When it comes to shopping for a mortgage, you need to do your homework. It’s not as simple as going to a home improvement store and picking out new light fixtures or even choosing new furniture. Buying a home is considered the biggest purchase you’ll make in a lifetime. So finding the right mortgage to go with your home purchase is important.
Housing markets across the U.S. are continuing to grow in value and have returned to their pre-recession levels according to usnews.com. As a result, the mortgage market is lending to a wider spectrum of borrowers, something that wasn’t possible during the recession.
Although borrowers have more options when it comes to mortgages, many home buyers are afraid to go with anything but a 30-year fixed-rate mortgage. It’s still a good way to go, though, since interest rates are still low. Gone are the days of hybrid loans and negative amortization. Also, by looking at your credit history and savings, you can also weigh the pros and cons of the types of loans you have access to. And you no longer need a perfect credit score to qualify for a loan.
Remember, your overall goal is to build equity in your future home. Keep this in mind as you’re shopping around for loans. "What you want to get back to is affordable homeownership," says Bruce Marks, CEO of the Neighborhood Assistance Corporation of America, a nonprofit homeownership group. "Seeing homeownership as stabilizing your personal situation and your community, not as a risky investment."
Millennials have been identified as a key demographic for home buying in the coming year, according to a Lenders One Mortgage Cooperative survey this year of 200 lenders. As a result, lenders are offering mobile and online mortgage options at an increasing rate.
Here’s what you should think about when considering a mortgage:
Budget. Not just for monthly payments, but for savings to keep for maintenance and general upkeep on your home.
Look past the interest rate. In addition to the loan interest rate, take note of the annual percentage rate. The APR indicates the loan interest rate plus any additional fees the lender charges.
Ask questions. Make sure you understand every aspect of the loan.
Trust who you work with. Make sure your loan officer is someone you feel comfortable sharing your personal information with, such as your bank statements, tax returns and cancelled rent checks.
If you or anyone you know is interested Scottsdale Real Estate, please check out my website, www.Realestateforsaleinaz.com, and I’ll be happy to help.
Comments (0)Subscribe to CommentsComment