Why should I buy, Instead of rent?

  A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you'll enjoy having something that's all yours - a home where your own personal style will tell the world who you are.

How much can I afford?
  The answer to this has a lot to do with your income and the amount of your debt load. As a rough rule of thumb, most homebuyers purchase houses that cost between 1 1/2 and 2 1/2 times their annual income. For example, a homebuyer earning $40,000 per year would buy houses costing between $60,000 and $100,000. There is, however, a degree of variation due to the individual market prices of the area in which you are interested. In some areas, there may not be houses available within that range, so you may need to spend a bit more. In general, however, your monthly mortgage payment cannot exceed approximately 28%-29% of your gross monthly income. Your total debt payments (car payments, credit card payments, etc. plus the monthly mortgage amount) cannot exceed approximately 36%-40% of your gross monthly income. These ratios will depend on the type of mortgage for which you are applying.

What is a Mortgage?
  Generally speaking, a mortgage is a loan obtained to purchase real estate. The "mortgage" itself is a lien (a legal claim) on the home or property that secures the promise to pay the debt. All mortgages have two features in common: principal and interest.

What types of loans are available and what are the advantages of each?
 

Fixed Rate Mortgages:
Payments remain the same for the life of the loan

  • Predictable
  • Housing cost remains unaffected by interest rate changes and inflation

Adjustable Rate Mortgages (ARMS):
Payments increase or decrease on a regular schedule with changes in interest rates; increases subject to limits

  • Generally offer lower initial interest rates
  • Monthly payments can be lower
  • May allow borrower to qualify for a larger loan amount

How much money will I have to come up with to buy a home?
 

That depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.

When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies.

The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price.

Closing costs that you will pay at settlement, average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won't be caught by surprise.

How do I know if I can get a loan?
  Choose a lender with a program that might be right for you. Another good idea is to get pre-qualified for a loan. That means you go to a lender and apply for a mortgage before you actually start looking for a home. Then you'll know exactly how much you can afford to spend, and it will speed the process once you do find the home of your dreams.

How do I choose the right lender for me?
  Choose your lender carefully. Look for financial stability and a reputation for customer satisfaction. Be sure to choose a company that gives helpful advice and that makes you feel comfortable. A lender that has the authority to approve and process your loan locally is preferable, since it will be easier for you to monitor the status of your application and ask questions. Plus, it's beneficial when the lender knows home values and conditions in the local area. Do research and ask family, friends, and your real estate agent for recommendations.

How are pre-qualifying and pre-approval differenst?
  Pre-qualification is an informal way to see how much you maybe able to borrow. You can be 'pre-qualified' over the phone with no paperwork by telling a lender your income, your long-term debts, and how large a down payment you can afford. Without any obligation, this helps you arrive at a ballpark figure of the amount you may have available to spend on a house.

Pre-approval is a lender's actual commitment to lend to you. It involves assembling the financial records mentioned in Question 47 (Without the property description and sales contract) and going through a preliminary approval process. Pre-approval gives you a definite idea of what you can afford and shows sellers that you are serious about buying.

In addition to the mortgage payment,What other costs do I need to consider?
  Of course you'll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. Your real estate broker will be able to help you get information from the seller on how many utilities normally cost. In addition, you might have homeowner association or condo association dues. You'll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment. Again, your broker will be able to help you anticipate these costs.

What is earnest money?How much should I set aside?
  Earnest money is money put down to demonstrate your seriousness about buying a home. It must be substantial enough to demonstrate good faith and the amount can vary with local customs and conditions. If your offer is accepted, the earnest money becomes part of your down payment or closing costs. If the offer is rejected, your money is returned to you. If you back out of a deal, you may forfeit the entire amount.

Why Houston?
 
  • World-class medical center
  • NASA space center
  • 4th largest city in US and 1st in state of Texas
  • 7th largest port in the world, 1st importing port in US
  • IAH international airport, the largest in the South of US, Direct fly to Taipei and soon Kwanzhou
  • Energy capital of the world

Why Park8?
 
  • Near by China town
  • Adjacent to Beltway 8
  • Adjacent to Arthur Storey Park
  • Access to restaurant & shopping center
  • Access to healthcare facility
  • Sports and entertainment stores
  • Security systems
  • Adjacent to two banks, Bank of America and Washington Mutual, and super Wal-Mart, HEB, Viet Hua
  • It is a life style community

School district
 
  • Three great private schools including St. Francis, St. Agnes, and Strake Jesuit High School & Academy  
  • Alief school district for public school

Weather is to hot?
 
  • Only during June~ Sept. with high temperature
  • The remain months are mild and pleasant especial during fall and winter
  • Most people stay in the car while travel or indoors to shop with air-control
  • Condo’s window with special layer of treatment can resist western sun heat and keep indoor temperature down for energy-saving purpose

Too noisy?
 
  • Adjacent to Beltway 8 and Hwy 59 with easy access to Houston metropolitan area within 30 minutes
  • Condo building is 800 feet away from freeway from the east side
  • Condo facing 300 acres Arthur Storey park with great view and become buffer zone from other neighborhood

Why buying High-rise condo?
 
  • Doesn’t need to spend time to any maintenance jobs.  For instance, mowing lawn and re-painting wall, etc.
  • Condo provides beautiful sky view and relaxing environment.
  • State-of-art facilities and services such as; security system, swimming pool, and fitness center, etc.
  • Well-built building can prevent any kind of natural crisis.
  • Competitive management and maintaince fees.
  • Best choice for vacation and second home owner.
  • Safety and connivance are the two most concerns for buying condo.
  • Most of the condo owners are young couples and retired person.
  • Because of the highly security system, you will be hassle-free when away for vacation. 

When deposit is needed?
 

Deposits are classified into two types:
Reservation fee < ($1500)
his is a deposit for holding the desired unit (receipt provided).  After accepting the deposit, seller will provide all the desired unit information to buyer who will have 10 days to review and consider making the deal before the deposit is fully refundable to the buyer.
      
Earnest money < (10% of the total sale price)
After signing the purchase agreement by buyer, 10% of earnest money is required.

  • Reservation fee and earnest money will go toward closing cost.
  • If construction permit is rejected by the city for any reason, reservation fee and earnest money will be fully refundable.

Condo warranties?
 
  • 10-year structural warranty.
  • 1-year appliance warranty.

What kind of front door is installed at the main entry on every unit? What size?
 
  • Single door, 36”.

Parking space for condo owner?
 

Homeowner has only the usage right, but not the estate right.  It’s also transferable.
One parking space will be assigned to a 1000sq ft condo.  For additional parking space, it can be purchased for $10/sq ft.  For example:

Condo unit with 1700sq ft is assigned with one parking space automatically.  To add a parking space,
2000 - 1700 = 300
300 * $10 = $3000

Condo unit with 2300sq ft is assigned with two parking spaces automatically.  To add a parking space,
3000 – 2300 = 700
700 * $10 = $7000

Comparing the house pricing in the nearby area?
 

Park8 is located in the retail business, commercial & business warehouse area.  The closest subdivision is about 30 years old and the average of selling price is $150,000.  The next closest subdivision is 10 miles away from the Park8 in Sugar Land where the selling price starts from $200,000.  However, materials those use in the high-rise condo are a lot more expensive than the house.