11 Closing Costs and Fees to Consider When Buying New Land in Harlingen

It may be easy for new buyers to become overwhelmed by all of the information and possible fees associated with the initial processes of buying land, but the land developers of SRC Land are here to clear the air.

No matter if you’re looking at buying land in the traditional sense or by taking advantage of seller-financing options, knowing what these fees could possibly be can help you make a more informed decision.

Don’t forget! If you’re looking for land in Harlingen, reach out to SRC Land today for more information on your buying options or possible fees.

How Much are Closing Costs for New Land Buyers in Texas?

Generally speaking, land buyers will cover around 2-5% of the entire expense of the listing, and while closing costs are not cheap, one of the largest mortgage costs happens to be the interest rate.

Throughout the time period of the loan, a couple of small percentage points can lead to a lot of money in terms of interest payments.

What are Some of the More Common Fees Associated With Buying Land for the First Time?

It’s important to know what kind of closing costs you could be charged when you buy your property. The following fees may not be applicable to your particular land purchase, so if you need more information on what may be charged should you purchase land with the help of SRC Land, contact us for more information.

With that said, here are some of the most common:

1. Loan Origination Fees – Loan origination fees are upfront charges the lender will charge to compensate for fees paid for a new loan application. These loan origination fees are often 1% of the rate of the mortgage amount and can be discussed if the risk factor of both the loan and the borrower is reasonable.

2. Discount Points – Discount points are a form of prepaid interest that can be purchased directly to lower the interest rate owed to the bank. These fees can be negotiated and taken care of by the bank.

3. Appraisal Fees – Appraisal fees pay for an appraiser to show up and identify the property’s value. Lenders typically require this and can have them range between $300 to $500 based on certain land characteristics such as size, location, and property type. Even if it isn’t mandatory, you should still get it done to ensure that it’s a fair market value and avoid overpaying.

4. Title Insurance – Title insurance is a type of indemnity insurance provided by title companies that insure against losses caused by defects in the title like liens, outstanding taxes, mortgages, and violations belonging to prior owners.
A title search is used to guarantee that the property is free of any and all obligations and that no individual has claimed the house due to unpaid dues, legal suits, and other things. Title insurance can cost up to $252, and a title search could go anywhere from $75 to $100.

5. Prepaid Costs – When a buyer acquires their loan, the lender might have them cover expenses including property taxes and homeowners or rental property insurance ahead of time. The lender will list these fees in a calculation of closing costs known as The Good Faith Estimate. This buyer is given this no more than three days after filling out a loan application.

6. Recording Fees – Texas doesn’t have any taxes or fees on the real estate transfer. Usually, states charge somewhere around $.55 for every $500 of value.

7. Survey Fee – The survey fee pays for a surveyor to appear and assess the precise boundary, location, and legal description. This fee can range from $338 and $670 depending on the size and location of the property.

8. Credit Report Fee – When your lender accesses your credit so you qualify for a loan, this cost will go roughly $50 to $60.

Additional Costs You Should Know

It may come as a shock that you still have more costs to consider when buying land for the first time; however, it’s in your best interest to do your homework and know before finalizing a purchase on your dream land.

9. Homeowners Insurance – Homeowners insurance is especially imperative for homeowners to have since it handles potential damage to your home. Your first year’s insurance is covered at closing. How much you will have to pay can differ significantly based on your home’s size, your assets, and your home address.

10. Property Taxes – Property taxes are a great source of funding for the city, county, and state governments. The taxes are evaluated from a percentage of the official rate of the property. Property taxes are frequently negotiated due to its various boards, councils, and legislatures meeting to figure out the appropriate values.
Texas’ property tax rate scored sixth highest in the country and costs the average homeowner about $1,500 per year. This is worth noting when deciding to buy a home since that bill can come out to $125 a month in property taxes alone.

11. Utilities and Maintenance Costs – A single month of utilities (heating, electricity, gas) can go up to roughly $174.

Find Land at a Fairly Low Rate With the Experienced Land Experts at SRC Land

As a potential landowner, it’s key to understand every fiscal responsibility that comes with owning a home. Knowing what costs to expect should help you come up with how much you’ll need to save for closing costs.

At SRC Land, we know how overwhelming the process of buying land can be, and that’s why our goal is to simplify it and work with you for the best turnout. While it bears repeating, these fees may not be associated with your particular purchase, so if you want more tailored information regarding the lot you are interested in, contact us as soon as possible!

Find the Best When You Invest in Affordable Land in Harlingen, TX with SRC Land!

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Reasons to Buy Land Before the End of 2020

2020 has been a rough year for all of us. For many, life today looks nothing like what it did at the beginning of the year — but life does still go on. Big decisions like getting married and buying a home are still being made. While making those choices is particularly difficult right now, there are some silver linings.

The end of 2020 is actually a great time to invest in real estate. Real estate is generally a smart investment, no matter what the time of year. But some times are better than others. 

Below the team at SRC Land explains why 2020 is a good year for land buyers, and why real estate might just be the investment you’ve been looking for.

Buying Property in 2020

There’s no denying that this year has been unprecedented. The combination of an election year and a pandemic has collided with the other real estate trends that have been developing for years, all of which have come to make 2020 a particularly good time for those interested in buying a home or property.

1. Mortgage Rates Are Low

If you’re considering buying a home, you’re probably considering credit options. While SRC Land offers Harlingen owner-financed lots for those unable to access credit through traditional lenders, low mortgage rates may be one factor to consider if you’re wondering if buying a home before the end of 2020 is right for you. Specifically, mortgage rates have dropped significantly since their peak in 2018. In fact, mortgage rates have hit record lows 9 times this year.

2. Prices Are Low

According to data collected by the Federal Reserve, sales prices on homes have been decreasing since 2017, based on a median price. That decline reached nearly 10 percent by the end of 2019. In 2020, prices haven’t dropped, but they have reached a “softening period.” Those prices are expected to rebound in the coming year.

3. The Stock Market Is Weathering the Storm

2019 was a good year for stock investors, putting them in a solid position to start the year. While 2020 has been chaotic, the stock market is still doing relatively well. This means both that the economy is healthy and that your own investments may be rebounding.

Buying Property at the End of the Year

Just like Halloween candy and airline tickets, you can save money on property by buying at the right time. By being patient and striking at the right time, you can save considerable money on your investment.

1. Thin Competition from Buyers

The one thing all of us probably remember from Economics 101 is the concept of supply and demand. When demand is low, prices are likely to drop. Because of this, October and November are generally a great time for home shopping. This is the time when most buyers stop looking for the year. December is particularly good because most potential buyers will be busy with the holidays.

2. Save on Taxes

Buying a lot or land for sale in Harlingen represents a significant opportunity to save money on your taxes for this year. These savings come in a few key forms:

  • Deductions —  If you buy a home prior to Dec. 31, you can deduct some of your mortgage loan interest, closing fees, and property taxes. Taken together, these deductions add up fast. This is especially true when your mortgage is still relatively new and your payments are primarily covering the interest.
  • Tax Credits — Investment in things like energy-efficient homes can sometimes qualify you for specific tax credits.

3. Sellers Want to Save on Taxes Too

Buyers aren’t the only ones looking to save money on their taxes; sellers want to get in on those potential savings, as well. This is partly due to the fact that many sellers might be waiting to close a sale before purchasing their own home. This need to close in time to negotiate another purchase could lead sellers to be more flexible with the deals they offer you.

4. Save on Contractors

Winter can be an excellent time to do home renovations, especially in Texas. Winter tends to reach a slow down period during which many contractors may offer lower rates or simply be more available. This means you may have an easier time hiring plumbers, roofers, electricians, inspectors, and even moving companies.

The General Benefits of Buying Property

Thankfully, 2020 won’t last forever. Even once the year is over, buying and investing in real estate will still represent a great way to build your financial portfolio and future. There are countless benefits to buying and owning your own home, some of which include:

1. Earning a Consistent Income

Those interested in securing a source of stable passive income should consider purchasing property. Once an investor has a mortgage, the property can be rented out to create a consistent flow of income. This sort of stability is the foundation of an individual’s long-term financial health.

2. Owning Your Own Home

The rental-income opportunities of buying land lead to another benefit of purchasing a home: you won’t need to pay rent anymore. Sure, when you buy a home you will probably have some sort of mortgage, but the payments you make on that mortgage will go towards a home that you own rather than a temporary living space. This also means that you will have the freedom to make any changes to the home that you may want.

3. Building Your Equity

When you initially begin making payments on a mortgage, the majority of that money goes towards paying off the interest on the loan. However, once you begin paying off the principle of the loan, the actual borrowed amount, the equity in your home will begin to grow. After consistent payments, you can borrow against that equity for things like additional properties or college tuition.

 

Take advantage of the great opportunities available to homebuyers in 2020 with SRC Land.

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4 Country Style Living Room Ideas You Need for Your Ranch

Sometimes country-style decor can get a bad wrap. Many typically imagine old, ceramic roosters from years ago or bold, red barn doors. But here at SRC Land, we’re all for country decor, and we know you can still achieve that rustic aesthetic with a modern twist you’re looking for. 

1. Bring Nature Indoors

If you’re looking for a rustic theme, using natural wood for paneling, floors, doors, or furniture is your best bet. Those warm colors will brighten up the space without overdoing it, and it’ll look similar to a lodge or a modern barn. Make sure to treat the wood with a stain or sealant close to the raw color to maintain its natural beauty.

Another option is to bring in plants to areas that get plenty of sun. The best indoor plants for bright light are cacti, succulents, agave, and figs. You can also grow your indoor plants in rustic tins or planters to make the look cohesive.

2. Make it Comfortable

People feel drawn to country decor for various reasons, the most common being comfort. Country colors, including rustic red, warm yellow, and shades of brown, are soothing colors that welcome guests to kick back and stay for a while. Pick the comfiest chair or couch possible that you can sink right into it, with full-fledged comfort. Kick up your feet on a leather, plaid, or neutral-colored sofa or chair.

Be sure to allow a generous amount of space for your family and a couple of guests, so you can all be in the same room together (all the while upholding social distancing). A coffee table would be great as well. We love the idea of building a table out of a recycled pallet or unstained and sealed wood.

3. Accessorize to Tie the Room Together

If you’re a hunter, showing off antlers can serve as a wonderful conversation starter for your living room. There’s a lot that you can do with antlers, from hanging lights, lanterns, and LED candles to incorporate them into a bookshelf, coffee table, or magazine rack.

Window treatments give off a great finishing touch, but these are generally pretty simple when it comes to country-style decor. Try going for a plaid or striped fabric, or installing straw or bamboo blinds in order to add in a neutral color while preserving privacy.

Don’t be afraid to get creative with small accessories, from ammo coasters to model cars, horseshoes, and repurposed whiskey bottles. For a rug, pick out a size that suits your sitting space, and bring in a dash of rustic color or a pattern that makes you feel at peace.

You can keep your flat-screen TV without stressing about it fitting in with your country-style decor. Just choose an entertainment center with doors that shut to hide your electronics and wiring. Get one that includes shelves for Blu-Rays, gaming consoles, remotes, and sound systems.

If you’re a book fanatic, incorporate bookshelves into your living room to create a reading area. You can also set up a chessboard or keep a collection of board games in there for whenever you plan to host a game night with family and/or friends. Dividing a living room into sections maintains the cohesive, open flow while using that space for multiple purposes to take advantage of square footage.

So, if you’ve been dreaming of that rustic man cave or neutral family room, now you have some fresh ideas to help you get started on turning that dream into reality!

 

Searching for real estate in Harlingen or another town in Cameron County? Feel free to reach out to SRC Land to find the perfect place that meets your needs today.

 

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Is a Seller-Financed Mortgage Right for Me?

Buying your own land is one of the key ideals cemented into the American Dream, but so many people are barred from doing so because of their credit–or lack thereof. At SRC Land, we believe that everyone should have the opportunity to find there own place to put down roots, and to that end, we provide our clients with seller-financing options for mortgages.

If you’re looking for land for sale in Harlingen but worry you won’t be able to get the financing needed to make a purchase, contact our team of real estate experts today to learn about your options.

What is a Seller-Financed Mortgage?

Seller-financing is a real estate agreement made between a seller and property buyer without the use of a financial institution like a bank. Instead of signing a mortgage with a bank, the purchaser signs a mortgage agreement directly with the seller. Seller-financing is popular option for people who may find it difficult to get a traditional loan. 

The Benefits of Seller-FInanced Mortgages

The primary benefit of seller-financing is that it allows those with poor credit to purchase land. To use seller-financing, a buyer doesn’t have to meet the approval of any traditional lender, making it a viable option for those who may otherwise fail to qualify for financing. 

However, that’s far from the only benefit:

  • Closing Speed —  Using seller-financing helps speed up the purchasing process.
  • Affordability — Seller-financing usually leads to lower costs than hiring a third-party or using a traditional lender.
  • Flexibility — Because there isn’t a third-party to negotiate with, terms can usually be more flexible than those offered by traditional lenders like banks.
  • Short Mortgages— Terms are flexible and often cover a shorter period of time than traditional mortgages.
  • Quick Turnaround —  Shorter mortgages help ensure that you’re protected no matter what happens to the housing market in the long run.

In addition, a shorter loan timeline means more time for you to enjoy your property after the payment process is completed. Seller-financing allows purchasers to fully own their homes within a shorter period of time than the tedious process of paying off a bank would.

Using Seller-Financing with SRC Land

By directly negotiating mortgages ourselves, SRC Land is able to ensure that you get the land of your dreams at an affordable price, regardless of credit. While any major purchase will bring with it a certain level of risk, seller-financing puts the control in the hands of the seller and buyer, rather than a financial institution.

Seller-financing isn’t a well-known option among property buyers, but at SRC Land, we’ve mastered the seller-financing system in order to find common ground between ourselves and our clients. Our clients are our number one priority, and seller-financing allows us to look out for them.

If you’re looking for the perfect lot in Harlingen, the real estate experts at SRC Land can help you find and buy the right spot for the right amount.

 

Call us today to learn more about our seller-financed mortgage options.

 

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