Let’s Talk DFW Real Estate!

Move from renter to homeowner.

The time is here and you want to buy a home. There are so many people who are excited from moving from renter to homeowner throughout every year. However, with the Dallas-Fort Worth metroplex growing each and everyday, how do you decide on where to live?

For some people, the close proximity to work is important. For others, the close proximity to things outside of work is more important. I’ve actually had clients that had to live near Target. As a Target fanatic myself, I couldn’t blame them. After searching any and everywhere, they gave up the dream to buy a home near a Target. However, guess what? We found them a home in their price range ACROSS from a Target. LOOK AT GOD!

Now let’s talk a little more in depth on where to go. Many times we love where we rent or we hate it. Do you know the cost of homes where you live? Here is the chance to see where you can buy. One rule of thumb I tend to tell people is that you can either afford 2 times your monthly salary or four times your monthly salary. Why so? Well, when you purchase a home, a lender qualifies you based on your debt to income ratio.

Debt to Income Ratio

debt-to-income, or DTI, ratio is derived by dividing your monthlydebt payments by your monthly gross income. The ratio is expressed as a percentage, and lenders use it to determine how well you manage monthly debts — and if you can afford to repay a loan.

Here’s a simple two-step formula for calculating your DTI ratio.

  1. Add up all of your monthly debts. These payments may include:
    • Monthly mortgage or rent payment
    • Minimum credit card payments
    • Auto, student or personal loan payments
    • Monthly alimony or child support payments
    • Any other debt payments that show on your credit report
  2. Divide the sum of your monthly debts by your monthly gross income (your take-home pay before taxes and other monthly deductions).
  3. Convert the figure into a percentage and that is your DTI ratio.

Keep in mind that other monthly bills and financial obligations — utilities, groceries, insurance premiums, healthcare expenses, daycare, etc. — are not part of this calculation. Your lender isn’t going to factor these budget items into their decision on how much money to lend you. Keep in mind that just because you qualify for a $300,000 mortgage, that doesn’t mean you can actually afford the monthly payment that comes with it when considering your entire budget. – Excerpted from Bankrate.com

Your debt to income ratio (DTI) will determine which loan program makes sense for you as well. If you have a higher DTI, you may work best with a FHA loan as they have higher DTI qualifications up to 56.9%. If you are at 50% or below, you may qualify to do a conventional loan. If your DTI, exceeds any of these numbers, you may be asked to pay off some things to get where you need to be to get qualified.

Mortgages are NOT like rental qualifications. Rental qualifications are based on your monthly gross income being 3 times the monthly rent. A mortgage lender looks at ALL of your debt reported on your credit report. Let’s use an example for DTI qualifications.

EXAMPLE:

Gross Income – $48,000 salary = $4000 per month

Debt: Car Note – $350; Student Loans – $200, Credit Card 1 – $55; Credit Card 2 – $75; Personal Loan – $100. These are all based on monhtly payments NOT the overall payment. The total debt in this situation is $780/month. Now let’s say that the mortgage payment on said home would be $1800. That would bring your total monthly debt up to $2580. Would the lender qualify you for that home? Well, let’s see. Divide $2580/4000. That equals 65% of debt to income. Now, the lender may not qualify you for a home that would cost $1800/month. However, you may can get qualified for a home that cost $1450/month. Want to spend a little more? Your next option would be to eliminate some of the debt. In this example, to get the home that cost $1800, you’d need to eliminate $350 of debt. Where would that be from?

I tell clients that the way they could afford more house would be to either eliminate some debt, increase income, put down more money on the home, or all of the above.

Cost of Homes in DFW

As you can see, the average price of homes in DFW have increased 2.9% from May 2018 to May 2019 to $330,766. This isn’t to say that all homes in DFW are $330,766 but on average the home sales are.

How do you find which areas fit more of your budget? Consider the average sales prices of area. Let’s break it down within counties.

Some of the top places that my clients are moving to are the following: Aubrey, Forney/Heartland, Celina, and McKinney. Check out the prices of those areas below:

Buyer’s Market or Seller’s Market

The month’s of inventory determine whether we are in a buyer’s market or a seller’s market. If there is 6 months of more of inventory, we are in a buyer’s market. That means there is a home out there for at least two buyers. Homes aren’t scarce and the options are there. If we have less than 6 months of inventory, we are in a seller’s market. That means inventory is tight and you are more than likely to see multiple offers.

If we go back and compare those cities that we just looked at (Aubrey, Celina, McKinney, and Forney), you will see what type of market these areas are in. Each city will have different stats which is why it is best to get very specific on 3-4 areas.

If we look at DFW as a whole, you will see that the overall metroplex is still in a seller’s market with 3.4 months of inventory which is up 17.2% from May 2018.

This is just the basics of a buyer’s consultation with New Avenue Realty Group. We help clients get from curiosity to possibility. Let’s get you into your new avenue in the metroplex. Book an appointment with me at atfowlerrealtor.appointy.com.

Life at Sandbrock Ranch

As a country girl from North Louisiana, I love being in areas that remind me of home…..for now anyways. However, Aubrey, gives me North Louisiana vibes. You have nature at its best. Quiet scenery with city amenities nearby. I call it the best of both worlds.

So when I discover a community that gives that vibe, I have to explore it. If you didn’t know, Aubrey is horse capital. It is still fairly rural but growing quickly. However, you’ll see that new communities are still harvesting what Aubrey is known for. The area will grow to be another suburban town but very well keep its horse capital, rural flair (at least I hope it does).

The developers at Sandbrock Ranch are keeping that mission alive. In this community, the neighborhood will certainly have its ranch moments. In fact, the neighborhood has it’s own cows considered to be “milk cows” that are stripped white in the middle and black on the rest of its body. Horses roam within the neighborhood too.

There are fences up to protect the animals but it brings such joy to my country heart. The winning piece of the community, The Carriage House. Sandbrock Ranch is a development created by the owners of Highland Homes. This piece of land is actually family land that they’ve decided to develop on. The family is still keeping pretty much a part of the land, ranch-style with a suburban twist. 😂

I know it seems funny but truly this is a one of a kind neighborhood that is amazing. I did a tour with the Lifestyle Directors and here is what you can expect “Living at Sandbrock Ranch.”

Welcome to Sandbrock Ranch.

This place is open for residents 7 days a week from 7am-10pm.

Kitchen area of the Carriage House.

Fire pit available 24/7.

Two lakes that connect to each other called Sadie and Gurthie!

Neighborhood Fitness center available from 4am-11pm.

Pocket park playground for the kids.

There are still even more things to come to this amenity center such as the rec space (sports fields), event amphitheater, and more. The neighborhood will also have a future Denton ISD elementary school in the community.

If this is a community you can see yourself living in, find your next home at move-updallas.com. Homes in the community start in the mid-200s. Builders in the neighborhood are David Weekley Homes, Highland Homes, and Perry Homes. Highland Homes has three products in the community (45 foot lot homes, 50 foot lot homes, and 60 foot lot homes).

Let New Avenue Realty Group help you find your home in Sandbrock Ranch. Connect with us through via phone or email at 972-813-9788 or atfowler@newavenuerealty.com.  We can start with your own private tour with a New Home Specialist concierge service with New Avenue Realty.

Complete the form below to start your visit with us.

Black Friday: Target Style

Find the Target deals here for the Holiday 2018 Season
Just bought the new home and looking to score some amazing deals? Well my absolutely favorite store is prepping you up for Black Friday. Hang that new flat screen tv in the media room, set up Alexa in living room, and add some style to the bedrooms and bathrooms. Target is your one-stop shop which is why I consider myself a Target addict! I can spend hours in Target. It instantly brightens my mood whenever I walk through the door. 

Explore the new Black Friday ad from Target before next week! 

Here are my tips for shopping at Target:

- Get a Target Red Card
This card can be linked to your debit card or you can use the credit card feature for this. I prefer the debit. I save 5% everytime I use it. In Texas, that is basically you paying less on the sales tax around 3.25%. #WINNING

- Scan your Target app
Whenever I am in Target, I make sure to scan the items I purchase to see if it is on Cartwheel or any additional coupons can be applied. That is even more savings. I've saved over $500 dollars using Cartwheel.