2018 6 Mortgage Tips For First Time Home Owners
Buying a home isn’t the same as it used to be. So many things are different. The entire real estate market has changed. All of these recent changes have made it important to have access to updated information. In 2018, Sun West Mortgage tips for first-time homeowners have never been more important.
It Is Easier To Get a Mortgage Loan
Over the last few years, lenders have been requiring smaller down payments and offering loans to people with less exceptional credit. There have even been mortgage lenders known to accept a meager 3% down payment. These statistics mean that mortgage loans are easier to get and more accessible to a wider range of people.
Debt Isn’t As Big of An Obstacle Anymore
It started when Fannie Mae decided to handle loans from borrowers who were really in debt. The company set their debt to income threshold to 50%, up 5% more than what it was. It may not seem like much, however, that five percent adds a lot more people to the list of those eligible for a loan.
Housing Costs Aren’t Rising As Fast
For a while, it seemed as though the cost of living was rising quickly. Then towards the end of 2017 and into early 2018, housing costs slowed down their rise. This means that during 2018, the chances of getting a better price than one is likely to find next year or any year after that are exponentially increased.
Rates Will End Up Going Up
In 2017 a fixed, 30-year mortgage loan rate was around 3.90%. The Mortgage Bankers Association said that these rates will go up to as high as 4.5% by the end of 2017, with a slow increase of up to 5% during 2018.
Use A Manageable Down Payment
You really do not need to have a huge down payment. Research has shown that most people have a false belief that to secure a loan you need at least 20% as a down payment. However, it is possible to use a down payment as low as 3% using some of the available programs.
Housing Is Not An Unlimited Resource
It is called housing inventory, and it refers to the availability of real estate in an area. Inventory is limited in many cities. The market has been talking about the nationwide low housing inventory for a while, and 2018 will be littered with more of it. In a lot of places, there are just too many people looking to buy a house, and not enough houses to buy. Knowing the situation of the area you wish to buy in will help you get a better offer, and ultimately lead to a better price.
These 6 mortgage tips for first-time homebuyers will help you get the best that you can get. Always go into a new loan knowing everything about it. With these tips, you will be able to enjoy your first home and rest assured you did it right.