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.