Danny's Real Estate Blog

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Danny's Real Estate Blog

On more than one occasion, i've had a buyer tell me they're wanting to buy about a $250k home (which they're fully approved for and capable of doing), but don't want to pay more than $1300-1400 a month for it. Don't get me wrong, it's absolutely a possible scenario. Provided you have about $90k to put down, that is. Unlike at a car dealership where you can have all the financials done and figured out in a couple hours, the home buying financials take a little more time to process.

There's a lot to the financials of the home buying process. The underwriters take a couple weeks to review your documents provided to verify them, insurance binders have to be sent out, and your interest rate isn't locked in til near the end of the contract. Keep in mind your

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The mortgage and housing crisis of 2008-09 led to far tighter financial regulations for banks and lenders. It's only natural to believe a mortgage lender when they say something about your mortgage application led to it being rejected. I mean, why would someone whose entire job is to give you money tell you they can't if they can? But no doesn't always mean no. Here's why.

Not all mortgage lenders are created equal, nor are all financial institutions able to do all the same programs. We all know about the major types of loans, such as FHA, conventional, VA, and even the occasional USDA. There's also down payment assistance grants, portfolio loans, and hard money lenders/private loans.

Most lenders have access to all the same programs, and remember

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Home Buyers!

USDA Loans are true 0% down loans, and don't have mortgage insurance! This reduces your monthly payment, allowing you to buy a little bit more home.

The DTI ratio on this is lower than FHA loans or even conventional loans, so lenders will show you comparisons with the USDA, FHA, and conventional options available just so you can make an informed decision.

All or parts of areas such as Aledo, Argyle, Azle, Bartonville, Celina, Copper Canyon, Crowley, Eagle Acres, Forney, Heath, Justin, Lakewood Village, Little Elm, Melissa, Midlothian, Newark, Northlake, Oak Leaf, Oak Point, Ovilla, Pecan Acres, Peden, Pelican Bay, Plover, Ponder, Princeton, Prosper, Red Oak, Rhome, Seagoville, Willow Park, and Wilmer are eligible!

There's actually a way to

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Yes, I know we live in a society which has to have everything immediately or it takes too long. Amazon has built a business around same day shipping, most cable providers have On-Demand movies, and our smart phones have access to literally everything at anytime. So it must come as bit of a shock to you when I say 'you cannot get approved for a mortgage in 8 minutes'. But it has to be wrong, right? I mean there's companies on TV who say that's possible. Why would they say that if it's not true? Here's why.

To preface this, I need to remind you there's a great difference between being pre-qualified and pre-approved for mortgages. As previously explained, getting approved for a mortgage takes paperwork and is much stronger when going and making offers on

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One of the biggest changes to come out of the financial meltdown/housing market crash of 2008/2009 was in the mortgage industry. The way mortgages are given, mortgage lender salaries, and several other things were changed dramatically. The Dodd-Frank regulations implemented by the government have made it impossible to see that level of crash in the housing market again. One of the biggest regulations has to do with fund sourcing.

The sourcing of money actually became about after the 9/11 attacks, as banks didn't want to have 'dirty money' used to fund housing in the US. The same goes for drug money, and so on. During the housing boom, lenders and banks didn't really care where the funds came from to close, so long as they were in your account before

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On more than occasion in 2017 I had a potential buyer tell me they thought the mortgage lenders to whom I had referred them were wrong. They made way too much money to only be approved for the price home the lenders qualified them. The lenders simply had to be wrong, and the buyers were going to explore other lenders to see what they had to say. This is the best reason to be approved before shopping for a home. I get it. We live in a 'I have the money, I should be able to spend it' society. But mortgages aren't like everyday purchases, or even cars for that matter. Let see explain why.

'My Friend Makes The Same Amount, and She Could Buy Much More House'

This is a very common complaint. Let me say this bluntly: Mortgage Lenders are not lying to you.

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The Seller's Disclosure Notice is an essential part of a real estate transaction. In short, it's the condition of the home to the best of the sellers knowledge, which is signed not only by the sellers, but the buyers as well. It is to be provided to the buyer either before a contract is signed (provided on the MLS to be downloaded), or provided after the agreed upon number of days in the contract. It's best to have it provided up front, and here's why. Let's take a look at the wording first.

This part falls under Paragraph 7B, the property condition section. You'll notice there's 6 lines of wording if you haven't given the buyer the Notice up front. What does it mean? In general terms, you're giving the buyer 7 days to back out of the contract

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There's no fewer than a half dozen shows on television right now about flipping houses. Seminars pop up all over the country hosted and put on by these reality stars about how to do this, sometimes with 'other peoples money'. Well, it's not that simple. Television is notorious for showing only the glamorous sides, but not the realities. Take Flip or Flop for example. How many of these have they ever shown where the flippers lost money? Maybe one or two in all the seasons? That's not reality. A cash buying flip company admitted to our office in a meeting earlier this year they lose money on approximately 24% of their flips. So there's a few things you need to know about investing in real estate if it's something you are looking into.

Finding Flips is

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This statement is a common point of contention among buyers who haven't bought a home since the 2008 housing market crash. If you've seen the movie The Big Short, it's actually pretty accurate to how it was back then. Mortgage brokers could get paid by what kind of loan they sold, borrowers weren't being asked for income proof (hence why the exotic dancer could have five homes and a condo), and there was really no form of control on the industry. All this has changed since then, and in big ways.

Mortgage Documentation

This is the most relevant change since the crash, and one which mort people are not accustomed to. There used to be something called NINJA Loans, which stood for 'No Income No Job or Assets'. People could just walk into a bank and ask

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Every now and then I get questions I legally am not allowed to answer concerning a home, usually because of Fair Housing Laws. They usually relate to how good the schools are, whether crime is high in the area, or other things which could land me in a lot of trouble for my opinions. Death is a different story.

Disclosing a death on a property can be tricky. For starters, a seller may not actually know. If a home is a flip, and the flipper bought it at auction or out of foreclosure, there would be no seller disclosure for them to find out if there had been one or not. Secondly, it really depends on how someone dies as to whether or not it had to actually be disclosed. Straight from the Texas Property Code:

Chapter 5.008(c): 'A seller or seller's

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