Reasons You Could Be Turned Down for a Refinance on Your Plano Home

Although mortgage rates are still historically low, they are rising and rising quickly.  In less than 2 months, interest rates have risen a full percent in some cases.  Rising mortgage rates, along with rising home prices, make for a market slowly leaning in favor of home sellers.  However, rates are still low and prices are still reasonable, making this a great market for people not only looking to buy a Plano, Texas home, but also people looking to refinance.  This can be particularly vexing for someone who wants to hop on the refinance bandwagon, but just can’t get approved.  Here are some reasons why you could be turned down while trying to refinance your home.

• The first reason that a lender could turn you down is because of a less-than-favorable credit score.  If you’re still recovering from the recession and your credit reflects it, it may be a good idea to wait on the refinancing of your Plano, Texas home.  If you’re looking for a traditional conventional mortgage, a credit score of around 740 is necessary to have access to the best rate, according to AOL Real Estate.  However, depending on other factors, conventional loans are still available with credit scores down into the low 600s.  Government-backed program such as FHA, VA or USDA are known to have more flexibility when it comes to credit scores, as most lenders are looking for a credit score somewhere in the ballpark of 620-680 to consider you for a refinance or purchase.

• If you are underwater on your mortgage, it’s very likely that you could be turned down for a refinance.  From a lender’s perspective, if you’re upside-down on a mortgage, your loan is considered to be more risky due to the lack of equity in the home.  That can translate into your loan not getting approved or may require some cash to be paid at closing.  However, if your underwater mortgage is owned by Fannie Mae or Freddie Mac, you may qualify to take advantage of the Home Affordable Refinance Program (HARP), which assists homeowners struggling with their mortgages backed by the aforementioned lenders.  Click here if you are interested in learning more about HARP 2.0.

If you are interested in a complimentary mortgage review to better understand your options, feel free to give us a call, 972-499-0454!  We would love to help you find the best fit for your needs.

Looking Into Buying a Dallas Home This Autumn? Be Aware of These Trends

Due to steadily rising home prices and limited inventory, the housing market is definitely leaning in favor of home sellers.  With steadily increasing home prices and mortgage interest rates, there are many home buyers who will be competing for their piece of real estate until market conditions change.  Keep the following in mind when looking to purchase your Dallas dream home.

• The first thing to realize when looking for a house this fall is that there is most likely going to be some competition.  According to the National Association of Realtors, demand for homes is growing faster than the supply, which is driving up competition and the price of the homes currently on the market.  If only one person is interested in a house, a seller will probably be willing to make a deal; however, if there are several people bidding on a home, the seller is in a position of leverage and will use that position to get the best price for his or her home by creating a bidding war and selling the house to the home buyer offering the most money and best terms of an offer.  Have you been fully pre-approved?  Contact us if you have yet to take this important first step, a requirement for nearly every seller to even consider your offer.

• Another thing to be aware of is that the Federal Housing Administration (FHA) has changed its guidelines.  As of June 2nd, 2013, all FHA mortgages borrowed with less than a 10% down payment and greater than a 15 year term, will now be required to have mortgage insurance for the duration of the mortgage.  If you’re only looking to stay in your new home for less than ten years, this change won’t affect you much since the old rule was that mortgage insurance was required until your loan balance reached 78%, naturally taking around ten years to achieve.  However, if you’re looking to stay in the house long-term, you may want to consider other options than an FHA loan if you can’t afford a 10% down payment.  Find out more ways to avoid paying monthly PMI with less than 20% down.

If you have questions about Dallas mortgage and real estate trends, we’d love to hear from you.  We are a team of mortgage professionals with over 75 years combined experience and we would be happy to help you with all of your mortgage-related questions and needs.  Contact Us or talk to one of our mortgage planners live over the phone, 972-499-0454.

Trouble Securing a Loan for Your Prospective Dallas Home? Try Again

This country has definitely seen some topsy-turvy activity in the real estate market in the past few years.  Many mortgage lenders have been extremely strict in the amount of credit they would give out or who they would approve for a loan.  But don’t fret.  Things are looking up.

According to CNBC, lenders appear to be loosening their grip and it may be time sell your home and buy a new one.  Even if you’ve had trouble securing a mortgage loan for your prospective Dallas home, guidelines and requirements change regularly.  Contact a qualified mortgage planner to discuss your options before making any decisions.

With all of the economic development and expanding job market, prospective home buyers are coming out of the woodwork.  Unemployment rates are going down, interest rates are going up, and homes are increasing in value.  Combine these trends with mortgage lenders possibly getting more lenient with prospective home buyers, and you will see an expanding housing market.

According to the Federal Reserve, nearly ten percent of senior loan officers that were surveyed reported that they were more lenient and willing to give more credit to low-risk mortgage borrowers.  This could be a good indicator that if you’ve been turned down for a loan, or couldn’t secure a large enough loan for your prospective Dallas home, it’s a good time for you to give it another shot.  Particular in the market of Jumbo loans.  We are offering options on Jumbo loans with 10% down with no mortgage insurance.

With rising mortgage rates and increasing home prices, there is now much greater competition for homes.  In fact, the number of mortgage applications that have been turned in by prospective home buyers has increased a significant 11.5% nationally over the past year, according to the data compiled by CNBC.  There are now bidding wars, which were all but extinct during the recession and bursting of the housing bubble.  This newfound competition makes pre-approval that much more important.  Sellers are being advised to take the strongest offers that are presented, which can include a buyer’s ability to show the seller that they are qualified and pre-approved to buy their home.

If you’re interested in buying a home or selling your home in Dallas, give us a call, 972-499-0454!  We can help you get pre-approved so you can be ready to buy or help you find out if you need to sell before you buy.  Contact us today!

Taking Your Time Shopping for a Dallas Home? Mortgage Rates are Rising

With the rates rising from their historic lows, home buyers can tend to get complacent and think that they have all of the time in the world to make up their minds on whether they should sell their home and buy a new one.  A lingering low supply of homes for sale in Dallas and around the country, combined with rising mortgage rates, the best time to buy may be right this moment.  Contact a mortgage planner to get the ball rolling and find out your options to buy or sell your Dallas home before rates and home prices rise.

In recent months, while the housing market has been in recovery, it wasn’t uncommon to see mortgage interest rates below four percent, in some cases as low as 3.25% as recent as May ’13!  However, times are changing and the Mortgage Bankers Association projects interest rates to continue increasing by the end of the year.

The economy as a whole has seen conditions improve.  In addition, the Federal Reserve, who has been cushioning mortgage rates by purchasing mortgage-backed securities to the tune of $85 Billion per month, has started to hint at an end to their purchase program.  The act of purchasing these securities has kept mortgage rates artificially low.  With decreased involvement from the Fed and their purchase program, mortgage interest rates are only likely to rise.

Improved economic conditions helps drive demand for housing.  Low inventory and rising rates create a frenzy for hungry buyers.  If you need guidance to find out if you need to sell before you buy or would like to know what your options are to get pre-approval for your prospective Dallas home, please don’t hesitate to call us directly, 972-499-0454, or Contact Us.

The Future of Dallas Mortgage Lending

After the recession and financial crisis started in 2008 and in the wake of spiking national debt spent in recovery efforts, many Texans and other Americans are losing faith in Banks and are looking to other solutions to satisfy their borrowing needs.  As guidelines and requirements tighten and close doors around small lenders and Brokers, new doors open for less conventional  lenders — big companies like Wal-Mart and Ebay are predicted to start offering mortgages in the not-too-distant future.

As a leader in mass retail and low-cost leader, nearly a third of the people open to non-bank mortgages said that they would be comfortable with Wal-Mart as a mortgage lender.  Nearly half of the people open to non-bank mortgages said they would be open to loans from the online payment company, Paypal.  Does this open the door for a new breed of lender?

Chances are that even corporate giants like Wal-Mart, Amazon, and Costco are no match for the current direct lenders (Fannie Mae/Freddie Mac/Ginnie Mae).  The sheer size and volume of loans delivered and bought by a group like Fannie Mae allows them to offer extremely low risk and low price mortgage rates — a low price guarantee even Wal-Mart wouldn’t want to offer.

Of course, it is merely speculation that these companies would try their luck in the lending business, as it is a big step off the path of their business models, particularly for rates of returns that could still attract home buyers to use their lending service.  However, the chances of seeing a Wal-Mart home loans or Costco Home loan will increase substantially as interest rates rise and offer higher yields to outside lenders and investors.

The main take away from this study, is that citizens are open to new lenders and innovations are being made in the world of lending and private finance.  There are bound to be growing pains with any type of lending innovation and there will be plenty of red-tape to get through in order to be able to offer home loans, however more lending options offer more competition, and more competition leads to more savings.

A Wal-Mart, Amazon, or Costco home loan may very well become a reality in the not-so-distant future.  Given that buying a home is typically the largest purchase that we make in our lives, we urge you to seek the best value in your mortgage financing and to choose your best home loan.  However, keep in mind that the lowest cost or lowest rate is not always your best value and option.  Call us today if you would like to discuss the steps to choose your best home loan, 972-499-0454.

Should You Buy a Warranty For Your Dallas Home?

There are arguments to be made for buying a home warranty, and there are arguments against it.  Some homes require such low maintenance that a home warranty is never even needed.  Many other homes in Dallas and surrounding areas are much older, making a home warranty a must.  Regardless of the age of the home you are looking to buy in the Dallas area, there are some key factors that need to be taken into consideration when deciding whether a home warranty is need for your Dallas, Texas home.

The biggest advantage of a home warranty is to protect the home owner from the financial burden to replace/repair the major appliances, plumbing, and electrical components of the home.  Many houses in areas like Richardson, Lakewood, Lake Highlands, Highland Park, University Park and other established Dallas areas have homes built-in the 50s and 60s.  With homes of Repairs to things like a hot water heater or air conditioner can cost thousands of dollars to replace or repair.  A home warranty helps protect you from these inevitable realities of maintaining and owning a home.

A warranty on your home not only offers peace of mind and an incentive to a home buyer, but it can protect the home owner should anything happen to the home while trying to buy a home before you sell or lease.  A seller of a home can also use the home warranty as a cost-effective way to handle any issues that may arise from a buyer’s home inspection report.  With many potential home buyers feeling low on funds after closing, a home warranty may be just the comfort they need to help be prepared to cover any costly repairs.

However, if most of the aspects of your home are covered under a manufacturer or some other warranty, a home warranty can be a bit of overkill.  In addition, while a home warranty will protect many components of your home, not everything is covered.  Home warranties have their limitations just like every other kind of insurance or warranty.  Roofing and siding are examples of elements usually not covered by a home warranty.  The warranty can, however, cover most major appliances, plumbing and electrical components.

If you are buying a home or considering selling your home in the Dallas, Richardson, Lakewood, Lake Highlands, University Park or Highland Park areas, our team would love to be a resource.  Contact us today to discuss options to a new home, see if you can sell before you buy, or explore other mortgage opportunities in the Dallas area.

Find the Best Home Loan for Me and My Family

Finding the best home loan may seem like a search for Big Foot, a Pink Unicorn, or the Loch Ness monster; a quest for something that does not exist other than in fairy tales, folk lore and days of yester-year.

Well, we have great news for you, the best home loan does exist and is a real opportunity for you to own that perfect home for you and your family.  While there may not be a one-size fits all model, the best home loan will be custom tailored for you to meet your goals and expectations.

How do I find the best home loan?

There are countless ways that a home loan can be put together to help provide financing for a home, and every family or person buying a home has their own unique goals and expectations that are part of the home loan experience.  To find the best home loan, you first need to ask yourself a few key questions:

• How long do I plan on staying in this home?
• What is the maximum monthly housing payment that I am comfortable making each month?
• Does the maximum housing payment include PITI (property taxes, homeowners insurance)?
• Do I plan on making additional principal payments to the loan to pay off faster than 30 years?
• What is the total out-of-pocket amount that I would be comfortable bringing to closing?
• Does this out-of-pocket expense include estimates for closing costs and prepaid items?
• What is most important to me about the home financing experience?

By having a clear answer to these questions, you will be able to equip your loan officer or mortgage planner with the information that they need to help you find the best home loan.  At Dallas Mortgage Planners, we understand that each individual and family are unique by their own specific goals and situations, and we treat each client in that way.

Best Home Loan Tips and Food for Thought

The shorter the time frame that you plan on staying in your home, the less likely you will be to benefit from paying points.  Reason being, paying a discount point to get a lower home loan rate will lower the monthly payment, but will also increase the overall cost of the loan.  The end result is that you may have a lower payment, but it may take longer to recoup the upfront costs of the loan.  If your time frame to keep the house is 2-4 years, you may even want to consider having the lender credit your fees at the expense of a slightly higher monthly payment.  What may cost you only $10-20 per month, could save you thousands of dollars in costs on the front-end, allowing you to keep more of your savings intact.

It is still possible to get a combo loan (80-10-10/80-15-5) by using a first and second mortgage.  Not only is it still possible, in many cases, it is the best home loan option.  Some of the key features:

• No mortgage insurance
• Ability to waive escrows (pay your taxes and insurance on your own, separate from the mortgage payment)
• Make additional principal payments to the second loan to eliminate the higher interest rate.  End up being left with one loan at a historically low rate and have plenty of equity in your home

We would love to be a resource for you during this exciting time and are confident that we can help you find the best home loan.  Call us today at (972) 499-0454 and we are happy to help guide you in the right direction to the home loan that fits YOUR unique goals.

Learn more about how we help our clients and complete the short form below to find out YOUR best home loan.

Updated: August 2, 2016

Top 5 Things to Consider When Buying a Home

If you are thinking of buying a home, there are a few important components to keep in mind.  By knowing the Top 5 Things To Consider When Buying a Home, you will be prepared to start your home purchase and financing journey with a clear picture of where you want to go.

1.         Not All Home Search Sites are Created Equal – Have you been searching on Zillow or Trulia?  If so, the information surrounding purchase price and whether it’s even for sale could be drastically outdated.  The only way to get up-to-date listings of homes for sale is to go directly to the source — Ask your Realtor.  Licensed real estate agents can give you behind the scenes access to all types of homes listed for sale, days and weeks before they show up on Zillow or Trulia.  Ask your Realtor today and they can setup a custom home search to notify you as soon as a home meeting your criteria comes on the market.

2.         Credit Scores Can Cost you Time and Money – Your credit score is a major component of financing a home.  Your credit score will have a direct impact on your interest rate and how much you pay each month, and could keep you from buying a home altogether.  A one point difference in between a 679-680 or 739-740 could cost you thousands of dollars at closing or tens of thousands over the life of your loan.  If you have not seen a copy of your credit report, it’s important that you know what is reporting so you have time to address any issues that may be impacting your scores or reporting incorrectly.  As part of your initial loan consultation, we are happy to provide a complimentary credit analysis so that you know where you stand and can start taking any action to ensure you have access to the lowest mortgage interest rates when you buy.

3.         20% Down payment?  Only if you want to… – Contrary to popular belief, a 20% down payment is not required to buy a house in most cases.  Thanks to programs like FHA and Conventional loans with mortgage insurance, you can finance up to 97% (FHA up to 96.5%), and even 100% on VA and rural USDA loans.  Ask us about buying a house with 5% or 10% down with no monthly mortgage insurance.

4.         Are Your Ducks Docs in A Row? – The underwriting approval process has changed considerably over the last few years as lenders and Banks require more documentation in exchange for a loan approval.  The horror stories typically come from people that were not prepared as they started the buying process and It’s important that you gather as much of your documentation as possible to review with your mortgage professional.  These documents also help you to take the steps from pre-qualified to pre-approved:

• one month pay stubs
• 2 years tax returns (corporate/business if self-employed or owner of 25% or more of business)
• 2 years W-2s
• 2 months bank/savings/investment statements
• Driver’s license / social security card
• Other items that may be applicable:  retirement/social security income, divorce decree, bankruptcy filing/discharge…

5.         Get Pre-Approved before you search – Now matter when you’re planning to buy a home, it’s never to early to get pre-approved.  In fact, if you are even thinking about buying a home, pre-approval is likely going to be required for an offer to even be considered by a seller.  Not only that, pre-approval will help you know exactly what purchase price you should be targeting to end up with a monthly payment and out-of-pocket expense that you are comfortable with and eligible to finance.  Could you submit a qualified offer today if your dream home appeared on the market?  If you can’t answer with a resounding, YES!, we can help you.

Mortgage interest rates and home prices have been creeping higher across the country.  While we don’t know if the trend will continue, we do know that interest rates are still near historic lows and home prices in our area are some of the most affordable in the country.

Take advantage of this opportunity and Get Pre-Approved and Ready to Buy
or Call Us today at 972-499-0454.

Dallas Fixed Mortgage Rates Near Historic Lows

Dallas Real Estate Ahead of the Curve on Housing Affordability

According to a recent report from Wells Fargo and the National Association of Home Builders, a decrease in interest rates has made nationwide housing more affordable. And just looking at the Dallas-Fort Worth urban area, one can see immediate proof that this is true.

Dallas real estate has been having a great year, seeing a general increase in property values and demand. What is really impressive, though, is how even with rocketing value the investment opportunities in the area have remained affordable.

Perhaps an explanation for this can be found in the report mentioned earlier, the Housing Opportunity Index. According to this source, about 74.9% of the houses sold from October to the end of the year in 2012 were affordable to households with the median income of $65,000 a year. This was up nearly an entire percent from the previous year, a pretty impressive gain when you factor in the immensity of the compiled information.

The affordability rating is created through a formulation of purely economic factors such as percentage of homes sold and median income of families in an area. General mortgage rates are also included, so even if prices are going up, affordability can stay the same if rates are especially good.

According to Chairman Rick Judson of the National Association of Home Builders, “The most recent housing affordability data should be encouraging to many prospective home buyers, because it shows that homeownership remains within reach of the median-income consumers even as most local markets appear to be on a recovery path.”

In Dallas, although the median prices are rising, favorable mortgage rates and a general slackening in loan requirements has made buying property just as affordable as it has been in previous years.

With such affordability, Dallas homes for sale have never been so high in demand. If you would like some more information about Dallas homes or need assistance with mortgage information, please contact us. We’d love to share with you all of the wonderful home buying opportunities that currently exist.