Part of the American Dream is owning your own home, now there is a program to help America’s heroes achieve that part of the dream.

Active duty personnel (Active Duty, Reserve & National Guard), employees of the U.S. Departments of Homeland Security & Defense, and Veterans are eligible to qualify for the Dream Makers Program by the Pentagon Federal Credit Union Foundation.  This program allows qualifying first time home buyers to receive a grant of up to $5,000 for a down payment and closing costs.

Do you qualify?  You are eligible if:

• You are active or former Military – Active Duty, Reserve, National Guard, Veteran, DoD or DHS
• You are a first time home buyer. Or have not owned a home in 3 years or have lost your home through divorce or natural disaster.
• Your gross household income, that you use to qualify for your mortgage is: A maximum of $55,000 per year or a max of 80% of the median income of your community based on your family size

Now that you know that you are eligible, then what?

1. Decide how much money you will be putting forward for your home purchase.   You have to contribute at least $500 to receive the grant.  The program will match your contribution 3 to 1 up to $5000.  To get the most help from the program, you would need to put forward $1,667.  That is the minimum amount to put down to receive $5000 in assistance.  The amount of your contribution and the grant funds must equal at least 3% of the purchase price to receive the grant.
2. Apply for Dream Makers.  You can do this as soon as you start thinking about buying a home, so there is no reason to wait.
3. The foundation will respond with instructions on the process.  They will give you contact information to share with your lender to help out the process.

You can out more information about the Dream Makers program here on the Pentagon Foundation website.

 

As always I’m here to help, if you would like help with this process or more information on homes in the Brazos Valley please feel free to give me a call @ 979.255.1839.

Clay Lee – Realtor

Century 21 Beal, Inc.

(979) 255-1839

www.ClayLee.com

clay@century21bcs.com

Timeless Service, Quality, and Experience Guaranteed

Are there keys inside?

Young couples are in need of lots of items when starting their new partnership.  What is one of the most important things they need?  A roof over their head!  Couples can start off on the right foot towards homeownership by establishing a FHA Bridal Registry account.  The program, started in 1996, has been recently changed to make it easier for newlyweds to put their wedding gifts towards a home purchase.  You can apply these funds towards a down payment on a FHA loan, and even earn interest before you make the purchase!

How to get started:

• Visit your choice of FHA lender and set up a savings account for the down payment
• Give your friends and family the banking info on where their gifts can be deposited
• You can even put gifts received by Uncle Joe who didn’t want to bother with the bank in the registry account
• All of the funds can be used towards a FHA down payment
• You don’t even have to tie the knot before you can close on your new home with this program!

The biggest advantage of this program is that you do not have to follow the typical rules and regulations regarding gifts that are applied to a home purchase.  The program allows the funds to be used with simple documentation, no more than a letter from the lender verifying that the funds were gifts from friends and family with no business interest in you purchasing a home.  That is the only kicker; builders, Realtors, and any other party that could benefit from the sale are not allowed to give to the account.

This underutilized program could help that soon to be wed couple make their first home purchase even before they walk down the aisle.  Share it with friends and family that could put it to use!

For help finding that perfect first home in the Brazos Valley, give me a call @ 979.255.1839!

Clay Lee – Realtor

Century 21 Beal, Inc.

For starters, here are the facts.  The mortgage rates have dropped to the lowest level on record for the fifth time in six weeks.  This makes homebuying and refinancing the most attractive and inexpensive in decades.  Freddie Mac says the average rate for 30-year fixed loans this week was 4.54 percent, down from 4.56 last week. That’s the lowest since Freddie Mac began tracking rates in 1971.  Additionally, the rate on the 15-year fixed loan dropped to 4 percent, down from 4.03 percent last week - and the lowest on record. 

Second, I wouldn’t continue to mention this if it were not a critical point in the current market trends: we are in a buyer’s market.  This means that sellers are more willing to court buyers, whether that means dropping the price, throwing in high-end appliance extras, or agreeing to upgrades.  Prospective buyers are in the proverbial driver’s seat, and have not experienced this level of bargaining power in decades.

 Important things to remember when looking to buy a home. 

• Start by polishing up your credit.  Get copies of your credit report, make sure everything is correct, and fix any problems you discover. 
• Estimate how much of a down payment you will be able to afford.  Most lenders like to see 20%, but there are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a down payment as small as 3 percent of the purchase price.
• Be prepared for other necessary (though comparably minor) costs such as getting an inspection done, the application cost, and credit report costs.
• Figure out what neighborhood(s) or school districts you are most interested in.
• Find a good agent who can represent your interests in the search.  For example, I have been a Realtor in the Bryan/College Station region for over 10 years, have lived in this area for 15+ years, and have a track record for familiarizing myself with exactly what my clients want – and getting it for them! 

Finally, make sure you are completely prepared for the all-important financial aspect of this purchase.  There are many handy calculators to help determine how much house you can afford, and what you can expect your monthly mortgage payment to be.  CNNMoney offers such resources, and they are available here:

How much house can you afford?

What will your mortgage payment be?

Remember, it is wise to aim for a home you can afford, and to be knowledgeable and prepared with the facts on payments before you begin your search for a home.

Buying a home is a process that requires plenty of initial thought, planning, and consideration.  But by familiarizing yourself with the information presented above, it does not have to seem as daunting a task!  As always, consider me your one-stop-shop for expert real estate advice.  I will be happy to discuss the initial thought process behind your search, help you look at specific homes, or discuss any general questions you may have about purchasing a home.  Now is the best time in decades to be in the market to buy a home.  Allow me to help you with your dream!

   Clay Lee – Realtor  

Century 21 Beal, Inc.

(979) 255-1839

clay@century21bcs.com

Timeless Service, Quality, and Experience Guaranteed

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For some time, FHA insured loans in College Station (and at national levels) were becoming increasingly rare.  This had much to do with increased home prices, which were well out of the limit set by FHA per county, and the popularity of interest-only and no-down payment loans. 

However, with the housing bubble popped and FHA changing some of their rules, these insured loans are quickly becoming a very popular option.  For one, FHA has established higher loan limits – allowing homeowners access to FHA insured loans even on a higher priced home; the current limit for fixed-rate 30 year mortgage on a one family home in Brazos County is $271,050.  Additionally, lower home prices in the general market and a low down payment requirement have made these FHA insured loans an extremely desirable trend.  As a result, half of the FHA’s current portfolio originated in 2009.  The huge current benefit is the ability to get into a home with a low down payment.  This is why FHA’s market share has gone from 3% a couple of years ago to a whopping 50%.

I have researched the FHA rules and requirements, and put together a list of some things you should know about this program:

• You should go to an FHA approved lender or broker.  Brazos County on the whole, and College Station and Bryan have many to choose from.  Visit http://www.hud.gov/ll/code/llslcrit.cfm to find your best option.
• And FHA loan requires only a 3.5% down payment and you can get this down payment as a gift!  Employers, relatives, even non-profit government agencies can offer down payment assistance.
• Because FHA insures your mortgage, lenders may be more willing to give borrowers loan terms that make it easier to qualify.
• Your debt to income ratio is important.  Don’t make a huge credit purchase before applying for an FHA loan, and if you can pay off that auto loan before applying, do so!

For a moderate-income buyer who can’t afford a large down payment, an FHA insured loan is a viable option to your path to homeownership.  If you are a College Station or Bryan resident hoping to buy a home, or if you are interested in learning more about how an FHA insured loan can help you achieve this, please call me.

Clay Lee – Realtor 

Century 21 Beal, Inc.

(979) 255-1839

clay@century21bcs.com

Timeless Service, Quality, and Experience Guaranteed

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I recently examined home sales in the Pebble Creek subdivision of College Station to assist potential buyers who are looking for the right deal.  Another breathtaking and popular subdivision in College Station is Indian Lakes.  By request, I have examined the home sales in Indian Lakes since January 1, 2010.  This is a reminder that there is always the possibility that the seller may take another offer.

How much should I offer? We need to examine recent home sales in the Indian Lakes subdivision to determine this.

Will the seller pay my closing costs? As I tell my clients, it’s always worth asking.

Will the seller wait for me to sell my home? Not sure, but we could try for a contingency.

Will the seller leave the $10,000 worth of top-of-the-line tools in the garage? You can forget it.

It is difficult to ascertain exactly how low a seller will go.  Most of the time, the seller does not even know.  The only way we can reach an agreement is by presenting the seller with a full, written, complete offer.  This should contain the amount of the offer, type of financing, financing status, terms for settlement, and contingencies.

As I mentioned last time, I always recommend studying the property and the neighborhood.  One of the first essential steps is to examine the recent sales in Indian Lakes to ensure that the asking price is reasonable.  Next, an experienced agent will study all of the remaining factors.  What is the condition of the house?   How long has the property been on the market?  What are the price trends in the area?  What is the seller’s need to relocate?

As described below, the homes that sold in the Indian Lakes subdivision since January 1, 2010:

The sold prices reflected above do not include any incentives, buyer closing costs, or miscellaneous extras. Other variables such as move in date, conveyances, etc. may also make a difference in how much the seller will take.  As evidenced, it is currently a buyer’s market, and a potential buyer may look forward to purchasing at a discount.

 If you are interested in purchasing a home in Indian Lakes, would like to discuss your negotiation price on a particular home, or if you have any general questions, please feel free to contact me at (979) 255-1839.

Clay Lee – Realtor

Century 21 Beal, Inc.

(979) 255-1839

clay@century21bcs.com

Timeless Service, Quality, and Experience Guaranteed

________________________________________________________

How much will the seller take?  Depends… How strong is your offer?

If you are interested in buying a home in the remarkable Pebble Creek subdivision of College Station, you are likely to be considering one of the largest factors in a real estate deal: the price.  If the listed price of your dream home is not quite in your range, there is always the possibility that the seller will take another offer. 

How much should I offer?  No idea until recent sales in Pebble Creek are considered.

Will the seller pay my closing? You can always ask.

Will the seller wait for me to sell my home? No idea, but we can ask for a contingency.

Will the seller leave the $7,500 ride on mower? You can forget about it.

When a buyer asks these questions, they assume I have the answers.  Of course, it is hard to know how low the seller will go.  Even a listing agent who has been advised by the seller that he (the seller) will not take a penny less than $xxx,xxx does not know.  The only way we can reach an agreement is by presenting the seller with a full written offer complete with:

• Amount of the offer
• Type of financing
• Financing status
• Terms for settlement
• Contingencies

Study the property first. As the buyer’s agent, I recommend studying the property and the neighborhood.  One of the first important steps is to examine the recent sales in Pebble Creek subdivision to ensure that the asking price is reasonable.  (In this article, I have researched all Pebble Creek subdivision home sales since April 1, 2010.) 

Additionally, I never assume that the seller’s price is set in stone.  Negotiation is a key aspect of the real estate deal, and one which I take very seriously.  Until an agent has read the offer through, they do not know whether the seller will bite.  They should not be making decisions for the seller.

Making low offers is not negotiating. Experienced buying agents study the recent sales, condition, how long the property has been on the market, price trends in the area, and the seller’s need to relocate.

As described below, the homes that sold in the Pebble Creek subdivision since 4/1/2010:

The sold prices reflected above do not include any incentives, buyer closing costs, or miscellaneous extras.  But as evidenced by the distinction between list price and sold price, the buyer can afford to name their price at a slight discount.  Other variables such as move in date, conveyances, etc. may also make a difference in how much the seller will take.

 If you are interested in purchasing a home in Pebble Creek, would like to discuss your negotiation price on a particular home, or if you have any general questions, please feel free to contact me at (979) 255-1839.

Clay Lee – Realtor 

Century 21 Beal, Inc.

(979) 255-1839

clay@century21bcs.com

Timeless Service, Quality, and Experience Guaranteed

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College Station’s water is ground water from deep wells in Simsboro Sand about 3,000 feet down.  The water is pumped from the Carrizo-Wilcox Aquifer.

Is the water hot or cold when it comes up? Would you believe that the temperature for the water is 118 degrees Fahrenheit? The cooling towers at the Sandy Point Pump Station help reduce the temperature down to 85 degrees.

From the Sandy Point Pump Station the water travels about 13 miles to the Dowling Road Pump Station. At this Pump Station chlorine is added to disinfect and have fluoride added. The storage tanks at Dowling Road hold about 8 million gallons of water for College Station residents!

After the chlorine is added and the water is disinfected it goes to the to one of the 2 elevated storage tanks. These tanks provide us with the water pressure we want and need and for extra water in case of a fire.

Now you know where your drinking water came from.

Home Equity and PMI

PMI has been a large money-maker for the mortgage lenders. The amount of the insurance (usually $40/month for a $100k home) is commonly rolled into the mortgage payment. Given the size of the overall note payment, this additional fee is often overlooked. Homeowners continue to pay the PMI even after their loan balance has dropped below the original 80% threshold. This occurs naturally, of course, as the home owner pays down the principal on the loan. On a typical 30-year loan, however, it can take many years to reach that point.

Lenders were under no obligation to tell home owners when they had reached a point where the PMI can be dropped. That all changed back in 1999 when the Homeowners Protection Act took effect. In most cases, this law now obligates lenders to terminate the PMI when the principal balance of the loan reaches 78% of the original loan amount. Savvy homeowners can get off the hook a little sooner. Upon request of the owner, the PMI must be dropped when the principal balance amount reaches 80%.

Here are the disclaimers: this only works for homes purchased after 1999 and wwners must be current on their loan payments. For buyers prior to 1999, they must initiate the process to have it removed. Lenders are under no obligation to remove it, but most will.

There is another way that your home equity can reach beyond the 80/20% ration. Raise your hand if you know the answer…actually leave your ideas below in our comments section.

Here’s tricking you,

Cindy Seaton, REALTOR

If you have any question, feel free to contact me anytime at rclaylee@yahoo.com or 979-255-1839

Clay Lee

College Station’s #1 Luxury Lifestyle & Real Estate Expert for over a Decade!

Builder Rob Crowley of Crowley Custom Homes just dropped the listing price of his house at 5300 Riviera by $40,000! At this price the house is practically a steal and way to good to pass up. Check it out for yourself here, or go by and see it in the new section of Pebble Creek.

If you have any question, feel free to contact me anytime at rclaylee@yahoo.com or 979-255-1839

Clay Lee

College Station’s #1 Luxury Lifestyle & Real Estate Expert for over a Decade!