Tips For First-Time Home Buyers

The process of buying your first home can be overwhelming and challenging at the same time. There are so many things that you need to keep in mind while purchasing a new home. However, if you’re aware of all the challenges and take precautionary measures accordingly, you will be able to buy your first home with ease. Dallas, TX real estate has a lot of homes listed currently and we have put together some great home buying tips for first-time homebuyers to help make your experience as smooth as possible.

Research is the key to home buying

Before you take the plunge and try to buy a home, make sure you do your research. This is especially critical if you’re buying your first home. You need to make sure you know what you’re getting into. This can help you avoid a lot of headaches down the road. You need to understand how the real estate process works. You also need to understand how much different types of properties are going for in your area. The more you know ahead of time, the smoother the process will go. Connecting with a knowledgable real estate agent will drastically increase your understanding of the process. We recommend you always have an agent at your disposal.

Know your mortgage options

When you’re trying to buy a home, you have to get pre-approved for a mortgage. This is the only way, to know, for sure how much money you’ll be able to borrow. This is also the time to shop around for a mortgage lender. You might be able to get a better interest rate from one lender than another. And, you could save thousands of dollars in interest over the life of the loan. You can also shop around and see if any of your friends or family members have recommendations for mortgage lenders they’ve had success with. That can give you a leg up in the process. At MTX Realty we recommend you speak to a few different lenders. Below are some preferred Lenders we Trust and our clients have had a great experience with.

• Service First Mortgage
  • Natalee Davenport
  • (972) 523-3564
  • https://sfmc.com/teamdavenport/
• Fit Lending
  • Jennifer Garland 
  • (214) 422-0029
  • https://www.fitlending.com/team/jennifer-garland/

Get pre-approved for a mortgage

Once you’ve gotten pre-approved, you’ll know exactly how much money you can borrow. You can then use that figure to help determine how much house you can afford to buy. Many experts recommend that homebuyers only spend up to a maximum of 28% of their gross monthly income on their mortgage payment. So, if you make $5,000 a month, you should be looking at homes that cost no more than $1,500 a month in mortgage payments. If you can’t make that work, try and saving a little more for the downpayment or ask the lender about buying your interest rate down. This will decrease the monthly obligation.

Find the property that fits your needs

Once you’ve found a few properties that fit your needs, it’s time to make an offer on the one you want. You don’t want to be overly aggressive when making an offer. You just want to make an offer that the seller will accept and the market will support. Remember, the seller wants to sell their home as much as you would like to purchase it. So, you need to be conservative with your offer. Remember, if the seller accepts your offer, then you have a binding contract on the house. That means that both you and the seller are obligated to go through with the sale. If you back out, you have broken a contract and could be sued for breach of contract. The seller could go after the money that they lost because of the broken contract. This is simplified version of how the contract works but your real estate agent will of course review all of the contractual items and ensure you understand the process.

Don’t forget about the little things

Make sure you’re taking care of all the little things before closing on the property. You want to make sure you’ve got homeowners insurance in place. You also want to have set up all utilities before the move in date. Remember, every city is different and sometimes water companies require certain documentation before the water can be turned on. The last thing you need is to get moved in and have to wait a few days before you have water or electricity. Don't forget to forward your mail and call everyone you do business with to change your address to the new home. The most important item, ensure you get a final walkthrough before closing on the property and address any issues.

Summing Up

Buying a home is a huge step, but it’s also a really exciting one! You’re taking a big step towards financial freedom. When you buy a home, you’re making a big investment in the future. You’re also taking a big step towards financial independence and being able to live on your own. There are a lot of things to keep in mind when buying a home for the first time, but there are also plenty of tips and tricks to help you along the way. The more you know ahead of time, the smoother the process will go. Reach out to one of MTX Realty's Agents and they will be more than happy to walk you through the process!

Real Estate & Mortgage Outlook in Dallas, TX

 

Home prices in Dallas and the other Parts of North Texas haven't shown any sign of a substantial deterioration, as the median price was $384,000 in September 2022. This is a definite increase from the previous year. The rental market, growing incomes, and low unemployment are helping to prevent the market from becoming overheated.

The demand for rental property in Dallas is rising for several reasons, including a large population of millennials, in-bound population growth and a thriving job market.

There is no denying that Dallas is one of the most talked about metropolitan areas in Texas, if not the whole United States. Because of its popularity and rapid expansion, it is an attractive, liquid real estate environment for investors and a significant destination for out of state company relocation.

The rise in population

The Dallas-Fort Worth area has risen to become the country's fourth largest metropolitan region. The Metroplex has attracted many Large Cap Corporations resulting in a solid population increase. Goldman Sachs, Charles Schwab and Astura Medical are among a few of those who have moved their Corporate Headquarters to Dallas and more will follow, bringing tens of thousands of employees to the area. The population growth in the Metroplex is set to explode over the next five years.

The real estate market will turn out to be much better than you think in Dallas

We should see a rise in home prices starting in Q2 of 2023 as a result of the increase in population and strong employment outlook. We are not in a housing bubble and the economic foundation that was responsible for the 2008 economic downturn no longer exists. Homeowners are not desperate to sell their properties so they won't sacrafice large amounts of equity to do so. As supply dwindles and the population grows home prices will increase over the long term. A slight drop in home prices, followed by a steady rise, is expected over the next few years.

What to expect with Mortgage Rates

There are many people who missed the opportunity to purchase when rates were historically low. It's difficult to convince the masses that rates have normalized and statistically should not fall below 3% again. Decreasing inflation will drive rates down over the next 2-3 years, but will remain flat over the next few quarters. You must consider the big picture when purchasing for the long term and if you are able to arrange your mortgage properly, this is the perfect time to purchase.

MTX Realty has lending partners who cut 3% off the current rate for s specific amount of time and offer a no cost refi for up to three years. It's the MTX Realty Texas Two Step and helps you purchase now, before proces take that next big step up. It never hurts to speak with a mortgage professional to get clarity on all of the options and hedge against interest rate fluxuations. Check out the link below and see how a mortgage professional can help determine the best path for your financing options.

• Service First Mortgage
  • https://sfmc.com/teamdavenport/

Big picture

If you are on the fence of whether or not to purchase real estate in Dallas, TX you should consider the financial growth potential for the area and understand this is not 2008. With the population steadily rising in the Metroplex, low unemployment and the influx of may Large Cap Corporations, home prices are set to increase over the next few years. You can lower the initial few years on your mortgage rate and refinance for up to three years, which is ideal if planning on staying in the area for a while. It's very difficult to pick a bottom, those who try statistically miss the best opportunities.

MTX Realty is eager to discuss your future plans and devise a winning strategy to protect you from market fluctuations and help you achieve your goals in Dallss, TX real estate.

Advantages of Buying New Construction

 

A lot of people prefer new construction homes for a variety of reasons. They provide buyers with the chance to design their ideal living environment, from floor plan designs to building materials. These include everything from extra energy-efficient HVAC systems, custom cabinets, doors and windows.

 

Constructing a new home is exciting and here is what you will have to look forward to when making the decision to purchase and go through the building process. Let's take a look at some of the advantages you can expect.

 

Make it unique & special.

When building new construction, customizing your new home is one of the most exciting parts. Having a custom, tailored home allows builders to display their creative talent and craftsmanship. Expressing yourself with materials that reflect your tastes, preferences, and personalities is also an option.

 

When you purchase an existing home, you cannot alter the layout of the house. At best, you can remodel and replace the old fixtures and finishes. If personalizing your next home is at the top of your wish list, a customized new home may appeal to you.

 

Being new it's very clean.

Want to ensure your health and the health of your family? New houses are the best option for clean living. Knowing that no one has ever lived in a new home is a great feeling. All the newest materials and sealants are used in new houses, making it impossible to find a cleaner alternative. Overall, living in a brand new house that no one has ever lived in will prevent you from having to deal with any unpleasant surprises when purchasing an older house that has already been lived in.

 

It's not necessary to update.

When you purchase a new and improved masterpiece, there is no need for updating because the products used are drawn from current design trends. An existing resale home, on the other hand, is not necessarily a blank canvas.

 

A prospective homeowner who purchases an existing resale house may discover that the previous owners selected colors or flooring patterns decades ago, leaving them with the desire to alter certain features. When you create a new home from scratch, you have the opportunity to make a variety of design choices, which is a significant advantage to purchasing a new house rather than an existing one.

 

Saving energy

New, energy-efficient houses being built today can make everyday living much more manageable. Utility costs are on the rise in 2022. Because new construction is more energy-efficient, utility costs are lower than average and thus cause homeowners to worry less about their electricity and gas bills every month.

 

The new construction houses are so energy-efficient for several reasons, including vinyl windows, new door trim and seals, and improved insulation between walls to prevent drafts. These goods may significantly reduce the need to heat and cool your home. If you are looking towards a prebuilt home due to a lower price point remember the energy savings of a new construction home.

 

Lower upkeep costs

New homes require less maintenance than older existing ones. You won’t have to worry about your roof leaking when it rains or your air conditioner breaking during the hottest months of the year. You can enjoy all the benefits of living in a new home without having to deal with maintenance issues. When things break down, they are often covered by a builder's warranty, which we will discuss next.

 

It's a smart idea to get a third-party home inspection on a new construction home, even though everything is brand new. Most people only get home inspections on pre-existing homes. After the cost of construction, who wants to pay for a home inspection? In reality, a home inspection costs around $350 to $500. It may save you up to ten times as much if anything is found to be defective.

 

Builder provided warranty.

Builders typically provide warranties with their housing that are not available on new residences. Even if you could buy a home warranty later, it would not cover as many items as your homeowner's insurance. A builder's warranty goes beyond everything that your homeowner's insurance covers.

 

Home builders typically provide coverage for any problems with the house for the first two years after purchase. Since new houses are being built in their area, they can be fixed right away. I was very pleased with the warrant of my new construction home. It was much less difficult than dealing with a home warranty or an homeowners insurance claim.

 

Warranty quality differs enormously between builders. You can check the Better Business Bureau (BBB) website for reviews on the builder you want to hire or ask around your neighborhood for more information.

 

The incentives home builders provide.

Homebuilders frequently offer in-house financing that competes with most 3rd party mortgage firms. For example, they may give you $5,000 off your closing costs by using their financing. Since they are already profiting from your house purchase, they have the extra margin to offer financing incentives that external sources cannot.

 

It is sensible to shop around to make sure you're getting the best mortgage offer. With all of that said, builder incentives may change as the market switches from a seller to a buyer's market. Currently, builder in the Dallas, TX area are offering steep incentives to move inventory.

 

It's time to draw a conclusion.

It's crucial to make the right investment when purchasing a new construction home, which is one of the biggest investments you will ever make. Having the ability to shape your vision for your ideal home when buying a new construction home is one of the biggest upsides for purchasing new construction.

 

Architects and interior designers have created a wide range of floor plans for you to choose from. You can also design your own house, adding custom cabinets or countertops, hardwood floors in every room, or even an extra bedroom if your family is growing and there isn’t enough space.

 

Having gone through the list above, you should now have a good idea of whether building a new home is a good choice for you, or not. Working with a real estate agent will help you get the best results. Because of their experience and knowledge, they will help you through the process and keep you from getting confused as you construct your new home.

If you would like to speak with a real estate professional in the Dallas, Tx area about all the new build communities and current incentives please click on the floating button that reads "How Can We Help." We would love to review all options and answer any questions.