By DeeinAustin™
How's the Texas real estate market? Are we still selling houses? Has the mortgage market gotten better? Is now a good time to buy? Sell?
Yes! Good news is that Texas real estate agents are still selling houses and the mortgage market is on a rebound. In fact, December is often the month for investors and buyers to get the best deals of the year.
The real estate market statistics for October posted last week for most Texas cities, so our team will provide summaries soon.
In the meantime, Mary Stephens, Loan Officer from City Real Estate and Mortgage, provided a Texas mortgage market update. I met Mary on an Austin property tour and she recently stepped in to help one of our investors with a land deal once their lender couldn't come through.
TEXAS MORTGAGE MARKET UPDATE: Q&A WITH MARY STEPHENS
Hi Mary! Tell us more about yourself and why you're still a mortgage broker in this changing market.
The current changes in the mortgage industry certainly keep things interesting. As a mortgage loan officer, I'm challenged to find programs to accommodate worthy buyers. The Bond funds that are available through the State of Texas have been a tremendous asset to first time home buyers. These funds assist with down payment and closing costs which can be a determining factor in getting a loan approval.
Give our readers some advice on how to prepare to buy a home in today's market.
Being prepared in today's market is key. Perspective home buyers
(and investors) should always check their credit months before making the leap into
shopping for a new home. A few months of credit "clean-up" prior to
closing on a home can save the buyer hundreds of dollars over the life
of a 30 year mortgage. Contact a good loan officer in the beginning and
have them review your credit and assets. Sometimes keeping your cash in
the bank is better than pay off all of your credit card debt.
What are changes in procedures or underwriting requirements that investors and buyers should be aware of?
The most dramatic change that has occurred lately in the mortgage industry is the minimum credit score required to obtain financing. Underwriters are looking at timely payments on current and past mortgages and credit cards (in that order). Appraisals are also being (heavily) scrutinized, which was not as prevalent a year ago. Mortgage insurance companies have changed their guidelines, rates and minimum credit scores limits. The stated income mortgage is much harder to qualify for.
Tell me what your crystal ball shows for the Texas mortgage market in 2008!
I wish I had a crystal ball to predict interest rates for next week, not to mention 2008! The interest rate is still below 7% in most cases. That's a great rate! The first home I purchased was in 1990. I had an interest rate over 9%! I don't understand why some home buyers are complaining (about high rates). Home ownership is very rewarding. Finding a good loan officer to assist you is priority number one! Just because you qualify for a higher payment does not mean you'll be comfortable making that payment for 30 years.
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Thanks to Mary Stephens, City Real Estate and Mortgage Services, for providing the latest Texas mortgage market update! Contact Mary via email or at 512-401-2022.
You may be interested in our previous mortgage market update.
Also listen to our quarterly Austin Real Estate Update.
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