mortgage today! Why wait another day to get started?