Houston Real Estate News

June 18, 2019

Why Is So Much Paperwork Required to Get a Mortgage?

When buying a home today, why is there so much paperwork mandated by the lenders for a mortgage loan application? It seems like they need to know everything about you. Furthermore, it requires three separate sources to validate each and every entry on the application form. Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.

There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any other time in history.

1. The government has set new guidelines that now demand that the bank proves beyond any doubt that you are indeed capable of paying the mortgage.

During the run-up to the housing crisis, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again.

2. The banks don’t want to be in the real estate business.

Over the last several years, banks were forced to take on the responsibility of liquidating millions of foreclosures and negotiating an additional million plus short sales. Just like the government, they don’t want more foreclosures. For that reason, they have to double (maybe even triple) check everything on the application.

However, there is some good news in this situation.

The housing crash that mandated that banks be extremely strict on paperwork requirements also allowed you to get a low mortgage interest rate.

The friends and family who bought homes ten or twenty years ago experienced a simpler mortgage application process, but also paid a higher interest rate (the average 30-year fixed rate mortgage was 8.12% in the 1990s and 6.29% in the 2000s).

If you went to the bank and offered to pay 7% instead of around 4%, they would probably bend over backward to make the process much easier.

Bottom Line

Instead of concentrating on the additional paperwork required, let’s be thankful that we are able to buy a home at historically low rates.

Posted in Buyers, First Time Home Buyers, Move-Up Buyers, Sellers

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June 12, 2019

3 Things to Know in the Housing Market Today!

A lot is happening in the world, and it’s having a direct impact on the housing market. The reality is this: some of it is positive and some of it may be negative. Some we just don’t know yet.

The following three areas of the housing market are critical to understand: interest rates, building materials, and the outlook for an economic slowdown.

1. Interest Rates

One of the most important things to consider when buying a home is the interest rate you will be charged to borrow the money. In our recent post we posed the question, “Are Low Interest Rates Here To Stay?” The latest information from Freddie Mac makes it appear they are. We are currently at a 21-month low in interest rates.

2. Building Materials

Talk of tariffs could also affect the housing market. According to a recent article, the National Association of Home Builders reports that as much as $10 billion in goods imported from China are used in homebuilding. Depending on the outcome of the tariff and trade discussions between several countries, there could be as much as a 25% boost in the cost of building materials.

3. Economic Slowdown

In a prior blog post on this topic, we began the year with many economic leaders thinking we could expect a recession in late 2019 or early 2020. As spring approached, we reported that economists had started to push that projection past 2020. Now, three leading surveys indicate that it may begin in the next eighteen months.

Bottom Line

We are in a strong housing market. Wages are increasing, home prices are appreciating, and mortgage rates are the lowest they have been in 21 months. Whether you are thinking of buying or selling, it’s a great time to be in the market.

Posted in Buyers, First Time Home Buyers, Housing Market Updates, Interest Rates, Move-Up Buyers, Sellers

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June 5, 2019

The Feeling You Get from Owning Your Home

We often talk about the financial reasons why buying a home makes sense. But, more often than not, the emotional reasons are the more powerful and compelling ones.

No matter what shape or size your living space is, the concept and feeling of home can mean different things to different people. Whether it’s a certain scent or a favorite chair, that feeling of safety and security you gain from owning your own home is simultaneously one of the greatest and most difficult to describe.

Frederick Peters, a contributor for Forbes, recently wrote about that feeling, and the pride that comes from owning your own home.

“As homeowners discover, living in an owned home feels different from living in a rented home. It’s not just that an owner can personalize the space; it touches a chord even more fundamental than that.

Homeownership enhances the longing for self-determination at the heart of the American Dream. First-time homeowners, young or old, radiate not only pride but also a sense of arrival, a sense of being where they belong. It cannot be duplicated by owning a 99-year lease.”

Bottom Line

Owning a home brings a sense of accomplishment and confidence that cannot be achieved through renting. If you are debating renewing your lease, let’s get together before you do to answer any questions you may have about what your next steps should be, and what is required in today’s market!

Posted in Buyers, First Time Home Buyers, Move-Up Buyers, Rent vs Buy, Sellers

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Oct. 7, 2014

Hermann Park, Beautiful Houston Real Estate

See Houston real estate at Hermann Park. One of the most beautiful pieces of Houston real estate is Hermann Park. Located in the heart of the city, close to downtown, it’s a great place to explore. People who prefer to exercise outdoors rather than go to a gym will find many great walks. The Jones Reflection Pool or McGovern Lake both make lovely strolls. You can also explore the Japanese Garden, which was designed by Ken Nakajima to be a peaceful oasis in the midst of the city. You might even get a few ideas for landscaping your own Houston real estate while you wander. Golfers can have a game at the golf course. The Marvin Taylor Trail is a nice two-mile long loop for joggers.

Children can have a grand time at the Buddy Carruth Playground for All Children. The play equipment is designed for children of all abilities. Most of it is wheelchair accessible. Many children also love the Hermann Park Railroad. It’s a great way to get a leisurely tour of the park.

Throughout Hermann Park are many art installations. The Hermann Park Conservancy began the Centennial Art Project, Art in the Park, to celebrate the 100th anniversary of the park. One of the most impressive works is Patrick Dougherty’s installation Boogie Woogie. To see more about the Art in the Park project, as well as the other attractions, visit HermannPark.org. Houston real estate owners should be sure to check out this great outdoor resource.

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Oct. 6, 2014

Learn Aviation History Near Houston Homes

Learn aviation history near Houston homes. Aviation enthusiasts who live in Houston homes will have a grand time at the 1940 Air Terminal Museum. The Museum is located in the beautiful art deco building that is the original Houston Municipal Airport. It’s in the William P. Hobby Airport campus. The Museum recently acquired a historic hangar they’ve renamed “The Great Silver Fleet hangar.” It houses several fascinating airplanes. The Lockheed Lodestar is on of the stars. It has been flying as a business aircraft since the late 1940s. Visitors from Houston homes can also view a Hawker business jet and a 1958 Sikorsky S-58 N887 St. Louis helicopter. The S-58 is one of the first helicopters used for business applications.

The 1940 Air Terminal Museum is open Tuesday through Saturday from 10 a.m. to 5 p.m. On Sunday, it’s open from 1 p.m. to 5 p.m. On Mondays the museum is closed. Admission is $5 for adults and $2 for children. On the third Saturday of each month, the museum hosts a Wings & Wheels open house. Come from 11 a.m. to 3 p.m. to see a great display of vintage cars and planes. Admission is $7 for adults and $3 for kids 12 and under. Food is available from a vendor or cooked in-house. This is a great way to support the museum and meet others interested in aviation history from Houston homes. Learn more by visiting 1940airterminal.org.

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Oct. 5, 2014

Houston Property Is the Gateway to Space.

When you own Houston property, you’re in the center of human space activity and research. Space Center Houston is a great place to visit if you’d like to see space crafts up close and learn more about the history of humans in space. Visitors can get a close look at a Mercury 9 capsule, a Gemini 5 capsule, a Lunar Rover, and many more. A Space Shuttle Independence mockup is also housed at the Space Center. It’s displayed with retired Shuttle Carrier Aircraft, NASA 905. Trekkies will enjoy the Shuttlecraft mockup from Start Trek: The Original Series.

Several films are shown at the theater in the Space Center. If you have kids living at your Houston property who love space, they will enjoy both To Be an Astronaut and Inside the Space Station. Visitors to the Space Center can take a tour of the Johnson Space Center. The tram tour goes to Building 30 North and South, which are the old and new Mission Control Centers; Building 9, the Space Vehicle Mockup Facility, and a Rocket Park, which includes a restored Saturn V. Those curious about life on the International Space Station will want to see the interactive performance “Living in Space.” This presents a day in the life of an astronaut on the space station. The Space Center is open Monday through Friday from 10 a.m. to 5 p.m. and Saturday and Sunday from 10 a.m. to 6 p.m. Owners of Houston property may want to consider a membership. An annual membership for a family of four is $94.80. Be sure to check out the online deals, as well as learning more about the exhibits, at SpaceCenter.org.

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