Austin Real Estate Update

Yes, finally it's back and in full force.  For all of you, me included, we can now buy a house not based on our tax return but on our bank statements.

Like most of the self-employed buyers I have run across, we have the money and credit but just don't show enough income to qualify based on the lender's requirements.

Over the past 6 months I have been trying to find a loan program or a private lender willing to work with self-employed home buyers who want to buy a home or purchase more investment properties  I called countless banks and mortgage lenders across the United States. 

Last month I found a small Texas bank willing to lend money to self-employed home buyers and investors based not just on cash on hand, assets, credit and income but also by a face to face meeting and firm hand shake.  Yes, this is a true story. The banker told me he goes by his feeling not just what is on paper.

Last week I received an email flyer from a local mortgage lender stating that he can loan money to self-employed home buyers with 25% down, a good credit score and income based on your average monthly deposits into your personal bank account.

This loan program can be used for a primary residence or even a vacation home.  Best of all, if you qualify the current interest rate is only 4.25% on a 7:1 ARM for 30 years.  

For more information about home for sale in Austin, Cedar Park, Leander, Pflugerville and Round Rock, Texas or for more details about the above self-employed loan programs - Call Premiere Team Real Estate 512-345-1919

Based on the 2011 TAKS results by grade, 10 Elementary and Middle schools made the ranking of Exemplary.

Currently Austin has the most totaling four Elementary schools and two Middle schools. Among the six, River Place and Steiner Ranch Elementary schools.

Cedar Park has three Elementary schools including Deer Creek Elementary. 

Parkside Elementary in Georgetown also made the list for 2011.

For more information about these schools and others, call us at 512-345-1919. 

Here are the basic rules of thumb:

Your mortgage payment can’t be any higher than 28% of your gross monthly income per in most cases.  However, only you can determine the monthly payment you can afford by analyzing your expenses, goals, and spending habits.

A lender can't tell you what you can afford; a lender can only tell you how much they are willing to lend you after looking at your financial situation.

A mortgage lender will also take into consideration your monthly payments for other debts, such as student loans, car loans, and credit card payments, your credit history, and cash available for down payment and closing costs when determining your maximum loan amount.

A good way to find out how much you can borrow is to get pre-qualified with a lender.  They will investigate your financial situation through your credit report and documents you provide, then give you a pre-approval letter for the most you can purchase.  

A pre-approval letter is a good document to have when you go to look for your home.

Bad Credit, No Credit, Self Employed, No Problem!  We know the lenders who can get you a loan.  Call Premiere Team Real Estate Now for a FREE list of our “Preferred Lenders!” We specialize in helping people buy Austin Texas homes, Cedar Park Texas homes, Leander Texas homes, Pflugerville Texas homes & Round Rock Texas homes - 512-345-1919

As you know I am a Real Estate Broker in Austin, Texas. After carefully studying the housing market to include buying and selling real estate in Texas for over 18 years, I have seen both good and bad times. I have also gained a lot of experience and knowledge along the way.

With all this under my belt, I have seen things that have helped improve and hurt the Austin, Texas Housing Market.

These are my own ideas that I have been holding on to for quite some time. The reason I have decided to share them now is to make others aware of problems that I think can be easily be fixed and may even stir up additional ideas that will help the overall economy and housing market. Please keep in mind I am not trying to run for office or get the newspaper. This Blog was simply written in hopes to touch as many people as possible and to get them to think about how it could help our economy and Housing Market.

Idea 1: Increase the FHA loan limits so homebuyers that meet current loan guidelines can buy with minimum down. This will allow those of us who can afford a home but do not have or want to put a lot of money down to get into a home.

Idea 2: Allow all Homeowners to refinance their current mortgage down to current market rates regardless if they have equity or are upside down. This will allow those that maybe struggling to make their monthly mortgage payment a chance to breathe and not face possible short sale or foreclosure in the near future. It will also allow homeowners a chance to free up some additional money so they could start spending a little more.

Idea 3: Allow Real Estate Investors a chance to purchase as many homes as they can qualify for as long as they put 20 to 25% down. This will help decrease the amount of foreclosures and short sales in the real estate market. It will also minimize real estate investors letting their properties go back to the bank.

Obviously, nothing will work all of the time and there are many more ideas out there that will also help our economy and housing market. I hope you have enjoyed reading my Blog and if so pass it on. Maybe these ideas and others will reach the right people to at least review.

Thanks for your time. If you are considering buying, selling or leasing throughout the greater Austin, Texas area to include Cedar Park, Leander, Pflugerville & Round Rock, give me a call at 512-795-9918

Property Managers, Lanlords and Tenants BEWARE:  New requirements by the Fair Credit Reporting Act (FCRA) was signed into law by President Obama in July of 2010. These new requirements have been in effect since July 21, 2011.

This new policy requires the Landlord to provide specific information to the tenant if the Landlord is doing one of the following based on credit:

• denying the lease/rental application

• requiring a co-signer or guarantor 

• requiring a higher security deposit

• requiring an increased rent amount

If such an action is taken, based on the tenant's credit score, then the following information must be provided to the applicant:

1. the credit score

2. the entity that created the credit report

3. the date of the credit report

4. the range of possible scores within the model used

5. the key factors, not exceeding four, that affected the credit score

For more informatioin about buying, leasiing, selling or property managment, call Premiere Team Real Estate or Premiere Team Management at 512-795-9918

Provided information was taken from many sources such as FCRA, National Tenant Network and other recent articles. 

There are many financial guru's, mortgage brokers and real estate agents out there that argue over should you refiance, pay extra on your mortgage or leave it be.  All of them are right given certain circumstances.  However, all of them use formulas and vocabulary that not only overwhelms most of us but also makes us scared to do anything.

I like to keep and make things simple.  I offer no ivy league vocabulary or complex formulas that most of us can't understand.  Here it is in plan simple english.

There are only two questions to ask yourself...

Are you planning to keep your for at least another 3 to 5 years?

Is your current interest rate 5% or above?

If you answered yes to both of these questions, than re-financing will most likely SAVE you MONEY.

To be absolutely sure, consult a local mortgage broker and have them run the numbers to see what your new monthly would be.  Also, there are closing costs associated with re-financing which can be added to your new loan in most cases but that will effect your new payment as well.

Keep in mind in order to re-finance you must have at least 20% equity and you will go back to a 30 year mortgage.

Whether you re-finance your home or not, I do believe in adding a few dollars per month to your P & I payment.  I usually add $25 or so to mine.  Not much enough to notice out of my pocket but enough to see your loan balance go down much faster.  Thus you will pay less interest and pay it off early.

Lastly, for those of you that want to pay your mortgage off early and can afford a higher payment, re-fiinance to a 10 to 15 year mortgage.  These types of loans offer even better rates.

For more information, call Mike Cusimano with Premiere Team Real Estate at 512-795-9918.

My friend just emailed this to me and though I have heard about this I wasn't aware it passed or has it?

I thought the Government was trying to stimulate the economy.  It appears that this will the do exact opposite.

If home owners have to pay thousands of dollars more on top of normal closing costs, there will be less of an incentive to buy another home.  And what about those home owners with little to no equity.  What the hell are they thinking? 

Our economy is still far from stable considering all of the new foreclosures and short sales coming on the market on around the country. Not to mention all of the corporate bailouts and the stock market going on a sea saw.

About the only thing we still have to be thankful for are the lowest interest rates in history.  I guess home owners need to decide to sell now and buy their dream home or refinance and stay put until they can afford to stomach another 3.8% in closing costs.

Carol stated, "The National Association of REALTORS is all over this and working to get it repealed, before it takes effect. But, I am very pleased we aren't the only ones who know about this ploy to steal billions from unsuspecting homeowners. How many REALTORS do you think will vote Democratic in 2012?

Did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it? That's $3,800 on a $100,000 home, etc. When did this happen? It's in the health care bill and goes into effect in 2013.

Why 2013? Could it be to come to light AFTER the 2012 elections? So, this is "change you can believe in"? Under the new health care bill all real estate transactions will be subject to a 3.8% Sales Tax.

If you sell a $400,000 home , there will be a $15,200 tax.

This bill is set to screw the retiring generation who often downsize their homes or sell their homes so they can

afford to move into a retirement community. Does this make your 2012 vote more important?

Oh, you weren't aware this was in the Obamacare bill?

Guess what, you aren't alone. There are more than a few members of Congress that aren't aware of it either

http://www.gop.gov/blog/10/04/08/obamacare-flatlines-obamacare-taxes-home

I hope you forward this to every single person in your address book. VOTERS NEED TO KNOW."

If you are thinking about buying, refinancing or selling, now is the time.  Don't wait until it's too late!  Call Premiere Team Real Estate today for a FREE consultation offering you the pros and cons of buying, refinancing or selling now.  Call Mike Cusimano at 512-345-1919.

I just got off the phone with a mortgage company who specializes in VA Loans.  They tole me that the government rate on a 30 year VA loan just hit an all time low of only 3.75% with no buy down fees.  That's Amazing! What an opportunity for those Veterans who are thinking about buying. 

Because you are a Veteran like me you can move into a home with no money down, no closing costs and at an amzing 3.75% mortgage.  Your monthly payment would be less than rent, you would now have additional tax deductions, you would be buying on the lower end of the market and would be building equity faster than most of your friends and family. 

That's insane!  Why are you still renting? Rates, home prices and availabilty will not last. For more information, call Mike Cusimano with Premiere Team Real Estate at 512-795-9918 now.

Travis County is now eligible to receive individual assistance under the Presidential Disaster Declaration for wildfires.  After much debate, President Obama finally signs the Presidential Disaster Declaration for wildfires.  Google recent article for more information.

Government assistance can include grants for temporary housing, home repairs, low-cost loans to cover uninsured property losses and more.

Go to www.disasterassistance.gov, m.fema.gov or call 1-800-621-3362 to get more information and register.

Our hearts here at Premiere Team Real Estate go out to the victims of the recent wildfires including our good friends and old neighbors on Varner Court in Steiner Ranch who also lost their homes and personal belongings in the wildfires. *information was taken from City of Austin Homeland Security and Emergency Management

Owner financing has been around for many years.  Though Sellers and Real Estate Agents advertise Seller Finance or Owner Financing, they most likely mean Lease purchase, subject to's or mortgage wrap.

Through the 1990's non-qualifying assumptions were most popular.  Since then, creative financing has gone from lease purchase, lease to own, lease option to mortgage wraps.

Mortgage wraps are currently to most popular way to purchase a home.  You can buy a home with no credit, bad credit, being self-employed and close within 7 days.  Plus, the Deed is transferred over into your name.  Unlike the older versions of lease options and lease purchases, both the buyer and seller feel more comfortable with the process and are more likely to go through with it.

There are many ways to structure mortgage wraps though most seem to follow similar terms.

For more information about mortgage wraps or owner financing in Austin, Cedar Park, Leander, Pflugerville or Round Rock, Texas - Call Premiere Team Real today at 512-345-1919.