If you're a current or soon–to–be homeowner—congratulations! Homeownership is wonderful right that we enjoy as Americans and one of the best ways to begin building wealth. Because buying a home is likely the largest investment you'll ever make, it's important to protect that investment and your interests as a homeowner. Below are several ways to do so:

1. Ask your REALTOR®
Through organizations such as the Texas Real Estate Political Action Committee (TREPAC) REALTORS® work as a group to advise elected officials and influence public policy in order to protect private property rights, real estate licensees and—most importantly—home buyers. Ask your REALTOR® about current issues affecting Austin homeowners and what actions you can take together to protect your rights.

2. Sign up for legislative alerts
The Texas Association of REALTORS® (TAR) will be glad to alert you via e-mail when legislation arises that could infringe on your homeowner rights or lead to additional taxes. Rest assured that the e–mail you provide TAR will be used only to send you legislative alerts and will not shared with other parties.

3. Contact your legislator
Once you're aware of issues that could affect you as a homeowner, contact your state and local representatives to share your opinion and influence the decision-making on Capitol Hill. Together, homeowners and REALTORS® can raise a strong voice to help support all citizens in living the American Dream.

When it comes to buying a home in Austin, there is a world of financing options to choose from. Descriptions of some of the most popular loans are listed below.

Conventional Mortgages -- Mortgages not insured by the federal government are called conventional loans. Conventional loans are either kept in the lender's investment portfolio or sold to a secondary market. Because there is no standard regulation from state to state or from lender to lender for conventional mortgage documents, these types of loans are specific to the lender. This means that the lender may determine unique guidelines that pertain to the lender's conventional loans and may add certain clauses to the loan document. Because the lender can underwrite conventional loans at the its discretion, loan rates may exceed those of loans backed by the government.

Fixed Rate Mortgage (FRM) -- With a FRM, the interest rate of the mortgage remains fixed throughout the life of the loan. While the rates on FRMs are sometimes higher than rates on other types of mortgages, an increase in market rates will not impact the rates on the loan. Monthly payments on FRMs change only when there are changes in tax and insurance rates.

Adjustable Rate Mortgage (ARM) -- With an ARM, the rate on the loan is adjusted according to various market fluctuations. The interest rate and monthly payment can change each month, quarter, year or a term determined by the type of ARM; however, there are caps limiting the amount the interest rate can be adjusted per period. Buyers interested in adjustable rate mortgages should be sure to obtain the indexes that the lender uses to adjust the loan.

Federal Housing Administration (FHA) Loan -- FHA loans are insured by the federal government. This means that if the borrower defaults on the loan, the federal government will pay the lender and the lender will not have to write off the loan. A borrower's down payment may be as low as 3.5 percent, and closing costs can sometimes by included in the loan. Rules regarding credit qualification and gifting for down payments are relaxed, and financial hardship rules may be less stringent.

VA Loan -- A VA Loan is insured by the Department of Veterans Affairs and protects a lender from loss should an eligible veteran default on the loan. VA loans have established credit and income guidelines and the buyer usually does not need a down payment; however, down payment may be necessary if the lender requires one or if the purchase price of the home is greater than the reasonable value of the home. Mortgage insurance premiums are not required and the VA provides temporary assistance should the buyer encounter financial hardships.

Be aware that there many more types of loans to choose from. Some, such as Graduated Payment and Growing Equity loans, cater to those who currently have a low income but expect their income to increase substantially within the next five to ten years. Others, such as Reverse Mortgages, cater to homebuyers over the age of 62. Be sure to continue your research and talk to your REALTOR® about which option may be best for you.

Though Texas fares better than most U.S. states with regard to foreclosure rates, Texas homeowners are not immune to this life-changing event. For those living in fear of foreclosure, there is good news.

On February 18, 2009, President Obama announced his plan to help millions of families, neighborhoods and communities combat the threat and negative effects of foreclosure: the Making Home Affordable (MHA) program. This program is designed to help responsible homeowners get back on track by modifying or refinancing their mortgage loans.

Some homeowners who have remained current on payments but have experienced a loss of income, an increased interest rate, or a decreased property value may now be able to make the adjustments needed to continue making affordable payments toward their mortgage. If you think the MHA program could help you, look into its eligibility requirements today.

Above all, remember that foreclosure help is free—if anyone asks you to pay a fee in exchange for counseling service or modification of a delinquent loan, it’s most likely a scam. Beware of those rushing you to sign paperwork or pressuring you to sign over the deed to your property. Take a moment to read more about foreclosure rescue scams and learn about the free resources made available to you by the U.S. Department of Housing and Urban Development (HUD). For more information, talk to your Central Texas REALTOR®.

You’ve probably heard the term “green” used to describe everything from grocery bags and cars to buildings and cities. But what does “green” mean for Austin, and what does it mean for you?

While “green” can refer to practices that promote healthy living and aid in resource conservation, it’s often used in reference to practices that reduce one’s carbon footprint, boost sustainability and increase energy efficiency.

Austin consistently ranks high on lists of America's greenest cities, largely in part to its Climate Protection Program, which puts Austin on track to become carbon neutral by 2020. Austin is also among cities leading the nation in the number of Energy Star qualified homes available to homebuyers. These homes meet strict energy efficient standards in regard to insulations systems, windows, construction and appliances.

Because Austin takes seriously its mission to "go green," Central Texans are buying more energy efficient homes, saving money through reduced energy costs and living in a city on track to become “the most livable city in the country.”

So, what does “green” mean for Austin homeowners? In short: lower energy costs, a more sustainable standard of living and, of course, bragging rights.

To learn more about Austin’s Climate Protection program and how it affects Austin homeowners, read our post on “Understanding’s Austin’s energy efficiency ordinance.”

If you’re looking to buy a home in Austin, Texas, we have good news for you: The state of Texas’ disclosure laws help safeguard your best interests in the real estate transaction.

It wasn’t always this way.

In the early 1960s real estate agents were required by law to represent the seller's interests, leaving no need to disclose a property’s defects to potential buyers. Today, however, real estate disclosure is codified into national and state laws as an extension of consumer rights. Home sellers now have specific duties to buyers in real estate transactions.

A good example of a nationally codified disclosure law is the 1992 Estate Disclosure and Notification Rule, which requires sellers of homes built before 1978 to disclose potential or known lead-based paint hazards and provide available written reports to buyers or renters.

Texas law now requires that sellers provide buyers with a completed Seller's Disclosure of Property Condition Notice on or before the effective date of a contract. The notice must disclose all potential or known structural defects, as well as information concerning issues with any of the following:

• Heating
• Plumbing
• Mechanical and electrical systems
• Easements
• Environmental hazards
• Landfills
• Flooding
• Zoning violations or noise problems
• Termite and pest infestations; or
• Treatments or damage

Though all real estate agents are required to adhere to disclosure laws, REALTORS® go a step further to ensure that clients are treated fairly not only by legal standards but by strict ethical standards as well. In following a strict Code of Ethics, REALTORS® disclose any and all relevant information to their clients to avoid misrepresentation of themselves or the property at any time during the transaction.

Working with a REALTOR® can help you avoid legal issues common in real estate transaction. For more information about your real estate rights, visit the Consumer Tools section of AustinHomeSearch.com.

If you’re in the market to buy or sell Austin real estate, you may have heard of Austin’s energy efficiency ordinance, officially known as the Energy Conservation Audit and Disclosure (ECAD) Ordinance.

Under the ECAD Ordinance, some Austin homeowners are required to have an energy audit performed on their home prior to selling it and share that audit report with potential buyers. In most cases, an audit is required for homes lying within the Austin city limits that are older than 10 years and serviced by Austin Energy. (Exceptions apply, so talk to your REALTOR® about whether the ordinance will affect you.)

Though the ECAD ordinance took effect June 1, 2009, the city’s effort to “go green” and stop manufacturing excess carbon dioxide (CO2) dates back much further.

In 2007, 70% of the city’s electricity was being used by homes and commercial buildings, with the average home generating twice the greenhouse-gas emissions as the average car (roughly 11,450 pounds of CO2 yearly, according to the Environmental Protection Agency).

With this in mind, the Austin City Council established the Austin Climate Protection Plan (ACPP) with the goal of making Austin “the most livable city in the country” and a carbon-neutral city by 2020.

As the ACPP consists of five components, each with their own specific initiatives, the ECAD Ordinance was created to address but a single part of the puzzle: how to pursue energy efficient upgrades for existing buildings. The ECAD Ordinance seeks to educate homeowners on potential for energy savings within their home in hopes that they will voluntarily opt for cost-effective upgrades.

Energy audits are good for 10 years, so consider having an audit performed on your home now to prevent a last-minute scramble and begin benefiting from the audit findings today. For more information on the ECAD Ordinance, talk to your Central Texas REALTOR®.