New Housing Survey and Dallas Real Estate

Fannie Mae has posted results of its second survey this year on people’s attitudes and views towards housing. The wide-ranging survey polled renters and homeowners between June 2010 and July 2010 to evaluate their assurance in homeownership as an investment, views on the U.S. housing finance system, overall confidence in the economy, and the current state of their household finances.

The results are compared to a similar survey conducted by Fannie Mae from December 2009 to January 2010 and posted in April 2010, and a similar survey conducted in 2003.

The survey found that Americans have a mixed outlook for housing; they believe that the housing market is declining, but they are more wary about owning a home.

• Nearly half (47 percent) think that home prices will remain steady over the next year while nearly one-third (31 percent) think prices will go up.

• 70 percent think this is a good time to buy a house, compared with 64 percent in a similar survey that Fannie Mae conducted last January. But 33 percent said they would be more likely to rent their next home if they were to move -- up from 30 percent in the January survey.

• A great part of those surveyed (67 percent) continue to believe that housing is a safe investment. That number, however, is down by 16 percentage points from a similar survey that Fannie Mae conducted seven years ago. The current survey finds that more than 70 percent believe it will be harder for their children to buy a home, up three points since January.

These findings indicate the return of a more balanced and realistic approach to housing. This approach may weigh on the housing recovery in the near-term, but over time, it should help to build a stronger and healthier market focused on sustainable homeownership.

With this survey, I do want to point out that the DFW real estate market has remained strong even when you factor in the Dallas Foreclosure rates.

How to Buy a DFW Home with Good Resale Value

Do you really need to consider selling a home even before you buy it? Well, what if you decide to move or have to move? Wouldn't you want a house that has increased in value and will sell quickly? Of course you do. Most of us won't live in the same house for the rest of our lives. So then, it makes sense to analyzing a home's resale values before you buy it. Buying a home with good resale value may take a bit longer, and it may take more work on your part, but it will be well worth it when it comes time to sell and your home sells quickly and you put extra money in your pocket. Take a look at these tips to help you find a home with good resale value:

Location is the Number One Factor

•• Are there areas in town that are increasing in desirability.

•• Why are these neighborhoods in demands?

•• Does new growth in town seem to be headed towards a certain area? Will there be plenty of services (shopping, schools) in that area?

•• Is the community changing for the better-with residence being rehabbed and additions added.

Buying Tip: Always choose a home that meets your needs, but generally it is better to buy less house in a better area vs the other way around.

Who's Buying?

Who are the primary home buyers in your area, professional singles, young families, seniors? Example: In a senior area your best resale potential might be a one level home, because seniors don't like to do steps. If the majority of buyers in your area are young families with children, consider buying a home with a nice yard that's not near by a busy street.

Buying Tip: Browse the internet for DFW real estate ads. A feature that's mentioned in numerous ads is likely one that's in demand.

Avoid Outdated Features

•• Electric baseboard heat is not as desirable as central heating systems.

•• One bathroom homes sell for much less than homes with at least two baths.

•• Tubs and showers in outdated colors, or scratched from years of improper cleaning, will deter many potential buyers.

•• Popcorn ceilings date a house back to the 70's

Buying Tip: Outdated features are usually a negative, but you can turn them into a positive if you buy a home at a great price and make updates. Before you make a decision to buy a home, analyze the update costs and determine how much value they will add to the home

Don't Sweat Cosmetic Updates

•• New appliances and cabinet hardware will freshen up a kitchen and make it look more modern.

•• Fresh paint inside and out is a quick and relatively inexpensive fix..

•• Skylights will brighten a dark home. Be sure to buy top-quality products and have a professional install them.

•• New light fixtures go far to lighten rooms and enhance a home's character.

•• New switch plates and electric plugs are an inexpensive way to make a room look nicer.

Buying Tip: Watch for homes in need of cosmetic updates, because they're often priced under market value.

What Are Home Buyers Looking For?

•• Split bedroom plans, with bedrooms on each end of the home, are becoming more and more popular.

•• Closets--lots of closets, preferably walk-in, and with as much additional storage space as possible.

•• Homes with lots of natural lighting are very popular.

Buying Tip: Popular features differ from region to region. Do your best to determine what's in demand in your area. Ask your DFW real estate agent which features are always on their buyers want lists.

The Bottom Line

Your first objective should be to buy a DFW home, even a DFW foreclosure home, that's right for you. You also need to consider its resale value before you make your final decision. You will be happy you did so when it comes time to sell. Have your Realtor show you a few Dallas foreclosures. You never know, you may find the proverbial "diamond in the rough".

Raising a Down Payment for DFW Real Estate

Home ownership rates have increased from 25% in the early 1900s to 67% in 1999. During all these years, many home buyers struggled to come up with a down payment. Years ago, in some cases, the banks required as much as a 50% down payment before they would give them a mortgage. Today, generally, the down payment is 20%; however, few people have that much cash available to them. With the popular FHA loans they require only 3.5% down. But the fact remains that the more a buyer puts down, the lower the mortgage. Low mortgage balances will carry low mortgage payments.

Here are nine ways to find that down payment.

1) Save Your Tax Refund

If you are having a challenge saving money, you can change your withholding exemptions to zero. This will force your employer to pay more to the IRS which will reduce your paycheck by that amount. This method assures a larger income tax refund.

2) Borrow From Your Parents

Many first time homebuyers ask their parents for funds to put towards a down payment on a home. Favorable tax laws allow for parent to gift a certain amount of money without tax consequences (check with your CPA).

3) Save Money on Schedule

The way to make your savings account grow is to make scheduled deposits at the same time every month. Example, if you get paid every two weeks and you save $300 from every paycheck, at the end of 12 months, you will have saved more than $3,600.

4) Sell Stuff on eBay

Like everybody else you probably have too much stuff. Some people spend a ton of money each year on storage units where this stuff is stashed. Look all around your home, in your attic, your basement, under your bed and in your closets. If you haven't used it in a year, sell it!

5) Ask Seller

In this buyers market if you pay the seller's asking price, you should ask the seller to pay money towards your closing cost/down payment. Make sure you check with your lender before asking for the credit because they have strict requirements as to if and how much money you can receive from the seller.

6) Government Programs

If you have ever been in the military, you may qualify for a Veterans Administration (VA) loan. The government also has a slew of down payment assistance programs for first-time home buyers. You can also check with your county or city to see if they offer special programs to induce home ownership in certain neighborhoods.

7) Take a Second Job

Some would be homeowners will sacrifice their evenings and weekends to work part-time at a second job. If it's a short-term situation, it might not be that hard to do. It could also be seasonal work such as from Thanksgiving to Christmas or specialty work around tax time in the spring.

8) Tap Your Retirement Funds

Certain types of retirement accounts will allow you borrow from them in order to purchase a home. Check with your CPA or Retirement Plan Administrator for current regulations. Some types of requirement accounts will even allow you take out some of the principal without a penalty.

9) 100% Financing

If you have excellent credit, you may qualify for a 100% financing. This could be a single mortgage with mortgage insurance, or you may qualify for a second mortgage commonly referred to as am 80/20 loan. Talk to your mortgage broker to see which programs may be available for you. The bottom line is that owning DFW real estate is obtainable if you work hard, save money and work with a professional DFW Realtor and Lender. Tip: Get you Realtor to search the DFW MLS for a great deal on a Dallas foreclosure home generally this is where you will find the best values.

How to do a Plano Real Estate Search

Doing a Plano real estate search means doing some homework, but you can find out much about a property this way. A property search can turn up valuable data that you can use when writing an offer to buy. Example, I will not write a purchase contract without looking into the history of the property by conducting a variety of searches. I do not rely on the Plano MLS information alone, and you shouldn't either, because it could affect how much you will pay for the home.

Matters of Public Record

What kinds of information can you find from a property search? Example, if you knew the sellers were getting a divorce, you may decide not offer full price. Generally, in a divorce situation is a red flag that the sellers might take less because they want to get the property sold so they can get apart from each other. You can find out how long the seller has owned the home, how much they still owe on their mortgage, whether improvements or additions have been made without a permit among other important facts.

Every city has a place where its' citizens can go to search for information on any given property. Property records, sometimes referred to as Land Records, are maintained at either the county courthouse, city hall or another city or county department. You can also check the federal court records to find out if a seller has filed for bankruptcy or go through county court records to see if a seller is involved in a law suit.

These days there are easier ways to find this information. Once you find the owner of record, if you don't have an address or the person has moved, you can order reports online that can find a missing person. These companies charge a nominal fee.

Property Search on the Internet

Many counties and cities maintain records online. Search for property tax records to find:

•• Name of the owner

•• Tax ID number or parcel number

•• Amount of present taxes and whether the taxes are paid.

There are dozens of web sites that offer consumer information for free. Many Web sites let you search for property by area or sip code. Here are a few:

Title Company Property Search

Call a local title company. Many title companies will give you a free property profile in hope that you will use them when you close on your home. Some title companies will do a search for the seller's name to find out if there are liens or judgments filed against the seller.

Property Search Data Realtors Can Find

If you are working with a Realtor, you can ask them to find out more information about a property. Almost all Plano Realtors subscribe to services that provide property search information in variable formats.

•• Plano MLS data. It's not enough to just get a copy of a listing for the home you are interested in. Get your Realtor to search the history of the property in the MLS. You can find out if the property has been withdrawn from the market and relisted or if it has recently sold and may be a home being flipped. Your Plano Realtor can find out how long the property has been on the market. The amount of days on the market has an effect on pricing. Generally, if the home has been on the market for a long time you can get the home for less.

•• Online Title Company Database. I have an access code for my favorite title company's Web site. I can download deeds and search the sales and mortgage history of a property going back 20 years.

•• Tax Assessor's Data. Many Realtors have access to a tax record data base search that sjows the complete records on file at the tax assessor's office for any given property. This information can include the age of the home, square feet, type of roof, number of rooms, among other data. If the tax assessor records show different square footage than noted in the listing, either the tax assessor is wrong, the seller is wrong or the property has improvements for which a permit was not obtained. Buyers should then check with their city planning department to find out if a permit was obtained for the addition.

Buying Plano real estate can be challenging but if you do your due diligence and check all the information available, you should do just fine. Next time around you will learn about Dallas foreclosures. See you then.

Should You Buy or Rent a Plano Home

Here are some ways to tell if renting or buying may be best for you.
Bad Credit – Good Credit
How does your credit score look? If your FICO score is below 620, you're not going to get the best interest rates for a mortgage, in fact, a low score could put you into the hands of a sub-prime lender with higher rates and fees.
• You can order your free credit report from all three major credit bureaus.
• If you want to buy a home and you have bad credit, you should work on repairing it before applying for a mortgage.
• Four late payments may be enough to disqualify you from obtaining a home mortgage.
High Debt Ratios
Lenders consider two types of ratios: front end and back end ratios. Your front end ratio is your mortgage payment, plus taxes and insurance divided by your monthly salary. Your back end ratios add your monthly debt payments to your PITI payment before dividing that total figure by your salary. A 50% debt ratio is a high ratio. A high debt ratio means you may not qualify for a mortgage.
Relocation - Job Instability

Is your job secure, how secure?
• Is Your Job in Jeopardy?
Is your company laying people off? Could you be let go and, if so, how hard would it be for you to get another job, making the same money, quickly?
• Relocation.
Are you likely to be transferred to another area within the next couple of years? If you had to sell your home due to a job transfer will your home appreciate at least 10% to cover the cost of selling; if not, you would lose money on the sale.

Maintenance
Homes require maintenance and upkeep. Not everybody has the where-with-all, much less the desire, to tackle home repair projects. In addition, many first-time home buyers cannot afford to hire a professional to fix things that break. Experts suggest you set aside 5% of the purchase price to cover maintenance and repairs when you buy a home.

When Renting Costs Considerably Less
Does it make sense to buy Plano real estate or rent? If your mortgage payment would be three times the amount than you would pay for rent, it may not make financial sense for you to buy a home right now. Example, if it would cost you $2,500 a month to rent what would cost you $7,500 per month to own, does it make sense to pay than much more each year more to home? If you are in a 35% tax bracket, you might not be able to recouping the difference you pay towards your home. If your deductible expenses are $4,000 a month; 35% of that is only $1,400, which would be your true tax savings per month. Would you spend $4,000 to save $1,400? Retain the services of a professional DFW Realtor to guide you through the process. It may be a good idea to look at some Dallas foreclosure homes to find a great value in a home.

11 Steps Away From Owning a DFW Home (Part 1)

A Step By Step Guide at buying a DFW Home
Progressing through a DFW home buying transaction can be a challenge but there are many home buying steps that once understood will get you to meeting your goal of owning a DFW home. You'll feel more confident about your home buying journey when you understand what is required of you and everyone else who is involved in your home buying transaction. This guide will take you through the steps and show you that you are only 11 steps away from buying the home that is just right for you.

Step 1, Get Your Finances in Order
Your credit report is a mirror as to how you manage your finances. You need to know exactly what is on your credit report and what it says about your financial history. Do this before you apply for a mortgage because your credit report will play an important role in your mortgage approval process and will determine the interest rate and terms that a lender offers you. If you haven't looked at your credit report recently, or at all, you may be surprised at what’s in it and because mistakes are common.

Step 2, Learn About the Mortgage Industry
Finding the right mortgage and mortgage company is paramount to your home buying success. It's up to you to determine which lender is best suited for your needs, and it's always a good idea to have some background information about the loan process before you talk to a lender.

Step 3, Get Pre-Approved for a Mortgage
If you haven’t talked to a lender you probably don’t know how much home you can afford. A mortgage pre-approval helps you in other ways. In this day and age most sellers won’t take your offer to buy their home seriously if you don’t provide them with a mortgage pre-approval letter showing them that you are actually qualified to buy their home.

Step 4, Determine Your Wants and Needs
Before going out to look at homes take a little time to determine your needs, wants and even your dream items. If having the master bedroom on the first level is a need or want, or, if you want to be is a certain school district there is no sense in wasting time looking at homes that don’t meet these criteria. Take some time to learn the DFW real estate market to save you time and frustration.

Step 5, Work with a DFW Realtor
DFW Realtors represent buyers, sellers and sometimes both. It's imperative to understand Realtors duties and loyalties before you make that first phone call. Having a professional Realtor on your side who has experience, knowledge of your local market and access to the MLS is imperative to your goal of buying a home.
Step 6-11 to follow:

It’s always a great time to buy DFW real estate. This is true in most all cases when you know you will be staying in your DFW home for three years or more. It is generally better to buy less home in a nicer area than the other way around. Homes in the nicer areas tend to hole their value and appreciate more. Stay away from areas that have a lot of Dallas foreclosure homes. This will surely have a negative impact on the value of your home. Use a professorial DFW Realtor who has access to the powerful DFW MLS to find you the best values in your chose area.

11 Steps Away From Owning a DFW Home (Part 2)

Step 6, Searching for your Home
Your DFW Realtor will give you a MLS printout of home listings to review. You will probably also find yourself picking up home sales magazines and reading classified ads in your local newspapers. And you know you will be spending a lot of time surfing the Internet for homes. You might even find yourself driving around preview neighborhoods. Those are all excellent ways to see what's available for you to choose from. Here are some great tools to help you narrow your home buying search.

Step 7, Take Care of Pre-Offer Tasks
Deciding whether or not you want to buy a home involves looking at its floor plan and features, but there are many other items that are every bit as important to your home purchase. Here are a few topics you should explore before you make your offer.

Step 8, Make the Offer
There's no one set of instructions or rules that can cover all the differences in real estate laws and customs that exist throughout the country, so they depend greatly on your market place. However, there are some home buying tips that can help you make a clean, straight forward offer.

Step 9, Inspections
In some states, home inspections are completed before the final purchase contract is executed. In other states, inspections don’t take place until after an offer is finalized. No matter when you do them, make sure you do them. This will ensure you are purchasing a sound, safe home.

Step 10, Handling the Last Minute Problems
As your closing date approaches, make sure your Realtor checks with everyone involved in your real estate transaction to check its progress, because staying on top of things means you'll know immediately if there's a challenge that needs to be handled.

Step 11, Closing
With most of your home buying problems behind you you're on your way to the closing table. At closing ownership or the property will transfers from the old owners to you. Congratulations!

The DFW real estate buying steps outlined in this article are general home buying tips. You will encounter issues specific to your Dallas Real Estate transaction. These issues can best be explained by your local real estate agent, your lender, your attorney, and your closing agent. If you are buying a Dallas foreclosure home the steps to closing are substantially the same. Don’t hesitate to ask a lot of questions. Ask as many questions as necessary to help you understand the entire home buying process.