Special Edition Home Loans Newsletter - May 2013

SUMMER 2013

A PUBLICATION OF FIRST COMMUNITY CREDIT UNION

STEPS TO

FIRST VIEW Official Credit Union of the H OU S TON

BUYING A HOME

T E XAN S

Fantastic! You’ve decided to buy a home. Starting with a plan is the best option. Here are a few pointers:

FINANCE YOUR HOME LOAN AT FCCU.ORG!

HOME BUYING SPECIAL EDITION

PO Box 840129 • Houston, Texas 77284-0129

PRSRT STD U.S. Postage PAID Permit #600 Houston, TX

Get Pre-approved at FCCU for a home loan Getting pre-approved will save you the grief of looking at houses you can’t afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.

Budget - How much can you afford?

The rule of thumb is that you can buy housing that runs about twoand-one-half times your annual salary. But you’ll do better to use one of many calculators available at FCCU.org (under the loans tab) to get a better handle on how your income, debts, and expenses affect what you can afford.

We do Home Loans at FCCU...

ARTICLES inside Steps to Buying a Home Fantastic! You’ve decided to buy a home. Starting with a plan is the best option. Here are a few pointers...

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Houston Home Buying by the Numbers Looking for a new home may be a bit more difficult now than a year ago. The Houston market is booming and homes are moving much quicker. Here are some of the facts on single-family homes according to the MLS Report for March 2013...

READ MORE | Page 2

Prepping your Home Prior to Selling Every seller wants their home to sell fast and bring top dollar. Well, it’s not luck that makes that happen. It’s careful planning and knowing how to spruce up your home that will send home buyers scurrying for their checkbooks.

Here is how to prep a house and turn it into an irresistible and marketable home...

How’s Your Credit?

One of the most common questions we are asked is, “How does a credit score affect qualifing for a home loan?” Do you know your score and how the score is calculated? Here’s the basics...

READ MORE | Page 2

READ MORE | Page 2 & 3

Making a First-Rate financial difference in our members’ lives!

281.856.5300 | FCCU.org 1

Contact a Real Estate Professional Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

Yes, an inspection is necessary Never purchase a home without an inspection so you know the good, bad and if present, the ugly. This is to protect your investment and know what you are in for or to request the seller to make repairs or accommodations in the pricing structure. Whenever possible, be present with the inspector so you can see first-hand what he is finding.

Let the shopping begin Now that you’re pre-approved, your real estate professional will begin showing you possible homes.

When you decide on a particular home, your realtor will make an offer on your behalf to the home’s seller. Your realtor will help you with bidding strategies such as sales trends of similar homes in the neighborhood. This offer may lead to a counter offer, meaning that the seller tries to negotiate your purchase price closer to his or her original asking price. Once both parties agree on an amount, First Community can handle most of the rest of the deal.

First Community Real Estate Advisors will walk you through everything needed to close the home loan in a timely manner.

Get started with the lending process by going to FCCU.org, click on the loans tab and select Real Estate Loans.

CHECK OUT OUR FAST CLOSE OPTION!

Disassociate Yourself With Your Home.

Say to yourself, “This is not my home; it is a house -- a product to be sold much like a box of cereal on the grocery store shelf.”

PREPPING YOUR

HOME PRIOR TO SELLING Every seller wants their home to sell fast and bring top dollar. Well, it’s not luck that makes that happen. It’s careful planning and knowing how to spruce up your home that will send home buyers scurrying for their checkbooks. Here is how to prep a house and turn it into an irresistible and marketable home.

Looking for a new home may be a bit more difficult now than a year ago. The Houston market is booming and homes are moving much quicker. Here are some of the facts on single-family homes according to the MLS Report for March 2013: Category

March 2012

Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!

Don’t look backwards – look to the future.

March 2013

Change

How’s Your Credit?

One of the most common questions we are asked is, “How does a credit score affect qualifing for a home loan?” Do you know your score and how the score is calculated? Here’s the basics: Unlike other loan types, when applying for a home loan, your credit report is pulled from each of the three major credit reporting agencies. This is known as a tri-bureau credit report. An average of the three bureaus is used in determining your credit score which ultimately determines what interest rate you will be charged.

Total property sales

5,866

7,006

19.4%

Total dollar volume

$1.3B

$1.6B

23.6%

Total active listings

41,997

32,704

-22.1%

Total sales pending

4,162

4,433

6.5%

Home sales

4,941

5,779

17.0%

Average home sales price

$225K

$236K

4.6%

A credit report is made up of five elements:

Median home sales price

$162K

$172K

6.5%

5.6

3.5

37.7%

35% Payment history – are the payments on time or past due

Months inventory*

*Months inventory estimates the number of months it will take to deplete current active inventory passed on the prior 12 months sales activity.

The good news is there is still time to find and purchase a new home to fit your family before the start of another school year. Getting started right away is the advice we found and be diligent. It may take a little longer this year due to a lower inventory but it’s still possible to get it done in the timeframe you desire.

If you haven’t already applied for a pre-approval on the home loan, start now. It’s easy with an online application at FCCU.org. In addition, FCCU has a “FAST CLOSE” option that can make those sellers take notice when reviewing pending offers.

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Make the mental decision to “let go” of your emotions and focus on the fact that soon this house will no longer be yours.

De-Personalize.

Pack up those personal photographs and family heirlooms.

Buyers have trouble seeing past personal artifacts, and you don’t want them to be distracted.

Houston Home Buying by the Numbers

Rearrange Closets and Kitchen Cabinets.

Buyers will open closets and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well.

30% Capacity – the ratio of current revolving debt to total available credit limits 15% Length of credit history 10% Mix of credit (installment vs. revolving) 10% Inquiries – recent search for credit and/or amount of credit recently obtained You are eligible once a year to pull a copy of your report from each of the three major bureaus. To order a copy of each report, click on annualcreditreport.com or call 1.877.322.8228. You will not get the score but you will get a copy of the report so you can make sure everything is accurate. Disputes over the accuracy of the report may be filed with the bureau online or

Rent a Storage Unit.

Almost every home shows better with less furniture.

Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extensions from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room’s purpose and plenty of room to move around.

De-Clutter!

People collect an amazing quantity of junk.

Consider this: if you haven’t used it in over a year, you probably don’t need it. Why not donate it or throw it away? Remove all books from the bookcases; pack up those knickknacks and clean everything off the kitchen counters. Think of this process as a head-start on the packing you will eventually need to do anyway.

Make the House Sparkle!

Wash windows inside and out, rent a pressure washer and spray down sidewalks and exterior, clean out cobwebs, re-caulk tubs, showers and sinks, polish chrome faucets and mirrors, clean out the refrigerator, vacuum daily, dust furniture, ceiling fan blades and light fixtures, hang up fresh towels and remember to clean the air with the fresh scent of a candle or spray. Odors are a no-no!

Remove/Replace Favorite Items.

If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won’t want it. Once you tell a buyer she can’t have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.

Make Minor Repairs Minor repairs such as replace a cracked floor or counter tile, patching holes in the walls or fixing a leaky faucet can help present the house in the best light. Consider painting your walls a neutral color, particularly if you have grown accustomed to purple or pink walls. Replace burned-out light bulbs so there isn’t anything minor for the buyer to voice concern about.

Check Curb Appeal.

If a buyer won’t get out of her agent’s car because she doesn’t like the exterior of your home, you’ll never get her inside. So keep the sidewalks cleared, lawn mowed and bushes trimmed. Make sure visitors can clearly read the house number. And to evoke the buying emotion, try planting yellow flowers or grouping flower pots together.

by mailing a request for correction to the bureau. A sample dispute letter can be found online at FTC.gov.

You may purchase a copy of your report which does include the score by contacting the credit bureaus directly: Equifax

1.800.685.1111

Equifax.com

Experian 1.888.397.3742 Experian.com TransUnion 1.800.916.8800 Transunion.com The advisors in our branches can answer any questions you may have about your report or how to improve your credit score. Get started today by ordering a copy of your report and verifying the accuracy of the details.

While it seems like a lot to do, it will make the best impression on the house you are selling and help you get top dollar. What you do before you sell will impact how much you make from the sale of your house. A real estate professional can assist you in specifics for your property prior to placing the listing.

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