The housing market has changed dramatically over the last couple of years. Home prices are lower than ever and interest rates are as low as we have seen in years! It is a wonderful time to buy a new home, yet many are afraid or worried they won't qualify. There are many that think they can't buy a home.
The top concern is credit. If your credit isn't where it should be, then contact a loan officer or a credit counselor to see what you need to do to improve it. Many people can improve their credit scores to an acceptable level in a year. If that's what you need to work on, then now is the time to start!! It may be that your credit is fine, but if you aren't sure, talk to a loan officer. Your loan officer should be able to tell you what you need to do to get your credit score and your credit history to where it needs to be.
One of the other top concerns is the down payment. If you are a first time homebuyer, there are different programs available to help you with your down payment. If you don't qualify for a down payment assistance program, maybe you have family that can give you a gift – the minimum down is 3.5% for FHA loans. There are VA and USDA loans that allow you to buy with zero down if you qualify or are buying a home in the rural areas for USDA. Maybe you will be getting a tax refund or possibly have a retirement account that you can borrow from. These are different ideas to see what you may be able to do for the down payment. If you qualify, there is a conventional loan with 3% down.
Some people just don't think they will qualify. If you aren't sure, talk to a loan officer. It doesn't cost you anything other than your time (and for some, maybe the cost of a credit report), to see what you might be able to qualify for.
We know that home prices will increase and I have seen several articles that say that will happen in 2012. We also know that interest rates will increase, many expect rates to increase in 2012. We know that the Fed is trying to keep rates low, but it also depends on the economy and there are indications that things are improving. As the economy starts to improve, interest rates will increase.
For those thinking that maybe I can buy a home – now is the time to talk to a loan officer or a realtor. What a wonderful way to start 2012 – maybe you can buy a new home for you and your family!!
Leslie Vanderwerf, NMLS ID#335509, Summit Mortgage - Email – Website
