Home prices have dropped and mortgage rates are the lowest in decades, but is it the best time for you to purchase a home?
Lower home prices, due in part to the declining median price of homes, are motivating many potential home buyers to take action. If you're one of the many potential homebuyers planning to take advantage of the plunging home prices, make sure you're financially prepared to acquire a mortgage and ready to take on the responsibilities of home ownership.
Financial Preparation
As you may know, the proverbial bar has risen when it comes to credit and it has become a bit tougher to qualify for a mortgage. Before you set your hopes on a home, make sure you will qualify for a loan by having good credit (typically a score of at least 640) and a good-sized down payment in the bank of at least 10 percent. In Maine, a popular loan is the USDA loan. This is a true 100% financed loan and many Maine people qualify. Obtain a full list of loan qualifications by meeting with your mortgage professional.
Mortgage Rates
Low rates, combined with falling home prices, are making homes affordable for those who qualify. Call 207-831-1903 today to discuss purchasing qualifications for your area and whether homeownership is right for you.
Home buyers aren't the only ones benefiting from these, low mortgage rates. Many homeowners, who have been financially responsible and have equity in their homes, are taking notice of the falling rates and opting to refinance their homes at a better rate. Contact me at www.sethjacobs.com to learn if your credit score and current home equity is enough to qualify for a refinance without the hefty fees.
Plant Roots
The economy is bound to be a bit bumpy the over next few years, make sure you are financially equipped and mentally prepared to see home prices drop even more after your purchase. Though home prices will fluctuate, stay put and plan to live in your home for five or more years so that you can witness your home appreciate in value.
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