Friday, December 24, 2010
New Rules of the Road for Getting a Mortgage
Mortgage Rates Hit 50-Year Low What Homebuyers Need to Know About the New Rules of Getting a Mortgage
McLean, VA – With mortgage rates at 50-year lows and home prices affordable, today’s market presents a rare buying opportunity for working families with stable incomes and good credit (please see image #3). But too many qualified borrowers may be sitting on the sidelines because of misinformation about the new rules of the road for getting a mortgage.
“A qualified borrower should have a stable income, good credit history, a common sense down payment – generally about five percent -- and documentation,” says Tricia McClung, vice president, Single Family Offerings Management, Freddie Mac. “Lenders today will want documentation verifying income, like W-2 forms and tax returns, employment, credit history and assets, such as bank statements, to verify savings,” she explains.
McClung urges people shopping to buy a home to visit a reputable lender to see if they can be pre-approved for a conforming, conventional mortgage. A mortgage pre-qualification letter can confirm that a potential homebuyer is qualified for a mortgage and how much they can expect to borrow. This can make them stronger home shoppers since sellers won’t have to worry about whether they can qualify for a mortgage.
“In this market, anyone still unsure about the new rules of the road owe it to themselves to find a reputable lender and ask for a pre-qualification letter, ” McClung says. “Think of a pre-qualification letter almost like a driver’s permit for the new rules of the homebuying road.”
For more information on the new rules of the road, visit www.FreddieMac.com/buying.
Freddie Mac’s Primary Mortgage Market Survey surveys lenders each week on the rates and points for their most popular 30- and 15-year fixed-rate, 5/1 hybrid and 1-year adjustable-rate mortgages. Freddie Mac has conducted this survey since April 1971. For more information, visit http://www.freddiemac.com/pmms/.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
News from: Freddie Mac
www.FreddieMac.com/buying
New Rules of the Road for Getting a Mortgage
Market Survey surveys lenders each week on the rates and points for their most popular 30- and 15-year fixed-rate, 5/1 hybrid and 1-year adjustable-rate mortgages. Freddie Mac has conducted this survey since April 1971. For more information, visit http://www.freddiemac.com/pmms/.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
News from: Freddie Mac
www.FreddieMac.com/buying
Buying a Home ~ Remax Time Realty
Contact a REALTOR®
A RE/MAX Sales Associate can help you through the entire process of buying a home, starting with the mortgage and continuing right through closing – and beyond. He or she can help you shop for the best interest rate and terms and, if you wish, suggest mortgage lenders.
Get Preapproved for a Loan
Obtain a copy of your credit report and your FICO score and, if necessary, do what you need to do to improve it. The higher your FICO score, the better interest rate you can command. You can get this information online; your RE/MAX agent can also help you. Contact several lenders and determine which one will give you the best deal.
Determine Your Price Range and Area(s) in Which You're Interested
By now you should have a good idea of how much home you can afford. This helps you narrow down your home search. You should also begin researching the neighborhoods in which you might want to live. Your RE/MAX agent can help.
Decide Which Amenities and Features You Must Have – and Which Ones Would Be Nice but not Necessary
How many bedrooms and bathrooms do you want? Would you prefer a newer home or an older one with established landscaping? Are hardwood floors a must? Is an updated kitchen important to you? Walk-in closets? Which features would you be willing to give up if you find the otherwise-perfect home?
Begin Testing the Market
Right here on remax.com, you can find listings that meet your criteria as well as neighborhood data. Identify properties that seem to be fits for you, take an afternoon and go on a driving tour. See what's available in your price range and explore neighborhoods.
With Your Agent, Begin Seriously Looking at Homes
Your agent can add to the list of homes you've already identified – including ones that have just come on the market. Look at homes with a critical eye – does the floor plan work for you, is the property in good condition, would it be right for your lifestyle? In short, can you imagine yourself and your family living there?
Take notes at each home you visit. What do you like and not like? Narrow down your choices; re-visit homes in which you're interested. See them at different times of the day.
Make an Offer
When you've identified the home you want to buy, be prepared to help your agent prepare a written offer quickly. Your agent will be familiar with market values and will help you arrive at a price that gives your offer the best chance of being accepted.
At this stage, try not to become emotionally attached to a home. Your offer may not be accepted for any number of reasons. Have backup homes in mind. Be prepared to negotiate through your agent with the sellers.
Once Your Offer Is Accepted:
You'll be asked to submit an earnest money deposit that usually isn't refundable.
Begin making moving arrangements (select a mover, obtain change-of-address cards, inform friends and relatives).
Have the property professionally inspected.
If necessary, request repairs.
Obtain homeowner's insurance.
Contact utilities (phone, water, power, etc.).
A few days before closing, stage a walk-through.
Obtain a cashier's check for the down payment and closing costs.
At Closing:
Make sure the terms and conditions of the loan statement are correct.
Carefully read everything before you sign.
ENJOY YOUR NEW HOME!
Why You Should Use a REALTOR® in Your Home Search
Buying a home is probably the largest investment you'll make in your lifetime. Having an experienced, knowledgeable RE/MAX professional representing you in this transaction just makes good sense.
Buying a home is not like buying a car, a mutual fund or other commodity. It can be a life-changing event. RE/MAX agents fully understand the real estate process – and just as important, they understand your local market.
Of course they know the right steps to take, but they can also help you avoid a misstep in your home purchase. If a new freeway is going to be built a few blocks away, they'll probably know it. If you're unsure about school districts, they'll be able to direct you to answers. If you're unsure of a builder's reputation, they'll know how you can confirm it.
Your RE/MAX Sales Associate also performs another important function: minimizing the emotion involved in a home transaction. You may be in love with a home, but your agent can point out factors that might not make it right for you.
Buying a Home | RE/.MAX, LLC
A RE/MAX Sales Associate can help you through the entire process of buying a home, starting with the mortgage and continuing right through closing – and beyond. He or she can help you shop for the best interest rate and terms and, if you wish, suggest mortgage lenders.
Get Preapproved for a Loan
Obtain a copy of your credit report and your FICO score and, if necessary, do what you need to do to improve it. The higher your FICO score, the better interest rate you can command. You can get this information online; your RE/MAX agent can also help you. Contact several lenders and determine which one will give you the best deal.
Determine Your Price Range and Area(s) in Which You're Interested
By now you should have a good idea of how much home you can afford. This helps you narrow down your home search. You should also begin researching the neighborhoods in which you might want to live. Your RE/MAX agent can help.
Decide Which Amenities and Features You Must Have – and Which Ones Would Be Nice but not Necessary
How many bedrooms and bathrooms do you want? Would you prefer a newer home or an older one with established landscaping? Are hardwood floors a must? Is an updated kitchen important to you? Walk-in closets? Which features would you be willing to give up if you find the otherwise-perfect home?
Begin Testing the Market
Right here on remax.com, you can find listings that meet your criteria as well as neighborhood data. Identify properties that seem to be fits for you, take an afternoon and go on a driving tour. See what's available in your price range and explore neighborhoods.
With Your Agent, Begin Seriously Looking at Homes
Your agent can add to the list of homes you've already identified – including ones that have just come on the market. Look at homes with a critical eye – does the floor plan work for you, is the property in good condition, would it be right for your lifestyle? In short, can you imagine yourself and your family living there?
Take notes at each home you visit. What do you like and not like? Narrow down your choices; re-visit homes in which you're interested. See them at different times of the day.
Make an Offer
When you've identified the home you want to buy, be prepared to help your agent prepare a written offer quickly. Your agent will be familiar with market values and will help you arrive at a price that gives your offer the best chance of being accepted.
At this stage, try not to become emotionally attached to a home. Your offer may not be accepted for any number of reasons. Have backup homes in mind. Be prepared to negotiate through your agent with the sellers.
Once Your Offer Is Accepted:
You'll be asked to submit an earnest money deposit that usually isn't refundable.
Begin making moving arrangements (select a mover, obtain change-of-address cards, inform friends and relatives).
Have the property professionally inspected.
If necessary, request repairs.
Obtain homeowner's insurance.
Contact utilities (phone, water, power, etc.).
A few days before closing, stage a walk-through.
Obtain a cashier's check for the down payment and closing costs.
At Closing:
Make sure the terms and conditions of the loan statement are correct.
Carefully read everything before you sign.
ENJOY YOUR NEW HOME!
Why You Should Use a REALTOR® in Your Home Search
Buying a home is probably the largest investment you'll make in your lifetime. Having an experienced, knowledgeable RE/MAX professional representing you in this transaction just makes good sense.
Buying a home is not like buying a car, a mutual fund or other commodity. It can be a life-changing event. RE/MAX agents fully understand the real estate process – and just as important, they understand your local market.
Of course they know the right steps to take, but they can also help you avoid a misstep in your home purchase. If a new freeway is going to be built a few blocks away, they'll probably know it. If you're unsure about school districts, they'll be able to direct you to answers. If you're unsure of a builder's reputation, they'll know how you can confirm it.
Your RE/MAX Sales Associate also performs another important function: minimizing the emotion involved in a home transaction. You may be in love with a home, but your agent can point out factors that might not make it right for you.
Buying a Home | RE/.MAX, LLC
Considering a Home Purchase?
With an investment as large as a home there are many things to consider. Market trends, area information and government programs should all play a role in the decision to buy. Use this video to learn why RE/MAX Time Realty agents are uniquely qualified to help you identify your ideal place. RE/MAX Time Agents are here to answer your questions and help you through the home buying process. Call today to set up an appointment with our Office to see how we can best meet your needs. 951-708-1098
Monday, December 20, 2010
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