Texas Mortgage & Real Estate Thoughts

Texas Relocation - Part 3

If you have followed the other two parts, then you are mentally prepared to move and have found a home in your new area. In Part 3 of 9, we will discuss Temporary Housing. A temporary home is used when there is a gap between the date you move our of your old home/rental and when you move into your new home.

Having a gap in your move can be caused by a few things. For example, if you purchased a brand new home that is being built. The home may not be ready for another month or two, but your company needs you at the new location now. During this two month period you may find a home or apartment that is available now and will allow you to keep a short lease.

How do you find a temporary home?

Finding the right rental is very similar to finding the right home. If you are relocating for your company, check your employer's policy on rentals. In some cases, the company will pay the deposit and may pay for the termination of the lease (should there be one)

You may also consider talking with the Real Estate Agent or Relocation Specialist you worked with when finding your home. Since they are familiar with the area, they could probably find a temporary home that is in a great location, is the right size for your family, and can accommodate your short term living arrangement. In bigger cities, apartment locating services are available. Two other solutions can be the local Newspaper Classifieds which can be hit-or-miss if you don't know the territory, or a co-worker in the new area may be able to direct you.

Just like when you were looking for your home, be specific with your needs. Even though it will be temporary, you still do not want it to 100% inconvenient. How many rooms do you need? Do you need public transportation? How much rent do you want to pay? What services / amenities are important to you? The more specific you are, the easier it will be to find a home that will fit your temporary needs.

Naturally, you want as much comfort and convenience as you can find. You may not have all of the conveniences of a permanent home, but you can come close. Look for something with pleasant surroundings and sufficient space. You don't want your family to feel inconvenienced, cramped, or depressed with the decor - even if this is temporary.

Many 'Short Term' rental properties come equipped with china, linen, and some may even have maid service. You'd be surprised with how far 'temporary housing facilities' have come due to their popularity. This is especially common in newly developed areas. Look for assistance from the Relocation Specialist or Real Estate Agent. More than likely, they are familiar with these developments and point you in the right direction.

If you wait a few more days or weeks to purchase a home, you could lose thousands of extra dollars. Why? Because the Housing and Urban Development (HUD) is implementing several changes for loans guaranteed by the Federal Housing Authority (FHA).

These changes are coming shortly before the April 30th First Time Home Buyer Tax Credit deadline, and just after the March 31st experation of the Federal Reserve Board's mortgage backed securities purchase (which has kept home loan rates artificially low for over a year now), these FHA changes make it even more important to act now to save BIG!

In case you have not heard about these changes, here is a quick explanation:

• March 30, 2010 - Federal Reserve Board is no longer purchasing Mortgage Backed Securities (MBS) which has been keeping mortgage rates at historic lows.
• April 5, 2010 - HUD is implementing new requirements for Up-Front Mortgage Insurance (UFMI). Currently, the amount of UFMI is 1.75% and is increasing to 2.25%. What does this mean? For a borrower purchasing a home for $200,000 with a $7,000 down payment, the UFMI will increase by $965. Typically, this amount is financed into the loan, so the mortgage payment increase will be minimal, but overall the fee is increasing for the buyer.
• Later this Sping - HUD will implement the reduction fees allowed to be paid by a seller. Currently, the seller can pay up to 6% of the buyers closing costs. This percent is decreasing to 3% maximum. Using the same example above, a home buyer purchasing a $200,000 home will lose on "seller concessions" by $6,000.

How do you avoid this loss? GET OFF THE FENCE! Submit your FHA Mortgage Application by the last week of March.

Texas Relocation - Part 2

In part 1, I discussed the importance of 'Getting Ready' for your Texas Relocation. No matter your reason for relocating to Texas (or any state for that matter), you want to be prepared and you want to narrow down your location specifically.

Part 2 Finding a House in Your New Area

Before you sell your existing home or give notice to your landlord (if you are renting), my first suggestion is to contact a Relocation Specialist in your new area. As I mentioned in my previous post, this specialist could be someone within your company (generally within your Personnel Department). Or you can ask the Real Estate Agent that is listing your current home because they will tend to have connections outside of their direct area. As a matter of fact, most agents maintain a close relationship with affiliated agents across the country who may specialize it helping out-of-town home buyers.

When you contact this specialist, be prepared with provide all of the information needed to make your search easier. This information includes, but is not limited to, the following:

• A brief breakdown of your family members
  • Number of members
  • Children's ages
  • Any needs for elderly members
• What are your interest
  • Golfing
  • Boating
  • Gardening
  • Volunteering
  • Religious Activities
• Special Family Needs
  • School Requirements
  • Public Transportation
  • Distance to work
• Your employer and work location
• What are your target dates for house hunting and moving in
  • Looking at homes listed today may be a waste of time if you are not considering a relocation until the middle of next year. However, viewing homes in a specific neighborhood may still be helpful.

If you do currently own a home and have it listed for sale, you should talk with your listing agent about your financial stituation. No, not what amount is in your checking and savings account. I am talking about the amount of equity you have in your current home. This will help you determine what your downpayment will be and ultimately, what your loan balance will be on your new home. The listing agent can complete a Broker's Pricing Opinion of Value (BPO), which will help you determine your equity.

The next big question is, "what TYPE of home do you want?".  You have prepared your list of 'special requests' above, but let's talk about the style, size, etc. Here are some things to consider:

• Price Range
  • Knowing your down payment will help you with this determination.
  • When shopping for a home and ultimately for a mortgage, be sure you are comfortable with the mortgage payment. If its seems a little hight, consider lowering your price range or increasing your down payment.
• Style Preference
  • There are many styles to choose from, but not all home styles are offered in a specific area. Your real estate agent will be able to help you with this further.
• Room Requirements
  • What do you 'want' from your home? Family room, fireplace, separate and formal dining rooms, office space, three car garage, etc.

With some companies, your relocation specialist will match you with a Real Estate Agent that is familiar with your new area. Once you have updated them with your needs from above, they can guide you efficiently through the house-hunting process.

Something else to remember is to ASK questions. Remember this is a new location to you and the real estate agent you are working with is very familiar with this area. Ask about local parks, communities, home values in the area, local attractions, new constuction in empty lots, or anything else that may come to mind.

Stay in touch with this 'Texas Relocation' series here.

Texas Relocation: Part 1

One of the biggest questions when considering relocation is 'where do I start?'. I'll be writing a small series on what steps to take over the next few weeks/months prior to relocating. Should you have any specific questions that I have not covered, feel free to contact me directly through email or my office number listed below.

In Part 1 is "Getting Prepared"

As I mentioned, the first question is always 'Where Do I Start'. Unless you have relocated before, you don't truly know what to expect and where to start. You know and understand the goal - Move All My Things from Here to There. But just knowing the goal is not quite enough in this case. You don't want to forget any steps.

Whether you relish the idea of moving or your dread it, the act of relocating can be stressful. Remember, you need to cover all the steps from packing dishes, shipping the cars, and of course selling your home. So, let's focus this post on lowering the stress level for you and the entire family.

First - Buy a notebook to keep track of things you need to do and what has already been done. There will be a lot to cover. The bigger the family, the bigger the list. Keep this "Moving Book" in one place where everyone can see it. Not only will you track things that need to be done, but you will also track 'who is responsible' to get it done. Easy access allows anyone to make entry updates as things are complete.

Second - Hold family brainstorming sessions. This doesn't have to be formal, maybe just over dinner. Its a great way to get caught up on things that need to get done. Keeping everyone on the same page makes for an easier transition.

Third - Assign responsibilities and target dates. Don't stress yourself out by trying to take it all on yourself. Have your spouse and older siblings help out. You can even assign some items to the younger siblings. These responsibilities can be discussed during the family meetings, as well as any changes.

Before I get too far ahead, you should know there are professionals that can help you with these tasks. They are strong, experienced individuals who will help you through the relocation routine:

Company Relocation Manager - This title may be different from one company to another, but this individual would probably work in your companies Personnel Department and will counsel you on the companies relocation policies. Ask what the company will provide and pay for. Also ask what assistance or incentives are available to you.

Relocation Specialist - (may also be called Coordinator or Counselor) Relocation centers, real estate firms that specialize in relocation, and even some moving companies are ready to provide you with detailed information about your new community.

Real Estate Agent - An agent can save you a large amount of time and energy finding a home or apartment in the new area. Many homeowners don't think of a Real Estate Agent when looking for an apartment but why not? An agent is very familiar with the area. They can help you determine the best location considering your 'requirements' (work commute, schooling, etc). Overall, they will help you get connected with your new neighborhood.

Moving Companies - I mentioned them above, but its important to mention them twice. Movers can give time and money-saving advice on how to schedule your move, how to pack, and what not to take. Overall, they will help you get prepared to move.

Step 2 - Finding a House In Your Area

Are you prepared for a client to visit you all of a sudden? I'm not just talking about someone that just shows up at your office, but that is certainly one situation. I'm talking about a client that wanted to stop by for a few minutes to discuss a home they noticed or the loan documents you asked for. How prepared are you and your office to have such a visit?

Maybe you keep a neat office, so this isn't an issue for you. But let's take it a step further. How about if your client(s) brought the rest of the family? If you want to be sure that your client(s) is not distracted, its best to have something in your office for children. Having a 'play box' in your office is a start. Fill the box with things like these:

• Crayons
• Coloring Books
• Toy Cars
• Dolls ('action figures' for the boys)
• Puzzles
• Crosswords
• etc.
  

Do they have older kids? It doesn't hurt to have a Nintendo DS (or similar hand held game system) and a few games. A good used Nintendo DS can be picked up at a GameStop, or local game store. They are pretty inexpensive and come with a charger. Plus while you are there, you can pick up a few games. It does not have to be expensive and you may have this stuff lying around your house already.

It will help keep the kids occupied while you and your client(s) talk about business. Plus your client(s) will appreciate the extra thought.