The housing market might be heating up and home interest rates are still low. But tighter government oversight of loan documentation is slowing down the ability of potential homeowners to get on board.

The idea behind the new rules is to eliminate the sort of reckless lending that partly fueled the housing bubble – the type of lending that led some unscrupulous lenders to offer “no document” loans, where no proof of income or assets were required to obtain huge home mortgages. But well-intended rules often have unintended consequences.

“This requirement has caused many home loan delays recently as Fannie Mae and Freddie Mac are cracking down on every aspect of the loan documentation in order to reduce loan defaults,” our CEO, Kevin C. Miller, said on the TexasLending.com Mortgage Hour radio show (airing Saturdays on AM 570 KLIF from 1:00 p.m. to 2:00 p.m.).

For example, The Mortgage Bankers Association is forecasting a 32 percent drop this year in the number of refinances, despite the fact that home interest rates are historically low.

Bloomberg gives a helpful anecdote demonstrating how this affects everyday people:

Anthony Andrade was forced to rent the San Antonio, Texas home he planned to buy after Bank of America Corp. approved a mortgage and then scuttled three closings over two months with last-minute document requests.

“It was crazy,” said the 54-year-old Army veteran whose travails ended Jan. 10 after he switched to a local mortgage broker who got the loan backed by the Department of Veterans Affairs approved. “My wife was in tears because I had to sign the same things over and over. If we were superstitious people, we would have thought this house was not meant to be ours.”

“It suppresses a recovery,” said Anthony B. Sanders, a professor of real-estate finance at George Mason University in Fairfax, Virginia and former head of mortgage bond research at Deutsche Bank AG. “The pendulum has swung from one direction to another. We’ve gone to outrageous red tape.

For his part, Obama acknowledged the problem, and said earlier this month that he will ask Congress to pass legislation clearing out some of the red tape and help homeowners who have limited documentation refinance (and potentially lower annual home loan payments by $3,000).

Regardless, it’s frustration for folks in need of home purchase loans and home refinance loans in Austin, Dallas and Houston. Here at TexasLending.com, we’re committed to make the home loan process as simple and affordable as possible. So if you’re considering either buying a new home or refinancing your existing mortgage, it’s a good idea to allow extra time to deal with these sorts of snags. Give us a call soon to get the process started.

The final tallies from 2011 are in. With the arrival of the new year, a slew of agencies, academics and industry groups are starting to release an annual treasure trove of statistics that give us a pretty illuminating glimpse of what actually happened this past year — and whether or not the current year is the right time to begin considering a Dallas home loan, Austin home loan, or Houston home loan.

Existing Home Sales

For example, according to the National Association of Realtors, sales of existing homes across America rose approximately 1.7 percent in 2011, from 4.19 million to 4.26 million.  This stat is extra positive considering the fact that existing home sales in 2010 actually fell 3.5 percent from the year before, showing that we avoided another prolonged slide.

It’s also good news because sales of existing homes are needed perhaps as much as anything else in order to see a sustained housing recovery.  While sales of newly constructed homes are important (home-building adds much-needed construction jobs and other ancillary benefits), there’s still a massive glut of unsold houses available on the market. This “shadow inventory” needs to be sold off before we can get back to normal.

Still, as the statistics note, we’re a long, long way from normal. The year before the housing bubble popped, 5.04 million homes sold — approximately 15.5 percent more than last year.

New Home Construction

On the flip side, according to the Commerce Department, 2011 was the worst year for new home construction since the economy crashed. Construction began on just 428,600 single-family homes in 2011, just half of what’s standard in a normal U.S. economy

On the bright side, even housing starts ended the otherwise dismal year on a positive note: housing starts increased for the third consecutive month in December. So maybe 2012 will show more signs of a recovery across the board.

The Takeaway

All these stats show two things: 1. Better times are likely ahead (so long as, you know, Europe’s problems don’t spread, or China doesn’t crash, or our debt problems finally catch up to us, or Wall St. flips out again). 2. We’re not there yet.

So it’s still a historic buyer-friendly housing market  in Texas. And here at TexasLending.com, we’re proud to offer a full range of affordable Texas home loans if these stats tell you it’s time to buy.

As our CEO Kevin Miller explained last week, the payroll tax holiday extension passed recently in Congress will likely be paid for with a new tax on all new loans bought by Fannie Mae and Freddie Mac over the next decade.

The combination of high unemployment, huge federal deficits, a still-messy housing market and an uncertain regulatory environment in Washington forecasts a pretty unstable few years ahead for the housing market. In other words, expect unexpected costs, confusing rules, and frustrating delays.

Here at TexasLending.com, we’ll do everything we can to keep the home loan experience simple and affordable. Here’s how:

We Keep Rates Low

Even if taxes increase, 2012 will still be a historic year to buy a home. Simply put, home interest rates are unbelievably low, and we’re not afraid to brag about the fact that we’ve got the lowest Dallas home interest rates, Austin home interest rates, and Houston home interest rates you’ll find.

We Keep Customers Informed

Knowledge is power, and we’re determined to help make our customers the most well-informed group of homeowners anywhere. So check back here at Texas Lending Today each week to learn what’s new in Texas cities local housing markets, how what’s happening in Washington effects homeowners in the Lone Star State, and how the Texas mortgages services provided here at TexasLending.com can help. Or tune in each Saturday to our CEO’s radio show on 570 KLIF — The TexasLending.com Mortage Hour With Kevin Miller — to hear more.

Similarly, to learn more about our Texas home loans services such as, say, home refinance loans in Dallas, Houston home equity loans, or Austin home purchase loans, take a look at our website. In our mortgage resources section, you can use such nifty tools as our mortgage calculators, peruse the mortgage glossary, and learn more about our loan process.

We Keep Communication Lines Open

Contact us — our unparalleled team of Texas home loan specialists would love to answer any questions, listen to any frustrations, and ease any concerns we can. Or apply online to get the process started today.

Recently, a report by the Realtors Confidence Index showed that less than half of home sales are closing on time. Comparatively, in September loans were closing on time at around a 63 percent mark. And in July, loans closed on time around 76 percent of the time.

There’s a host of explanations for this. For example, according to the report, residual issues from the economic crisis like unemployment, tight credit, and poor conditions of properties up for sale are partly to blame.

We’ve noticed a few factors as well:

• Nearly 95 percent of all loans closed these days are sold to the federal government, which means that loans must meet a slew of guidelines and regulations. The upside of this is increased access to affordable loans. But the downside is that increased government involvement brings with it a heavy amount of additional paperwork and mandated delays. Closing costs increase, as labor costs are usually passed on to the consumer.

• Similarly, regulations have increased in hopes of preventing a housing-fueled financial meltdown such as the one from which we’re still recovering. In general, regardless how much regulations are needed or how good intentions were when implementing them, they usually bring with them unintended side effects as well. In housing, new regulations from the Dodd-Frank Act have removed some of the incentives for loan providers to fast-track loans — especially for smaller loans. Whether or not this is effective or necessary, it adds yet another drag and additional costs for folks looking to buy a home quickly.

• Many homes have appraisal values less than the purchase contract, which usually causes a delay of at least three days after the loan is re-quoted. Furthermore, the Appraiser Independence Act, which was passed in order to protect consumers from collusion between predatory lenders and appraisers, has a side effect of significantly reducing communication between trustworthy lenders and appraisers as well. This too slows down the process.

Here are two things you can do :

1. Stop Using National Banks

The big banks are taking months longer than community lenders like us. You’ll get better service — and faster service — with us.

2. Start Now

Contact one of our Texas home loan specialists to get the process started today. We’re determined to go above and beyond the service and attention you’ll find anywhere else, and our team is motivated to serve each customer equally — regardless of how large of a Dallas home loan, Austin home loan, or Houston home loan they’re seeking.