6 Reasons Realtors Require Pre-Qualified Buyers

This is a topic that comes up often.  There are several reasons that a Realtor will require you to do this before taking you out to see many, if any, properties.  Our own policy is to show 1 home, if requested, prior to pre-qualification.  During that appointment we will also provide you with our Buyer Consultation information and give you everything you need to proceed with the lender pre-qualification process. Often times the basis for this requirement is not explained well and tends to leave a bad taste in the buyers mouth. We try to avoid that, but after reading the explanation below you'll understand more fully the reasons behind this mandatory step in the process.

I will do my best to explain a few of the reasons below so you have a full understanding as to why this step is important, and important to complete BEFORE looking for property.

1) We don't know what you can afford.  Many times, buyers don't know either.  Having a direct mortgage lender per-approve you will give you a very clear understanding of what you can afford.  And, it will give you an idea of cash you'll need.  In addition to your down payment at closing, some cash is needed when we write a contract to open escrow, and as we proceed through the inspection period to pay for the option period and various inspections.

2) It's literally heartbreaking to see buyers fall in love with a home they can't afford.  This was not unusual prior to having the pre-qualification requirement in place.  Once you know your approved price range, we'll only be touring homes you can afford.  Thus, pre-qualification enables you to avoid the possibility of being denied a loan after becoming emotionally involved with a property.

3) In our area, sellers will not even entertain an offer unless you can provide a pre-approval letter with the offer.  Keeping in mind that sometimes a matter of hours can make the difference in getting the home of your dreams or losing out when in a multiple offer situation.  Valuable time can be lost if you still need your pre-qualification when you find the perfect home.

4) Many times, things pop up on the credit report that buyers are not even aware of which can have a negative effect on your ability to obtain a mortgage loan. The pre-approval process will check your credit report without lowering your score, identify and address any issues or potential problem areas on the credit report.  This gives you the advantage of knowing everything about your credit health before you make an offer.

5) We will take all the time we need to help you find the right home, and guide you through the process of buying, all the way through closing, but unfortunately, not everyone is a real buyer. Many times we hear "I'm just looking around, I won't be buying until next year, but I'd like to see a few homes,"  or "I'm not really ready but if you find the right home, I'll buy it."  Keep in mind, that next year at this time, or even 6 months from now, the market can be drastically different.  Homes that are on the market today, will not be available next year.  And, without pre-approval, we could be looking for something the ready-or-not buyer cannot afford, even if we do find the right home. 

6) And lastly, we Realtors are paid on commission.  This is how we make a living for our families. Meaning that we only get paid if you successfully close on a home.  We are 100% willing to invest the time for as long as we need to so we can find you exactly what you are looking for at the best price.  The pre-approval is your commitment to us. It says, “I’m serious about buying and not here to waste your time”.

The pre-approval is meant to protect you and your Realtor while providing clarity for all parties. So the next time a Realtor asks you if you are pre-approved, or if you would be willing to get pre-approved before viewing property, you will know why.

6 Ways to Beat the Winter Blahs & a note from our team . . .

Well, here in the Houston area we aren't buried under snow, although our forecast for this week is calling for some type of frozen precipitation! But, I love, love, love this piece anyway! We found #6 especially relevant and appealing, since in our home we leave our festive mantel garland and wreath up through Valentine's Day.  The solt glow of white pearl lights above a flickering fire sets the perfect tone for cozy winter evenings.  And, the scene is set for a romantic Valentine dinner by the fire.  So, we hope you enjoy this fun, and hopefully, useful article.  I'm off to do #5.

A.

6 Ways to Beat the Winter Blahs

General contractors, home builders, and more ∨

From Shabby Chic home decor to contemporary furniture and mirrors, browse thousands of decorating ideas to inspire your next home project.
Work with a home decorator when choosing area rugs or hanging new window blinds in your home.

What is a MUD? FAQ about Texas Municipal Utility Districts

What is a MUD?

MUDs engage in the supply of water, conservation,
irrigation, drainage, fire fighting, solid waste (garbage)
collection and disposal (including recycling activities),
waste-water (sewage) treatment, and recreational facilities.

A MUD can require its customers to use its solid waste
services as a condition for receiving other MUD services. A
MUD may provide solid waste and recycling services
through a private company.

While they can develop, maintain, or acquire parks or
recreational facilities, MUDs are prohibited from issuing
bonds to pay for these facilities. They can, however, set and
charge user fees.

(For more detailed information, visit the source at www.tceq.texas.gov)



How is a MUD created?

A majority of property owners in the proposed district petitions the Texas
Commission of Environmental Quality to create a MUD. The TCEQ evaluates the petition, holds a public hearing, and grants or denies the petition. After approval, the TCEQ appoints five temporary members to the MUD's Board of Directors, until an election is called to elect permanent Board members, to confirm the MUD's creation, and to authorize bonds and taxing authority for bond repayment.



How does a MUD work?
The publicly elected Board of Directors manages and controls all of the affairs of the MUD subject to the continuing supervision of the Texas Commission of Environmental Quality. The Board establishes policies in the interest of its residents and utility customers. A MUD may adopt and enforce all necessary charges, fees and taxes in order to provide district facilities and service.


What Can Utility Districts do?

While there are several different types of utility districts, here's a list of the powers granted most types of districts, by state law:

• to incur debt
• to levy taxes
• to charge for services and adopt rules for those services
• to enter contracts
• to obtain easements
• to condemn property

What is a developer's responsibility to the MUD?

Developers must petition the Texas Commission of Environmental Quality to
create a MUD. Developers are prohibited from serving or placing employees,
business associates, or family members on the MUD Board of Directors.
Developers must pay for or put up a letter of credit equal to 30% of the cost of subdivision utilities. This requirement ensures against "fly-by-night operators" who are not committed to the success of the MUD. The "30% rule" also offers protection to MUD residents in the event that a subdivision is not built according to schedule. Unless they are voting residents within a MUD, developers have no authority or control over the MUD's Board of Directors. If they are voting members of a district, they have the same power to vote and attend Board meetings as any other resident.


I Used No Water for Months, But Still Got Billed. Why?

If you did not ask the district to terminate your service,
the district may assess a minimum service charge each
billing period, regardless of whether you actually use the
service. On the other hand, if the district terminated your
service—with or without your request—you should not be
billed for this minimum service charge.
If you would like to have your service cut off while you
are away, remember that your district is allowed to charge
you for the cost of disconnecting and reconnecting its
services. Although your district must honor your request to
terminate service, you should consider which is cheaper if
you plan to return—to pay the cost of terminating service
plus the related fees to renew services, or to keep an inactive
account and pay a minimum charge each billing period.


Does Anyone Review a District’s Rates?

Although rates should reflect the true cost of service, the
TCEQ does not have the authority to review these rates
unless customers appeal a rate change. Usually, a district will
have a consultant develop rates that, if appealed, can be
demonstrated to be reasonable and not to discriminate
against a class of users.


Making Sure Your Concerns Are Addressed

Unless your district’s directors are aware of your specific concerns, they cannot respond in an informed, proactive
manner. To enable them to respond effectively, you must give them a factual account of your particular situation.
Though there’s no guarantee, you can improve your chances of having your concerns addressed by taking these steps:
■ Briefly outline your situation, concerns, or questions.
■ Write a letter based upon that outline.
■ Indicate in your letter whom you contacted to resolve the situation—and when.
■ Clearly state what outcome or resolution you are seeking from the board.
■ Send the letter to the district’s board of directors by certified mail.
■ Keep a copy of the letter for your records.
■ Ask to be placed on the agenda of the next board meeting to have the directors address your concerns. (Remember
that directors can make a decision only during a properly posted, open board meeting.)
■ Attend the board meeting to present your situation.
If one director is unresponsive to your concerns, try approaching another director. And keep in mind that your
district’s voters elect the directors to serve the community. If you’re not voting in each election, you’re giving up your
strongest avenue of relief.

Ask About Design Center Options

Yesterday,  I had the good fortune to accompany clients to one of our local builder's design center.  Design center visits can be great fun, or excruciating torture.  Which experience you have can depend largely on the which builder you choose.  Yesterday, we were at the Trendmaker Design Center in Sugar Land and the experience was very pleasant.  The staff was courteous, informative and down right fun to be with!

Your design center appointment is one of the first steps in the process of building a new home and it varies from builder to builder. Ask any potential builder how many appointments you'll be allowed at their design center.  The more appointments, the better your experience will be.  In all, Trendmaker sets 3 design center appointments, although this can also vary depending on the size of your new home.  Other builders may only allow one appointment, at which you will be forced into snap decisions and long arduous hours of head-spinning proportion.  Last year, another client couple and I were trapped for 6 straight hours in a design center that was run like a boot camp! The couple, a physician and an attorney, were both ready to throw in the towel on the new home, by the time we were sprung!  The more ridgid the rules, the less likely you are to be happy with the end product.

You'll also want to ask what penalties you'll incur, should you change your mind about a choice you've made, in granite, for instance. Penalties can be several hundred dollars for each change, even if you make the decision right after driving out of the parking lot!  In the case of Trendmaker, none of the decisions made at yesterday's appointment are final, until confirmed at a later appointment. This gives the buyers time to consider their choices, many of which will have a huge impact on the aesthetics of the home.

Some of the things you'll be deciding in the design center appointments are floor coverings, wood, tile, carpet, each of which will have varying levels of cost depending on the standard level for the home.
You'll pick your kitchen and bath counter tops, design your backspashes for these areas and coordinate your flooring to match.  You'll probably pick out your staircase amenities and your beautiful front door, also. These are just a few of the decisions you'll be making at the design center.  There will be many optional upgrades, but as a whole, most design centers are there to present your options, give you the opportunity to touch and feel the products, and work to help you stay within your budget.

Building a brand new home can be a stressful process at best.  A few questions before you make a decision on builders can save hours of headache and heartache when designing your new dream home.

New Home Builders Houston TX, Katy, Cypress TX, Woodlands, Fort Bend County TX, Custom Homes, Master Planned Communities, Trendmaker Homes

2013 Year-End Foreclosure Report: Filings Fall 26%

2013 Year-End Foreclosure Report: Filings Fall 26%

Looking for Luxury?

The luxury real estate market is one that the majority of buyers never venture into for obvious reasons.  But, by focusing on the quality and quantity of all the important things that can't be changed later, buyers can shift their focus to quality and amenities that are a must to obtain that "luxury property" label.

Location - It goes without saying that location is always #1.  So, let's move location out of the way, since we're going to assume that the #1 qualitative item is a given.

Light - Natural light is an often overlooked asset in any home.  If you've looked at a home and felt it was too dark, what you're really asking is "Where's the natural light?"  This was a problem the caveman encountered and probably one of the top reasons he eventually ventured out of the dark, dank, windowless shelter.

View - You can never change the view, it is what it is.  If the home you're considering overlooks a factory, you aren't going to be able to change that with bushes. (Go back to Location)  If other homes obstruct your lake or ocean view, that isn't going to change, so be sure you carefully consider what you will see everyday.

Floor Plan - When I practiced in a near-exclusively luxury market, floor plans were many times...interesting.  Would you want to pass through two bedrooms to get to a bathroom?  Undoubtedly the answer is NO.  But, in a market with abundant natural light, views from virtually every window, and a location to die for .... think mountains .... floor plan was not high on the luxury priority list.  In the luxury markets of Houston, floor plans are of utmost importance.  You're going to want to enjoy your living space with family and friends so the most desirable plan should be one that offers plenty of social space without intruding on private space.  Unlike the coziness of the luxury mountain retreat, you're going to live day-to-day in your luxury suburban or metro home.

Uniqueness - The more unique the home is architecturally, the narrower the appeal for resale.  This is not to be confused with style.  Whether you choose an ultra modern glass based design or traditional brick and stone, you'll want to make sure the home features top-quality materials and workmanship and artistry.

No Fixer-Uppers. - Yes, that is a period a the end.  Unless you have unlimited resources, high-end renovations are time consuming, frustrating and usually cost prohibitive.  Don't be tempted to try to reconstruct luxury lost in the home, or the missing luxury you're looking for - just keep looking.  Your home is waiting out there.  Maybe this section should have been labeled Patience.

Once you have found these things in a property with the help of your agent, make sure you can envision yourself living in the home.  If the look and feel of the home are comfortable from the outset, you're likely to make a good choice.  You should always love the home you decide to buy.

The Rich History of Wood Floors

Well, history of wood flooring is a long one . . .

The beautiful wood floors that we enjoy today had humble beginnings.  Let's go back  -  way back before the sailing of the Mayflower.  All but the very rich enjoyed earth toned floors, literally.  Dirt was the flooring of all be the very wealthy.  If you were lucky enough to have something other than dirt, it was stone.  Then someone got the idea to cut planks, rub them smooth and use them for flooring, a very time consuming process, reserved for homes of the very rich.

But then, those those crafty folks that settled New England quickly saw an abundance of trees and using wood planks for clean, comfortable floors was soon to follow.  The settlers after 1650 considered the advantages of warm wood floors to be a 'perk' which offset some of the hardships of life in the new world.  Wood flooring in all its iterations enjoyed about 300 years of popularity.  The came WWII.

Wall-to-wall carpeting took the Greatest Generation by storm! Everyone wanted the fancy carpeting made from post-war synthetics and wood quickly became the flooring of the less than affluent.  Hardwood floors started a slow decline in favor and gradually became outdated.

But, along the way to obsolescence something kind of cool happened.  Lots of folks in the late 1940's and '50's put that jazzy new carpet down right over the old wood.  Now, as home buyers tour older homes that have carpet, we're frequently asked, "what's under the carpet?"  If the home is old enough, we sometimes get the most wonderful surprise. It's real hardwood!

Laminates which were popular about 15 years ago have quickly fallen from grace.  They generally don't do well in damp regions.  They need expert installation to remain in tact over time, and they tend to chip.  Beware of engineered wood, too. That can also be a fancy name for a wood laminate. Although, these do contain a real wood surface layer.  Stay away from laminated flooring.

In the last several years, hardwood flooring has made a major comeback. With a variety of finishes available, you can get the look you want at an affordable price. A durable and aesthetically pleasing floor is within reach of most budgets.

Nothing compares to the beauty and warmth of wood floors.  Resale value has never been better for homes with real hardwood floors. So, if you're thinking about upgrading your flooring to hardwood, the answer is "Yes!" 

Traditional Living Room by Fort Collins Interior Designers & Decorators Aneka Interiors Inc.

New Rules Take Effect 1/10/2014

REALTORS® and the Consumer Financial Protection Bureau announced Tuesday in a press conference that they will be closely monitoring the impact of the new rules on borrowers. 

CFPB Director Richard Cordray acknowledges there are concerns that the new mortgage rules may tighten consumers’ access to credit. He urged REALTORS®, who are on the front lines, to help ensure home buyers have access to safer mortgages that meet the stronger underwriting standards. 

The rules that go into effect include the “ability to repay” rule, in which borrowers must have the financial means to be able to repay the loan amount. 

The Qualified Mortgage standard will also take effect. Qualified mortgages cannot be made to a borrower with a debt-to-income ratio of greater than 43 percent, Cordray explained. Qualified mortgages also cannot have certain risky features, “such as paying interest only or even negatively amortizing so that each month the consumer owes more than they did before and loans must have relatively reasonable points and fees,” Cordray said. The rule includes a 3 percent cap on points and fees.

NAR has expressed concern over the 3 percent cap, fearing that it “unfairly discriminates against affiliated lenders who have to count many more items toward fees and points than large retail financial institutions, such as title insurance charges and escrow for homeowner’s insurance,” according to an NAR release.

“The problem is that under this rule, affiliated and nonaffiliated firms are treated differently,” says Chris Polychron, NAR president-elect. “It’s NAR’s view that this would be a disadvantage to many real estate affiliated lenders and reduce the choices available to consumers of where they can get a mortgage, and because the unaffiliated lender must still use a title company, the consumer pays the same amount either way.”

NAR announced it will closely monitor the cap’s impact on access to credit. 

“It means a great deal to our new Consumer Bureau to know that NAR has members with boots on the ground in communities both small and large all across the U.S.,” Cordray said at a news conference Tuesday with NAR officials.

Source: National Association of REALTORS(R)

Smaller Housing Markets Leading Recovery

Glad to see that Houston is one of the most active large markets according to the National Association of Realtors, January 8, 2014.  Here's the latest information on the overall health of the real estate market nationally.

Smaller Housing Markets Leading Recovery

Got Paint?

• 

  How to Pick Paint Colors

  Paint has remodeling power when you use it to emphasize a room’s best features or play down the flaws. Read

Copyright 2014 NATIONAL ASSOCIATION OF REALTORS®

We love, love, love this article on picking paint colors! One of easiest and least expensive things you can to do to get ready to sell your home is to give it a fresh new look by updating your walls.  I tend to 'color' a little outside the lines of creativity when it comes to choosing paint colors (think purple, red, etc).  Its OK to be edgy if you're going to be enjoying the results, but better to stay somewhat more conventional when preparing your home for sale. I would also add that a clean professional looking finish is a must!

We hope you enjoy this article.
The Oyler Team  

Decide What You Want in 2014

2014 may be your best year yet to own a beautiful home in Texas! Whether you're dreaming of swimming pools or wine cellars, designing your dream home, or just wanting the basics, it's important to know what you really must have, before you get into the car with a Realtor for the first time.

Before you start looking, make a list of what you want. Then assign each item a priority. Some areas to consider are: 

• Location: How close do you want to be to your job, shopping, the kid’s schools, or entertainment? 
• Type of home: A single-family house typically provides the most space and gives you fewer restrictions on customizing your home. But a condo offers amenities without yard work—for a price. 
• Age of the home: Existing homes have mature yards and established neighborhoods; however, they require more maintenance. Although new homes aren’t always without problems, they usually require less maintenance initially. Of course, you may have to put in landscaping and endure nearby construction.
• Amenities:  This one may take more time than you'd expect.  Your budget will likely be the determining factor in making this list.  Talk with other family members to determine and differentiate "wants" from "needs". Keep in mind that quality amenities add value to the property.

Starting with these basics can narrow your focus and be a great first step in organizing your search for the perfect place.

Happy Hunting!