Are you debating buying a home? Now is a good time to buy. Interest rates are the lowest they've been in 37 years and the Raleigh housing market is healthier than most major cities. (See Friday, February 20, 2009 Blog)
Don't feel discouraged by the new mortgage guidelines for 2009. As in the past, lenders are looking at your credit score, debt-to-income ratio and the amount you can afford to put down. The higher your credit score, the less debt you have and the more savings you have may increase your chances of getting a better rate.
Allow plenty of time for the application process. It may take up to 30 days or longer. Lenders are carefully screening applications, which protect you as well as them. In addition some financial institutions are short-handed.
Do your homework. Research the different types of mortgages and make sure you understand each, especially the adjustable rate mortgage (ARM). Part of the reason some homeowners are losing their homes is because they did not understand how the ARM worked or were taking advantage of with the subprime loans. Consult with a reputable mortgage broker.
Have you recently applied for a mortgage in the Triangle? Feel free to share any additional tips.
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