As we near the end of 2016 and look toward the new year of 2017, the mortgage lending industry is undergoing some changes, and Central Texas is still a very hot real estate market.
Here are of couple of updates that are important to know if you or someone you know will be looking to purchase or finance a home in the near future:
- Increasing loan limits: With increasing conventional and FHA loan limits coming next year, more opportunities for homebuyer and borrowers will be available. Here are the new loan limits for 2017:
Conventional loan limits:
- 1 unit: $424,100
- 2 units: $543,000
- 3 units: $656,350
- 4 units: $Z815,650
FHA loan limits (For the Austin Metropolitan area)
- 1 unit: $361,100
- 2 units: $462,250
- 3 units: $558,750
- 4 units: $694,400
- Rising values and prices in the Austin area: The Austin area continues to be a very hot real estate market, with the median sales price in Austin approximately $345,000. The median price for the 5 county Austin MSA area is approximately $275,250. Sales are up over 11% over this time last year, and new home starts last month were over 4,000! This means it’s even more important to get pre-approved for a mortgage before you go out shopping for a home. Sellers in a hot market won’t take your offer seriously if it’s not accompanied by a strong letter of pre-approval from a reputable (preferable local) mortgage lender.
If you have questions about the pre-approval process, or any questions about the Austin and Central Texas market, don’t hesitate to reach out to us for a free 30-minute consultation.
Michael and the Everist Mortgage team