I have been asked by many Spring TX first time home buyers what they will need to bring to closing. The first item that comes to mind is of course funds to close. I have had a few Veterans who did not have to bring funds to the closing table but not many. With the changes in the loan industry most 100% loans are gone so you will need some cash.

The money to pay all your fees and closing cost will need to be in the form of “guaranteed funds” such as a Cashier’s Check. Your agent or escrow officer will notify you of the exact amount. You will receive a closing document required by HUD that outlines the settlement cost. The Title Company prepares this document. The HUD statement is a little difficult to read as you read it backwards. You start with page two and then go back to page 1. Page 1 is the page that shows the funds you need to bring for your real estate closing. For additional information on HUD statements go here.

In a perfect real estate world a Tomball TX first time home buyer  would receive the HUD statement the day before closing so you would have time to go over it before closing. Unfortunately real estate is not perfect; I can’t tell you how many times we get the HUD from the Title Company at the closing table. I honestly don’t know why it takes so long but it is a very complex process. Should that happen you can bring a check using the figures your lender have come up with from your good faith statement. Should you not bring enough money you can write a personal check to the title company for up to $1500. On the flip side if you bring too much money the Title Company will cut you a check for the overage.

The other item you will need to bring is a picture ID such as your driver’s license or a passport. A number of years ago I had a client who was moving to another state. He came back  for the closing and to get his furniture. A few days before closing I found out that he had turned in his driver’s license to the other state and only had a piece of paper for a drivers license. He did not have another picture ID. Back then I talked the title company in to letting us get a membership at Sam’s Club and using it as a picture ID. As I told you this was quite a few years ago I’m not sure if that would fly today.  Long story short I highly recommend not turning in your driver’s license if you are planning on buying a house unless you have another type of picuter ID.

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If you are buying or relocating to  Tomball Texas and need help from a professional REALTOR®,  Marchel can be reached at Marchel@AgentwithResults.com or by phone at 832-721-8332. 

If you would like information about Tomball please visit my websites at http://agentwithresults.com and at http://www.resultsrealtytx.com/.  The AgentwithResults site is rich in Content about the area.  If you prefer pictures with your content then visit my ResultsRealtyTX site.

Want to find out about new Tomball TX properties immediately as they come on the market, then click here to sign up for a free automatic notification of new listings.

Click the button to the left to search our local MLS

I am continuing my Tomball TX first time home buyer series.  In this post we are going to talk about home owners associations.   On a regular basis I have people asking me to find them a home that is not in a homeowner’s association. Usually this is someone moving here from another state and usually the area that they are moving from has zoning in affect.  

I am going to tell you why I don’t think that is a good idea living in the Tomball area.The problem with not buying in a subdivision in Tomball TX is that WE DO NOT HAVE ZONING IN Tomball TX.  Since we don’t have zoning it is a free for all.  People can build whatever they want wherever they want it. It is not uncommon to see a nice home next to a trailer on cinder blocks in unrestricted areas. You do have protection in the City of Tomball but much of the Tomball market area is not actually in the city of Tomball.   

I will never forget when I found out that the Houston area did not have zoning.  We moved to the area in 1996 and as I was taking the classes to get my real estate license one of the instructors nonchalantly said “well you know we don’t have zoning in the Houston area”.  I almost fell off my chair. I had thought every area was zoned. Well that is not the case the Houston area is one of the few large cities if not the only large city that does not have zoning.

I have lived in three different states besides Texas.  Those states being Kansas, Colorado and North Carolina.  All of the areas I lived in had zoning so it was no big deal not living in a home owners association (HOA). I was a little apprehensive about living in a HOA and having someone telling me what I could and couldn’t do with my own house. The longer I have lived here I have realized the value of living in a HOA.  By having deed restrictions it helps me to maintain my property values.  To give you an example a few years ago my husband worked with someone who bought out in the country in a non-restricted area.  The guy loved it until the house next door was sold and the new owner decided to make it in to a salvage yard.  His property values took a nose dive when the salvage yard opened.

The good news is that there is just about something for everyone as far as homeowner’s associations go. There are associations with all kinds of restrictions such as in master planned communities and there are HOA’s that allow you to have mobile homes.  In Tomball you can find subdivisions all the way between the two extremes.  There are not many country subdivisions left in Tomball.  There are a few scattered around but if you want country living you might want to look at Magnolia.

The HOA’s fees also vary greatly. I have seen fees as low as $10 a year and as high as $1500.  There are even a few subdivisions that have deed restrictions but no fees.  Most of the suburb HOA’s have similar restrictions.  If there is something in particular you are interested in doing it is a good idea to look the deed restrictions over before you ever put an offer on a house. It is a fairly easy process to get the deed restrictions; usually you can get them from a local title company. It is important to decide what kind of restrictions you are looking for and find your home in a HOA that meets your needs.

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If you are buying or relocating to  Tomball Texas and need help from a professional REALTOR®,  Marchel can be reached at Marchel@AgentwithResults.com or by phone at 832-721-8332. 

If you would like information about Tomball please visit my websites at http://agentwithresults.com and at http://www.resultsrealtytx.com/.  The AgentwithResults site is rich in Content about the area.  If you prefer pictures with your content then visit my ResultsRealtyTX site.

Want to find out about new Tomball TX properties immediately as they come on the market, then click here to sign up for a free automatic notification of new listings.

Click the button to the left to search our local MLS

I am continuing my Tomball TX first time home buyer series.  In this post we are going to talk about your Tomball TX title policy.  In Texas we close at Title companies and if you are getting a loan you are going to be required by your lender to have a title policy. 

Title insurance provides protection against title defects that were unknown to you at the time you purchased the policy.  Before writing a policy, a title company will check for defects in your title by examining public records, including deed, mortgages, wills, divorces, court judgments, tax records, liens, and encumbrances.  The company will then defend in court any claims to the property that are covered by your policy, subject to certain limitations.  If the company loses, it will pay you for covered losses up to the amount of your policy.

In Texas, the two most common types of title policies are “mortgagee policies,” which protect lenders, and “owner policies,” which protect buyers.

Most lending institutions won’t loan you money to buy a house or other property unless you purchase a mortgagee policy.  This policy will repay the balance of the mortgage if a claim against your property voids your title.  Mortgagee policies remain in effect until the loan is repaid.  Most lenders will require you to buy a new mortgagee title policy if you refinance your home. 

Owner policies insure property owners against the specific kinds of claims listed in the policy.  Any owner policy remains in effect as long as you or your heirs own the property or are liable for any title warranties made when you sell the property.  You should keep your owner policy, even if you transfer your title or sell the property.

In Texas our title policy forms are standardized.  This mean the policy language is the same, regardless of the company. Here is a blank title policy from Alamo title so you can see the standardized language.  Pay special attention to “Schedule B” of the policy which explains any limitations, exclusions, exceptions and special.  You may want to discuss these exceptions with an attorney before you close.

Schedule C is not shown on the blank copy above but it will be there when you get your title policy.  This is the schedule that shows the requirements that must be satisfied for the title policy to be issued. It may require information on marital status of one of the parties; if there have been any probates or bankruptcies they will be here also.  This is also where you will find the descriptions of mortgages.  If there are any mechanics liens, tax liens, judgments (you get the idea) this is where they will be found.  This is the part of the title commitment that the seller must resolve before the closing occurs. 

The premium for a title policy is paid only once, at the closing of the sale.  The buyer and seller may negotiate who pays the premium.  Generally in Texas the title policy is paid by the seller for the new buyer but everything is negotiable so this is not always the case.  New home builders will typically NOT pay for the title policy and it becomes a buyer’s expense.

Title insurance premium rates are set by the Texas Department of Insurance and are based on the property’s sale value using a sliding scale.  You can check the Texas Title Insurance rates here. 

As a Tomball TX first time home buyer I expect you will be getting a loan and this will be required by your lender.  If you are paying cash then you can make the choice as to whether you want title policy protection or not.  I recently had a buyer who seriously considered not buying the policy.  I told them it was their decision but I would require them to sign something saying I did not think this was in their best interest. They finally decided to buy the policy; my concern was you just never know what might come back to bite you without it.

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If you are buying or relocating to  Tomball Texas and need help from a professional REALTOR®,  Marchel can be reached at Marchel@AgentwithResults.com or by phone at 832-721-8332. 

If you would like information about Tomball please visit my websites at http://agentwithresults.com and at http://www.resultsrealtytx.com/.  The AgentwithResults site is rich in Content about the area.  If you prefer pictures with your content then visit my ResultsRealtyTX site.

Want to find out about new Tomball TX properties immediately as they come on the market, then click here to sign up for a free automatic notification of new listings.

Click the button to the left to search our local MLS