The housing market has gone through several ups and downs the past five years, and right now, we are happy it is on the upside. So whether you’re looking for a new home to buy or you already own one, what is the next step for you in terms of loans and financing for the market today?
As we look at the housing market to date, home prices are rising and will continue to do so as we get further into 2013. So if you’re a prospective homebuyer, you qualify for a mortgage and can afford a home, the best time to buy is now! Don’t wait, as list prices, loans and rates will only get higher.
For those of you who already have a mortgage, perhaps you have thought about refinancing! Mortgage rates are at a record-low this year and if you haven’t refinanced in a while, you may be paying a higher interest rate than you could be. Since interest rates are expected to rise, like prices, as we continue into the year, the sooner you refinance the more money you will save. If you prefer to be mortgage-free sooner, refinance to a 15- or 20-year loan, but make sure you can afford the higher payments over the shorter period of time.
Your credit score is the most important asset for you to nurture since it is the gateway to even beginning your home buying process. Review your credit report before you apply for a mortgage. A little rocky? Wait one year to apply and really focus on getting your credit to where it needs to be. Paying off a chunk of your credit card bill is a quick fix to raising your credit score. You could even enroll in our Customer Plus program designed to enhance or rebuild your credit. As we still bounce back from a recovering housing market, credit standards are tightening and will not be lenient any time soon. A score of 720 or higher will get you the best mortgage rate and a score of 680 can still get you a decent one, but the lower the score the harder it will be to get approved.
Essentially, when shopping for mortgage deals, educate yourself. Compare all the loan options for your specific financial situation.
For a detailed description on the types of loans out there, click here and compare the costs. Also, Shea Mortgage provides several calculators to give you a more certain idea of what you can afford. Though you cannot calculate quality service, we at Shea Homes aim to provide you with a smooth mortgage process and transition into your new home.