With summer settling in early many in this home seller's market are getting a late start. Much of the reverberations of the fuel problems have many in holding patterns, both sellers and buyers. But with recent news of planned commercial real estate developments in Richardson and Garland, these are expected to fill quickly as some of the more competitive places for large businesses to consolidate in these tighter economic times. Of course, the benefits to the housing industry offer stronger market conditions, making now an ideal time to begin your moving plans.
As home prices in the Northeast Dallas metro area continue to stay strong, inventory of new homes has been reduced and will force prices continuously upward, despite some of the industry's foreclosure woes.
The mortgage industry is responding with competitive low-interest mortgages. The key to remember there is to not over-extend yourself so if a worse case scenario should arise down the road you won't feel the pinch as bad. Know your own budget carefully. One of the down-sides to the last few years' increase in foreclosures invariably arises from the fact that the qualifying percentages required for mortgages doesn't take into account today's consumer budget demands. For instance, 20 years ago it may have been appropriate to spend 30% on your home payment costs (mortgage,insurance,taxes)and the remaining 70% could cover all your other expenses. But now with added consumer "necessities" like Internet, cell phones, cable t.v., etc.; now about $200 - $250 additional dollars per month that wasn't the case 20 yrs. ago, it's increasingly difficult to follow simple percentages.
Carefully consider all of your monthly expenses, including savings and entertainment, then adjust where necessary to make sure you can meet your mortgage expenses as well as repairs and other maintenance in order to maintain the value in your home. This will provide you a stress-free outlook when you buy, never having to worry about what the economy might be doing when it's time to sell. Ideally 20% or more. At 20% you'll avoid costly mortgage insurance and see your investment grow quicker. If you don't have a lot of down payment funds, FHA has now made it easier than ever to use their low-down program.
Visit my website for mortgage calculators and other resources at www.GregFosterHomes.com.