7 Common Real Estate Terms, Defined

7 Common Real Estate Terms, Defined   You know the words “real estate,” but do you know exactly what they mean? I’m here to better explain this term and more today. Selling in the greater Houston area? Get a market analysis report Purchasing in the greater Houston area? Get full MLS access   There’s a lot of lingo out there when it comes to real estate, so I just wanted to give you a quick cheat sheet of some of the most common terms and what they mean. Here are the ones you need to know: 1. Real estate. The term includes both the land and the property built upon it. Though each has its own value, land is a limited resource, meaning it will increase in value over time along with the cost of building on that land. This is what causes real estate to appreciate in value. 2. Purchase agreement. This is the contract you enter into in order to buy the home. 3. Closing date. Once you enter into a purchase agreement, you’ll need to negotiate a closing date. On this day, your down payment is due and you officially become a homeowner. 4. Mortgage. Some people have enough cash to buy a home outright (must be nice), but most people will need a loan from a bank, also known as a mortgage. “Most people aren’t aware of the additional costs that are separate from your down payment.” 5. Down payment. Banks have built-in safety nets to protect their interest when giving out loans. One of these safety nets is the down payment. It causes fewer people to go into foreclosure. Not all mortgages require down payments, though. Most range from 3% to 20%, but vets can take advantage of 0% down programs. 6. Equity. Once you know what you’re looking for in a home, you can calculate your instant equity. Let’s say you buy a house for $100,000 and it requires a 3% down payment. Now, you owe the bank $97,000 before you own the home free and clear, and you have $3,000 in equity from your down payment. As your home and the land it’s on gains value, you’ll also be paying down your mortgage and increasing your equity. 7. Closing costs. Most people aren’t aware that there are additional costs after your down payment is made. These include things like lender fees, title fees, and state taxes. Sometimes you can get these paid for by the seller, but it’s all based on how your agent negotiates. If you have any questions for me in the meantime or any real estate needs that I can assist you with, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.   Written by Ruby Miranda on August 27, 2019. Posted in Buy A Home, Buyer Tips, Sell Your Home, Seller Tips Trackback from your site. Leave a Reply

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Getting Into the Homebuyer State of Mind

Getting Into the Homebuyer State of Mind These are the six habits that all successful homebuyers have in common. Selling in the greater Houston area? Get a market analysis report Purchasing in the greater Houston area? Get full MLS access   These six behaviors are things you can do on a daily, weekly, monthly, or even yearly basis if you want to be fully prepared to buy a home: 1. Ditch an indulgence or two. Excuse me for restating the obvious, but saving for a down payment is vital to the success of a home purchase. Make deposits into a home savings account. 2. Start attending open houses. Getting into the habit of attending open houses will not only give you a feel of what homes are available, but seeing homes that could be yours will also help motivate you to save money on a monthly basis. 3. Do a trial run of homeownership. Owning a home is about more than just coming up with a 20% down payment—you also need to be able to pay the mortgage and maintenance costs. To make sure you don’t max yourself out, test out the habits of saving as a homeowner. For one month, try setting aside the anticipated amount of your monthly housing expenses, including what you’d need for an emergency fund. “For one month, try setting aside the anticipated amount of your monthly housing expenses, including what you’d need for an emergency fund.” 4. Pay all your bills on time. To qualify for a mortgage at a reasonable interest rate, you’ll need a credit score in the 600s at the very least. The best way to keep your score high is to be in the habit of paying every single bill on time. Timely payments are especially important for auto loans and leases, as mortgage lenders look at these first when checking your reliability. To ensure that your bills are paid promptly and consistently, set up an autopay plan with your bank. 5. Check your credit report. Do you even know what your credit score is? If not, now is the time to check. You can visit www.CreditKarma.com for a free copy of your credit report. For your full credit report, which is made available once a year, go to www.AnnualCreditReport.com. Who knows—maybe there are things hurting your credit that you weren’t aware of. The only way to know for sure, and to nip existing problems in the bud, is to check your score. If this information was helpful to you, don’t forget to check out the rest of my blog! For any questions you may have, you can always reach out to me. I’d love to help.   Written by Ruby Miranda on March 25, 2019. Posted in Buy A Home, Buyer TipsTags: Buy Your Home, Buyer Tips, First Time Buyer, Houston, Ruby Miranda   Trackback from your site. Leave a Reply

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10 “Skips” That Will Help You Save for a Down Payment

  10 “Skips” That Will Help You Save for a Down Payment   Start saving now with these 10 simple tips. Selling in the greater Houston area? Get a market analysis report Purchasing in the greater Houston area? Get full MLS access   When you’re saving up for something as big as a down payment for a home, some monetary sacrifices must be made—and I’m not just talking about saving the leftover money on your paycheck. To make your dream of homeownership come true in months instead of decades, you’ll likely have to make some simple changes in your day-to-day expenditures. To help you get started, here are 10 things you can skip that will make a big difference in your bank account: 1. Starbucks. Buying a $4 latte every day can easily cost you over $1000 a year. Even if you go with a cheaper $2 option, that’s still around $500 you could be saving annually. Try brewing your own coffee. 2. Going out for lunch. It’s just a quick meal to keep you going, but eating out each day adds up quickly. Try bringing a homemade lunch to work with you. 3. Your commute. Is there a way you can carpool with co-workers or work from home a few days a week? Either of these will save you on gas and vehicle wear and tear. For something as big as a down payment for a home, some monetary sacrifices must be made. 4. Dry cleaning. There are many ways you can save on dry cleaning. The first step is to check out these 19 ways to dry clean at home. 5. Car washes. The average price of a car wash is $7. A weekly car wash means $364 a year. Get out the hose and bucket and spray your way into savings. 6. The gym. The average gym membership is around $54 each month, but you can avoid this payment by doing home workouts, where you can still achieve the same results! 7. Cable TV. Simply cutting cable out can save you $1,200 a year. You’ll most likely need an alternative for your TV-watching needs, so subscriptions like Netflix and Hulu will cut into this amount. 8. The movies. The average ticket price is around $9, but if you’re a movie buff, how can you avoid seeing the latest and greatest shows on the big screen? Well, it’s not the ticket that gets you—it’s the popcorn, drinks, and candy that can send a family of four’s movie-going expenses into the hundreds. Stick with the ticket and you’ll save. 9. Living alone. Renting your own place alone can be incredibly expensive. Just adding one roommate could instantly cut your expenses in half! Generous family members may even be willing to let you move in for a period of time, allowing you to put any rent money into your down payment stash instead. 10. Giving gifts. Though we’ve just passed the holiday season of 2018, think about how much you spent. Was it a lot? If you’re trying to save in 2019, perhaps think about going for heartfelt gifts instead of expensive ones. Crafty creations and thoughtful cards make for gifts that can stand out—without costing a fortune! If you have any questions or need more information, feel free to reach out to me. I look forward to hearing from you soon.   Written by Ruby Miranda on January 14, 2019. Posted in Buy A Home, Buyer Tips, Financing A HomeTags: Money Tips, Ruby Miranda Trackback from your site. Leave a Reply

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