DFW Metroplex has a strong economy in midst of recession!

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

Residential Construction's Uncertain Future

RESIDENTIAL CONSTRUCTION'S UNCERTAIN FUTURE


WASHINGTON (Associated Press) – While an extension on the homebuyer tax credit remains under discussion, building permit applications fell 1.2 percent and overall residential construction rose 0.5 percent in September.

Construction rose 7.1 percent across the South last month. On a national scale, construction of single-family homes rose 3.9 percent to an annual rate of 501,000, while multifamily construction fell 15.2 percent. Overall residential construction posted a seasonally adjusted annual rate of 590,000 units.

The National Association of Home Builders’ index of builder confidence fell from 19 in September to 18 in October, a slip that builders attribute to the upcoming expiration of the homebuyer tax credit.

Real estate agents and homebuilders are urging Congress to extend the $8,000 rebate for first-time homebuyers, but some analysts and lawmakers argue that most homebuyers who receive it would have bought a home anyway.

The Associated Press also reported that the number of tax returns fraudulently claiming eligibility for the $8,000 credit could jeopardize efforts to extend the program. As of the end of September, the IRS has frozen over 110,000 refunds pending civil or criminal examinations, identified 167 criminal schemes and commenced 115 criminal investigations

Real Estate Prescription???

Research Economist Dr. Jim Gaines discusses what it will take to recover from the recession, and Edie Craig gives us the scoop on big deals happening in small towns. Also, Cydney Donnell with Mays Business School talks about recent recognition for the school's Master of Real Estate program. (34 min. 2 sec.)

Fannie Mae Look-up Loan, tool

Find out if your home is owned by Fannie Mae. Thereafter, you can decide if you want to work-out a repayment plan, modify your loan, or apply for a "short sale" (loan exit option) often called "deed en lieu of foreclosure).

Did you say my HOUSE has to qualify for a loan?

When you sell your home, you know the Borrower must qualify for a loan with certain criteria. But did you know that your HOUSE must also qualify for a loan? The lender requires an appraisal of the property and that's what we call "qualifying" the property through an Appraisal.

A real estate Appraisal is not the same thing as a Comparative Market Analysis (CMA). A real estate Appraisal determines the market value of the property, which is an estimate of the sale price of the house. An Appraisal is mandatory when you are borrowing money from a lender to purchase a home. An Appraisal is done by a specially trained and experienced individual known as an appraiser.

On the other hand, a Comparative Market Analysis is used to determine a reasonable asking price based on the selling and listing prices of comparable real estate. This is conducted by the real estate agent listing the property. The sole purpose of a CMA is to help the real estate agent advise the sellers when trying to come up with an appropriate asking price. This is different from an appraisal because a Comparative Market Analysis helps determine the actual asking price, where as the appraisal reveals the property’s actual value. Appraisers usually use similar research on comparable properties as a factor in determining the property value.

Here are some myths and facts to help you lean more about the Appraisal of your Dallas real estate.

1. Myth: Some people may think that making sure the buyer does not overpay is the main goal of an appraisal.

Fact: People buying and selling real estate can gather resourceful information from an appraisal. However, the appraiser’s intended purpose is to provide protection for lenders. An Appraisal is required before the lender approves a buyer’s loan.

2. Myth: Appraisers determine the property value by multiplying the price per square foot by the square footage of the property.

Fact: Appraisers determine the value of Dallas real estate by other characteristics too. Things they take in to consideration include the location, proximity to desirable destinations, school districts, quality and condition of the property, selling prices of comparable real estate, and other relevant qualities.

3. Myth: Anyone involved in real estate could conduct Appraisals.

Fact: States regulate the requirements for Appraisals to obtain a license. Obtaining a license usually includes taking courses, passing an exam, and possible hours of experience.

4. Myth: There is never an obligation to educate buyers on problems with the home found by the appraiser.

Fact: The appraiser is required to notify buyers of problems when the buyer is applying for a mortgaged insured by the Federal Housing Administration. For other types of mortgages, the appraiser is not required to disclose potential defects.

5. Myth: If an Appraisal is done there is no need to obtain a home inspection on your Dallas real estate.

Fact: As mentioned earlier the purpose of the Appraisal is to protect the lender. This does more for the people selling the Dallas real estate. Where as, home inspections are meant to educate buyers on the state of the home and its major elements.

Get a no obligation Comparative Market Analysis on your Texas real estate by contacting Vanessa, today.

Tags: appraisal, Comparative Market Analysis, Dallas Real Estate
Posted in Fort Worth, Home Buyer, Home Seller, Real Estate, Tips for Buyers, Tips for Sellers

Make the right choice—

Make the Right Choice--Work with a REALTOR (r).

Sellers


REALTORS® provide sellers invaluable services, and there are many reasons to work with one. A REALTOR®:

• Can give you up-to-date information about the market, prices, financing, terms and conditions of competing properties.

• Will market your property to other real estate agents and to the public.

• Will know when, where and how to best market your property.

• Can help you objectively evaluate every buyer’s proposal without compromising your marketing position.

• Can help close the sale of your home.

Buyers

REALTORS® provide critical assistance with the home buying process. A REALTOR®:

• Has many resources to assist you in your home search.

• Can provide objective information about each property.

• Can help you negotiate.

• Can help you determine your buying power.

• Provides guidance during the evaluation of the property.

• Can guide you through the closing process and make sure everything flows together smoothly.

Shopping for a Mortgage?

Since FHA was created in 1934, it has helped more than 34 million families become homeowners, many by working with their REALTOR® to achieve their dream of homeownership. This brochure illustrates improvements in FHA programs that will benefit you. Many aspects of the FHA mortgage application process have been streamlined to make the process more userfriendly and efficient.

Email Vanessa for an electronic, PDF copy of this brochure.  It's free.

Having Trouble Paying Your Mortgage?

"If you are having trouble paying your mortgage for any reason,or expect problems, you should work with your loan servicer (the company that collects payments on your mortgage) or other experts to find a solution now. If you fall behind and don’t take action, the lender will foreclose on your home. If that happens, you may lose your home and all of the money you have already invested in it. The sooner you act, the better the chances you will avoid foreclosure.

The Center for Responsible Lending estimates that over 2 million American households with subprime mortgages have lost or will lose their homes by the end of 2009. Their neighbors will suffer financial losses, too, as these foreclosures cause nearby property values to drop by $356 billion."

Email Vanessa for a free electronic (PDF) copy of the NAR handout:   ARE YOU HAVING PROBLEMS PAYING YOUR MORTGAGE?  Learn How to Avoid Foreclosure and Keep Your Home.

Eight Ways to Get Your Finances in Order to Purchase a Home.

Eight Steps to Getting Your Finances in Order

1. Develop a family budget. Instead of budgeting what you’d like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.


2. Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 percent and 28 percent of income, you need to get the rest of installment debt—car loans, student loans, revolving balances on credit cards—down to between 8 percent and 10 percent of your total income.
3. Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. You’ll probably see some great ways to save.

4. Increase your income. It may be necessary to take on a second, part-time job to get your income at a high-enough level to qualify for the home you want.

5. Save for a downpayment. Although it’s possible to get a mortgage with only 5 percent down—or even less in some cases—you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20 percent downpayment.

6. Create a house fund. Don’t just plan on saving whatever’s left toward a downpayment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.

7. Keep your job. While you don’t need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.

8. Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all your other bills. Pay off the entire balance promptly.


Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®


Copyright 2005. All rights reserved. www.REALTOR.org/realtormag

Eight Ways to Improve Your Credit Report

8 Ways to Improve Your Credit

Credit scores, along with your overall income and debt, are a big factor in determining if you’ll qualify for a loan and what loan terms you’ll be able to qualify for.

1. Check for and correct errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.

2. Pay down credit card bills. If possible, pay off the entire balance every month. However, transferring credit card debt from one card to another could lower your score.

3. Don’t charge your credit cards to the maximum limit.

4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.

5. Don’t purchase big-ticket items for your new home on credit cards until after the loan is approved. The amounts will add to your debt.

6. Don’t open new credit card accounts before applying for a mortgage. Having too much available credit can lower your score.

7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.

8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.


This information is copyrighted by the Fannie Mae Foundation and is used with permission of


the Fannie Mae Foundation. To obtain a complete copy of the publication, “Knowing and


Understanding Your Credit,” visit http://www.homebuyingguide.org.

Foreclosure is NOT the Only Option

The Truth about Foreclosures

Fact:  You may not be able to finance another home for 5-7 years after a foreclosure.

Fact:  A foreclosure can decrease your credit score by 250-300 points, instantly.

Fact:  A foreclosure will remain as a public record on your credit report for 10 years or more.

Fact:  It can be difficult to rent after a foreclosure due to your lowered credit score.

Fact:  In many foreclosures, you will still owe the bank the difference between the amount of your loan balance and the amount the bank is able to sell your home for.  This is called a deficiency judgment.  You may receive an IRS-1099 for the deficiency.

Fact:  A foreclosure may keep you from getting a security clearance or may challenge a security clearance you already have which could cost you your job.

Fact:  Banks do NOT want to foreclose on you and prefer working with a REALTOR to pursue a deed en lieu of foreclosure, often called a "short sale."

Foreclosure is NOT the only option....I can help!

Call Vanessa today if you are facing foreclosure!
817-714-8634