Few would disagree that 2020 has shaped up much differently than planned. Whether you’ve experienced personal financial growth or less than desirable cutbacks, how are your money goals shaping up? Do you still have real estate around the Houston area included as one of your money goals?

You don’t have to let a real estate goal go. Things in the real estate market across Fort Bend County and Harris County continue to happen for both sellers and buyers.

With the remaining months of this year, there are numerous actions you can take to try to place yourself in a stronger financial position. Let’s review a few.

Financial Goal: Purchase your first home.

With mortgage rates being lower, this is a prime time to consider buying your first home. Lenders have various plans and incentives available for first-time buyers.

Hopefully, you’ve been saving for your future home. By making a down payment of 20% of the home’s purchase price or more you can reap instance savings and avoid having to purchase private mortgage insurance (PMI).

I take personal delight in helping first-time home buyers purchase their home. We’ll discuss what you want and need, neighborhoods and communities you’re interested in plus your budget. It’s ideal to get pre-approved for your mortgage loan so you have some firm numbers at hand. This action also affirms to sellers you are a serious buyer and ready to make a purchase.

I’m always happy to serve you by answering your questions and helping you think through a prime investment.

Financial Goal: Sell your home and downsize.

Been thinking of downsizing? Now, is a good time to do it. Buyers are out searching for homes. In general, housing inventory is reduced which places added emphasis on your listing. Market trends are showing homes aren’t staying on the market for months and months.

Younger families are looking for larger homes for their expanding family. If you’re looking to downsize, your home could be desired by a growing family.

Financial Goal: Invest in real estate.

Thinking about purchasing properties to add to your rental portfolio? The prices are attractive and the locations are varied.

If the existing properties in your portfolio are paid off or nearly paid for, this could be an ideal time to talk with a mortgage lender about taking out a loan and purchasing another property or two. Adding to your portfolio can increase your revenue by increasing rental income.

Perhaps you’d like to diversify your real estate portfolio and look at business development opportunities or invest in other communities? I’d be happy to assist and show you some opportunities to match your interests.

Financial Goal: Reduce your taxable income.

One way to reduce taxable income is through home improvement. Did you know when you replace your windows or insulate your home these actions may qualify for federal tax incentives which calculates savings for you? It’s true. Save your receipts and discuss the home improvements you’ve made throughout the year with your tax preparer. If you have a bigger project in mind, contact your financial planner before beginning to discuss whether this project qualifies for some added savings. For instance, adding solar panels can reduce your home’s utility costs plus may be eligible for a tax credit.

Financial Goal: Remove the PMI from your Mortgage Balance

If you remove PMI this reduces your monthly mortgage amount. To remove PMI, or private mortgage insurance, you must have at least 20% equity in the home. You may ask the lender to cancel PMI when you have paid down the mortgage balance to 80% of the home's original appraised value. When the balance drops to 78%, the mortgage servicer is required to eliminate PMI.

To calculate whether your loan balance has fallen to 80% or 78% of original value, divide the current loan balance (the amount you still owe) by the original appraised value (most likely, that's the same as the purchase price). 

Don’t Miss an Opportunity

If you’ve held off on your real estate goals this year because you were uncertain, I encourage you to reach out to discuss your plans with a trusted real estate agent like myself or have a conversation with your financial planner. There are still many financial opportunities available in 2020 around the Houston area. Let me know how I can serve you and your family. I’m happy to be of assistance.

Since 2004 Sara Lyn Nguyen continues to bring a wealth of knowledge and expertise about buying and selling real estate around the Houston area to those she serves. Sara is a multi-year award winning REALTOR® and relocation specialist where her clients trust her to have up-to-date information on the real estate market. She has been one of Gary Greene’s Multi-Million Dollar Top Producers every year and was the #1 Top Producing agent in 2019 citywide. Sara is an American Dream TV Power Player who shares Houston real estate news with television viewers. When it’s time to buy, sell, invest, or relocate speak with a trusted professional knowledgeable in the homes and neighborhoods of Fort Bend/Sugar Land and the surrounding region.