I recently read in the September/October 2006 issue of Texas Realtor magazine that Texas' average credit score ranks 50th among U.S. states.  The average credit score in Texas is 648.  In South Dakota, the highest ranked state, the average credit score is 711.  The 'brief' in the Texas Realtor magazine states that a person with a top credit score might pay $231 less per month than a person with a poot credit score based on a $216,000 mortgage.  I don't know why they chose $216,000 but it certainly demonstrates how important credit scores are to the lending process and how much these scores can impact the real estate market in Texas. 

If you are keeping track, the $231 per month is equivalent to $2,772 per year or, over the life of a 30 years mortgage, $83,160.  It's also said that an extra $6/month in mortgage payment buys you approximately $1,000 more house.  That's $38,500 more of a home that would be available to someone with a better credit score at the same payment. 

Texas Realtor magazine cited Experian and "myFico savings example using a 30 year mortgage with prevailing national rates in August 2006"

And not in a good way!

According to Bankrate, Inc. and their 2006 National Closing Cost Survey, Texas ranked #2 for average closing fees.  The survey found that the average closing costs/fees for a $200,000 loan, 20% down, 30 year, fixed rate, for a buyer with good credit was approximately $3,578.  This is based on a single family home.  They arrived at their number by picking a zip code in some of the largest cities in each state and obtaining 8-10 good faith estimates (total) from the websites of online lenders in each state. 

More here...

I would be interested in seeing a larger representation than 8-10 good faith estimates total from just online lenders.  I'm not quite sure that the information will give you the most accurate picture of the situation.

That said, it's probably a good guide to use when estimating your costs.  Keep in mind, those costs will change if any of the variables change on the loan.  Additionally, checking with a couple lenders will usually help you reduce your costs slightly, as competition always brings out the best.  That said, after many years in real estate, I would never trade the quality of the lender to save a few hundred dollars at closing.  A bad lender can cost you quite a bit more in the end, and it pays to have a lender that takes a personal interest in you and your home purchase.

I've worked hard over the years to try to partner and recommend lenders of only the highest integrity.  It hasn't always been easy, and I've broken off allegiances when I felt a lender misled or mistreated a client, but I feel I finally have a few good ones at the ready.  If you would like any recommendations, please don't hesitate to email me at Brink@WestElmProperties.com or use the Contact screen in the website.