Dallas Mortgage Closing Costs Rank More Favorably This Year
The Dallas home market has been red hot in 2013, and with the upward trend in home values, new homeowners are becoming aware that closing costs on Dallas homes can’t always be paid by the seller. That said, while closing costs on Texas mortgages were the third highest in the nation last year, according to recent numbers from Bankrate.com, Texas closing costs dropped to a much more buyer-friendly 13th place in this year’s national rankings.
Texas mortgage closing costs averaged $2,468 for 2013, according to the findings from Bankrate.com. This was just slightly higher than the $2,434 that Texas mortgage closing costs saw in 2012, many other markets saw mortgage closing costs jump severely which allows an improvement of ten places lower on the list.
The Texas average of $2,468 was higher than the national average of $2,402, which makes sense given that Texas lenders require attorneys to prepare and review the closing documents, adding in additional costs of $100-$250 on each closing. Texas’ costs were nowhere near as drastic as Hawaii, which, in ranking No. 1 on the list for mortgage closing costs, averaged $2,919 per loan. Alaska ranked second with $2,675 in average closing costs and South Carolina took Texas’ place from last year in ranking third, with an average of $2,658. The other states that had higher closing costs than Texas were California, New Mexico, North Carolina, New Jersey, Oklahoma, Florida, Delaware, Ohio and Georgia.
Bankrate.com determined these numbers based on the example of a $200,000 mortgage loan on a single-family home in one of the largest cities in each one of these states. Additional factors of a 20 percent down payment on a home and a great credit score were used to determine the mortgage closing costs.
With Dallas being one of the largest cities in Texas, the survey drew from a Dallas mortgage example, naturally. The $2,468 in Dallas mortgage closing costs included $1,690 in lender’s origination fees and $778 in third-party fees.
As for the states that saw the lowest mortgage closing cost, Wisconsin averaged $2,119 and Missouri averaged $2,118.
Would you like to hear more about Dallas mortgage options and how we can help you find the best Dallas mortgage plan for your unique situation? If so, please give us a call at 972-499-0454 or contact us directly.
Dallas Listed in National Improving Markets Index
A recent report known as the National Association of Home Builders/First American Improving Markets Index listed 247 U.S. real estate markets as on the upswing, including Dallas—and 19 local Texas home markets in all. According to NAHB, this is about three times the amount of metros that were listed in its index in August of 2012, marking just how strongly the national real estate market has performed, in large part due to great home prices and low interest rates in the Dallas area..
Unfortunately, not all housing markets are faring as well as Dallas. The NAHB report also showed eight metro areas that dropped off the list in July of 2013, but that’s not unexpected, said NAHB Chief Economist David Crowe. “While the number of improving housing markets this August remains well ahead of the same month last year, the index is affected by seasonal softening in home prices just as we saw happen in 2012,” Crowe said. “The metros that fell off the list this month originally qualified with very small home price improvements that have since slipped back.”
What factors into Dallas being listed in the National Improving Markets Index?
As far as how markets are deemed “improving” by the index, several factors having to do both with the local economy and the local real estate economy of a given market are taken into account by the NAHB:
- Employment growth figures for a market reported by the Bureau of Labor Statistics
- Home value growth and increase in number of single family homes in a market reported by Freddie Mac and the U.S. Census Bureau
- Show consistent growth of at least six months across all of these sources and statistics
While it may come as no surprise to Dallas area residents and homeowners, these types of report can help amplify the growth and instills buyer confidence to further support the growth. In this booming real estate market, Dallas and surrounding areas have seen housing and real estate contribute to the overall growth of metroplex economy.
If you’ve given thought about buying or selling a home in Dallas, please feel free to reach out and contact us. Our team of knowledgeable Dallas mortgage professionals are equipped to help you in finding the best Dallas mortgage plan for your unique situation. Call us today, 972-499-0454.
VA Mortgage-Free Home Given to Iraq War Hero
After fighting in the Iraq War and becoming 100 percent disabled due to war injuries incurred, Curtis Zachary returned home to Dallas and his family with an uncertain future. But thanks to the caring efforts of a local nonprofit, the Zachary family was recently given a mortgage-free home and a chance at new civilian life after years of supporting his country.
The brand new home was provided by Defenders of Freedom, an organization that assists veterans in making the shift into civilian life after their overseas experiences. “If it wasn’t for them, God knows where we would be,” Curtis Zachary said recently to reporters in front of his new home. “We were about to lose our home, didn’t have rent.”
This is the first in a series of mortgage-free homes in the Dallas area that Defenders of Freedom plans on giving away, and the builder of these Dallas homes, Richard Lane, said he was incredibly proud to be part of the process of aiding the Zachary family and being with them on the day they showed off their new home. “When you come back wounded, 100-percent disabled, your life is never the same,” Lane said. “I was very excited for today. It was hard to sleep at night, because this is such a great event, a great opportunity to say thank you.”
Defenders of Freedom wants it to be known that they will be giving away other properties, including a house just next door from the Zachary’s on Diceman Drive, and that the families who move into these Dallas home are yet to be determined. The nonprofit says that any family with an injured veteran can apply for one of these homes, and it is encouraging military families to take part in this remarkable opportunity.
With the Dallas area home values and Dallas VA mortgage rates on the rise over the past few months, the opportunity for our military heroes to be given a piece of this amazing real estate market is a true token of appreciation for their service and something that all Dallas homeowners can be proud of.
If you or someone you know is interested in learning more about Dallas VA mortgage loans and Dallas VA mortgage rates, don’t hesitate to give us a call directly at our office, 972-499-0454. Our team of experienced VA mortgage professionals are available to help you find best mortgage option.
Fort Worth-Arlington Mortgage Delinquencies Are on the Decline
The Fort Worth-Arlington area has seen some amazing real estate trends in 2013, and while many recognize those trends as pertaining to Arlington and Fort Worth home sales, it should also be mentioned that area homeowners are having much better luck when it comes to paying off their Arlington and Fort Worth mortgage loans in a timely fashion. This information comes in light of a recent report from real estate tracker RealtyTrac, and the results should be welcome news to the Fort Worth-Arlington area economy.
According to the RealtyTrac report, which covered foreclosure filings and mortgage delinquency rates in the Fort Worth-Arlington area through the end of May, the amount of homeowners that were 90 days late or more on their mortgage payments was at 4.12 percent, which was down by .85 percent from the same time in 2012. This was down essentially a full percentage point (.99 percent, to be exact) from the same time two years ago in May of 2011.
Also coming in at 4.12 percent was the amount of foreclosure filings among all Fort Worth-Arlington area homes in May, which was also a positive sign in terms of the local homeowners economy, seeing as area foreclosure filings were up to 4.97 percent a year ago in May of 2012. While the Fort Worth-Arlington foreclosure rate was slightly higher than the Texas foreclosure rate as whole, which came in at 3.51 percent for May, it was better than the national average of 5.63 percent for the same time period.
In other but related news, contracts for construction in the North Texas area were up in May. With $719.2 million in residential contracts, the market saw a year-over-year contract gain of 15 percent for the month of May, pointing to a thriving Texas real estate market and local economy. These trends were also in line with the $2.3 billion that had occurred in area construction for the first five months of 2013, up from $2.1 billion for the first five months of 2012.
Would you like to hear more about Fort Worth and Dallas mortgage plans? Please contact our team of Dallas mortgage professionals, as we would be pleased to assist you with all your Dallas mortgage needs.
Dallas Area Sees Decreased Mortgage Delinquencies and Foreclosures
It’s no secret that Dallas-area real estate has been performing extremely well in 2013. Fortunately for most Dallas area residents and Dallas mortgage loan holders is that the success seems to be having a ripple effect within the local economy. A recent report released by real estate and mortgage analytics company CoreLogic showed that Dallas homes and homes in the surrounding Dallas-Fort Worth area are seeing much lower foreclosure rates and late payments on mortgages in recent months and years. This is as sure a sign as any that along with the real estate market, the local economy seems to be regaining its feet and recovering from the worst of the recession.
CoreLogic’s recent report saw Dallas-area homeowners as having the lowest mortgage delinquency rate since the recession began around 2008, with only 3.75 percent of homeowners 90 days late or more on a mortgage payment. The data gathered also saw that this decrease was one whole percentage point better than in May of 2012, and a vast improvement from the beginning of 2010 when more than 6 percent of those with Dallas homes or homes in the surrounding area were seen as delinquent on their mortgage payments.
Another trend that was positive for those with Dallas-area mortgage loans is that the area’s delinquency rate of 3.75 percent is 1.88 percentage points better than the national average of 5.63 percent.
In terms of foreclosure, CoreLogic saw homes in the Dallas area as having extremely low foreclosure rates in comparison with both previous years and the rest of the national real estate market. The Dallas area’s foreclosure rate of 1.21 percent was down from 1.63 percent at the same time a year ago, and was also more than twice as low as the national rate for foreclosures in May, which came in at 2.61 percent. All in all, foreclosure filings in North Texas have decreased by more than 40 percent year-over-year.
Are you interested in hearing more about Dallas mortgage loans? Our team of Dallas mortgage experts has extensive knowledge in finding the best loans for new homeowners in the Dallas area, and we would be happy to assist you with your Dallas mortgage loan. Please contact us with all your Dallas mortgage questions.
Being Smart About Your Dallas Mortgage Loan Between Approval and Closing
Getting approved for a loan on your first Dallas home can be an incredibly exciting step in the process of becoming a new homeowner. But for many first-time homeowners, this jubilation can often influence rash financial decisions. It’s natural to want new things to go along with your new home, such as expensive appliances and furniture, but big spending before you close on a loan could end up complicating the entire mortgage process, if not negating your loan’s approval altogether.
It’s standard policy that when a loan is about to be closed on, many lenders will look into a buyer’s credit history between approval and closing. This policy has, in fact, been mandatory for all Fannie Mae lenders since 2010, according to a recent article in the New York Times. If a lender sees that you’ve had any recent credit inquiries, chances are that your loan approval could be delayed or even denied.
Of course, this scenario applies more to those with high debt-to-income ratios than to borrowers who are extremely sound financially. Fannie Mae has set guidance that 45 percent or less of a household’s income is going into home payments and other monthly debts each month in order for approval on a loan. It’s important for borrower’s to be aware that these numbers can change between approval and closing, and making huge credit investments is one way in which a debt-to-income ratio can adversely affect the buyer.
Another thing to keep in mind is how debt-to-income ratios play into a couple signing on a loan. If there are two or more earners moving into a house with a loan that is close to the 45 percent line, it’s wise to make sure that if one of them is not named on the loan, than that person should be the one making major purchases between approval and closing. Or, to simplify things, it’s wise to put both couples on a loan so that debt-to-income concerns never even arise.
If you are interested in Dallas home for sale and would like to hear about how you can best optimize a Dallas mortgage loan, please contact our team of Dallas mortgage professionals.
Tips for Getting Approval on Your Dallas Mortgage Loan
Dallas homes for sale are extremely hot at the moment, and many potential first-time homeowners looking to take out a mortgage loan are only beginning to understand what a complex process this can all be if you don’t have help from a qualified Dallas mortgage expert. There are a multitude of mortgage loan-related concerns that pop up during this major life decision, and being on top off every one of them is key to securing the smartest mortgage for your own personal needs. Here are just a few tips to get you started on getting approved for your first Dallas home loan:
1. Be Aware of Your Credit Score: Checking your credit score is simple and can be done for free once a year via the three major credit agencies, but it’s surprising how many people have no idea what their current score is. Before you look into a home loan, it’s extremely important to know where your credit stands, as this will determine both whether you’ll be approved for a loan and how substantial your loan amount will be.
2. Have Money in the Bank: Walking into a mortgage lender’s office and asking to get approved for a home loan without having some sort of savings can be difficult and may not be advised. Remember that while a 20 percent down payment on a home can be a good target, there are many low down payment options for loans with as low as 3% or 3.5% down. Find out more about how to avoid monthly mortgage insurance with less than 20% down.
3. Don’t Switch Jobs in Midstream: Make sure you are still productive at work. Lenders will qualify you based on your current job status, and will also take into account changes in that status in the early stages of a mortgage loan. Let’s keep the employers happy along the way!
Interested in hearing more about getting approved for a Dallas mortgage loan? We are local mortgage experts and would be happy to assist you in finding the best mortgage for you.
New Initiative to Help Dallas Borrowers Struggling With Mortgage Payments
While the number of Dallas-area homeowners struggling to meet their monthly mortgage payments has dropped greatly in the past year, there are still many who live with the reality of being several months behind on the amount they owe to their lender. And nationwide, more than 1.1 million homeowners are at last three months behind on their payments. For all of these suffering borrowers, good news is on the horizon, and it comes in the form of the Streamlined Modification Initiative from the Federal Housing Finance Agency (FHFA).
The new initiative will follow in the footsteps of programs like the Home Affordable Modification Program, which along with other foreclosure-avoiding efforts by the FHFA, have saved 2.7 million Americans from foreclosure, according to the FHFA. But the main difference between the Streamlined Modification Initiative and these past efforts is one thing that those dealing with the headaches of late mortgage payments will love: a lack of paperwork.
The new program will simply allow qualified late mortgage payers to start paying at a new, lower rate, and if they can maintain this rate for three months, they will be eligible to keep the low rate for the remainder of their mortgage. The FHFA, Freddie Mac and Fannie Mae will attempt to achieve this by cutting interest rates on the life of a mortgage and also extending the life of a mortgage so that a 30-year mortgage becomes a 40-year mortgage.
CNNMoney gives an example of how this scenario would play out for underwater Dallas home borrowers under the new Streamlined Modification Initiative. A 30-year mortgage at $200,000 with a 5,5 percent rate, for example, would become a 40-year mortgage with a 4 percent rate. The end monthly payment for the borrower on this specific example? That would be $835, or $300 in savings a month versus the $1,135 a Dallas home borrower would have previously been paying. At this rate, the Streamlined Modification Initiative would be saving the borrower $3,600 a year.
We are mortgage experts and have years of experience helping Dallas-area borrowers with their home-financing concerns. Please contact us today to discuss you unique Dallas mortgage situation.