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3 MORE Great Reasons to Buy a Home in Port A or North Padre Island

3 MORE Great Reasons to Buy a Home in Port Aransas or North Padre Island
Our last post—3 Great Reasons to Buy a Home—was incredibly popular… and we decided to share three more great reasons to buy instead of rent.

3 MORE Great Reasons to Stop Renting and Buy a Home in Port A

Property Tax Deductions

We mentioned taxes in our last post, but only mortgage interest. You may also be able to deduct property taxes, according to IRS Publication 530. Naturally, you’ll need to consult with a tax professional if you’re going to attempt to deduct your property taxes from the amount you owe the Internal Revenue Service. (Remember, we’re not tax advisers—we’re Port Aransas real estate experts.)

Capital Gain Exclusion

If you’ve lived in the home for two out of the past five years, you may be able to exclude up to $250,000 for one person or $500,000 for a couple on your profit from capital gains.
You don’t have to buy a new home to do so (or “move up,” contrary to popular belief) in order to take advantage of capital gain exclusion, but again, you’ll want to consult with a tax professional.

You’re Always Building Equity

If you’re paying down your mortgage, you’re typically building equity in your home. Naturally, if your home is depreciating in value (it happens as part of a natural market cycle, so don’t worry too much if your value dips now and then) you won’t be building as much equity as you would if it were appreciating.
For the most part, you build equity every time you make a mortgage payment. And if you pay extra toward the principal each month, you’re building even more equity.

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

You can also check out:

 
 
 

Filed under: Blog, Buying by Julie Woodward
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3 Great Reasons to Buy a Home in Port Aransas

3 Great Reasons to Buy a Home in Port Aransas or on North Padre Island
If you’re like most people, you’re excited about buying your first home—but is home ownership really right for you?
There’s no one-size-fits-all answer about whether buying a house is the right decision (or when you should buy a house, for that matter), but here’s what most homeowners report as some of the best reasons to buy instead of rent.

3 Great Reasons to Buy a Home

While these don’t apply to every situation, these are the best reasons many of our buyer clients buy homes.

Pride in Ownership

It’s the American Dream—you grow up, get a job, and buy a house. And you should be proud to own a home; you’ve earned it.
You can also take pride in the fact that this home is yours, and you can paint it, stomp on the floor from upstairs, and do whatever else you’d like in it.

Real Estate Tends to Appreciate

In addition to providing you with shelter, your home is likely to appreciate. Most real estate investments—and that’s what a home is—grow in value over time. While some depreciate, and nearly all homes are subject to the market’s ups and downs, for the most part, buying real estate can be a great investment.

Deductions for Mortgage Interest

When you pay interest on your mortgage loan, you may be able to deduct it from your taxes. The IRS requires that your mortgage balance be lower than how much your home is worth, but to be sure, you should consult with a tax professional before attempting to write off the amounts you’ve paid.

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

You can also check out:

 
 

Filed under: Blog, Buying by Julie Woodward
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Let's Talk About FICO Scores

FICO Scores and Buying a Home in Port Aransas or North Padre Island
Your FICO scores affect your interest rate when you’re buying a home (and contrary to popular belief, you can buy a home after a foreclosure or bankruptcy if you work to improve your credit).

What Are FICO Scores?

Your FICO score is a type of credit score created by the Fair Isaac Corporation. Lenders use your FICO score to find out whether you’re a big risk (and whether they’re willing to take that risk on you).

What’s a Good Credit Score?

Credit is scored on a big scale ranging from 300 to 850. The higher the number, the better your credit.
According to The Balance, here’s the breakdown on what interest rates you may qualify for based on your FICO credit score, assuming that you have a 10 percent down payment and meet all the lender’s other requirements:

  • FICO Score of 600 to 640: + 1.625 percent over prevailing rate. This means if a borrower with good credit is paying 5.875 percent, your interest rate would be 7.5 percent.
    A $200,000 amortized loan at 7.5 percent would give you a monthly payment of $1,398.
  • FICO Score of 560 to 580: +2.875 percent over prevailing rate. This means if a borrower with good credit is paying 5.875 percent, your interest rate would be 8.75 percent.
    A $200,000 amortized loan at 8.75 percent would give you a monthly payment of $1,573.
  • FICO Score of 540 to 559: +3.425 percent over prevailing rate. This means if a borrower with good credit is paying 5.875 percent, your interest rate would be 9.3 percent.
    A $200,000 amortized loan at 9.3 percent would give you a monthly payment of $1,653.
  • FICO Score Under 540 to 500: +3.875 percent over prevailing rate. This means if a borrower with good credit is paying 5.875 percent, your interest rate would be 9.75 percent.
    A $200,000 amortized loan at 9.75 percent would give you a monthly payment of $1,718.
  • FICO Score Under 500: +6.25 percent over prevailing rate. This means if a borrower with good credit is paying 5.875 percent, your interest rate would be 12 percent. With a FICO of less than 500, you will not qualify for a 90 percent loan, but you may qualify for a 65 percent loan, therefore, you need to increase your down payment from 10 percent to 35 percent.
    A $200,000 amortized loan at 12 percent would give you a monthly payment of $2,057.

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

You can also check out:

 
 

Filed under: Blog, Buying, Credit Scoring by Julie Woodward
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How to Improve Bad Credit So You Can Get a Mortgage Loan

How to Improve Your Credit So You Can Get a Mortgage - Port Aransas Homes for Sale
If you’re like most people, your credit could use a little “brushing up” before you apply for a loan.
That’s perfectly normal, and you’re thinking along the right lines: the better your credit score, the easier it will be to get a good interest rate and more favorable terms from your lender. While this isn’t financial advice (you should talk to a financial adviser for that), it can give you hope when you’re working toward buying your own piece of the American Dream.

Bad Credit and Applying for a Loan

Having bad credit doesn’t disqualify you from getting a loan, but it can hurt your chances. It can also make it harder to get agreeable terms on a loan.
So what should you do?
Talk to a broker who focuses on helping people in situations similar to yours. There are a number of mortgage brokers who specialize in working with people who have bad credit, and your Port Aransas Realtor® may even be able to refer you to a local expert.

What Your Broker May Advise

Your mortgage broker may advise you to take a few steps to improve your credit, including:

  • Opening a line of credit with a major credit card company. While you don’t need to start with a high limit, the key is getting a card and making timely payments on your account. This shows lenders that you’re responsible with your debt and that you’re “good for it.”
  • Showing steady employment. When you’ve worked in the same place for a year or more, you’re showing lenders that you’re responsible, too.
  • Save up at least 10 percent toward a down payment. If you’re willing to contribute to a home you want to buy, lenders can see that you’re committed and may be more likely to want to work with you.

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

You can also check out:

 
 
 

Filed under: Blog, Buying, Credit Scoring by Julie Woodward
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Can You Buy a Home After Foreclosure or Bankruptcy?

can you buy a home with bad credit - port aransas homes for sale
If you really want to buy a home but your credit score is holding you back, there’s good news: you may be able to buy a home in Port Aransas with bad credit.

The Bottom Line on Credit

This isn’t financial advice—we’re not financial advisers. However, you may be relieved to find out that even if you’ve had a bankruptcy or foreclosure, you may not be automatically disqualified from buying a home in Port Aransas.

How is Buying a Home With Bad Credit Different From Buying With Good Credit?

You can buy a home with bad credit, but you’ll most likely pay more than a borrower who has a high credit score will.
Lenders are in business to make money, and they can’t do that without assuming a certain amount of risk. While some buyers need to do major work on their credit reports in order to qualify for great rates, the truth is that many buyers who think they won’t qualify for a mortgage actually will.

After a Foreclosure or Bankruptcy: What You Need to Know

If you’ve had a foreclosure or a bankruptcy, here’s what you need to know:

  • A bankruptcy can stay on your credit report for up to a decade.
  • You’re more likely to get better rates and more favorable terms if you wait about four years after filing for bankruptcy before applying for a mortgage.
  • FHA guidelines only require that you wait two years after a foreclosure, and with an FHA loan, you could put as little as 3.5 percent down on a home.
  • FHA guidelines only require that you wait three years after a short sale.

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

You can also check out:

 
 

Filed under: Blog, Buying by Julie Woodward
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3 Things to Know Before You Make an Offer on a Port Aransas Home

3 Things to Know Before You Make an Offer on a House in Port Aransas
When you’re searching for Port Aransas homes for sale, especially if you’ve been to see your favorites, you’re warming up to actually making an offer.
But are you ready to do that?
Many people are so excited to dive into home ownership that they’re ready to make an offer immediately. While that’s great, you need to know a few things before you jump in with both feet.

3 Things to Know Before You Make an Offer

Your Realtor’s® job is to make sure you’re getting the best possible price on a home, and part of that includes doing plenty of market research.
Before you make an offer on any home, sit down and talk about your options with your Realtor.
Some of the things your agent is going to review so you can make the best possible decision include:

  • How much the seller paid
  • Why the seller is selling
  • What the last 6 months have looked like as far as sales

How Much the Seller Paid

You may not know exactly how much the seller paid for the home (and in some cases, it doesn’t matter)—but if the sale was recent enough, it may make a difference in how much you offer for the house.

Why the Seller is Selling

If the home’s current owners are in a big rush to move, whether it’s because of a corporate relocation or something else, you may be able to adjust your offer accordingly.

What the Past 6 Months on the Port Aransas Real Estate Market Have Looked Like

Your Realtor’s job is to keep tabs on the Port Aransas real estate market, so she’ll know whether homes have been selling below list price. If they have, that’s often an indicator that the seller will accept a small percentage less than what he or she is currently asking.

Are You Moving to Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

 

Filed under: Blog, Buying by Julie Woodward
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What Happens at Closing?

What Happens at Closing When You Buy a Home in Port Aransas, TX?
When you’re looking at Port Aransas homes for sale, the final step—closing—is never far from your mind. That’s the big day; the day you’ll get the keys to your next home.
But what, exactly, happens at closing?
Your Realtor® will be there with you, and so will a handful of other people.
Here’s the breakdown of what happens.

What Happens at Closing?

The day you sign the final paperwork that outlines your ownership of the home you’re buying is called closing day. You’ll sit at the closing table (it’s really just a table where we close real estate transactions) and sign your name to dozens of documents.
There will be plenty of documents for you to sign, too. You’ll have financial documents, disclosures, title agreements… you name it, and you’re signing it on closing day.

What Happens After You Sign All the Papers?

After you sign all the paperwork your Realtor puts in front of you, those documents need to go to your lender. Typically, whomever is in charge on closing day will handle faxing or scanning these documents to your lender (and the seller’s lender, if there is one).
In many cases, your signature is required on all these documents before your lender will actually fund the loan and give the seller his or her money. In some cases, the funds are already waiting and the lender just needs a final confirmation that everything went through according to plan.
After everyone has all the documentation they need, your loan is funded… and you’re a homeowner.

Are You Buying a Home or Condo in Port Aransas?

Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
In the meantime, you might find these links helpful:

 
 

Filed under: Blog, Buying by Julie Woodward
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Should You Buy a Foreclosure in Port Aransas or North Padre Island?

Should you buy a foreclosure in Port Aransas or North Padre Island - Foreclosure Listings
If you’re like many people, you’re wondering whether it’s a good idea to buy a foreclosure in Port Aransas or North Padre Island.
After all, foreclosures often sell for less than market value – and you’d make out like a bandit when it comes to equity, right?
The truth is that buying a foreclosure isn’t always a good idea.

Pros of Buying a Foreclosure in Port Aransas or North Padre Island

If you’re buying a foreclosure, it’s probably true that you’ll spend less than market value on the home.
Sellers who are in foreclosure – before the lender actually takes possession of the home – are often in a big hurry to sell, too. That can work in your favor.
Sometimes lenders are willing to negotiate the price, particularly if the home has been on the market for more than a little while.

Cons of Buying a Foreclosure in Port Aransas or North Padre Island

Remember, you’re not the only person in Port A or on North Padre Island who’s looking for a great deal on a foreclosure. In fact, you might need to dive into a bidding war – and the home’s price can jump up quickly (and exponentially), and that can negate any savings you might have seen.
You’ll also need to account for the fact that when you buy a foreclosed home, the previous owner didn’t have the money to make mortgage payments. What if he or she didn’t take care of routine maintenance (or major issues) because of money problems?
You may also inherit debt connected to the home, so it’s important that you work with a reputable title agency and that your Realtor® thoroughly vets the property.

Foreclosures in Port Aransas and North Padre Island

You can come out ahead by buying a foreclosure in Port Aransas or on North Padre Island, but it’s extremely important that you work with a qualified expert who understands how to help you through the process… and who’s looking out for your best interests every step of the way.

Are You Moving to Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

 

Filed under: Blog, Buying, Buying a Foreclosure by Julie Woodward
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Let's Talk About Earnest Money (and Option Fees and Periods)

Earnest Money Deposits and Option Fee and Period - Port Aransas TX Real Estate
If you’re like most Texas homebuyers, you’ve probably heard the terms earnest money deposit and option fees and periods since you made the decision to buy a home. You may be wondering what the differences are… and if you’ll need to pay one or both.

Earnest Money Deposits

When you find your dream home, you need to act quickly. You’ll have to let the seller know you’re serious about completing the purchase.
That’s what an earnest money deposit is for. The earnest money deposit is a negotiable amount of money that comes with a set of conditions (also negotiable) that protect the buyer and seller.

Why Does Earnest Money Make a Difference?

When you sign a purchase contract, you’re asking the seller to take the home off the market and hold it for you. That makes it unavailable to other buyers.
Your earnest money deposit is still, in most cases, your money; it goes into an escrow account until the deal is closed. Usually, the money is put toward your down payment.

What is an Option Fee and Period?

After making an offer and negotiating the terms and conditions of the earnest money deposit, you may want to take advantage of the option fee and period. This fee is separate from the earnest money deposit, and it can be a smart investment for homebuyers.
The option period lets you change your mind, with no questions asked, by paying a small fee. It also gives you a little extra time (usually 10 days or less) to complete all the necessary inspections.
Buyer’s remorse? Sometimes the option fee and period can get you out of a mistake. You don’t have to specify a reason for backing out of a real estate transaction, but remember, there are very strictly enforced timelines you’ll need to follow if you take this route.

Are You Buying a Home or Condo in Port Aransas?

Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
In the meantime, you might find these links helpful:

 

Filed under: Blog, Buying, Financing by Julie Woodward
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Can You Buy a Home in Port Aransas With Bad Credit?

Can You Buy a Home in Port Aransas With Bad Credit
DISCLAIMER: This is not intended to replace financial advice; we’re not financial advisers. If you need financial advice, you should speak with a licensed financial adviser.
Can you buy a house with bad credit?
Let’s talk about what constitutes “bad credit” for the purposes of buying a home so you know exactly what you need to do if you’re ready to make the leap.

Buying a Home With “Bad Credit”

Typically when lenders refer to someone with bad credit, they could mean that the person has excessively high credit card debt, late payments, a bankruptcy, or a foreclosure.
The most obvious ways to improve your credit are to pay down your debt and make timely payments. As for bankruptcy and foreclosure, time is typically the cure.
What you can do is talk to a lender that specializes in helping borrowers with bad credit. Your lender can point you toward special programs that will improve your credit and show you how you can finance a home, even with a bankruptcy or foreclosure on your record.

Time Frames for Foreclosure and Bankruptcy on Your Credit Report

Before you assume that you have bad credit, order your free credit report from Annual Credit Report. Thanks to the Federal Trade Commission, everyone’s entitled to one free copy of his or her credit report every year.
A bankruptcy can stay on your credit report for up to 10 years. The farther the bankruptcy is in your past, the more favorably lenders may look at your credit profile.
If you’re using a conforming loan, you typically need to wait about 4 years after a bankruptcy or a short sale.
If you’re using an FHA loan, you must wait 2 years after foreclosure. The good news? After 2 years, you may qualify to pay as little as 3.5 percent down. If you’ve had a short sale, you’ll have to wait 3 years.

Are You Buying a Home With Bad Credit in Port Aransas?

If you’re buying a home in Port Aransas, call us at 361-563-7788 right away. Tell us what you’re looking for and we’ll help you find it.
In the meantime, browse our Port A real estate listings in some of the most popular communities:

 

Filed under: Blog, Buying, Consumer Tips, Credit Scoring by Julie Woodward
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