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Waiting to Buy a Home?

Waiting to Buy a Home?

You May Miss out on Low Interest Rates

In December, the Federal Reserve raised the key interest rate by a quarter-point to range of 0.25% to 0.5%, the first rate increase in nearly a decade. While some experts expect the Fed to raise rates gradually this year, some economists expect rates to increase three or four more times this year.Increases are anticipated to amount to a quarter-point each time, and when they do occur are subject to impact mortgage rates.2 What’s a homebuyer to do?

NOW IS THE TIME TO BUY!

While a quarter-point increase in interest  rates doesn’t seem like much, it could mean the difference of hundreds of dollars a month in your mortgage payment. This will depend on the price of your home, your interest rate, how much you are borrowing and the size of your down payment. This is money you could use to renovate, go on vacation or save for retirement.

 

WHAT SHOULD YOU DO NOW?

  • Get pre-qualified for a mortgage if you haven’t done so already. Getting pre-qualified means you can spring into action when you find the home you want to buy. We work with great lenders in our area. If you’re looking for a lender you can trust, let us know and we’ll be happy to connect you with someone from our network.
  • Narrow down your search criteria. What neighborhoods do you have your eye on? Do you want three or four bedrroms? Do you want a big yard or no yard at all? The list goes on and on. While buying a home is a process of selection, the more you know what you want, the better prepared you are to make the right decision.
  • Get hunting. If you’ve been passively house hunting online, now is the time to ramp up your search. Let us know what you are looking for and we’ll work with you to find a great home that meets your criteria.

 

 

 

Sources:
Buffini & Company
1. CNN Money, December 16, 2015
2. The Guardian,  January  6, 2016
3. Bankrate Mortgage Payment Calculator

Closing Simplified?

January 18th, 2016

Blog 5 photoIt just became a lot easier to navigate the complicated mortgage process. New disclosures being utilized in the mortgage world requires lenders to provide home buyers with two new forms that clearly detail their home-loan terms. For many buyers these changes are an improvement in what is a rather intimidating process. For the average consumer, home-loans are the biggest investment in their lives. Luckily, today we have the TILA-RESPA Integrated Disclosure rule which in two pages accomplishes what the four pages of the Loan Estimate and Closing Disclosure used to do.

Additionally, lenders have to provide folks looking to buy a home a loan estimate form within 3 days of a submitted application, minimizing the nerve racking wait time of previous years. This estimate consists of three pages detailing amount, interest rate, and where the figures can change post-closing. Having the estimates more easily available makes comparing loans a whole lot easier. However, one should still look out for the type of interest rate; whether it’s fixed or adjustable and if there is potential for any future penalties. The forms additionally estimate closing costs of your transaction.

Having these figures clearly stated should make it a lot easier to compare loans from different providers; allowing you to shop around to find the best rates and terms. Finally, the forms help the closing process, for lenders now must provide the closing disclosure 3 days prior to closing.  Buyers can approach a closing with more confidence knowing that the figures previously agreed to will be what is seen at the closing. These new forms are a step in the right direction to get closing simplified.