Heading into the summer season of back-yard cookouts, baseball games, and pool parties, we sometimes scratch our heads at mortgage rates.
With all the negative news to our industry, mortgage rates have remained somewhat steady during the housing slow-down....which makes it a great time to purchase a 1st home, vacation home, or an investment home to help fund your family’s retirement.
With such a large supply of homes on the market today, buyers have more choices than ever to ultimately to find the home of their dreams at a great price.
Although mortgage financing has changed slightly since the sub-prime sector fall out, there are still a lot of options for buyers.
The FHA program seems to be the best fit for first time home buyers but also many other buyers because it offers good rates, lower credit guidelines to qualify, 100% financing programs with down payment assistance, as well as low closing costs. (For those of you unfamilar with FHA, it is a division of the US Dept of Housing and Urban Development responsible for setting standards for lending and construction).
Conforming financing is still the most popular when you have a down payment of 5% or more when purchasing a property; but these days it might be more beneficial to look at a FHA loan to see which loan makes the most sense for your situation.
Getting pre-qualified for a mortgage loan is a quick and easy process.
This will give you and your realtor an idea of a price range that you can comfortably afford.
During the pre-qualification process, a loan officer will review your credit report with you, discuss a payment scenario, and give you a full analysis of what to expect from the time you make an offer until the day you close on your loan.
It’s always a good idea to talk to your realtor about recommendations for a loan officer as it is often the biggest financial purchase you will make in your lifetime. Your realtor will be able to guide you to a professional who will help you get the best rates.