Is Stonecrest coming back (Decatur, Stone Mountain: sales, real estate, mortgage)

[belle14]

I know of Stonecrest as what used to be unincorporated Dekalb...a part of Lithonia.

Our realtor took us out there and there is a TON of new development with DR Horton homes in the $280K's +.

I saw the Mall, some shops, and a Wal-Mart nearby. The on site agent mentioned a Publix is 4 miles away.

Is this area (which I somehow still consider Lithonia but is not) making a come back to have homes at this price and a lot of new construction?

It seems predominately AA (I'm assuming upper middle class). However, I see lot of car break-ins in the surrounding mall and read about numerous store closings (Walmart, Kohl's, Publix, etc.)

We personally thought it may be too far from our jobs in Stone Mountain / Decatur, but curious to hear what the more experienced think. Our realtor says the area is booming with comps in the area.

[citidata18]

As you stated, that area has been hit especially hard over the past several years by retail closures, which IMO isn't a good sign of a growing/prosperous community. I would hesitant to make such a huge investment in that type of locatiin.

Bear in mind, realtors quite frankly aren't concerned about your quality of life, but simply you in any type of home that will net them a nice commission check.

[belle14]

Qi agree regarding the commission check. I was shocked to see so many new homes in the area.

[wasel]

The fact that banks are approving mortgages for all these 280k home sales is a good sign. The bank is pretty much “buying” the property and they are not going to make a risky investment even if they aren’t the ones living there. They do due diligence on the area before approving the loan.

[MattCW]

Originally Posted by wasel

The fact that banks are approving mortgages for all these 280k home sales is a good sign. The bank is pretty much “buying” the property and they are not going to make a risky investment even if they aren’t the ones living there. They do due diligence on the area before approving the loan.

Uh...do I need to remind everyone here of the subprime lending crisis? Banks don't necessarily have a history of doing "due diligence."

[TallDee]

My family member just closed on a DR Horton home Parks at Stonecrest. DR Horton has their own bank DHI, everyone is approved and they pay all closing costs with that 14,000$ incentive. Pretty much anyone can buy those homes. Expect your mortgage payment to be about 2,000 monthly. I think it’s nuts

[belle14]

Originally Posted by TallDee

My family member just closed on a DR Horton home Parks at Stonecrest. DR Horton has their own bank DHI, everyone is approved and they pay all closing costs with that 14,000$ incentive. Pretty much anyone can buy those homes. Expect your mortgage payment to be about 2,000 monthly. I think it’s nuts

may I ask why you think it's nuts? Is it the mortgage cost for area, etc.? Aren't there parameters in place for any bank? Thank you.

[bu2]

Originally Posted by MattCW

Uh...do I need to remind everyone here of the subprime lending crisis? Banks don't necessarily have a history of doing "due diligence."

yes, but they are a little more cautious than they were before 2008.

[TallDee]

When it comes to real estate one needs a little skin in the game. I really doubt someone who paid nothing out of pocket, just walks in and and sign documents vs someone who saved up the 14,000 for closing/ down payment will be the same type of homeowner. Just you wait, the other shoe will drop in about a year once the mortgage company has to up those payments cuz of escrow shortages. They aren’t collecting enough taxes in the first year which in turn makes your payment seems low. That’s the trick to get you to sign on the dotted line. Many don’t know the first year is only LAND taxes.
BOOM wait till they get the escrow shortage letter stating their payment going up 200$. Many people bailout. DHI which is DR Hortons own bank will sell most these mortgages within 2 years cuz they know these folks not gonna last 30 years.

[wasel]

Originally Posted by bu2

yes, but they are a little more cautious than they were before 2008.

Right, appraisal forms include ratings of the surrounding neighborhood based on economic stability, growth patterns etc.