One of the main reasons dog owners want to buy a home is because they want a yard for their dog. This is even more true in cases where there is more than one dog of a dog that’s a larger breed. Making sure the yard has a suitable fence for your dog is also going to be an important factor in keeping your dog as safe as possible. If you happened to find a home with a yard but it doesn’t have a fence, you should do your research before purchasing to make sure you can have one installed.

Another thing you will want to keep an eye out for is a dog friendly neighborhood in general. Look for local dog parks that your dog can enjoy and on the other hand, avoid areas that look unfriendly towards dogs with “no dogs allowed” signs.

If you’re in a dog friendly area, chances are you will have an animal hospital in the nearby area which is key for making sure you can get there quickly in case of emergency. Another thing you may want to research is local dog walkers or doggy day cares in the area. Having others to help out if you can’t make it home for your dog relieves some stress and keeps the dog happy.

Homeowners Insurance and Dogs

Many people in the United States own a pet, and a majority of those pets are dogs, and that number continues to grow. So what does that mean for those dog owners that want to buy a home? It means that they also need to be aware of the facts when it comes to dog bites as well since about four and a half million happen every year according to the Center for Disease Control and Prevention.

And although some of these dog bites may happen when dogs are protecting the home from intruders, many of them don’t and that means insurance companies have received a lot more claims due to dog bites that happen in the home. Those claims can end up costing quite a bit when the company has to pay them out, so they are taking dog ownership a bit more seriously when it comes to your policy.

Reach Out Today

If you find the right home for you  and your furry friend, it’s a good idea to be prepared in advance to take that home when you find it. Your offer will get a lot more respect if it comes with a mortgage pre-approval letter so don’t hesitate to reach out and discuss your options with our team at Commonwealth Mortgage Corp today!

The post Things Dog Owners Should Consider When Buying a Home appeared first on Commonwealth Mortgage Corp..

Take Account of All Your Debt

If you’re new to the home buying process, you’ll need to know a few things whether you have student loans or not. The best way to secure a home is to get a preapproval letter from a lender. In order to do that, they will want to view your debt to income ratio. The most important factor to a lender is that you’re able to pay back your mortgage, so if you have a high DTI, this decreases your chances of getting approved.

In order to calculate your DTI, you’ll need to add up all your monthly payments, and be sure to include just the minimum payments due. Then add all your monthly expenses together and dive the number you get by your monthly income. Multiply that number by 100 and that percentage is your DTI.

Next, you’ll want to check out how your student loan debt compares to your income and DTI. If your DTI is about 50%, you may want to work on lowering it down before speaking with a lender in order to increase your odds at getting approved.

Focus on Your Student Loan Payments

If you owe on student loans, it’s important to note that lenders are not necessarily concerned with the amount of debt you have, they are more focused on how your income compares to that debt. This helps to determine if you are a reliable candidate for a loan and whether or not they think you can maintain your payments.

If your student loans are preventing you from saving any money, you may want to wait until you have more of your monthly income available and less is going to the student loans. Having a nice savings will make you look like more of a responsible candidate, and keep you from falling behind on mortgage payments in the case of an emergency.

Moving Forward With the Process

Buying a home before completely paying off your loans means you may not qualify for a conventional loan depending on how much you owe at that time. If you find yourself in this situation, you may want to think about alternative routes to purchase a home like an FHA or VA loan.

Another thing you can do is to pay down another debt to help lower your DTI if you are unable to make an extra payment on your student loans. You can also try picking up extra hours or a part time job in order to increase your income. This can help with your DTI as long as you can provide proof of your income to your lender.

Contact Us Today

Reach out to your team if you’re looking to buy a home and would like more information on what it would take to get you qualified with or without student loans. Give us a call at Commonwealth Mortgage Corp in Conroe, TX today!

The post Buying a Home When You Have Student Loans appeared first on Commonwealth Mortgage Corp..

The Basics Behind Interests Rates

An interest rate is the amount it costs to borrow money and is usually calculated in a percentage. Whether you are buying a home or thinking about applying for a new credit card, your interest rate is important and something you want to track. You will usually find higher interest rates with shorter term loans, like payday loans, for example. These are usually not a good financial decision because the lender is making a large profit while you are paying back a large portion more than what was borrowed.

The Federal Reserve is in charge of the Federal Funds rate, the rate that banks use when borrowing from one another. This is the rate that people are referencing when discussing interest rates in the market, as well as purchasing a home. If you are thinking about buying a home and are unsure of when to buy, keep an eye on the market, and take note of interest rates and how they are changing.

Interest Rates and You

The biggest factor that determines interest rates is the economy. Due to the pandemic, the economy is in very poor condition due to the record number of people that are unemployed and not able to go back to work. Even if you aren’t a business major, it’s safe to say that it’s clear the pandemic has affected the economy in a number of ways in the United States as well as all over the world. When people are putting money back into the economy because they are working and spending, interest rates will usually increase. On the other hand, if people are unemployed at higher levels, they are spending less money overall, and the interest rates will be lower.

Keep Your Options Open

No matter if you are choosing to purchase a home or to sell your own, doing research is always important. You’ll want to do a fair amount of research on the market in your area as well as the market in surrounding areas. Shopping around and comparing rates is going to be the best way to make sure you are getting the best option for your area.

Lastly, interest rates are important to those that are investing in a home. Multi-family homes like duplexes and triplexes can be a great way to turn a profit if purchased at the right time. Investors like to target areas that are growing and popular so they can purchase and rent out to people for short or long rentals as the profit margins are great when the market is in a positive place.

Contact Us Today!

Rates don’t wait so you shouldn’t either! We are here to help answer any questions you have regarding interest rates or any other lending related inquiry you have, so give us a call at Commonwealth Mortgage Corp in Conroe, TX today!

The post Getting to Know Mortgage Rates appeared first on Commonwealth Mortgage Corp..

The first type of construction loan is called a construction-to-permanent loan. It is used to pay for construction, and then once the home is built, it becomes a mortgage. The second type of construction loan is a stand-alone construction loan. There is one loan for the construction of the home and then once the home is completed, you get a mortgage to pay off the construction loan.

What’s The Process for a Construction Loan?

First the home needs to be constructed, and then the construction loan will become a permanent mortgage just like a mortgage on any other home that was purchased outright. This type of loan can be a fixed or adjustable rate at 15 or 30 years.

While the home is being built, you are only responsible for paying the interest on the balance of the construction loan. This type of loan has a variable interest rate and that means it can change throughout the construction of the home.

A stand-alone construction loan can be a good idea if you can’t make a large down payment. For example, if you are selling your current home, but want to build another, you might have a surplus of cash once you sell your home so you can use that to pay the construction loan once the home is built.

One thing you should think about if you choose a stand-alone construction loan is that there will be closing costs for each loan. You also are not able to set the rate on this type of loan so you could end up paying more than you expected in interest.

How Do I Qualify for a Construction Loan?

When it comes to the qualification process, construction loans are a bit more complicated since there is no collateral involved. You will also need to be accountable for extra costs that come up along the way as the home is being built. Because there is no way to know the exact expected cost, you want to be sure you have some funds saved up to cover those expenses that pop up along the way.

Once you have gone through the process of securing the loan, you will need to select a builder. Researching and interviewing builders is going to be a critical part of the success of your home so don’t be afraid to take your time and don’t settle until you find just the person to take care of the job in every way possible. You’re going to be working with the builder to create the home of your dreams so you want that partnership to be one that is successful.

Get Started on Your Project Today! 

If you are thinking about the construction loan route, we would be more than happy to assist you with the process. We want to make sure you have all the tools necessary to make the right choices. Please reach out to the team at Commonwealth Mortgage Corp in Conroe, TX today!

The post Construction Loans and You appeared first on Commonwealth Mortgage Corp..

During the appraisal, they will look at the size of the home, condition, as well as its amenities to help determine its value compared to other properties on the market that have recently sold. It’s no secret that you want your home to be appraised at the highest possible value, so it’s a good idea to do what you can to make sure that it is.

A Picture Can Be Worth A Lot

One way you increase your home’s value is to make it look as good as possible. This doesn’t mean you have to spend lots of money on a professional stager, but you can take note from them and follow their lead. There’s plenty of shows on HGTV that discuss the best way to stage a home, so you can take some of those tips and put them into practice.

One way to do this is to declutter your home as much as possible. If you remove many of the personal effects in your home, it can make it look more ready to purchase therefore increasing its value and giving potential buyers a blank canvas to consider their own.

You can lose or gain priceless points by making a good first impression, and that’s with you not actively doing a single thing. The moment the appraiser steps onto your property, they are considering everything they see so be sure that the outside looks just as good as the inside. You’ll want to make sure your yard is tidy and well kept at least a couple weeks in advance. Be sure to remove any dead trees or bushes that can take away from the beauty of your home’s appearance.

Show It Off

Many homeowners take a lot of pride in what they’ve done over the time they’ve lived there especially if it’s been extensive. It’s important to make sure the appraiser is aware of all ways you’ve made the home better and increased its value so don’t be afraid to point them out.

It’s important to be mindful of your behavior with the appraiser as well. You want to be a subtle guide there to answer questions, but not impede in their appraisal. One thing that could be helpful is pointing about other homes in the area that have sold as a comp since they may not be as familiar as you are with the territory.

When you hire an appraiser, their appraisal belongs to you, and if you’re refinancing and the lender hires the appraiser, you have rights to that appraisal as well. Be sure to review any appraisal for errors and check for comps too.

Reach Out Today!

If you’re thinking about selling or refinancing, getting a proper appraisal is the first step to finding out the true value of your home. Don’t be afraid to reach out to our team at Commonwealth Mortgage Corp today!

The post The Appraisal Process and You appeared first on Commonwealth Mortgage Corp..

Conroe is growing like never before and part of that is due to it being fairly close to Houston which is also growing quickly. Conroe, located in Montgomery County, has a multitude of options for those looking to move here no matter what type of home you are seeking.

Harper’s Preserve has a gated entrance, private streets, and lots of amenities including the West Village Recreation Center which adds lots of value when it comes to entertainment including a community pool, a playground, bowling and bocce ball. There’s everything from easy to maintain homes to spacious estate homes.

Grand Central Park has lots of options for those looking to buy in the area whether you are looking for a townhome, luxury villa, or traditional family home. Homes range in price from $300K to $500K with plenty of nature trails and elementary schools close by. This neighborhood is known for its large number of parks and lots of homebuilders which make it a prime spot for growing families to flourish.

Cedar Woods is also a neighborhood in Conroe which has gorgeous homes at an affordable price from $180K to $240K which make it a great option looking to purchase a home for the first time. It also has Lake Conroe and Bentwater close by for those interested in water sports.

Besides the beauty and nature that Conroe has to offer, there’s plenty more to consider. Conroe may be growing in population, but it still has that country feel about it. It is a safe neighborhood so whether you have a family or are living solo, you won’t have to worry about feeling safe at home. It’s also a great place to live if you’re commuting since everything is fairly close from grocery stores to restaurants.

A big attraction for those looking to Conroe especially from larger cities, is the history that can be found all over Texas but especially here. Downtown Conroe is known for its gorgeous buildings, art galleries, shops, restaurants and cafes. If you are looking for live entertainment, the town’s theater as well as its live venues have plenty to offer in that regard. Conroe is also the home of B-52 Brewing for those seeking to quench their thirst with some local beer and they also have outdoor games to enjoy the sun and socialize. Conroe is also a great place to live for golf enthusiasts as it’s in close to proximity to some of the best courses in Texas.

Ready to Move?

If you are still on the fence about moving to Conroe, we can help to answer any questions you may have on the area or even the best place to buy a home for you and your family. Please don’t hesitate to reach out to our team, we’re here to help!

The post Moving to Conroe, TX? appeared first on Commonwealth Mortgage Corp..

What Does Escrow Mean?

Escrow happens between the time the seller agrees to the terms of the buyer and the buyer gets the keys, also known as closing.

In order to keep things simple between the buyer and the seller, an escrow account is held by a third party while the final arrangements are being completed on the home buying process. There are certain obligations that have to be completed until the house is considered purchased, and during that time, the house is “in escrow”.

You may have heard, “this house has been in escrow for so long” or “so happy escrow closed quickly” but aren’t sure why or what that actually means when buying a home. The escrow process can be affected by missing documents or even from state to state so the length of time in escrow can vary depending on many different factors. You will also need to open an escrow account once the seller and buyer agree to the terms of the purchase.

Once the appraisal has been completed, you will need to get an estimate from your lender. You will need to secure financing from a lender before moving forward with the contract. Although an inspection is not required, it’s always a good idea to set one up before making the final arrangements and moving into the home. If you find any issues during your inspection, you may want to negotiate with the seller when it comes to the price of the home.

You will need two things to move forward with your lender: title insurance and title reports. The title report makes sure the title is clear and the title insurance protects you and your lender from any future issues with the title.

After your final walk-through, you will get a HUD -1 Form which shows the final loan terms and closing costs. The closing process involves a lot of paperwork and you will want to make sure to discuss any concerns you have with your real estate agent. Once you complete your paperwork and submit your down payment, you will be all set to take possession of your new home. 

Contact Our Team Today!

We know that there’s a lot of ups and downs that come along with buying a home especially if you are concerned about escrow closing quickly. We are here to help you in any way possible, so don’t hesitate to reach out to the team at Commonwealth Mortgage Corp in Conroe, TX today!

The post The Escrow Process and You appeared first on Commonwealth Mortgage Corp..

This is the perfect time to seriously sit down and consider your options in the home buying space. Interest rates are lower than ever, and people are generally spending a lot less than they were on other expenses so why not put those funds to your future home?

How Does My Credit Score Work?

The main factor that lenders consider when it comes to determining the amount and the rate at which you borrow funds is your credit score. Your credit score is determined by your credit worthiness, or how likely it is that you will be able to repay the amount of money loaned to you. Many people are not aware that your credit score varies from agency to agency for multiple reasons. There are three major credit bureaus: Equifax, Experian and TransUnion and all report a little differently from one another.

Credit scores can change over time so it’s very important you know what impacts your credit score when you are seeking out a mortgage. Your credit score is typically based on the following:

• Timeliness of payments/payment history
• Amount of total debt
• Overall credit history
• Debt to income ratio (used credit vs available credit)

Credit scores vary from 300 to 850 and the higher your credit score, the better chance you have at getting approved for a loan. Depending on the reason you are using your credit score, the lender may use different requirements to measure your creditworthiness based on the industry and type of loan.

How Can I Build My Credit?

If you have been thinking about working on your credit for some time but putting it off, now is the perfect time. Spending less going out to eat or traveling, means you have more money to focus on credit card bills or other debts that have been piling up. Now is the perfect time to review your credit card balances and focus on paying down any of them that a high proportion of their balances used.

One thing that can catch people off guard is credit report errors that can come from identity theft or a past due bill that got lost in the shuffle. Because credit reports can vary, it is a good idea to review all three and dispute any errors with the agency that is reporting. With some of your free time, it can be a great idea to pull your credit reports, and review them thoroughly for errors and make sure to dispute those errors as well.

Raise Your Credit Score Today!

Whether you’re thinking about buying a home in the next few months or even a year or two in the future, there’s no time like the present to get your credit in shape. We can help you out along the loan process whenever it may be so don’t wait to give us a call at Commonwealth Mortgage Corp in Conroe, TX today!

The post Build Your Credit to Buy A Home During Covid appeared first on Commonwealth Mortgage Corp..

Where Do Closing Costs Come From?

The primary factors behind closing costs are location, the home, and type of loan that is being used to finance the purchase of the home. If you are buying a home in an area that has specific regulations, that can affect your closing costs, you’re going to want to get all the details from your lender when discussing what is included in the cost of the home.

Usually, home buyers expect to pay a minimal percentage of the purchase price of the home, usually less than 5 percent as closing costs. When you are discussing the details of your home loan with your lender, they will give you an estimate of what you might expect to pay but keep in mind with any estimate, it can change so review any revised editions

There’s a lot of moving parts when it comes to buying a home, so it’s important to be flexible and prepare for things to change. Offers can be submitted and drive the price up or down and interest rates can do the same. This is also the same when it comes to closing costs because they can dramatically change the final cost of the purchase and if that’s above your loan value, you could find yourself in a very precarious position. Some of these closing costs aren’t truly needed when it comes to things like courier costs which are avoidable. It’s also a good idea to shop around and compare lenders as that can save you quite a bit when you are finalizing the closing costs on your home.

Who Pays?

The easiest way to cover closing costs is to pay them out of pocket all at once. If you are unable to cover the closing costs, you may want to discuss your options with your lender. They may give you the option to fold them into the loan, but keep in mind if you choose to incorporate them into the loan, you will have to pay interest on the costs as long as you are paying for the mortgage.

It’s important to note, the lender you work with is required to outline all the specific closing costs when you receive the estimate. Be sure to read the fine print so you are not paying more fees than are necessary if they are written into your closing costs. If they are any terms or costs you see that weren’t provided in the estimate, it’s important to ask questions and make any necessary changes before finalizing the deal.

Contact Our Team Today

The fine print and paperwork can be overwhelming and sometimes flat out confusing. We want to help you understand everything and take the stress out of the process so feel free to contact one of our team members at Commonwealth Mortgage Corp in Conroe, TX today!

The post Who Pays For Closing Costs? appeared first on Commonwealth Mortgage Corp..

Why Choose A Portfolio Loan?

Choosing a lender and a loan type can be overwhelming. It is a big financial commitment and we know that the home buying process comes with a lot of information and questions. If you happen to be someone that has had a challenging financial past or formidable issues when it comes to credit history, that doesn’t mean you aren’t able to purchase a home.

Portfolio loans are a good option for those that have filed bankruptcy, have bad credit, tax issues, or good income but lack credit. Some people think that because they have credit issues it means they cannot purchase a home, but that is not the case. If you have bad credit or no credit, and want to purchase a home, a portfolio loan might be a good option for you.

If you are in the market to purchase a property but it falls outside the guidelines for a conventional loan, a portfolio loan may also work in this situation. For example, if you are looking to buy a home that might not pass an inspection because of the repairs needed, a portfolio loan could be an option for you.

Is A Portfolio Loan Right For Me?

Portfolio loans are not for everyone so it’s important to evaluate your personal situation before making the decision to choose a portfolio loan. Portfolio loans are good for those buyers that want to secure financing on short term notice. A drawback for these types of loans is that they can cost more than conventional financing. Due to the large down payment, they are not typically a good option for a first time buyer but would be a good idea who has a large sum of cash but not stellar credit.

Contact Us Today!

If you are researching your options to purchase a home and aren’t sure what would be the best route for you to take, you can always contact us to answer your questions. We would be more than happy to discuss your options and answer any questions you may have, so feel free to give us a call at Commonwealth Mortgage Corp in Conroe, TX today!

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