Tips for Financing a Luxury Home in Tarrant County

Tarrant County home sales activity has been quite brisk as of late, thereby bringing a collective sigh of relief to many real estate analysts across this region.

In fact, January brought a flurry of activity for luxury homes in Tarrant County, thereby bringing a much-needed boost for Tarrant County home sales activity.

Some of the hot spots for Tarrant County home sales activity were Colleyville and Southlake. Colleyville, for example, saw a 125 percent increase in homes sales last month compared to the same time in 2009. Luxury homes in Southlake saw a nice increase of 88 percent from a year ago. The median price for a home in this region was $592,500, which is an eight percent increase from January 2009.

With the impressive increases in home sales activity in Tarrant County, particularly among luxury homes, it is clear that more homeowners are able to secure luxury home loans, otherwise known as jumbo loans.

Although sales activity for Tarrant County’s luxury homes has been appreciated, it is still important to point out that financing challenges still exist when it comes to luxury homes.

If you have your mind set on a luxury home in Tarrant County, there are a few tips you should consider beforehand:

  • Today’s tight lending restrictions have affected every buyer, from the first-time homebuyer to the luxury home buyer. Although most large lenders still offer jumbo loans, they also require a larger down payment, often between 35 to 50 percent, versus 15 to 20 percent for a more modest home.
  • Be prepared to prove your finances and income, as most luxury sellers will require that only qualified buyers be brought to luxury home showings. A mortgage pre-qualification may involve showing your income, your assets and your ability to provide a hefty down payment.
  • Consider getting a pre-approval letter instead of a pre-qualification letter. In order to pre-qualify you must prove your ability to purchase the home; however, a pre-approval letter shows that you have already obtained your financing approval. A pre-approval letter can often allow you to better negotiate with a seller, as it shows you are both interested and able to purchase the luxury home.

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