The first step for a new home buyer is to find out what you can afford to pay for a home or condo. This will depend on the amount of your assets (cash, income and credit).
Find out from your lender what kind of letter they can provide you with and what you have to do to get a preapproval letter. Presently in the financing of a new home it is not as easy to get a preapproval letter from your mortgage broker. In January of 2010 HUD began requiring lenders and mortgage brokers to issue a binding Good Faith Estimate within 3 days of receiving a loan application. Without a formal loan application many lenders today will issue only a prequalification letter, which does not carry the same weight as a preapproval letter. A preapproval letter gives added weight to your offer in case there are multiple offers.
Search for a good Real Estate Agent to represent you. Ask friends and family for recommendations and then interview several agents. A Real Estate Agent can provide you with good information on neighborhoods and where you can afford to buy and help with contract negotiations.
Buy in the best neighborhood you can afford without financially overextending yourself. Don’t buy a home that you will outgrow in a year or two. You don’t want to have to sell when prices are declining.
Buy a home with good resale potential. Try to find a home that has a broad appeal in a sellable neighborhood and that way no matter the market, it will improve your chance for a good resale.
Freddie Mac analysts point to five features that they believe will likely characterize the 2011 housing and mortgage markets:
1. Low mortgage rates. With Fed observers expecting the central bank to keep the federal funds rate at its current target range of 0 percent to 0.25 percent for most (or all) of 2011, relatively low mortgage rates will be a feature of the 2011 mortgage market. Thirty-year fixed-rate loans are likely to remain below 5 percent throughout the year, and initial rates of 5/1 hybrid adjustable-rate mortgages will likely remain below 4 percent in 2011.
2. Prices have hit bottom. House prices are likely to begin a gradual, but sustained recovery in the second half of 2011.
3. Housing will remain affordable. With affordability high, many first-time buyers will be attracted to the housing market in the New Year, likely translating into more home sales in 2011 than in 2010.
4. Refinances will dwindle. Many eligible borrowers have already refinanced and the federal Making Home Affordable refinance program is expiring on June 30. While fixed-rate loans are likely to remain low, they will move up gradually, making it even less likely that refinances will be attractive to most home owners.
5. Delinquency rates will decline. Based on the last several business cycles, the share of loans that are 90 or more days delinquent or in foreclosure proceedings — known as the “seriously delinquent rate” — generally crests within a year of the start of the recovery in payroll employment, and this economic recovery appears to fit within that pattern. Payrolls began to rise last January, and by the spring the seriously delinquent rate had begun to fall.
It’s time again my friends for The Texas State Fair. Fried Beer anyone? (You heard that rumor too?) Admit it, all food tastes better on a stick. Even pie. You love tripping over the cute yet somewhat creepy purple stuffed animals your sweet child insists on winning playing dart games. This year, you WILL climb to the top of Jacob’s Ladder and ring the darn bell. And there’s nothin’ like chasing your toddler thru the backseats of every new car in the Car Building. You love tickling baby pigs. And, by golly, you NEED, no, you DESERVE a funnel cake for making it thru the first month of school. FYI, mommies, when you’re ready for a nervous breakdown in the afternoon, beer is the cheapest in the Food Building.
Put the kiddos in the minivan, and bring the baby leash if need be (you won’t hear any judgment from me), and head over to the Texas State Fair in Fair Park this year. Check the daily calendar of events to find your favorites. (Heads up cool music lovers: I hear Collective Soul is playing the fair October 17th, and you’ll see them free with your State Fair admission!) What else can you see and do at the fair? Wine tasting. Dog dancing. Diving Pirates? Yep. Egg Gathering. Storytime. Puppets. Gondolas. Acrobats. Pumpkin Carving. Parades. Celebrity Chefs. You name it.
IF YOU GO, DO NOT PAY RETAIL! Use one of these handy ways to get a discount. This is what I’ve heard will be available:
Opening Day Sept. 24
Bring a full 20 oz. Coca-Cola product for donation to the North Texas Food Bank. Containers are at Fair admission gates. You’ll enter The State Fair for $4 per donation per person.
DART Combo Ticket
Available at Kroger Food Stores. $16 buys 1 general admission to 2010 State Fair of Texas & round-trip transportation on DART the day of your visit. The Green Line drops off at front gate and a second station is located within easy walking distance to the MLK entrance. Advance ticket is $13.50 at Kroger without the DART pass.
Dr Pepper $3 Tuesdays
Every Tuesday, bring an empty Dr Pepper can and enter for $3. Most rides on those Tuesdays (excluding the Thrillway, Texas Star & selected other attractions) are 5 coupons.
Dr Pepper $5 after 5 p.m.
Bring an empty Dr Pepper can to any State Fair admission gate after 5 p.m. and enter for $5.
Kroger “Three for $2″ Wednesdays
Admission is $2 for each visitor bringing 3 cans of food for area food banks.
Coke $4 Thursdays
Bring an empty 20 oz. bottle of a Coca-Cola product and enter the Fair for $4 admission on Thursdays.
HealthSpring and Mature Texan Magazine sponsors of Seniors Day
FREE Thursdays for Senior Citizens 60 years and older.
FREE Cinemark Thursdays
Free admission with a Cinemark Theater ticket stub on Thursdays.
KISS-FM “Fridays at the Fair” (Not confirmed yet. Based on last year.)
Half-price admission and half-price rides after 5 p.m. on any Friday. Must present coupon printed from KISS-FM website for admission offer. Half-price ride wristbands will be distributed from KISS booth outside Midway Arch from 5 p.m. - 9 p.m. on Fridays only.
Dickies Day
Thursday, September 30, wear and show your Dickies logo clothing item at the staffed tent outside the gate and receive a voucher. The voucher is for FREE admission on Thursday Setptember 30 only.
Any Day McDonald’s Deal
McDonald’s offers $4 off General Admission with one of their State Fair coupons (available on tray liner or bag stuffers) any day of the Fair. A free child ticket (with purchase of general admission) coupon is also distributed by McDonald’s. Offer may not be combined with any other offer.
Museum of Nature & Science Members
FREE Admission for you! Members receive a voucher this week (I got mine last week) good for free admission for two adults and up to 4 children. Voucher is good on any week day of the fair. You’re not a member? Join now silly and get your voucher!
Got any more deals? Know where to score samples and freebies IN the fairgrounds? Leave your hints in a comment below! Share!! I’ll update this post with any new information as we get closer to the fair!
WINNER
Top 100 rank: 5
Population: 125,000
Unemployment: 7.8%
Compare McKinney to Top 10 Best Places
Lots of towns near Dallas have low crime, affordable homes, and good jobs; McKinney is no exception. What makes it stand out is its gem of a downtown. Lovingly restored 19th-century buildings house restaurants, boutiques, and galleries; the 1875 courthouse contains a new performing-arts center.
McKinney’s employment opportunities are robust, sparing many residents a rush-hour drive of up to an hour to Dallas. Defense contractor Raytheon has a 3,700-person division here, and a mix of businesses in financial services, medical technology, and eco-friendly manufacturing are moving in.
Though McKinney has grown like mad over the past decade, you’d never suspect it when driving through its tree-filled communities surrounded by ponds, parks, and hiking trails. –Vanessa Richardson
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McKinney stats
| |
City stats |
Best places avg. |
Median family income
(per year) |
$107,046 |
$90,957 |
Job growth %
(2000-2009)* |
124.34% |
15.71% |
| See jobs near McKinney |
| Median home price |
$175,820 |
$239,391 |
| See McKinney homes for sale |
Test scores reading
(% above/below state average) |
6.3% |
22.9% |
Test scores math
(% above/below average) |
7.1% |
22.9% |
| Personal crime incidents (per 1,000) |
2 |
2 |
| Property crime incidents (per 1,000) |
22 |
24 |
Restaurants
(within 15 miles) |
2,758 |
2,967 |
| High temp in July ° F |
93.4° |
86.2° |
| Low temp in Jan ° F |
31.6° |
21.3° |
| Median age |
31.8 |
35.3 |
| Financial |
City stats |
Best places avg. |
Median family income
(per year) |
$107,046 |
$90,957 |
Family purchasing power
(annual, cost-of-living adjusted) |
$116,735 |
$86,860 |
| State sales tax |
6.25% |
5.45% |
State income tax rate
(highest bracket) |
N.A. |
7.35% |
State income tax rate
(lowest bracket) |
N.A. |
2.96% |
Auto insurance premiums
(Average price quotes, for the state) |
$1,763 |
$1,707 |
Job growth %
(2000-2009)* |
124.34% |
15.71% |
| See jobs near McKinney |
| Median home price |
$175,820 |
$239,391 |
Average property taxes
(2009) |
$4,515 |
$3,418 |
| See McKinney homes for sale |
Colleges, universities and
professional schools (within 30 miles) |
12 |
25 |
Test scores reading
(% above/below state average) |
6.3% |
22.9% |
Test scores math
(% above/below average) |
7.1% |
22.9% |
% students attending public/private
schools (located within town limits) |
96.1/3.9 |
87.8/12.2 |
Air quality index*
(% of days AQI ranked as good) |
81.0% |
77.8% |
| Personal crime incidents (per 1,000) |
2 |
2 |
| Property crime incidents (per 1,000) |
22 |
24 |
| Median commute time (in minutes) |
23.9 |
21.4 |
% population with commute
45 mins. or longer |
20.7% |
13.6% |
| % population walk or bike to work |
2.0% |
3.6% |
Movie theaters
(within 15 miles) |
27 |
31 |
Restaurants
(within 15 miles) |
2,758 |
2,967 |
Bars
(within 15 miles) |
45 |
207 |
Public golf courses
(within 30 miles) |
152 |
162 |
Libraries
(within 15 miles) |
34 |
72 |
Museums (accredited by AAM;
within 30 miles) |
5 |
10 |
| Ski resorts (within 100 miles) |
N.A. |
12 |
| Arts funding (Dollars per person of state funds spent on arts) |
0.4 |
1.5 |
Annual rainfall
(inches) |
40.46 |
37.40 |
| % clear days in the area |
37 |
29 |
| Median age |
31.8 |
35.3 |
Completed at least some college
(% of residents) |
75.8% |
71.5% |
| Married % |
69.4% |
56.6% |
| Divorced % |
7.3% |
8.4% |
Racial diversity index
(100 is national average; higher numbers indicate greater diversity) |
79.8 |
94.9 |
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By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
North Texas home sales surged by 27 percent in April from a year earlier.
The jump in pre-owned home sales was fueled by federal home buying tax credits.
The increase – along with an 11 percent rise in March – was enough to put home sales ahead 9 percent so far this year in North Texas.
Local real estate agents sold 7,017 pre-owned single-family homes last month, according to statistics released Friday by the Real Estate Center at Texas A&M University and the North Texas Real Estate Information Systems.
It was the highest one-month sales total since last July and the second highest since mid-2008.
Median home sales prices also rose a solid 7 percent – one of the best recent year-over-year gains. Through the first four months of 2010, median home resale prices are up 5 percent in the area from the same period of last year.
April’s substantial increase in pre-owned home sales isn’t likely to fade right away.
The number of pending home sales in North Texas – properties under contract but not yet closed – is up 40 percent.
As sales are rising, the number of houses on the market in the area has fallen about 7 percent from a year ago to just over 37,000 homes. It’s the lowest April home sales inventory in more than two years.
Currently there is just over a six-month supply of preowned homes for sale in North Texas. That’s considered a balanced market.
D-FW AREA HOME RESALES UPDATE
|
Comparisons of April pre-owned home sales and prices in the North Texas with year-earlier statistics:
|
|
Single-family home resales
|
7,017
|
27%
|
|
Median price
|
$149,900
|
7 percent
|
|
Average days on market
|
74
|
-8%
|
|
Pending sales
|
7,791
|
40%
|
|
Listed for sale
|
37,026
|
-7%
|
|
Condo-townhome resales
|
401
|
49%
|
|
Median price
|
$135,000
|
1%
|
|
Average days on market
|
85
|
-27%
|
|
Pending sales
|
486
|
55%
|
|
Listed for sale
|
3,878
|
-5%
|
|
SOURCES: Real Estate Center at Texas A&M University, North Texas Real Estate Information Systems Inc.
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|
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Short Sale: The Basics
A short sale is when a home is sold for less than the amount owed on the mortgage for the home. This occurs when the bank agrees to take less than the full amount due on the mortgage.
A seller does not have to be behind on a home loan to seek a short sale. If sellers wish to pursue a short sale, they must owe more than what the home is worth, demonstrate the house cannot be sold for the amount owed, and suffer from a legitimate financial hardship that makes the mortgage unaffordable.
The next step in the short sale process is to assemble a short sale package. This package will include such things as a financial statement showing monthly expenses, income documentation, bank statements, tax returns, a listing agreement, purchase agreement, an estimated HUD statement and a financial hardship letter.
If the home is sold as part of a short sale, there will be a difference between the amount owed and what the bank collects. This is called the shortage or the deficiency. Sometimes this deficiency may be negotiable. Some banks will seek a promissory note for the deficiency, meaning that the seller may be responsible to pay the difference between what the home sold for and what is owed to the lender. Some lenders might choose to file a collection or a judgment for the amount owed. The seller should be certain that any amount of debt, or release from debt, is received in writing. If the deficiency is forgiven, the lender can write off the shortage with the IRS, which means the seller may be responsible for paying taxes on the amount of the deficiency. However, the Mortgage Debt Relief Act of 2007 generally allows taxpayers the potential for relief from tax on mortgage debt forgiveness.
A short sale will affect the seller’s credit score. To minimize the effect on a credit score, sellers should avoid making late payments on their mortgage and work with the bank to report the sale in the best possible manner.
We are not a law firm, nor an accounting firm, nor a credit repair organization. For advice regarding potential tax liability or credit scores, please consult a tax attorney or an accountant.
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A combination of stable home prices and sizable sectors in health care, energy, government, and education kept these metropolitan areas relatively stable
By Prashant Gopal
America’s strongest economies have one thing in common-home prices that never got too hot or too cold.
Home prices in metros such as San Antonio, Oklahoma City, Pittsburgh, Rochester, Little Rock, Ark., and Baton Rouge, La., remained steady through boom and bust. Although no metropolitan area entirely avoided the economic downturn, the most resilient metros were protected by a potent mix of recession-resistant jobs.
The upstate New York areas of Syracuse, Rochester, Albany, and Buffalo suffered from declining jobs in manufacturing, but got significant boosts from sizable health-care, education, and government sectors. Construction is booming in Baton Rouge, Louisiana’s capital, as firms take advantage of financing for post-Katrina hurricane recovery work and service-related companies expand to meet the needs of a growing population. Omaha and the state of Iowa have relatively strong insurance sectors.
Texas, the last state to enter recession, has been bolstered by its oil and gas industries-which have also helped Oklahoma, North Dakota, and Louisiana. Texas also has many other things going for it, including affordable home prices and relatively low wages, which attract corporations.
BusinessWeek.com used data and analysis from the Brookings Institution’s new MetroMonitor to come up with the nation’s 40 strongest economies. The MetroMonitor, which measures the nation’s health on a quarterly basis, ranks the top 100 metros based on job growth, unemployment, gross metropolitan product, and home prices.
A relative boom in Baton Rouge
“No place has been untouched by this recession. This is a change from previous recessions,” said Alan Berube, a senior fellow and research director of the Brookings Metropolitan Policy Program. “But there’s a big difference in losing one-tenth of a percentage and losing 15% of jobs.”
Baton Rouge, which was ranked No. 6, “grew jobs every month until August 2009 and in August it only lost nine-tenths of a percent, compared to 5.1% nationally,” said Lauren C. Scott, professor emeritus of economics at Louisiana State University.
Scott said $5.1 billion of construction projects have been announced or are under construction in the Baton Rouge metro, including a new plant for French chemical company SNF and the expansion of an ExxonMobil (XOM) chemical plant.
“One nice thing after another thing happened that has countered what’s happening in the rest of the country,” Scott said.
Ernie Goss, an economist at Creighton University in Omaha, who studies much of the nation’s energy and farm belts, said the strong dollar early this year hurt farm exports. “But the dollar has now weakened significantly and that will be good for the farm sector and energy commodities,” Goss said. “I think 2010 is going to be much better than 2009. But we are still not going to have a lot of job gains.
A 22-year unemployment high in Texas
Although the metros in the ranking are strong by relative standards, their unemployment rates in many cases are now peaking because they entered the recession late. Texas, which had 5 metros in our top 10, including No. 1 San Antonio, is a good example.
The unemployment rate in Texas hit 8.2% in September, rising above 8% for the first time in 22 years. But that’s a very low unemployment rate, compared to the national rate of 9.8% or to Nevada’s 13.3% rate.
Texas is unlikely to face a prolonged downturn, said Terry Clower, an economist at the University of North Texas. The state’s affordable cost of living make it attractive to new residents and corporations, the largest of which tend to be based near Houston and Dallas.
“It’s perceived as a low-cost place to do business,” Clower said. “Because housing is affordable, the wage rates reflect that.”
Marisa Di Natale, a director at Moody’s Economy.com, said late arrivals to the recession will generally face mild downturns.
These metros “haven’t had a big erosion in housing wealth, which has kept consumer spending stronger than it would otherwise be,” Di Natale said.
Dallas-Fort Worth-Arlington, TX
Overall rank: 5
The sprawling, vibrant, and diverse metro has a major international airport, professional sports teams, and large corporations. It is home to ExxonMobil, J.C. Penney, and TXU Energy. Employment in the Dallas metro peaked in the second quarter of last year. Gross metropolitan product in the second quarter was down just 1.7% from the peak in the third quarter of 2008. Home prices grew 3% in the second quarter compared with the same period a year earlier. And the unemployment rate in June was 8.2%, up 3.1 points from a year earlier. (Please see below for the various criteria used by the Brookings Institution to determine the overall ranking.)
Job growth (since peak) rank: 13
Gross Metro Product (since peak) rank: 11
Unemployment change (year over year) rank: 32
Home price change (year over year) rank: 3
Collin County is now offering this free Property Fraud Alert. It might be something you might want to consider doing.
County Clerk Stacey Kemp has posted a new – and free – online service that will let you know when anyone attempts to change your land records on file in Collin County. Property Fraud Alert will notify you of any changes made to your personal or business property.
This notification system is set up to help thwart people filing a fraudulent land records with the County Clerk, making it look like they own your home or business property.
It happens.
According to the FBI, the practice of “house stealing” involves a little mortgage fraud and some identity theft.
Scam artists pick a house to steal, maybe a rental property. They then assume the homeowner’s identity using any information they can find on the homeowner, create fake ID’s, forge signatures and notarizations, and file a fraudulent deed transferring the property away from the legitimate homeowner. Next, they record the deed and sell the property or re-mortgage it and pocket the proceeds – and can be long gone before the homeowner is aware of what’s happened.
Property Fraud Alert is a team effort with the County Clerk to help keep you informed if someone tries to file a land record using your good name.
I hope you find this informaiton useful.
Gayle
First time in four months, average rate on standard fixed is 4.94 percent
Rates on 30-year home loans dropped below 5 percent for the first time in four months, but still remained above this year’s record low, Freddie Mac said Thursday.
The average rate on a 30-year fixed mortgage was 4.94 percent, down from 5.04 percent last week, Freddie Mac said. The last time the 30-year home loan averaged less than 5 percent was the week ending May 28, when it was 4.91 percent.
Rates hit a record low of 4.78 percent hit in the spring, and remain appealing for people interested in buying a home or refinancing.
On Thursday, the National Association of Realtors said the number of signed sales contracts rose for the seventh straight month in August, as homebuyers rushed to take advantage of a tax credit for first-time owners that expires in November.
“Low mortgage rates are helping to stabilize home sales
,” said Frank Nothaft, Freddie Mac’s chief economist.
But borrowers may want to consider the Federal Reserve’s announcement last week that it is slowing down a program intended to lower mortgage rates and boost the housing market. Analysts say mortgage rates should remain low for now but could eventually move higher, and homeowners who want to refinance mortgages shouldn’t delay.
Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
The average rate on a 15-year fixed mortgage fell to 4.36 percent from 4.46 percent last week, according to Freddie Mac. This week’s rate on 15-year mortgages was the lowest since Freddie Mac started tracking it in 1991.
Rates on five-year, adjustable-rate mortgages averaged 4.42 percent, down from 4.51 percent a week earlier. Rates on one-year, adjustable-rate mortgages fell to 4.49 percent from 4.52 percent last week.
The rates do not include add-on fees known as points. The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 point for 30-year mortgages, and 0.6 point for 15-year and five-year loans. The fee averaged 0.5 point for one-year mortgages.
