DFW Home Buyer Center

$400 Peace of Mind

Several companies offer home warranty programs to buyers purchasing previously occupied homes.  Generally, such warranty programs are available for around $400 ( or more depending on your options), and they warrant the systems in the home for one year.  The purpose of these programs is to give buyers some peace of mind about purchasing a previously occupied home where the systems and appliances in the home are relatively old.

The warranty typically covers the home's plumbing, heating, air conditioning, built-in appliances, and electrical systems.  Buyers should read the terms and conditions of the program they select carefully to determine what items are actually covered and to determine all exclusions.  Buyers should also determine any additional costs for service calls and deductibles.

For new construction, builders typically provide a one-year warranty with the sale of the home.  Buyers should inquire about any warranties available and review carefully the terms and conditions of such warranties.  In addition, the systems in a newly constructed home may be under a manufacturer's warranty when the home is purchased by the buyer.

Stress Free Tips to Handle Stressful Situations

In the excitement of the moment, it is often times easy to forget how to handle different home buying situations.  Please refer to the tips below to help ease the stress.

Internet-Public MLS Sites (i.e. Realtor.com)

If you see homes in these sources that interest you, email the MLS #'s to me and I will email the MLS information back to you.

Newspaper Ads or Real Estate Magazines:

If you see homes in these sources that interest you, call me with the details and I will get the address and M.L.S. information for you.

For Sale Signs:

If you see for sale signs by any company on homes that interest you, write down all the information i.e. street address, company name, agent name and phone number, call me or email me and I will get the price and M.L.S. information for you.

Open Houses:

When you visit a home held open by another Realtor, state that you are working with me.  If the home interest you, call me immediately.

For Sale By Owners:

Feel free to call them or I will call on behalf.  Today, many For Sale By Owners are open to co-operating with Buyers Agents.

Do Your Homework:

Study the lists and listings I send you.  Drive by and check out the neighborhoods.  If you want to see inside of any of the homes, call me and I will make arrangements for us to view the inside.

Information and Questions: 

If you need specific information not contained on the M.L.S. listing, call me and I will speak to the listing agent on your behalf.

Here's 4 quick Tips That Could Save You Thousands...

1.  Don't get "Pre-Qualified!" Get "Pre-Approved"

Do you want to get the best house you can for the least amount of money?  Then make sure you are in the strongest negotiating position possible.  Price is only one bargaining chip in the negotiations, and not necessarily the most important one.

Often other terms, such as the strength of the buyer or the length of escrow, are critical to a seller.  This process takes anywhere from a few days to a few weeks depending on your situation.  It's VERY POWERFUL and a weapon we recommend all of our clients have in their negotiating arsenal.

2.  Sell First, Then Buy

If you have a house to sell, sell it before selecting a house to buy!  Let's pretend that we go out looking for the perfect house for you.  We find it and you love it!  Now you have to go make an offer to the seller.  You want the seller to reduce the price and wait until you sell your house.

The seller figures that's a risky deal, since he might pass up a buyer who DOESN"T have to sell a house while he's waiting for you.  So he says OK, he'll do the contingency but it has to be a full price offer!  So you see, you paid more for the house than you could have because of the contingency.  Now you have to sell your existing house, and in a hurry!  Otherwise you lose the dream house!  So to sell quickly you might take an offer that's lower than if you had more time.

3.  Play the Game of Nines

Before house hunting, make a list of nine things you want in the new place.  Then make a list of nine things you don't want.  We call this "NINE OF THIS AND NONE OF THAT".  You can use this list as a scorecard to rate each property that you see.  The one with the biggest score wins!  This helps avoid confusion and keeps things in perspective when you're comparing dozens of homes.

When house hunting, keep in mind the difference between "SKIN AND BONES".  The BONES are things that cannot be changed such as the location, view, and size of lot, noise in the area, school district, and floor plan.  The SKIN represents easily changed surface finishes like carpet, wallpaper, color, and window coverings.  Buy the house with good BONES, because the SKIN can always be changed to match your tastes.  I always recommend that you imagine each house as if it were vacant.  Consider each house on its underlying merits, not the seller's decorating skills.

4.  Don't Be Pushed Into Any House

Your agent should show you everything available that meets your requirements.  Don't make a decision on a house until you feel that you've seen enough to pick the best one.  Review the Multiple Listing printout with your agent to make sure that you are getting a COMPLETE list.

In the late 1980's, homes were selling quickly, usually a few days after listing.  In that kind of market, agents advised their clients to make an offer ON THE SPOT if they liked the house.  That was good advice at the time.  Today there isn't always this urgency, unless a home is drastically under priced, and you'll know if it is.

Here's A Way You Can Save Thousands of Dollars In Interest and Pay Your Mortgage Off Years Sooner!

Most people think when you get a mortgage you're stuck with it for 30 years, but what they don't realize is by using a couple of easy and painless ways to make some extra principle payments you can cut years off the life of your mortgage and save thousands of dollars in needless interest costs.

Here are a few easy strategies you can use:

1.  Round up to the nearest hundred

This is an easy strategy to take advantage of, and the results are dramatic!

Let's say you have a mortgage of $100,000 over 30 years at 8% interest.  The monthly payments would be about $734 dollars a month.

Now, lets see what would happen if you rounded that payment to the next $100 by increasing your payment by $66 extra each month.

By paying $800 a month you will shorten the length of your mortgage by 7 1/2 years.  Just this one simple strategy will save you over $48,000 in interest payments over the life of your mortgage!

2.  Use Your Income Tax Refund To Make One Time Pre-Payments

Let's say you have the same $100,000 mortgage, and you have a $1000 tax refund this year. (Very possible with your new homeowner deductions). 

If you take that $1000 and apply it to your mortgage...you'll save over $8600 and shorten your mortgage by 1 year and 1 month!

Not bad for a simple one time pre-payment.

3.  Start Out With a 15 Year Mortgage

One of the best things you can do -- if you can afford it -- is to start out with a 15-year mortgage instead of 30.  It's actually not that much more expensive, and the interest you save is incredible.

With the same $100,000 mortgage at 8% over 15 years, your payment would be about $200 more ($955) and you would be paying $72,017 in interest over the life of your mortgage instead of $164,160!

By rounding up, using your tax refund, and taking a shorter mortgage, you can save thousands and be free of your mortgage years sooner!

Now that's worth considering!

Your credit report and how to dispute it.

Your credit score is a record of your credit activities.  It lists all of your credit card accounts and loans, the balances as well as your payment history.  It also show if any action has been taken against you because of unpaid bills such as a lawsuit or bankruptcy filing.  Because businesses use this information to evaluate your applications for credit, insurance and employment, it's important that the information in your report is complete and accurate, especially if you plan to make a big purchase like a home.

The Fair Credit Reporting Act (FCRA), enforced by the Federal Trade Commission (FTC), is designed to promote accuracy and ensure the privacy of information used in consumer reports.  Under the FCRA, both the credit reporting agency (CRA) and the organization that provided the information to the CRA (usually the credit card company) must correct any errors or incomplete information in your report.

If you do encounter a mistake on your credit report, several steps need to be taken to correct the matter:

1.  The first thing to do is get a copy of your credit report from each of the three major CRAs:  Equifax, Transunion, and Experian. 

Click here to order your free credit report from each of these agencies. AnnualCreditReport.com

2.  In a written letter, tell the CRA what information you believe to be inaccurate.  Include copies (not original) of documents that support your position.  Provide your complete name and address, identify each item in your report you dispute, and request deletion or correction.  Be sure to make copies of your dispute letter and enclosures.

3.  Send your letter by certified mail, return receipt requested, so you can document what the CRA received.

4.  The FCRA mandates that all CRAs reinvestigate the items in question - usually within 30 days - unless they consider your dispute frivolous.  They also must forward all relevant data you provide about the dispute to the credit card company.  After the credit card company receives notice of a dispute from the CRA, it must investigate, review all relevant information and report the results to the CRA.

5.  If the disputed information is found to be inaccurate, the credit card company must notify all nationwide CRAs so they can correct this information in your file.  Disputed information that cannot be verified must be deleted from your file.

6.  When the reinvestigation is complete, the CRA must give you the written results and a free copy of your report if the dispute results in a change.  If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the credit card company verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the credit card company.

7.  In addition to the CRA, you should also write to the credit card company about the error.  Again, include copies of documents that support your dispute.  If you are correct - meaning the information you disputed is found inaccurate - the credit card company cannot use it again.  Further, at your request, the CRA must send notices of corrections to anyone who received your report in the past six months.

What Next? 8 Steps To Follow When Buying A Home

1. Decide to buy a home.

That sounds reasonable, doesn't it?  Yet, so many of us are really "just looking"  rather than seriously considering changing the location of our home.  Why is it that you want to find a new home?  Has your lifestyle changed enough to warrant this type of investment?  Until you identify your NEEDS and your WANTS, you'll find it very hard to find, just the right home for you.

2.  Find a great real estate consultant.

Once you've decided to buy a home, find a great real estate consultant.  What you're looking for is a Buyer's Agent.  This means that the consultant represents YOU as the buyer, rather than the person selling the home.  They will have YOUR best interest at heart.  Really good consultants know their markets, and will help you find the best match for your needs and wants.  They can also recommend mortgage brokers with whom they've worked in the past.

3.  Secure financing.

If possible, get "pre-approved" for a loan in the amount you're willing to borrow.  With this pre-approval, you are in a stronger position to buy a home when you're ready-rather than finding your dream home, only to lose it to another buyer, because you were waiting on the approval.

4.  Find your dream home.

Now that you have your "wish list", your consultant, and your "pre-approval" in hand, go forth and find yourself a home.  As you go through homes, make sure to keep the listing, notes of your impressions of the house, and a photo (if possible) in a notebook, so that you can remember all the homes you've seen.

5.  Make a written offer & negotiate the price.

Once you find your home, work through your consultant to make an offer.  Typically your first offer is going to be lower than the listing price.  Listen to your consultant, they are representing you and know what homes have sold for in that neighborhood.  Rarely will the seller accept this first offer, so they'll counter with another price.  Back and forth you'll go until you settle on a price.  (This is where the consultant is really using their expertise).

6.  Open an escrow account.

Once you and the seller have agreed on a price, through your consultant, you'll open an escrow account.  What this does is put a "good faith deposit" in a third party's hands, to demonstrate that you are serious about buying this home.  Many buyers offer 5-10% of the selling price of the home.

7.  Have an inspection.

The home inspection is to protect you from buying a home that may have serious hidden structural problems or defects.

8.  Sign final documents, get the key & move into your new home.

Finally!  The home has been inspected, you've cleared the title to the property, and you've "closed" on the deal.  All you have to do now is move in.  Don't forget to put out the welcome mat!

What Is Debt Ratio...And How Does It Impact My Loan?

Debt ratio is a number used by lenders to determine if you qualify for their loan program.  Lenders have a wide range of acceptable debt ratio numbers.  If your ratio is high, however, you will sometimes have to pay a higher interest rate to get a loan.  Because the debt ratio is such an important factor in loan program qualification, you have to be very careful with credit purchases while you are working on buying a home.

For example, let's say you make $5,000 per month.  You have debts of $450 for a car, $300 for credit cards, and $250 for student loans.  Your total debt is $1,000.  The program you want to qualify for allows a 45% debt ratio.  So take $5,000 and multiply it by the 45% debt ratio.  The result is $2,250.  Then subtract your debt of $1,000.  That leaves $1,250 for you to use for a house payment.  To find out how much house that is, multiply it by 100.  Roughly you can afford a $125,000 home on this program. 

Now let's play with this a little.  You lender finds another program which will allow you to have up to a 55% debt ratio.  $5,000 times the new ratio of 55% equals $2,750.  Subtract the $1,000 in debt and you have $1,750 remaining for a house payment.  Multiplied by 100 equals $175,000 home that you can qualify for. 

You are really happy with the new program at 55% and go fall in love with a home for $168,000.  In the midst of your excitement, you decide to go buy that beautiful bedroom set and dining room piece that you have been watching for so long.  The store is having a wonderful special - 18 months no interest.  Your paments are only $150 per month.  Well, now the lender has to add this to your debt.  So instead of subtracting $1,000 from the $2750, they have to subtract $1,150.  This results in $1,600 total payment...only a $160,000 house.  You have just lost the home of your dreams...

While you are in the process of getting a home - do not buy anything on credit (furniture, a car, new school loan, etc).  Even a little purchase can make a big impact on your buying power. 

The Nine Most Commonly Asked Questions About Credit Reports

1. Why did you turn down my request for credit? - Credit reporting agencies do not recommend that your credit application be accepted or rejected.  Credit grantors make that decision based on your payment record and their own established criteria.
2. How can I correct a mistake? - Give the reporting agency specific details regarding the information you believe is incorrect.  They will check with the credit grantor, collection agency, or the public record source to see if any error has been reported.  Information that cannot be verified should be removed from your file.  If you and a credit grantor disagree on any source of information, you will need to resolve the dispute directly with the credit grantor who is the source of the information.
3. What if I still disagree with an item after it has been verified? - For those items in your credit file which you feel deserve further explanation, you may send a brief statement (not to exceed 100 words) to the credit reporting agencies.  The information will be place on your credit file and will be disclosed each time your credit file is accessed.
4. What is in my credit file that keeps me from obtaining credit? - Each credit grantor has established criteria for making credit decisions.  Your credit may appear to be perfect, but not having enough established credit or having too many outstanding balances are several examples of why your request for credit may be declined.  Sometimes the decision is not even based directly on the credit file; for instance, you may not have lived at your residence or in your present job long enough.  If you have questions about why you were not approved for credit, contact the credit grantor who turned you down for credit ans ask for an explanation.
5. Why is employment outdated? - Some employers do not regularly update this information.  What is listed as your current employment is actually the last employment reported to the credit reporting agency by credit grantors.  This information is not typically used by credit grantors, or employers in making their decision, but for demographic purposes.
6. Why isn't my income shown? - The information kept to help credit grantors process credit applications include your personal identification, the timeliness in which you have paid your bills ( as reported by your creditors), whether you have filed for bankruptcy, and if you have or had a tax lien or a judgment recorded against you.  Credit grantors usually have their own source's for verifying income.
7. If I do have credit problems, is there some place where I can get advice and assistance? - Maybe.  The Consumer Credit Counseling Service (CCCS) is a non-profit organization that offers free or low-cost financial counseling to help people solve their financial difficulties.  CCCS can help you analyze your situation and work with you to develop solutions.  There are more than 600 CCCS offices throughout the country.  Check your phone directory to get the telephone number for the office nearest you.
8. Should I use one of those companies that promises to help "fix" my credit? - No!  These companies cannot have accurate information removed from your credit file.  There is nothing they can do for you that you cannot do yourself.
9. Where can I get more information? - Free information is available on subjects such as "Building a Better Credit Report"; "Credit and Divorce"; "Credit Billing Errors"; "Fair Credit Billing"; "Fair Credit Reporting"; "Fair Debt Collection"; "Fix Your Own Credit Problems"; and "Women and Credit Histories" to name a few.  You can contact the Federal Trade Commission, Public Reference Section, 6th and Pennsylvania Ave. N.W., Room 130 Washington, DC 20580.  (Your local library also has information in the consumer reference area of the library.  Ask your librarian for assistance.)

Adding Accounts To Your File

Your credit may not reflect all your credit accounts.  Although most national department store and all-purpose bank credit card accounts will be included in your life, not all creditors supply information to credit agencies.  Those not reporting to credit reporting agencies may include some travel, entertainment, and gasoline companies, local retailers, and credit unions.  If you have been told that you were denied credit because of an "insufficient credit title" or "no credit file", and you have account with creditors that do not appear in your file, you can ask the credit reporting agency to add this information to future reports.  Although they are not required to do so, many credit agencies will add other verifiable accounts for a fee.

Know Your Four Options

You have four options as a Buyer.  Whatever you decide is fine with us!

• Do Nothing
• Do it yourself
• Hire a traditional real estate salesperson
• Hire a By Referral Only real estate consultant

A By Referral Only Consultant Devotes 100% Attention To Serving Your Needs So That You'll Happily Refer Others

You'll find it at the Ritz Carlton...You'll find it at Disney World...You'll find it when you buy a Lexus or Saturn automobile.

Each one of these companies has made a conscious decision to not only provide superior products - but to surprise and delight their customers by providing superior service as well.

Walt Disney, The Ritz, Nordstrom's and your favorite restaurant share one marvelous secret in common.  If you provide superior products and service that comes straight from the heart - customers will happily keep coming back again and again and refer their family and friends!

Service From the Heart.

So simple...So obvious...yet so rare.

This is particularly true in real estate and mortgage industry - which is all too often filled with salespeople who are selfishly focused on making a quick sale and getting on to the next one - rather that providing attentive and caring service that consciously seeks to build a lifetime client relationship. 

Unlike a real estate salesperson, a By Referral Only real estate consultant is trained to devote 100% attention to serving you - even if you just need help or advice to handle things yourself.  If you are genuinely pleased with the extra service and caring we provide, we rely on you to tell your family and friends about us so we can be of service to them too!

Top 6 Things To Ask Yourself When Looking At A Home

When you're looking for a home, ask yourself these six questions to ensure that it meets your basic needs.

1.  Is it within the right distance to work, church, family, and friends?

One of the first things a real estate consultant will ask you is about location.  Think about where you like to shop, where you worship, and where your friends and family live.

Some people are willing to commute a little further to work in order to live closer to family and friends.  Others, particularly those who like to sleep in, prefer to live closer to the office.

2.  Does it have enough bedrooms and bathrooms?

How many children do you have, or do you plan to have others while you are living in this home?

Do you have 3 teenaged daughters?  If so, you probably don't want to be sharing a bathroom with them!

Do you have frequent visitors in your home?  Do you need a separate guest room?  A separate bath?

3.  Is there enough storage space?

Do you need a basement or attic?  Do you change your floral arrangements and decor with the passing of the seasons?  If so, you will probably need storage space for the items currently in season.

4.  Is there parking?

Is a garage absolutely necessary?  For how many cars?  Could you live with a covered outdoor space or will a dedicated parking space suffice?

5.  Is it safe?

Are you willing to live near a toxic waste site or municipal garbage dump?  Would your children be safe playing near a busy intersection?  Is it in a high crime area?  Local papers and police departments can provide the crime statistics for a neighborhood.

6.  Is it in the right school district?

Will your children walk to school, take a bus, or will you have to drive them?  Many school districts have a reporting system that indicate the qualifications of teachers and administrators, and demonstrates the performance of students.  You can contact the school district for more details.

If the home meets these basic requirements, then start to look for how many things from your wish list it has.  For example, does it have a garden or a deck, does it have an oversized tub in the master suite, does it have a separate laundry room, and is there a fireplace?  What is the condition of the house?

Remember, you can paint, decorate, gut the interior, replace shingles with slate, add a deck, add a pool, pave the driveway, and even plant flowers.  But, it's rare that you want to move a home.  There is some truth in the adage "You can change everything about a home except its location".