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Shopping for a mortgage

Shopping for a mortgage is the responsible thing to do. Why wouldn’t you make sure you’re getting the best deal possible? This may not necessarily mean the lowest rate. Everyone’s situation is different…a person who does not plan on living in the home long term, may be better off focusing on their costs.

Variables impacting mortgages NOW

There are a number of variables that impact Real Estate at different times. Currently, three variables impacting the housing market are rising rates, affordability, and generational change. For additional information, please click the thumbnail.

 

The 5 P’s

Peak home buying season is already under way, but are you ready? As your Real Estate Agents will tell you, the market is extremely competitive and it is certainly a seller’s market. They literally cannot build homes fast enough to meet the demand. So what are you doing to make your offer stand out? Are you aware that some financing products such as FHA and VA are not viewed as strongly as a Conventional product? If you are serious about closing on your new home this year, you must make sure you have all your ducks in a row. The more ground work laid up front, the easier the process will be for you. A teacher once told me something that has resonated with me for quite some time: the 5 P’s…Proper Planning Prevents Poor Performance.

Home Prices & Rates On The Rise

Home prices are continuing to rise and so are interest rates. What does this mean for you? Not only is the home you liked a year ago more expensive, but the money financed for your mortgage has also become more expensive. If you have given any serious thought to buying a home in the near future, the time to act is NOW. I have heard from folks over the past year that they want to hold off and save up for additional down payment. Well unfortunately those folks trying to save up for 5 percent, 10 percent, or even 20 percent will now have to pay more interest on the much larger figure…their loan amount. Does it make sense to wait and save a little and pay more on the larger figure long term? Maybe or maybe not…but you won’t know for sure until you speak with a trusted mortgage professional.

Down Payment Options

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According to housingwire.com over 50% prospective first time home buyers’ main reason for not buying a home is due to down payment. In addition, over 40% of those folks are under the impression 20% down payment is required. Did you know you could put as little as 5%, 3%, or even $0 down payment? You can even avoid paying private mortgage insurance with less than 20% down. As market trends are showing us, interest rates are expected to rise in 2018 and could be near or at 5% by year’s end. Take advantage of all your options now, as the money will only continue to get more expensive.

2018 Outlook

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2017 was a great year, and there are some major changes on the horizon that will make 2018 even better. Just a few of the highlights include Conventional as well as FHA loan limits increasing, which will provide more buying power to consumers. In addition, home appreciation is also anticipated to rise at a steady rate of three point two percent, per housingwire.com . Although this is slightly lower than what we have been accustomed to for the past few years, 2018 is shaping up to be a great year!

What are closing costs?

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Costs involved include but are not limited to discount points, appraisal, attorney fees, and taxes just to name a few. Typically, home buyers will pay between 2 to 5 percent of the purchase price in closing fees. A very popular alternative to paying the closing costs out of pocket, is to have your Real Estate agent negotiate the seller to pay the closing costs on your behalf. In addition, you may be entitled to receive a lender credit to absorb your closing costs if the seller is unwilling to cooperate.