Answers To Your Questions

1) What can I afford?
A general rule of thumb is to multiply your gross monthly income times 25%. Please contact Group One Real Estate for specific qualifying which will determine what type of loan is best for you and what, if any, special grants or programs you may be eligible for.

2) What is involved in qualifying for a loan? What kinds of information will be needed?
Step 1 is a pre-qualifying step in order to determine the price home you want to seek. Step 2 is the final application process, which results in the loan approval prior to a closing.

A pre-qualifying may be accomplished with your Group One REALTOR® or with a lender and can be by phone. It involves an analysis of your income versus debt in order to determine what type loan and mortgage payment you may seek. All loans have different qualifying ratios and requirements. ALMOST EVERYONE CAN QUALIFY- the question is how much and what type loan?

Information you will need for an application includes:
  • Credit account information such as credit cards, car payments, etc.
  • Income information (pay stubs or past two years tax returns, if available).
  • The lender will provide you a list of any additional items needed.

3) What should I look for when choosing an area to buy in?     RETURN TO FAQ
Location is critical and is influenced by individual needs and preferences, i.e. Convenience to employment, yard vs. no yard, schools, shopping, bus service, etc. You determine the factors that are important to you and your Group One REALTOR® will help select properties that fit.

4) What can I expect regarding the time involved from beginning a purchase to actual move-in?
Buyers need 10 days to 30 days from loan application to closing. On average purchase offers are written with a 30-45 day closing. Possession of the property will customarily be the date the funds are paid to the Seller.

5) How can I determine where to live if my family has special needs?
Your REALTOR® will be able to help you determine where you can find properties with special accommodations, i.e. wheelchair access, schools w/special education facilities, elevators, etc.

6) I need a place now! Is it possible to rent until a loan closing?     RETURN TO FAQ
Renting the property you want to buy restricts your choice of homes. The home for you may be occupied. Even though it is possible, it may be better to occupy a temporary rental for a short time. Group One does offer assistance in locating temporary rentals.

7) What thing should I consider as most important in the buying of a home?
Comfort - both physical and emotional. Don't overbuy and make yourself miserable each month when the mortgage is due. Resale - even those who are positive they won't move for many years should consider resale when buying.

8) What is the cash requirement when buying a home?
The type loan you are eligible for will dictate the cash required. FHA loans are designed to make homeownership accessible to first-time buyers and low to middle income buyers. With the use of grant programs that are available for first-time buyers you may be able to buy with $300 to 3% of the price of a home. Your Group One REALTOR® will be able to help you determine what programs are available to help you get in with the lowest cash investment.

9) What is the Texas Veterans Housing Assistance Program?     RETURN TO FAQ
How might I determine if I am eligible for this program? VHAP offers home purchase loans up to $159,000 at possibly lower than market interest rates. Rate discounts are available to service era veterans, to teachers, and to those with service related disabilities. This is a loan that can be used for all the purchase price or combined with another loan. If you are a Veteran, call Group One and ask for a brochure that explains these programs.

10) Are there any special "first-time buyer" programs available?
There are three programs frequently used

  • 1) Down payment assistance up to $3,000
  • 2) mortgage credit certificate (allows added tax savings)
  • 3) new home purchase assistance up to $15,000.

11) What is earnest money?
Texas purchase offers are typically written with an option period of 10-20 days during which time the Buyer may have inspections. The purchase offer will also reflect the amount of earnest money (good faith money) that will be deposited with the appropriate title company. At closing this earnest money is applied to the Buyers down payment and closing costs.

12) Should I consider leasing with an option to buy?      RETURN TO FAQ
Just as the need to rent prior to closing (see #6) limits the selection of properties you can choose from, so does attempting to buy under an option.

13) What are the advantages of leasing?
Monthly costs may be greater than a mortgage payment for like accommodations, but if something breaks or needs upkeep, you can call the landlord.

Leasing provides ease of movement from place to place.
Buying? Pride of ownership, tax deductions and a forced savings by building equity. Fewer use restrictions in most instances.

14) OK - What should I do first?

Call your Group One REALTOR®!