The recent housing slump coupled with tighter lending standards may have affected the ability of some people to purchase a home, but millions of others are still buying homes across the country, and often at fantastic prices. If you are one of them (a home buyer), here are three things to keep in mind before you buy:
1. In today’s market, having a down payment of 10 to 20 percent will make it easier for you to qualify for a mortgage. Don’t despair if you don’t have that much cash; there are still loan programs that don’t require buyers to put a lot of money down. The important thing is to make sure you have good credit, and to document your income and assets in order to qualify for those loans when you buy a home.
2. Right now, mortgage interest rates are still on par with historic lows. If you can make a 20 percent down payment when you purchase a home, you will most likely get a lower interest rate. Accordingly, the rates will probably go up if you make a smaller down payment. Still, ten percent is better than five, and five percent is better than no down payment at all.
3. If you don’t plan on staying for long, be sure to carefully consider the neighborhood when looking for a home to buy. Areas where home values are falling or where many homes have been on the market for a while may be risky. You want to be able to sell quickly when the time comes for you to put your house on the market, and to get at least as much for it as you still owe on your loan principal.
The Incorvaia Team would be happy to help you if you are considering purchasing a home. Just give us a call at 440-879-7130 or email us at theincteam@gmail.com and prepare yourself for a great real estate experience!
