Houston Real Estate Blog

Coles Crossing, Cypress  -  Announcing a price reduction on 16402 BURHAM PARK DR., a 3,378 sq. ft., 4 bath, 6 bdrm 2 story. Now MLS® $299,900 USD - Priced to Sell - 6 Bedrooms & 4 Bathrooms w/ Pool!

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I am most excited to share a recent personal, albeit business goal accomplishment.  I am now a Texas Real Estate Broker.  My license arrived yesterday evidencing the sign of the times, via email.  Several years ago my Salesperson license came via mail and it was very exciting to receive a hard copy.  The delivery of my Texas Real Estate Broker license was not the most ideal but definitely had the same effect.  Yesterday culminated my achievement to pursue a higher licensing standard in real estate in the State of Texas of course.  My next goal is to attain the prestigious CCIM (Certified Commercial Investment Management) designation by Spring 2011. What does it really means to be a Broker or Broker Associate in Texas?  Real estate is an ever-changing industry, from real estate law to the implementation of technology.  The need for more educated real estate practitioners is essential to provide consumers with the best possible representation.  After all, real estate is perhaps the largest monetary investment most people make in their lives.

The Texas Real Estate Commission (www.trec.state.tx.us) is the state's regulatory agency for the following:

- Real Estate Brokers and Salespersons
- Real Estate Inspectors
- Education Providers for Real Estate and Inspection Courses
- Residential Service Companies
- Timeshare Developers
- Easement Or Right-of-Way (ERW) agents

The Texas Real Estate Commission exists to protect consumers in Texas.  The Commission's is there to ensure that real estate service providers are honest, trustworthy and competent. TREC requires that all Texas real estate brokers and salespersons meet and maintain specified levels of education to hold a license to act as a real estate agent. 

The Salesperson

A person holding a Salesperson license in Texas has met the state requirements for becoming a real estate agent.  The Texas Real Estate Commission requires the Salesperson to have the equivalent of 210 classroom hours (seven 30-hour classes) before you are able to apply for a Texas real estate license and sit for the salesperson exam.  The individual must arrange for a Texas real estate Broker holding an active license to sponsor them as a Salesperson before they can practice as a licensed Salesperson.  Applicants and inactive Salespersons are not authorized to act as real estate agents in Texas. Additional Salesperson Annual Education (SAE), Mandatory Continuing Education (MCE) and related coursework is required to maintain active status.

The Broker

The Texas real estate Broker's license is the highest licensing status issued by the commission. An individual or company who holds a broker license in Texas has fulfilled the additional requirements to practice as a Broker (of Record) or Broker Associate.  In order to apply for your Broker license, you must have had your Salesperson license Active for 2 years in Texas or in any other state in the United States. TREC requires you to have the equivalent of 270 classroom hours (seven 30-hour classes & Brokerage Course) + an additional 630 classroom hours in related courses acceptable to the Commission (can use college degree towards credits if approved by TREC) before you are able to apply for a Texas Real Estate Broker license and sit for the Broker exam.  A Broker Associate hangs their license under another Broker also known as the Broker of Record who owns, manages or operates their own brokerage.  Additional MCE and related coursework is required to maintain active status.

Broker vs Salesperson

Both Salesperson and Broker must abide by the Texas Real Estate License Act also known as TRELA.  TRELA establishes the ethical and practical limitations and licensing requirements.  We must also abide by the Realtor Code of Ethics which establish the standards of practice.  Individuals who attain a Broker license demonstrate the true entrepreneurial spirit of this industry.  They demonstrate proficiency in real estate and pursue a higher level of business practice by committing to the higher licensing status.  Most Brokers have more post-secondary education in specific courses as well as business savvy in running their real estate business.  Brokers are committed to real estate full-time as opposed to some Salespersons who take up real estate as a part-time job or hobby.  Regardless, Buyers and Sellers should be aware of the difference in levels of qualification and experience for each real estate license.

What is a REALTOR?

A REALTOR is a member of the National Association of Realtors (NAR) in the United States.  A Realtor can be a Salesperson or a Broker but MUST be a member of NAR. Real estate agents who are not members of NAR and cannot use the term "Realtor" because it is a trademark of NAR. According to NAR, The terms REALTOR, REALTORS, and REALTOR-ASSOCIATE, as well as the REALTOR block "R" logo, are all federally registered collective membership marks owned by the National Association of Realtors.

Let me show you the way...

I understand that finding your new home is just one of the tasks that face you when you're purchasing a new house. I can assist you in the home buying process which includes offer negotiations, assisting in the inspection and negotiations process after inspections. Beat other home buyers to newly listed homes for sale in Houston with complimentary New Listings Notifications. You'll receive updates via email to the properties that match your Houston Real Estate search criteria. Considering selling down the road? Learn the market value of your home with no obligation. An estimate of your home's value will be sent to you by email. Receive a Complimentary Home Market Analysis via email with properties that have sold in the last six months around you.

Sincerely,

Diego E. Jaramillo
Broker Associate, ABR, e-Pro
Keller Williams Houston Metropolitan
Cell: 832-282-2069 
Online at www.HoustonHeritage.com 
Facebook Fanpage: www.DiegoJaramillo.com 

Request a Free Market Snapshot!

The loan process has become more involved in the last few years and tightened lending practices pose new hurdles for buyers.  Being informed is the best way to keep abreast of changes in the lending process.  Having a great loan officer as part of your team during your purchase is essential.   Larger banks and institutions are taking longer to close a loan so make sure you get information on their average closing times.  We’re seeing 35 days on lenders who are their own underwriters and perhaps up to 45 days for the “BIG” banks.  Here’s a good idea of the lending process lately.  Feel free to email with questions if you have any during your buying process.

I.  Prequalification

            a.  Information from borrower

                        1.  Personal information

                        2.  Supporting documentation

                        3.  Automated Underwriting

                        4.  Initial fees worksheet

II.  House Under Contract

            A.  Update all information from borrower

                        1.  Documentation

                        2.  Agreement of loan terms

                        3.  Initial Disclosures and Form Loan Application

                        4.  Execute Floatdown Agreement (if rates are down, lock it once up to .375% less)

III.  Option Period Ends

            A.   Order appraisal

            B.  Order title

            C.  Order survey if applicable

            D.  Submit to processing

1.  Sometimes the file is submitted to processing prior to option period ending.

IV.  Processing

            A.  Fraud guard (basically a background check)

                        1.  Make sure DOB, Name, Addresses, Employment, SSN & other facts match. 

                                    a. This sometimes requires further explanation from borrower.

                                    b.  Will show if borrower owns other properties

             B.  Verifications

                        1.  Employment and/or income

                        2.  Verification of Rent (if applicable)

                        3.  Tax returns (4506)--all loans

                        4.  Social Security Number validation

            C.  Review Credit, Income, and Assets

                        1.  Must make sure that the documentation we have meets underwriting requirements

                        2.  Update documents that have expired

                        3.  Request additional documentation not requested by Loan Officer

                        4.  Ensure that appraisal is received

                                    A.  Did it make value?

                                    B.  Is it “as is” or “subject to”

            D.  Re-run Through Automated Underwriting

V.  Underwriting

            A.  Reviews all documents submitted by processor

            B.  Validates automated underwriting findings

C.  Determines approval ability based upon underwriting guidelines   set forth by Fannie Mae, Freddie Mac, FHA, and VA.

D.  Creates “prior to document” conditions based upon review of findings.

1)  Example—Bank Statement reflected a large deposit (not employment) and to provide documentation and explanation.

E.  Creates “funding conditions” based upon review of file

1)  Example—Final Inspection of property or cash to close cannot be higher than a certain amount of money

VI.  Closing

A.       Reviews Legal Aspects of File

1)      They work for a law firm employed by lender

2)      Title

3)      Survey

4)      Insurance—sufficient coverage

B.      Give Instructions to Title on Creating HUD1 and provides loan legal documents to sign at closing

C.     Approve HUD1

D.     Order Funding (wire)

VII.  Funding

A.       Reviews Funding Conditions

B.     Verifies all documents have been signed properly by all parties

C.     Release Funds for Closing

This of course means....LOAN IS OFFICIALY CLOSED AND PROPERTY SOLD!!!!  :)

Special Thanks to Prime Lending:

Let me show you the way...

I understand that finding your new home is just one of the tasks that face you when you're purchasing a new house. I can assist you in the home buying process which includes offer negotiations, assisting in the inspection and negotiations process after inspections. Beat other home buyers to the hottest new homes for sale in Houston with my New Listings Notifications. You'll receive updates via email to the properties that match your search criteria in the Greater Houston area. Considering selling down the road? Learn the market value of your home with no obligation. An estimate of your home's value will be sent to you by email. Receive a FREE Home Market Analysis via email with up to 4 properties that have sold in the last six months.

Sincerely,

Diego E. Jaramillo
Realtor, ABR, e-Pro
Keller Williams Houston Metropolitan
Cell: 832-282-2069 
Online at www.HoustonHeritage.com 
Facebook Fanpage: www.DiegoJaramillo.com 

Request a Free Market Snapshot!