Bob Gilbert's Katy Blog

Our Loan is approved what we should do prior to closing in Katy TX

I have has several clients ask me about what they should do or not do after they have been told their loan is approved by the lender. One key point to make is that the underwriter at the lender can change and have changed their minds about loan approval right up until the closing papers are signed. Most of the items in my new list are things not to do. This is the 6 TH article in my series of 10 articles regarding Frequently Asked questions by clients and in my case here in Katy TX. As I show homes to my buyers and we start honing in a potential home my client might want to make an offer for I start going through these items and then review as additional time lapses. I know this is another of my blogs with a set of points but I really do not know how to write these types of articles without using that specific style.

1)    Provide the lender (loan processor) with whatever data they are requesting. It is an excellent idea to ask for a summary overview of the whole process and make sure you ask about document production. If the requests start to become totally burdensome call me and let me speak with the lending officer.

2)    Tell your employer you are applying for a loan and find out who at the company you work for can verify employment. I have seen some lenders who will verify employment 4 or more times. Expect at least two verifications.

3)    Contact the loan processor at least once week to check in and find out if there are any issues, need additional data, etc. Be totally honest with your loan officer about all items.

4)    If by chance you find out from a credit report that there is an error on the report sit on it and do not protest whatever the issue until the loan is closed. Most lenders will not proceed if there are any open items on the borrower report.

5)    Do not make any significant purchases meanings furniture, cars, boats, appliances, etc. My advice to my clients is to do nothing until the day after closing on your new home.

6)    Do not change employers and that applies to all parties who will be liable for the loan debt.

7)    Make sure all your bills are paid on time.

8)    Do not open any new type of credit/debt of any nature or form and avoid having any new inquiries as to your creditworthiness with the credit bureaus.

9)    Moving cash, securities or ant assets should be totally avoided as you will have to explain in detail to the financial institution why you are doing these movements.   

10)                       Avoid contracting for a pool to be built in your backyard unless your lender will allow you to roll that debt into your mortgage.

11)                       Don’t close any accounts of any nature.

12)                       Postpone that luxury vacation you have had planned for years.

In my opinion the answer to Our Loan is approved what we should do prior to closing in Katy TX is not much of anything new or out of the ordinary. Be smart, be calm and show perseverance.

We are ready to sell our home and are there things we should not do?  

Most Realtors have a list of all the different things a home seller should do before they place their home on the market in Katy TX. I have thought for many months some folks must not be reading and or paying attention to the list of things to do. Maybe we should go the opposite direction by looking at what not to do. The salient points I will make in my 5 TH blog of my series on Frequently Asked Questions are all based on my own observations during viewing of homes for sale with my buyers. Some are rather unbelievable but all valid.

The items are as follows:

1)    Do not leave valuables in your home. Rent a lock box or place these items in the home of close relatives. The items I am talking about are cash, collectibles, coins, gold or silver, rings, bearer securities, valuable art work, watches, etc. If something ends up missing you should accept part of the blame.

2)    Do not have your family pictures appearing throughout the home. Remove a majority of these pictures as you want potential buyers to image this home to be theirs and not yours.

3)    The counter tops, built in storage, and center island are not a place which should be littered with medicine bottles, mail, empty pizza boxes, newspapers, receipts or any other crap.

4)    Get rid of clutter throughout the home including all the bedrooms.

5)    Take garbage out to the appropriate place and do not store stacked at the back door, garage door and at the fence gate. There is very disgusting and turns all buyers off to the point where they want to leave immediately.

6)     Bad smells are another immediate turn off. Your home should not smell like you butchered a goat and cooked it in the main living area. Try burning good smelling candles and open doors/windows to get rid of these bad odors.

7)    The back of a detached garage should not be a place to store any junk. Buyers when this situation is discovered say to me ‘Who is going to clean up that mountain of total crap”. Don’t put the home on the market until all this stuff is gone from your property.

8)    Bathroom remodeling projects are terrific ideas as long as these efforts are completed. Do not try to fake buyers out by not leaving a means to take shower without flooding the home. Complete the project or don’t start it.

9)    A front yard that looks like the Saharan desert and or a back yard that could have been in a war zone really turn off buyers and are no bueno. Remember curb appeal is important and these the back yard is also very important.

So if You are wanting to sell your home and you are thinking the about the question We are ready to sell our home and are there things we should not do, go back and read by my blog again and answer these items honestly.  

Is there something I can do that will improve my Credit Score in Katy TX?

This is the fourth article in what I am planning will be 10 blog series of Frequently Asked Questions by Clients. I just had this question asked earlier this week and I promised a potential client who now lives outside the US I would write this blog and send him the link.

Credit scores typically range from a low 350 up to a high of 800 and the agencies use several criterion to determine anyone person’s credit score. There are NO quick fixes for a poor credit score. All of these items are my own personal idea based on my own research and experience. There are no guarantees that if you follow all of these tips your credit score will improve. However, I recently had a client who on her own followed almost all of my salient suggestions and within 3 months her and her husband’s credit score had improved significantly and they bought a home using me as their agent. Her Mom has worked many years in the credit function for a Credit Union and I am sure my client picked some of these points from her. Frankly, I was astonished and very happy when she called and said they ready to buy a home and they now qualified for a home loan. She had never asked for help from me.

1) If your credit score is too low today then sit down with your spouse or significant other or other family members. At this sit down meeting create a working plan and allow 6-9 months for the action points to have an impact on your credit score and your ability to qualify for a mortgage. My point is to create a plan and follow the plan for a set period of time before approaching a mortgage expert to see if you qualify

2) Pay all of your bills on time or early. This is actually fairly easy with today’s ability to pay almost any bill via the internet. Create internet accounts and set up recurring payments with the bigger reputable venders. No Jonny’s hot Dog stand is not what I am talking about but someone like Sears, Best Buy, etc. are big companies who will allow stopping automatic payments if you want to do that someday in the future.

3) Eliminate using checks as much as possible. Pay vendors who do not accept internet payments with a credit card or better with cash. I just had my identity stolen and they somehow got a hold of my checking account number and routing number plus my Texas Driver’s License number.

4) Pay down credit cards and eliminate all credit card debt as soon as possible. If you use a credit card have enough money in your budget to pay it off during the applicable billing cycle. You may need to consider consolidating your credit card under one or at most two cards.

5) Get rid of excess credit cards by formally in writing cancelling the excess cards. I personally would advise keeping the cards which have the highest credit limits as one statistic used by the bureaus is the ration of current credit card debt versus available credit.

6) Carefully examine your credit report (meaning you have to obtain the report) and look for any errors. These reports are loaded with errors and sometimes these errors can significantly lower your credit score.

7) If you find any errors contact all three of the major credit bureaus of the errors in writing via their own forms which they provide on their web site.

8) Do not make any significant purchases such as a car, boat, motorcycle, etc. and do not open any new credit lines with anyone.

9) If you are at the planning stage today call me and I will send you some names of potential mortgage loan officers who will be able to determine when you will actually qualify to obtain a mortgage loan.

Yes there is something you can do to improve your credit score in katy TX.

OK Mr. Realtor in Katy TX when do I actually own the home I am buying?

Just in case some folks do not understand the purpose of some of my recent blog I will provide a brief explanation.  There currently is an Active Rain Contest/Challenge where we are to write blogs about frequently asked questions from our clients. This blog below will be my third of a series of 10 blogs all with questions my clients ask on a frequent basis and my answers. I do plan to copy some of my blogs onto my web site and make these blogs separate pages. When clients ask the questions I will send the link to them and answer if I am speaking to them.

Home buying and selling is a process with many steps involved. The final step is closing and here in Texas we close at a Title Company. Normally, the seller will pay the new owners title policy and in return the seller will pick the corresponding Title Company. The applicable Title Company will hold the earnest money in escrow until the sale closes. The closing is held at the Title company’s office.  I should also mention that the title policy I am talking about previously names the buyer as the beneficiary. There is also a title policy required by the buyer’s lender and normally the buyer will pay the cost of this policy. In total we have two title policies and I mention this as many of my clients get confused when they read the HUD 1 and find they are being charged for a title policy.

The closing process involves both buyer and seller to sign several documents. The buyers stack of documents is always much larger as the buyer’s lender provides a vast majority of the documents involved. As a buyer you will be required to bring a Cashier’s Check for the portion of the proceeds you will be paying at closing. The math is usually pretty simple being the total cost to the buyer less the amount the buyers are borrowing from the lender and this clearly shown on the HUD 1 as required by law. This is all fine and easy to understand. Once all the documents are signed the Title Company has to receive the funds from the lender and the term commonly used is funding.

OK Mr. Realtor in Katy TX when do I actually own the home I am buying? The buyer does NOT own the home until the loan has funded. The buyer cannot move in to the home until the loan funds unless the buyer has a prearranged lease agreement with the seller that begins immediately on the closing date.

I advise my clients that closing on any given Friday might be problematic especially when they are planning to move in over the weekend. No one can guarantee that any loan will be funded on any specific day. There are so many variables involved. I tell folks to close on Thursday and do not arrange for any moving of household goods until Saturday.  If funding take beyond the next day the there is a serious issue and the home will probably not close at all.

I personally had a situation a few years ago where I had buyers moving from out of state and their closing was on a Friday early in the morning. One would think this was no problem but it turned to be a huge issue. The lenders office where funding occurs for this early August Friday was staffed by only one individual. The Title Company called me late in the afternoon to state that the one lady who was working was telling them she would not get to this wire and the loan would be funded on Monday. Huge problem as my out of town buyers had this large moving truck steaming towards Katy with an ETA of early Saturday morning. My clients did not yet own the home and could not move anything into this home until Monday after the funds were verified as being received. Who was going to pay for this mess? Lucky for me I caught the loan officer trying to sneak out early on a Friday afternoon with his golf clubs in hand. I had spoken to his assistant several times and she liked me and had delight in her voice when she told me he was trying to leave early. After a few minutes of me giving him a Come to Jesus lecture and me telling him that his bank was going to be liable for all direct and indirect costs incurred by my clients since their stuff would have to be stored over the weekend and then taken out of storage on Monday, by pure magic the loan was funded. Trust me when I say no one wants repeat this same situation. Of course I have not spoken to this loan officer since that Friday afternoon but as they say Qui est la vie de mon ami. 

What does MUD stand for in Katy TX

What is a MUD is probably the second biggest question I get from folks who are relocating to the Katy TX area and sometimes the question is raised by folks who already live in Texas. It is another of the confusing terms that most folks at first do not understand what is involved.  A MUD is simply a and is a subdivision of the State of Texas as provided by The Texas Water Code. The purpose is to provide water, drainage, sewage and other services within the individual boundaries of a specific MUD.

A MUD is created when a majority of property owners in a proposed district petition the Texas Water Commission (TWC) to create a MUD. If approved, the TWC appoints 5 temporary members to the new MUD’s board of Directors. They serve until an election is held to elect Board members and confirm the creation of the MUD. Any MUD can adopt and enforce all fees, charges and corresponding taxes so that the District can provide needed services to the local community.

New home developers have to petition the TWC to create the new MUD district needed for their planned community which is usually Master Planned Community in the Katy TX and surrounding areas. The Developer(s) have to put up in advance about 30 % of the cost of subdivision utilities via cash or a letter of credit. The Developers cannot control the MUD district and are prohibited from placing employees, family members, business associates, etc. on the MUD Board of Directors.

The unincorporated areas outside the city limits of areas such as Houston, historic Katy, etc. all have MUD districts and these provide mainly the same basic services to the residents in each area. The neighborhoods in these unincorporated areas could have one MUD district or more than one MUD serving their specific neighborhood. Each MUD levies taxes on the homeowners and each has its own unique rate. As a general statement the vast majority of MUD districts do not recognize the various Homestead Exemptions which are allowed in the State of Texas. This is one of the reasons I can only state a normal Homestead Exemption will give a homeowner approximately a 10 % reduction of their property taxes. The Homestead Exemption reduces the taxes owed to the applicable county and school district by allowing an exemption amount which reduces the CAD value of the home. MUD taxes maybe higher than the various incorporated cities water taxes or on the other hand they might actually be cheaper. Another generalization is that the older the MUD district the lower the cost usually is to provide the needed services and correspondingly the overall tax rate maybe cheaper than other newer neighborhoods.

MUD normally provide water and sewage services but can also have the legal ability to provide things such as water conservation, firefighting, solid waste collection (garbage) and disposal, irrigation, generating electricity and provide recreational facilities.

If you want to live in the Katy unincorporated areas where the numerous Master Planned Communities such as Cinco Ranch are located then you will probably have to pay MUD taxes. If you move into the legal boundaries of the City of Katy you will have to pay City of Katy taxes. The bottom line you cannot escape these MUD or city taxes taxes unless you own a home with a water well and septic system.

Can you please explain how Property Taxes are determined in Katy TX?

 I get this question numerous times during any given year and Texas is probably different in how the taxes are calculated and probably more confusing than most other places. I just had this question come up with a potential Canadian client who was totally confused and rightfully so. One huge geographical area in the mailing address part of unincorporated Katy is Cinco Ranch.  There is no such thing as a tax rate in Cinco ranch. Cinco Ranch is made up of at least 35 different neighborhoods and each has its own “Tax Rate”.

Let me try to explain in words how these taxes are determined. If you get lost or have more questions read this completely and then call me.

The salient points of tax calculation are as follows:

A)   The basis to start with is the values establish by a Central Appraisal District or CAD. Most of the times when you purchase a home the CAD value for that home ill end up as the appraised value. The next year the CAD will reappraise your home and supposedly use comparable sales in our neighborhood. The CAD value is the value used for taxes and nothing else. I tell folks all the time you want a low CAD value and a high appraised value by your financial institution.

B)    The basic tax rates cover County Taxes, MUD Taxes (I will write a separate blog about MUD) and school district taxes. These rates are before exemptions one receives for Homestead, being a Senior citizen, or being disabled. The owner of the home on January 1 of any given year can obtain a Homestead exemption. If you buy the home during say 2012 then you cannot apply or receive a Homestead of any kind during 2012 but can apply for Homestead during 2013. All exemptions require an application.

Each of taxing entities will determine how much they will apply as an exemption by reducing the CAD value of your home. As a general rule MUD taxes normally do not have exemptions of any kind.

C)    The tax rates are as I said above for school taxes (in Katy it is Katy ISD), MUD taxes, drainage districts, flood control, emergency services.  Add up all their amounts which are stated in $ per $100 of value to get the tax rate.

D)   The calculation goes like this: CAD value of the home $150,000; Tax rate is 3.3 % ; Homestead ( next year) is about on average 10% reduction. Taxes are estimated at ( 150,000 /@100 X 3.3 = $4,950 minus the homestead of $495 ( 10 %) and the net will be $4,455.

 I completely agree this is a confusing system. Please do not hesitate to call me so we can discuss if you are unsure of what I just covered.

HAPPY MOTHER'S DAY AND LAST MINUTE MOTHER'S DAY GIFT IDEAS in Katy TX

HAPPY MOTHER'S DAY to all Mom's and Grand Mother's and Great Great Grand Mother's whereever you are and whoever you are and all of you have earned this special day over and over again. All of us honor these ladies on other days and just today.

Mom's are normally very special folks who give total unconditional love to their children.

A special  Mother's Day wish to my beautiful inside and outside wife Yolanda who is a phenomenal Mom for my two step-sons. Even though my wonderful mother-in-law and second Mom Mrs Cordova (MRS. C) and my own Mom are no longer here ( passed away) for us to spend Mother's Day with we all miss you and love you and both of you are here in spirit. 

Time is running out and if you have not come up with some type of gift, Happy Mother's Day and Last Minute Mother's Day in Katy TX Gift Ideas are:

1) Call Mom on the phone ( no text or E-mail! REALLY!) and tell her how much you love her.

2) Buy a nice card and go visit her. No that E-mail card really does not cut it.

3) Buy her nice flowers or a plant and hand deliver it.

4) Chocolate usually is a very appreciated gift. I am talking about good chocolate like Godiva or Ghirardelli and not some cheap stuff.

5) If the family has small children have them draw a picture(s) or card(s). mom's and Grand Mothers love hand made art work from their small children.

6) Go to Target and buy a nice basket and also pick out two or three DVD's or Blue Ray movies like Help, Casablanca, Gone with the wind.. You get the idea.

Katy ISD Junior High School wins State Science Olympiads

I am very happy to announce that on April 13 and April 14, 2012 Beckendorff Junior High School as part of Katy ISD in Katy TX took the State of Texas Championship in Science Olympiads.

Beckendorff Jr. HS will now advance to the National Science Olympiads on May 18 -19, 2012 being held in Orlando, Florida at the University of Central Florida.

The State Championship team consisted of 21 students being in seventh grade through ninth grade and were coached by Jennifer Curtis and Lonny Smith.

A perfect score in the State Championship competition would have been 23 points and Beckendorff recorded a score of 50 points while the second place team and defending State Champs had a score of 133 points. Now that was an extremely impressive victory.

There are so many great reasons to live in the Katy area and so little time to discuss all these items. Katy ISD is a truly a phenomenal school system with some many things to offer to their students; these include great sports, academics, clubs, activities, teachers, educators plus numerous other things and now a State Championship in Science. A few years ago, my oldest step son was on the academic decathlon team at Seven Lakes High School (first year Seven Lakes ever had a team) and they won the State Championship!  

Congratulations and a big shout out to all the students on the Beckendorff team, all coaches, parents and followers. You folks rock! As a point of reference my youngest step-son attended Beckendorff. I point this out as many potential clients ask me if I actually live in the area.The answer being Yes since 1999 and my step sons have both attended Katy ISD schools.

Good luck at Nationals and wouldn’t be something if Beckendorff won a National Championship!

If you want more information go to their Science Olympiad web site.

Nutrition and Dietetics Talk in Katy TX.

The Katy Essential Tremors Support Group will hold its next meeting on May 10, 2012 at the Heritage Grand Club House starting at 4 PM. The Heritage Grand Club House is located at 25125 Heritage Grand Circle in Cinco Ranch Katy TX.

Licensed dietician and Certified Childhood and Adolescent Weight Management specialist named Stephanie Leipprandt Ouellette will be the featured speaker.

Her talk will cover nutrition and dietetics for children.

Dietetics is the branch of therapeutics concerned with the practical application of diet in relation to health and disease.

The meeting is open to the public and potential members are always welcome.

As I have discussed in prior blogs about the Essential Tremors Support Group, Essential Tremors (ET) is a condition which involves a progressive neurological condition which causes an involuntary, uncontrollable and rhythmic trembling of the legs, trunk, hands, head or voice. Many times the symptoms create a false diagnosis of Parkinson's disease or other diseases.  It is believed that the root causes are abnormal communication between the brain and other areas such as the thalamus. It is also thought that ET is inherited.  The Essential Tremors group’s main purpose is to provide the information and assistance to all affected parties.

If you or your family needs additional information call 281-347-2194 or E-mail schwarzrb@com cast.com.

If you want to broaden your knowledge of childhood nutrition and dietetics or learn about the ET support group you should add the Nutrition and Dietetics Talk in Katy TX. to your calendar.

Katy Aquatics Group hosts Swimming and Pool Safety Event

Texas Children’s Hospital West and Katy Aquatics are inviting all Katy TX area families to attend a Free “Make a Splash” event.

Both groups are committed to promoting water safety education to the whole community and especially children.

This free event will be held on Saturday May 19 TH from 10 AM until noon at the Cinco Ranch High School Natatorium 23440 Cinco Ranch Blvd, Katy TX 77494 in Cinco Ranch.

Featured at the events will be numerous local and national vendors including American Red Cross, U.S. Army Corps, Willowfork Fire & Rescue and several others.

Demonstrations of various swimming safety and water safety equipment will be given.

Children will have the opportunity to get into the water and learn swimming from certified swimming instructors.

Other activities to be held include:

Free swimming lessons; Goody Bag for first 350 participants; Bounce house; Water rescue demonstrations; kayak rides; water contests for children; KVPAC Princess Ariel & Prince Eric.

I heard on a recent news program that the second leading cause of death among young folks (18 and under) is drowning. Swimming in my mind has always been and will be a life skill. My two children and my two step children have all at one time or another worked as life guards at various pools and facilities. Many Katy residents have pools in their back yards and water safety is so very important to the whole community. If you or children do not know how to swim the Katy Aquatics Group hosts Swimming and Pool Safety Event is a must attend function. 

If you want more information about Katy Aquatics go to their web site.