Home Buying in Garland>Question Details

Vince, Home Buyer in Mesquite, TX

This is an inquiry about MLS #11174663.

Asked by Vince, Mesquite, TX Wed Nov 18, 2009

The property *seems* to be well kept and I'm looking for something that's move-in ready. Based on a $5000 down payment, a fixed 5% rate and a credit score above 700, several calculators (here and at closing.com) have determined that monthly payments (including estimations for taxes and PMI/homeowner's insurance) could be anywhere between $480-580. Does this sound accurate?

The yearly property tax should amount to around $600 based on the asking price according to: http://www.ci.garland.tx.us/Home/Departments/City Administration/Financial Services/Tax/T06 Tax Rate Information_Tax landing.htm

Closing costs (according to closing.com) are calculated to be on what seems to be the high side (over $12,000, including a home inspection). From what I understand, one can borrow against the first home home buyer tax credit to help pay for said costs.

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Hi Vince,
The online calculators give you a "pretty good" idea of what the costs will be but the good faith estimate that you get from your lender will be far more accurate. Also, we as agents can help you estimate all of the costs better but like I said, the most accurate picture comes from the lender. Also, this property is in dallas county so go to their web site to get all of the property tax info: http://www.dallascad.org/ As far as borrowing against the credit, I think what you're referring to is with FHA financing you may be able to get a "bridge loan" that does that very thing. Talk with your lender about this option though and it's only for FHA financing. Check out my site for more info: http://www.homebuyertaxcreditsite.com/
0 votes Thank Flag Link Wed Nov 18, 2009
Vince, the tax rate for Garland is 2.52 and it's based on the tax assessed value not the market value or appraised value of the home. Whenever you find a house, you can look up the taxes on the appraisal district by address at http://www.dcad.org so for the annual taxes to be $600, the sales price of the home would have to be about 24K.

At this time you cannot borrow against the tax credit or do a a bridge loan. The deadline was in September when the credit was expiring in November. Now that's it's been extended, they haven't announced yet if doing a bridge loan is going to be a possibility.

Closing costs can be negotiated with the seller to ask them to pay for most of them. I wouldn't let that stop you.

Zestimates don't work in Texas because Texas is a non-disclosure state. They are more mis-stimates than anything else. Please don't use that site for valuation purposes at all.

Have you considered Rowlett, Sachse and Wylie? They are all close to Garland and have Verizon Fios.

Naima
214-289-8555
Naima@Sumner-Realty.com
Naima
Web Reference: http://www.SumnerRealty.com
1 vote Thank Flag Link Wed Nov 18, 2009
Based on your last comment here is a direct link save you time when searching for a home
http://sites.google.com/site/dallasbankforeclosureslistings/…

Are you qualified for a loan? With any sales offer you must submit with lender approval letter those statements are valid for 60 days, if exceeds that time additional letter updates required.

Interest rate, PMI, insurance, tax, closing costs, all come into play determine many factors on what you can afford.

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0 votes Thank Flag Link Fri Nov 27, 2009
Hey Vince,
Any of us would be more than happy to assist you directly. Since you're buying, you wouldn't have to worry about paying realtor commissions - the seller pays the commission. You'll have to contact one of us as we don't have access to your info through Zillow. That way we'll be able to answer all of your questions, send you any info you need, show you houses you like, etc. I would suggest picking a few agents and talking to them initially to get a "feel" for them and then determine which one you want to work with. Best of luck!
0 votes Thank Flag Link Thu Nov 19, 2009
2.52?! That explains my initially failed calculations and knocks me down in the affordability realm a bit more. Rowlett, Sachse and Wylie are not *completely* out of the question but I was trying to keep within the proximity of Mesquite for familial reasons. Something in the 75043 zip would be the ultimate.
0 votes Thank Flag Link Thu Nov 19, 2009
That's what I figured and it's interesting because if I myself attempt to calculate taxes due based on the estimated value of the property (Zestimate of $87,500 multiplied by tax rate of 0.007046), I get a mere $616.53, a 66% reduction! I'm clearly doing it wrong. :)
0 votes Thank Flag Link Wed Nov 18, 2009
All these sites will show is either an estimate of taxes or they're just pulling in publicly available data. $1963 for the property you mentioned is the tax amount due for year 2009 according to the county but can't really answer on behalf of trulia or the other sites as far as what they're basing their figure on (even though it appears to be the public data in this case).
0 votes Thank Flag Link Wed Nov 18, 2009
Appreciate all the immediate responses...I'll have to get in touch with one of you helpful people if I can find the wherewithal to see this through. :) One other question, I noticed Trulia doesn't have an entry for "taxes" on the individual property pages but some sites do have a figure there. Does that figure represent the present-year tax dues? For instance, I'm seeing $1963 for MLS #11298880...
0 votes Thank Flag Link Wed Nov 18, 2009
And before anyone corrects me, the county sites show the date the deed was recorded so it may not necessarily be the sale date :-) Regardless, we have access to the actual sold date via the MLS....
0 votes Thank Flag Link Wed Nov 18, 2009
Hey Vince,
Any of us (agents) can set you up to be able to view MLS listings and if there's any that you like and save as a "favorite", then it will update you if the property is no longer available (i.e. sold or taken off market). You can also look at the county tax record sites (like the one I posted below) and they'll show when properties are sold but it may take several days before the records are updated online.
0 votes Thank Flag Link Wed Nov 18, 2009
Drat, I didn't see an obvious *sold* notice. ;) I was looking to move to a Verizon area (FIOS) and Garland is the closest and most affordable. How can you tell when a property has been sold?
0 votes Thank Flag Link Wed Nov 18, 2009
Also on borrowing against your tax credit per my knowledge there are no programs like that at this time. There was but that quickly filled up and stopped taking new applications
Web Reference: http://www.findapadfast.com
0 votes Thank Flag Link Wed Nov 18, 2009
After checking the listing that one appears to have sold on 11/13/2009. As far as closing costs on that size proeprty 12k sounds quite extreme. In my opinion closing costs should not exceed 6% of the sales price at that price point. Unless for some reason the prepays or escrow fees need to be higher.

On a property that is this much with good credit I dont see how you would need anymore than $9000 to close if you paid all your closings costs. If you would like help looking for a home in Mesquite I would be happy to help. I have lived next door in Forney for the majority of my life and know and have worked in Mesquite as well.

I can keep you updated with properties and let you know when they are and are not available, show you all the properties and help you negotiate the sale. As an added bonus I give 20% of my commission back to you at closing. Its not a lot but after you have seen how I handle my clients it will just be a nice bonus.

Please dont hesitate to call me directly at 214-682-0598.

Thanks
RJ
Web Reference: http://www.findapadfast.com
0 votes Thank Flag Link Wed Nov 18, 2009
Okay, the link below shows the 2009 tax rate for Garland as being the same as listed at ci.garland.tx.us, which helps to clear up some confusion (though closing.com seems to overestimate tax values).
0 votes Thank Flag Link Wed Nov 18, 2009
Thank you both.

To be honest, I'm more in the preliminary phase and do not currently have the full amount for down payment/closing. FICO's good (at least according to Experian) but debt-to-income ratio is not as hot, which is why I went for the smaller property. I had actually read a response from an agent on here about lenders providing the option of foregoing closing costs by borrowing against the $8000/10% tax credit (it sounds like the bridge loan you referenced, Jerry). Based on the 5% average Nicole mentioned, it looks like I would need at *least* $9000 ($5000 down payment plus 5% of the theoretical final value of the property).
0 votes Thank Flag Link Wed Nov 18, 2009
No, you can not borrow against the tax payer credit. Closing costs are traditionally 3-5% depending on loan type and Fico score, debt to income ratio. Are you using a Realtor? Your Realtor walks you through all of these details. If not, I'd be happy to start you through the process.

Nicole Arenas
0 votes Thank Flag Link Wed Nov 18, 2009
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