Blog

Over Half of All Buyers Are Surprised by Closing Costs
By Michael
March 1, 2017

Over Half of All Buyers Are Surprised by Closing Costs | Simplifying The Market

Over Half of All Buyers Are Surprised by Closing Costs

According to a recent survey conducted by ClosingCorp, over half of all homebuyers are surprised by the closing costs required to obtain their mortgage.

After surveying 1,000 first-time and repeat homebuyers, the results revealed that 17% of homebuyers were surprised that closing costs were required at all, while another 35% were stunned by how much higher the fees were than expected.

“Homebuyers reported being most surprised by mortgage insurance, followed by bank fees and points, taxes, title insurance and appraisal fees.”

Bankrate.com recently gathered closing cost data from lenders in every state and Washington, D.C. to be able to share the average costs in each state. The map below was created using the closing costs on a $200,000 mortgage with a 20% down payment.

Over Half of All Buyers Are Surprised by Closing Costs | Simplifying The Market

Keep in mind that if you are in the market for a home above this price range. your costs could be significantly more. According to Freddie Mac,

“Closing costs are typically between 2 and 5% of your purchase price.”

Bottom Line

Speak with your lender and agent early and often to determine how much you’ll be responsible for at closing. I am happy to provide my clients with an estimate of those costs as part of the decision on what offer to make.  Finding out that you’ll need to come up with thousands of dollars right before closing is not a surprise anyone ever wants to hear  What are some of the typical costs?  Here'a a list of some common items.

  • TItle Company Fees
  • Homeowners TItle Policy
  • Lenders Title Policy
  • Inspection Fee
  • Appraisal fee
  • Down payment
  • Escrow Funding for Taxes and Insurance
  • Document Filing Fees for Deed and Government Recording
  • A fee for an attorney to review the transaction for the title company.

Some of these costs can be reduced to the buyer depending on the price of the home and the current market.  If you are working with an agent, you have the right to insist on an estimate of closing costs BEFORE you make an offer.  Your lender is required to do another as part of the process when you apply for the mortgage.

Have a question about closing costs or fees?   Check out the information on this website under the buyer's tab or send me a message.  If you have the informtion before you make an offer, your agent can help make sure that you have no unpleasant closing surprises!

Spring Home Buyers Gude
By Michael
March 1, 2017

Spring is the peak buying season in Fort Worth, Keller, Saginaw, Roanoke, Watauga and all of the North Texas Marketplace.   With competition the competition among buyers, it's important that you know the most effective ways to shop for a home and and how to make an offer that will get accepted!   You'll find good information to get you started in my Spring Home Buyer's Guide.   You can download it here!   BuyingaHomeSpring2017.pdf


 

Spring Seller's Guide
By Michael
March 1, 2017

Thinking of selling your home?   Spring and Summer are the peak buying season for homes in Fort Worth, Keller, Saginaw, Roanoke and all of North Texas.   I've put together some good, basic information to help you get the most for your home.   Download my free Spring Seller's Guide.  Just click here:  SellingYourHouseSpring2017.pdf


 

Ready, Set, SELL!
By Michael
March 9, 2017

Thinking of Selling? Do it TODAY!! | Simplifying The Market

Thinking of Selling? Do it TODAY!!

That headline might be a little aggressive. However, as the data on the 2017 housing market begins to roll in, we can definitely say one thing: If you are considering selling, IT IS TIME TO LIST YOUR HOME!

The February numbers are not in yet, but the January numbers were sensational. Lawrence Yun, Chief Economist for the National Association of Realtors, said:

“Much of the country saw robust sales activity last month as strong hiring and improved consumer confidence at the end of last year appear to have sparked considerable interest in buying a home. Market challenges remain, but the housing market is off to a prosperous start as homebuyers staved off inventory levels that are far from adequate…”

And CNBC says consumer confidence in the economy is fueling the market:

“U.S. home resales surged to a 10-year high in January as buyers shrugged off higher prices and mortgage rates, a sign of growing confidence in the economy.”

The only challenge to the market is a severe lack of inventory. A balanced market would have a full six-month supply of homes for sale. Currently, there is less than a four-month supply of inventory. This represents a decrease in supply of 7.1% from the same time last year.

Bottom Line

With demand increasing and supply dropping, this may be the perfect time to get the best price for your home. Let’s get together and discuss the inventory levels in your neighborhood to determine your next steps.

 

 

Mortgage Interest Rates Went Up Again… Should I Wait to Buy? Tuesday March 14th, 2017
By Michael
March 14, 2017

 Tuesday March 14th, 2017  

Mortgage interest rates, as reported by Freddie Mac, have increased over the last several weeksFreddie Mac, along with Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors, is calling for mortgage rates to continue to rise over the next four quarters.

This has caused some purchasers to lament the fact they may no longer be able to get a rate below 4%. However, we must realize that current rates are still at historic lows.

Here is a chart showing the average mortgage interest rate over the last several decades.

Mortgage Interest Rates Went Up Again… Should I Wait to Buy? | Simplifying The Market

Bottom Line

Though you may have missed getting the lowest mortgage rate ever offered, you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago.