5 Steps to Get Your Texas Real Estate License

5 Steps to Get Your Texas Real Estate License This Year   Do you dream of creating the joy of new homeownership or the satisfaction of guiding sellers through their next chapter? Then, you should consider getting your Texas real estate license! You'll have the opportunity to advocate for clients, leveraging your expertise to navigate the complexities of the real estate market and help them achieve their goals. Ready to learn how to take this exciting journey? Let's explore the eligibility requirements and steps to becoming a Texas real estate agent.   Texas Real Estate License Eligibility The Texas Real Estate Commission (TREC) oversees the Texas real estate industry, ensuring consumer protection and promoting ethical conduct. It sets the requirements for sales agent and broker education and licensing. To be eligible for a license, you must be a U.S. citizen or lawfully admitted non-citizen, 18 years or older, and adhere to TREC’s ethical standards. Now, let’s look at the five steps to get your Texas real estate license.   Step 1: Take Real Estate Pre-License Courses Pre-license courses provide you with the principle knowledge and skills you’ll need to pass the licensing exam and start your career. TREC requires you to take 180 hours of courses from an approved education provider, with a proctored exam at the end of each course. With License Classroom, you can complete the courses online at your convenience and exam proctoring is included with their pre-license package.   Step 2: Submit Your Application to TREC Apply for an inactive sales agent license with TREC online or by mail with a $150 application fee, plus additional fees for research and processing. You will be issued an active license once you’ve completed all the steps in the licensing process. You may not practice real estate without an active license, so it’s very important that you finish the entire process.   Step 3: Pass a Fingerprint-Based Background Check TREC requires a fingerprint-based background check for all applicants, which you can sign up for on their website. You’ll go to an approved, third-party location to register your prints with the Texas Department of Public Safety (DPS). You may take the Fitness Determination test before starting this process if you’re concerned about passing for any reason.   Step 4: Pass the Texas Real Estate Licensing Exam You’ll have four hours to take the licensing exam, which has 125 questions and is split into a national and a state portion. You’re allowed three attempts to pass by at least 70% before TREC requires you to complete additional education. Boost your confidence and chances of success with License Classroom’s Exam Prep course, conveniently included in their pre-license package.   Step 5: Choose a Broker to Sponsor You TREC requires all sales agents to be sponsored by a broker who will be responsible for their training and business activities. They’ll serve as your mentor and guide to a successful career in real estate, providing valuable resources and nurturing your growth. At Basore Realty Group, we provide a welcoming environment to new and experienced agents that are serious about growing their career. Start Your Career Today! So, are you ready to get your Texas real estate license? Curious about what it’s like to join a brokerage? The team at Basore Realty Group is ready to answer any questions you might have. We’ve been delivering exceptional service to clients in the Greater San Antonio Area for over 25 years and offer sponsorship for full- and part-time agents. We’re passionate about empowering you to achieve your goals and build a successful career in the real estate industry. Reach out to us today, and let’s launch your exciting real estate journey together!

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New Build and Inspections

New Build and Inspections When it comes to purchasing a new home, there is often a common misconception among buyers that a newly constructed property is exempt from inspections. However, this assumption couldn't be further from the truth. Regardless of whether a home is brand new or decades old, conducting a thorough inspection is crucial in ensuring the buyer's investment is protected and their new home is structurally sound. One might wonder, why is it important to do an inspection on a newly built home? After all, it has been constructed with the latest building codes and is considered "brand new." While this may be true, it is essential to remember that even the best builders can make mistakes. Additionally, there may be underlying issues that are not apparent to the untrained eye. One of the primary reasons for getting a new build inspected is to identify any construction defects or potential issues that could lead to costly repairs down the line. An inspection can reveal problems with the foundation, wiring, plumbing, roofing, and more. Detecting these issues early on allows the buyer to negotiate repairs or ask the builder to rectify them before finalizing the purchase. This ensures that the buyer is not burdened with unexpected expenses once they move into their new home. Moreover, an inspection can provide peace of mind to the buyer. It enables them to have a comprehensive understanding of the property's condition and any potential risks associated with it. By investing in an inspection, buyers can make well-informed decisions about their purchase, weighing the pros and cons based on professional advice. This knowledge empowers them to negotiate the best deal and proceed with confidence. It is essential to hire a qualified and experienced inspector who specializes in new construction. These professionals are skilled in identifying even the most minor defects that might be overlooked by others. They have a keen eye for detail and can identify potential hazards or deviations from building standards, ensuring the buyer's safety and satisfaction. In conclusion, regardless of whether a home is newly built or not, a thorough inspection is crucial for buyers. It is a wise investment that helps uncover any construction defects or potential issues, protecting the buyer's investment and ensuring their peace of mind. By hiring a qualified inspector, buyers can make informed decisions and negotiate repairs or modifications, allowing them to start their new chapter in a home that meets their expectations and provides comfort and security for years to come. Call Natalie today to ask her about several of her preferred inspectors.

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What are Closing Costs?

Buying a house can feel like a long slog. From the viewings to getting your ducks in a row through to closing day, it can all feel pretty stressful. And then there are the closing costs. Wait a second. What closing costs? These fees can be a nasty surprise if you’re not up to speed—especially if you’re new to it all as a first-time buyer.  But don’t worry. We’ve covered everything you need to know about closing costs including who and what you’ll be paying on closing day, whether you’re the buyer or the seller. Let’s get started! What Are Closing Costs? Simply put, closing costs are the fees the buyer and seller of a home pay to various third parties on closing day to finalize the deal.  If you’re the buyer, closing costs check off two boxes: fees that have to do with owning your new home and fees that go to the folks who are lending you all that cash to buy it! What you pay in closing costs depends on a few different factors like the state where you’re about to buy a home and the fees set by your mortgage lender. If you’re the seller in this deal, your closing costs will cover (among other things) the fee to transfer the title of the house to the buyer and the real estate agent’s commission. More on that later. Who Pays Closing Costs? It’s pretty typical for both the buyer and the seller to pay closing costs. The buyer usually pays more in closing costs than the seller (not counting agent commission fees). But there are some situations where the seller might offer to pay for some or all of the buyer’s closing costs to sweeten the deal. How Much Are Closing Costs? If you’re buying a house, expect to pay around 3–4% of the purchase price in closing fees—if you’re a seller, your share of the closing costs will probably be less at about 1–3% (not including agent commission fees).1 Let’s see how that plays out in real numbers. Closing Costs for a $300,000 House Who Pays Percent of Home Price Dollar Amount Buyer 3–4% $9,000–12,000 Seller 1–3% $3,000–9,000 Keep in mind that closing costs vary from state to state. Each state has its own laws concerning real estate deals and property taxes. For example, closing costs in New York and Connecticut are usually higher than those in Kentucky or Pennsylvania. Types of Closing Costs for Buyers Closing costs don’t have to be a surprise if you know what to expect. Here are the main types of closing costs you’ll come across when you’re buying a house. Home Inspection Fee A home inspection costs about $300–500, depending on the size of the house.2 You should get this one out of the way before closing day. A home inspector checks the condition of the entire house and flags any issues so you can raise them with the seller. Then they’ll make the agreed-upon repairs before closing day. Application/Processing Fee Loan application fees typically cost a few hundred dollars, but can vary greatly depending on your lender. This fee covers the cost to your lender for processing your mortgage application. It may also deal with things like running a credit check and pulling your credit score, along with other processing jobs. Origination Fee A loan origination fee generally costs about 1% of the total amount of the loan. Mortgages come with lots of paperwork! An origination fee covers the lender’s costs of creating a mortgage for you and processing all that paperwork so you can get your loan in time. You also might have to pay loan level price adjustment fees in the form of a slightly higher interest rate. Prepaid Interest on Your Mortgage On closing day, you’ll pay the interest portion of your monthly mortgage payment, covering the period between your closing date and your first scheduled mortgage payment. Tip: Close toward the end of the month so you’ll only pay a few days’ worth of interest compared to a few weeks’ worth if you close at the beginning of the month! Appraisal Fee A home appraisal costs around $300–500.3 This is a fee to a third-party company to determine the value of the house you’re about to buy. They’ll make sure it isn’t wildly overpriced or underpriced in the current housing market. Tax Service Fee Don’t worry, a tax service fee probably won’t even cost you as much as a Benjamin. If not already covered in the application fee, you’ll pay for a third party to monitor your tax account and confirm that you pay your taxes on time and don’t have any unpaid taxes. Private Mortgage Insurance The cost of private mortgage insurance (PMI) is usually less than 2% of your annual loan balance, which gets split into monthly payments. You’ll have to pay PMI if your down payment is less than 20% of the home price. That’s why we recommend you put down at least 20%! In a nutshell, PMI is insurance that keeps your lender from losing money if you default on your mortgage and can’t keep up the monthly payments. On closing day specifically, you’ll pay one months’ worth of mortgage insurance up front. Homeowner’s Insurance Premium The average annual cost of home insurance is about $1,250.4 This one is required by law. And on closing day, you’ll pay to cover the first year of your home insurance premiums. Property Taxes Each state makes their own property tax laws, but they typically cost a little more than 1% of the home value per year.5 So if you buy a $300,000 house, you’ll probably pay more than $3,000 in property taxes annually. Keep in mind, if you buy a house in a state with high property taxes, you’ll pay more on closing day than average. And be prepared to pay a few months’ worth of property taxes up front. This (along with your payment for the home insurance) will be held in your escrow account. Homeowners Association Fees If you’re buying a home in a community with a homeowners association (HOA), you’ll pay a process fee to set up your membership on closing day. Then you’ll pay HOA fees to maintain your membership, which can cost around $250 per month—but can vary greatly depending on the neighborhood.6   With the right agent, taking on the housing market can be easy. Call us today to schedule your appointment to discuss your real estate plans.  We are happy to help. 210-875-8271 Types of Closing Costs for Sellers Now, don’t think sellers get off any easier. Selling a house comes with closing costs too! The biggest chunk of your payment on closing day is the commission fee for the real estate agent. Real Estate Agent Commission Fee The average real estate agent commission rate is 6% of the home sale price. So if the house sells for $250,000, the commission would be $15,000. This fee is split and shared between the listing agent (who’s responsible for putting the seller’s house on the market) and the buyer’s agent (who represents the buyer and all their interests). In rare situations, the seller might negotiate for the buyer to pitch in on the agent commission. Or the buyer might even offer to cover the agent commission in order to stand out in a competitive market where the seller is getting a ton of offers. But in most cases, the seller covers the agent commission. Since the agent commission is one of the largest fees paid at closing, it can sometimes overshadow the seller’s other closing costs. Let’s cover those next so they don’t catch you off guard. Transfer Tax Fee The seller usually pays the costs of transferring the title of their home to the new owner. There may also be additional title fees or recording fees based on the title company. The cost depends on which state (and sometimes which country) you live in. In some states, there’s no transfer tax at all. In others, it’ll end up adding thousands to your closing costs. Attorney Fee If you’re selling your home and use an attorney to assist you, their fees will be due on closing day too. The cost varies depending on the attorney used. When Will I Know How Much I’ll Pay for Closing Costs? The good news is you won’t be slapped with a huge bill on closing day without any notice! You’re actually given an estimate of your closing costs by your mortgage lender early on in a document called a loan estimate. The loan estimate also contains a breakdown of how much your mortgage payment will be every month and what it covers.   And then, at least three business days before closing, your lender is required by law to send you a closing disclosure.7 This form lists all the final terms of your loan (including closing costs) and the details about who pays and receives money on closing day. It’s super important to look over the closing disclosure and compare it with your loan estimate. If something doesn’t match up, now’s the time to ask your lender why. Make sure you’re working with a mortgage lender who takes the time to explain everything to you and answer any questions you may have. The mortgage experts at Churchill Mortgage can help you calculate the costs and show you how to purchase a home the smart way, saving the most money over the life of the loan. Can I Save Money on My Closing Costs? This is the question everyone wants answered! And if you don’t ask, you’ll never know! When you’re looking at mortgage lenders, why not ask them if there’s any wiggle room to reduce their closing fees? And don’t feel shy about asking the seller, either. If they’ve been trying to sell their house for months and want a quick sale, you might get them to agree to pay a small fraction of your closing costs because you hold the upper hand in the deal. Keep on Top of Closing Costs With a Real Estate Professional Navigating the world of home buying or selling is complicated, especially when it comes to closing costs. But a qualified real estate professional will give you confidence at every step of the home process.   Did you find this article helpful? Share it!

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