Financing in Dallas>Question Details

Deborah Sweet, Home Buyer in Dallas, TX

What are the best mortgage rates and offers out there right now? My son is thinking of buying a home.

Asked by Deborah Sweet, Dallas, TX Sun Mar 3, 2013

He owns his own business, has taxes and all up to date. Preference is the Lakewood area.

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Bill Merritt’s answer
Kim Nwachukwu gave you some very accurate informaiton. As a lender, I disagree with Jules Jacquart on doing an FHA loan, unless it's the only option for your son. Yes, the rate is great, however, with the mortgage insurance that is now being required, and soon to be higher, on FHA loans, a 3.250% is attractive, but the "effective" rate is closer to 5.00%. There are some advantages of doing an FHA loan, for instance, all of the funds, including the down payment can be gifted in the event you wish to help your son with the money to get into the house.

He needs to explore all of his options. One of them MAY be, if he is a First Time Home Buyer, a program that BBVA Compass offers that, to be honest, most Realtors don't even know about. If your son has credit scores over 680, the program is 5% Down Payment, NO PMI (mortgage insurance), a maximum loan amount of $417,000, and even though we collect an extra 3 months of taxes and insurance to guard against an escrow shortgage at the end of the year, the first payment isn't due for 4 months after the loan closes. In other words, if he closes on the property in April, his first payment isn't due until September 1. This gives him a lot of time to not have a rent or mortgage payment.

On top of all the advantages I just listed, just like an FHA loan, all of the funds for closing, INCLUDING the DOWN PAYMENT can be gifted by a relative. The rate is not that much higher than most 30 yr. fixed rates today, but, yes, it is a little higher, but the monthly payment is a LOT less than what he would be paying if he did an FHA loan. Trust me, I used to love the FHA loan, even bought my first house on one. But it is not the great loan today that it used to be. After analyzing the borrower's situation, I always present it, however, I haven't done one in over a year. There are better options in most cases.

Feel free to contact me at 972-705-2806 if you would like further information. And for all of you Realtors reading this, please give your first time buyers a different alternative than the FHA loan. I think once they compare the 2 programs, they will thank you for knowing about our loan. Ask your current lender if they will allow the 5% down payment to be gifted and then not make a mortgage payment for 4 months. I don't think they will be able to match it.
2 votes Thank Flag Link Sun Mar 3, 2013
No one "should" quote you a mortgage rate without knowing exactly what your specific situation is. Unfortunately, people will probably do it anyway and potentially mislead/confuse you.

Interest rates are not one size fits all. There are so many factors that go into arriving at a rate that to quote one with no information at all would be like diagnosing someone with cancer by looking at their picture.

I suggest you have him take his taxes and other financials to a qualified loan originator in your area and see what is available for his specific situation.

Some questions here on Trulia can and should be answered, others cannot and should not.
2 votes Thank Flag Link Sun Mar 3, 2013
The actual rate depends on a lot of things.
1. The market that day
2. Credit score
3. Down payment
4. Level of closing costs(higher rate = lower fees and vice versa)

The answers below are within the current range.


Tom Burris
Mortgage Banker
http://www.servicefirstmckinney.com/
(214) 763-4629 cell/text/nights/weekends(Really!!)
tburris@servicefirstmtg.com
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes Thank Flag Link Mon Mar 4, 2013
Hi Deborah,

The rate average from 3-3.75% with 5% down.

I am a lakewood resident and I would be happy to help you and your son find a home.

You can visit my website at http://www.findyourtexashome.com/lakewood for homes in the area.

Thanks

Dixon
Realtor
http://www.findyourtexashome.com
0 votes Thank Flag Link Mon Mar 4, 2013
Somewhere in the 3%-4% range....so that's with the best credit scores and cash for a down payment. The best thing to do is start with someone like Bill. Let him get your son prequalified for a loan. Then he can get exactly an idea of rates, down payment, closing costs, monthly payment, etc.

Most lenders in town can loan in any other part of town.

Prices are starting to go back up again and interest rates are still great even though they've gone up a bit.....now is a great time to buy.
0 votes Thank Flag Link Sun Mar 3, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
FHAs rates are very,very competitive right now! Preston Hollow Financial Services has excellent rates, low to no fees and the broker is availabe 7 days a week from 8 am to 10pm.

http://www.phfsi.com
214-729-7379
Dave Jacquart
0 votes Thank Flag Link Sun Mar 3, 2013
I agree, it's best to contact some lenders as a first step!
0 votes Thank Flag Link Sun Mar 3, 2013
Chris Boyington Said:
"Please do not contact lenders that only offer "internet business", such as Lending Tree or Trulia."
---
Neither Lending Tree nor Trulia are lenders. Lending Tree merely puts you in contact with lenders who have paid the required amount to be listed. Lending Tree is a lead generation site for loan originators. Trulia merely lists loan officers and Realtors; they do not lend.

I find it ironic and hypocritical that Chris would call out "internet" companies and Trulia specifically as where not to find a lender when he himself has a profile listed, is answering questions here and has no problem posting his contact information along with his "advice" to contact a Realtor.

My advice would be to not contact a Realtor you find on Trulia if they are hypocrites.
0 votes Thank Flag Link Sun Mar 3, 2013
Not everyone with a website is an "internet" lender. Everyone is local to somewhere. I personally don't like the Lending Tree model and probably agree with you about Quicken, but for different reasons. An internet model is fine, its just the lack of education and accountability of the loan officers that is my issue. I too stand by my statement that it's hypocritical to say not to use an online lender but to advertise your services online.
Flag Sun Mar 3, 2013
I did mistakenly name Trulia--I meant to name Quicken Loans--I use them as an example only. Most buyers do not know what Lending Tree actually does; while their service is worthwhile, I stand by my opinion, that a local lender is best suited for buyers. I only state my opinion because I believe my sole job to a client to too look out for their best interests' only.
Flag Sun Mar 3, 2013
The best advice that I can you is to contact a Realtor and we can assist you and your son with getting together with a reputable lender. Please do not contact lenders that only offer "internet business", such as Lending Tree or Trulia. A local lender is best for many, many reasons.

By the way, I just sold another home in the Lakewood area over the weekend.

Chris Boyington
214-598-0221
Prudential Texas Properties
chris.boy@prutexas.com
0 votes Thank Flag Link Sun Mar 3, 2013
I would feel honored to assist your son with mortgage / home search. Interest rates are based on credit scores , downpayment, and cost of the home

Dallas homes for sale Dallas Tx - website updated daily
http://www.lynn911.com/Web/AR287090/CustomContent/index/5055822

Contact my office today where I can show your son many amazing homes work with his family specifications.

Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer
972-699-9111
http://www.lynn911.com

Follow me on Facebook
http://www.facebook.com/lynn911dallas
0 votes Thank Flag Link Sun Mar 3, 2013
Hi Deborah, have your son contact a lender as rates will vary based on several factors. I work with several exceptional Mortgage Lenders that I'd be happy to recommend. Darlene
0 votes Thank Flag Link Sun Mar 3, 2013
It all depends on the type of loan, amount of down payment, debt to income ratio, other credit worthiness and several other factors. His best bet is to talk with a good loan officer - you will probably get several answers here from loan officers, and they'll all need to talk with him, not with you, before that question can be answered. Buying a home is exciting and he will find lots of good people to help him!
0 votes Thank Flag Link Sun Mar 3, 2013
Call any lender of your choice locally and get hard free answers.

Kenny
Turtle Creek Realty
0 votes Thank Flag Link Sun Mar 3, 2013
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