The Bains

Your credit score can predict you behavior in paying your bills, including your house payment.  A person who pays his bills on time tends to that in the near-future.  That is the basis of credit scoring.  To lenders that is your likelihood of making on-time payments in the next 90 days, because after 90 days of nonpayment of your mortgage  you go into default.  Higher credit scores correlate with a lower default rise, which is why you can receive lower mortgage rates.  This applies to all types of loans and lender use the FICO Scoring Model EXCLUSIVELY.  3 main credit bureaus in the U. S.  are Equifax, Experian & TransUnion.  FICO named for Fair Isaac Corporation, invented in the 1950s & is mortgage industry standard for credit ratings.  This is akin to calling all adhesive bandages “Bank-Aids”.  FICO is a trade name & not a product.  With 20% down a FICO score of 740+ and no discount points required.  At 660-679 FICO 2.5 % discount points OR $2,500 per $100,000 borrowed.  This fee can be rolled into your loan.

Senate Bill 18 was passed by the recently adjourned Legislative session.  (1)  clarifies the definition of “public use” to more effectively constrain eminent domain to true public use.  (2)  requires state & local govenments, which seek to obtain private property, to make a written “good faith” offer to the landowner.  (3)  grants a “buy-back” to a landowner whose property is taken through eminent domain & not used for 10 years.  (4)  mandates the Condemnation Petition to state the public use purpose for the condemnation with a copy provided to the property owner.  The passage of Senate Bill 18 came after Texas voters overwhelmingly approved Proposition 11, which placed restrictions against eminent domain for economic development purposes in the Texas Constitution in 2009.

(1) TX leading nation in economic recovery.  (2) Texas’economy is big & getting bigger (almost as much GDP – gross domestic product – as Australia).  (3) Texas’ economy is profitable with GDP 2nd only to California & just passed NY.  (4) Texas’ population is growing & could be 12 million from 2010 to 2030.  (5)  Texas’ economy is international sending products to 25 countries with  Mexico receiving 34.4%.  (6)  Tax burden is less in TX with Texans accounting for 7.9% of state’s per capita income, compared with 9.8 for the nation.  (7)  TX has affordable housing with owner-occupied housing units having a value of $125,800 or 40th in the nation.  (8) Texans have entrepreneurial spirit.  (9) Texans are mobile & since there are no constrains by language & cultural we move around.

(1) ATTEND INSPECTIONS – the inspector can show you items that need repair & whether immediate or long term.  Some items like reversed hot & cold water faucets are minor, but major ones like a foundation problem can be major.  You can talk to the inspector.  (2) READ THE REPORT & DISCLOSURES – watch for repairs owner did himself, repeated repairs to the same home system, water & leakage issues & reports of non-functioning mechanical or other systems in the house.  Inspector can recommend another inspection of a system, so watch for this.  (3) GET MULTIPLE REPAIR BIDS – can serve as a negotiating item for a price reductions, etc.  (4)  STOP OVERCONFIDENCE IN ITS TRACTS – even if you are doing the work yourself, get bids in case you have to turn it over to a professional and (5)  PRIORITIZE PRICE REDUCTIONS & CREDITS OVER SELLER REPAIRS – you will probably do a better job, then the owner, so negotiate a repair allowance or reduction during the option.

The exhibit is open from now through October 23 and the “HOME OF TOMORROW” exhibits the latest technology in home automation, energy-efficient construction, appliances, design & imaginative outdoor environments.  Highlights include the Net-Zero Energy Homes, which demonstrated how a home can produce its own electricity & even sell excess electricity created within the home.  For those who like cozy spaces, the MICRO-HOME shows how a bedroom, family room, kitchen & bathroom can all fit within a space the size of a walk-in closet.  The exhibit is on the main gate plaza between the Women’s Museum and The Daughters of the American Revolution House.

Nationwide, closing costs have  jumped nearly 9% over the past year, according to Bankrate.com.  Average closing costs on a $200,000 mortgage are $4,070, up from $3,741.  New York has the highest at $6,183 followed by Texas at $4,944.  States with the cheapest costs are Arkansis, North Carollina dn Indiana – each averaging $3,400.   One of the reasons closing costs are higher in Texas is the Owner’s Title policy is higher than in some states, plus when you are looking at any property with land the survey will be more expensive and thee are still lots of those closings in Texas.

KNOW THE NUMBERS:  insurance, taxes, utilities, maintenance vary widely, so get estimates before you buy.  (2) pay attention to umemployment statistics.  High jobless rates can dampen housing price appreciation.  (3)  search CityData.com for financial and demographic information on various neighborhoods.  With INTEREST RATES AT AN ALL TIME LOW this is a good time to buy.  Yes, prices could DROP more, but very difficult to know the bottom.  A realestate rule of thumb holds that you should rent if the home price is greater than 15 times the annual cost to rent.  For a more precise answer, AARP’s interactive calculator at     aarp.org/rentorbuy      can compare the cost of buying and maintaining a homes with rental payments.  Get our your calculator so you can figure!

according to Tom Mullins, president/CEO of the Tyler Economic Development Council & Tyler Area Chamber of Commerce.  Our Smith County is one of the fastest-growing counties in East Texas, with 3,000 to 3,500 people moving here each year and Texas is growing more rapidly than any other, with an average of 1,000 new people becoming Texans every day.  Mullins said people usually don’t move unless they have jobs or businesses in the area.  Much growth in this area.  Unemployment in the Tyler area is averaging 8%, higher than Mullins wants it to be.    Still below the  state’s 8.7% andthe nations’s at 9.1%.  Tyler is regional retail hub.  Home sales have been down, but average price of homes has been up in the past 5 years.  Now the number of huses being solid trending up while HOME PRICES ARE DOWN.  People are more realistic about selling, if they need to sell.   Building permits are down.

In order to receive a homestead exemption for property tax purposes, applicants must now provide a copy of their Texas driver’s license or TX state-issued identification card & a copy of their vehicle registration receipt.  The addresses on these must  be the same address as the homestead exemption.  If no vehicle you are required to submit a notarized affidavit certifying that fact & provide a copy of a current utility company bill.  Again the address has to be the same as the property for the homestead exemption.  This applies to all exemptions:  over-65, disability, 100% disabled veteran, extension of exemption for a surviving spouse & exemption for a manufactured (mobile) home.  Documentation will need to be provided for these exemptions.     www.smithcad.org         will soon have these exemption forms on line.

Foreclosures in the U. S. made up about 1/3 of all homes sales April to June.  In a healthy market sales that is about 6 times the percentage of foreclosures.  Foreclosure sales would have been much higher if banks hadn’t slowed their foreclosure processes while state & federal officials continued to investigate possible faulty practices.  Foreclosure sales – which include homes purchases after they receive a notice of default OR already repossessed by lenders – peaked 2 years ago at 37.4% of sales in the U. S.  During the same period 2010, foreclosures are now down 11%.  Nevada has the highest with foreclosures totally 65% of all sales & Arizona next with 57%.  Foreclosed homes continue to sell for less than other homes or about 40% less than average price of other homes, BUT usually NOT IN AS GOOD CONDITION AS OTHER HOMES.  Sales of homes in the foreclosure process or short sales sold for 21% less than the average home sold.