As a first step in preparing for a home purchase, it’s important to determine if you are actually ready to become a homeowner. Are you able to stay put for a while? Is your income fairly stable? If you answered yes to both questions, the next step is to carefully consider your finances. Resolve to do the following in the New Year and you could be ready to purchase a home sooner than you think – maybe even ahead of any anticipated rate increases.
As 2016 draws to a close, it’s a good time to reflect and look ahead to what 2017 may bring. The Trump Administration’s plans to cut taxes and prioritize spending on infrastructure have already started to impact the housing market and mortgage marketplace. Many of the trends we’re already seeing at the end of this year are expected to continue to affect home financing in 2017. Let’s take a look:
The financial markets reacted to the initial uncertainty surrounding the Trump Administration with a post-election uptick in mortgage rates. Despite the recent increase, interest rates are still lingering near historic lows. But, how long will the low rates last? According to a recent Zillow article, “This dramatic rate spike might level off near-term, but don’t count on a reversal back to record lows.” If the economy continues to gather momentum and inflation picks up, chances are good that the Fed will increase rates at the final policy meeting of the year in mid-December. There’s still time to act on low rates before another increase and a rate lock can help ensure that you don’t miss an opportunity! Here’s what you need to know:
It is often said that buying a home is the most significant purchase you will make in your lifetime. It’s a major financial commitment and an important milestone, so you want to get it right. This means doing some homework and seeking professional guidance. A real estate agent can assist with your home search, but what about securing a loan? How do you find a mortgage professional you can trust to consider your best interests, help you select the right product, and guide you through each step of the home financing process? The following tips will help you conduct a thorough and efficient search for a lender you can rely on to help make your dreams of homeownership a reality!