Now is good time for anyone looking to buy a home
With interest rates at an all-time low, some real estate experts believe now is the time to buy a home.
Nationally, home prices have finally hit bottom and are beginning to rise. Home mortgage rates are at a 65-year low. And, despite what some may be saying home loans are available for buyers with good credit score, stable income and sufficient income.
Scott Cavinee, president of the Fayette Board of Realtors, and Dianne Zinn, an associate broker, past president and director of Fayette County Multiple Listing Service (MLS), recently reported housing sales in 2012 in Fayette County surpassed annual sales in the past decade.
鈥淭he condition of the housing market is a lot better today,鈥� Cavinee said, adding that, according to MLS figures, sales of homes in Fayette County in 2012 totaled about $56.2 million.
鈥淥ur average price of an existing home in our county now is $110,000, which is good compared to a while back when it was about $85,000,鈥� Zinn said.
鈥淚nterest rates are quite remarkable with good credit. They are under 4 percent,鈥� she added.
However, real estate professionals warn buyers, that despite all the advantages, it wouldn鈥檛 be wise to jump into the market without first doing due diligence.
Whether a seasoned or new buyer, there are strategies that can help throughout the home-buying process:
First, buyers need to determine how much home they can afford. That depends on several factors, including their annual gross income, credit history, current mortgage rates and the amount they will be able to pay as a down payment.
Generally, in today蘑菇视频 market, buyers can expect lenders to require a down payment of 5 to 20 percent of the purchase price for the house. Lenders also recommend that the monthly mortgage payment should be less than 28 percent of the buyer蘑菇视频 monthly gross income.
The monthly house payment will include mortgage principal, taxes, mortgage insurance and interest on the loan.
Reviewing income guidelines with a banker or real estate agent also is wise before looking for a house. Further assistance also is available by calling a U.S. Department of Housing and Urban Development-approved housing counselor for free and confidential financial assistance.
Once the buyer has all his ducks in a row, there are some borrowing pitfalls he or she should avoid.
Unscrupulous lenders can damage credit and cause the buyer financial hardship. In order not to become a victim, here are some steps to follow:
n Shop around by checking with various lenders to find the best loan.
n Make sure all the paperwork is correct and complete. Don鈥檛 allow anyone to falsify income information in order to be eligible for a loan. Never sign documents that have incorrect dates or blank sections.
n Always say 鈥渘o鈥� to easy money. Beware if someone claims that 鈥渃redit problems won鈥檛 affect the interest rate.鈥� If an offer is really appealing, the buyer should get it in writing and look for a second opinion.
n Some loans charge a penalty for early payoff. Buyers should ask about other loan products if this is a condition imposed by the lender. Seek products that don鈥檛 carry this type of penalty.
n Get estimates in writing that include all costs, such as fees, title search costs or points. When the buyer finally reaches closing on the home, make sure all facts and figures are the same as what was previously discussed. If not, delay signing any documents until everything is understood.
n If in doubt about anything concerning the loan or purchase, don鈥檛 sign anything until getting the advice of a reputable consumer credit counseling agency or housing counselor.
n If the buyer is using equity in his property, he should only take the minimum. It蘑菇视频 important to preserve equity since it builds slowly over time.
Finally, it蘑菇视频 important for the buyer to know and understand the entire mortgage process.
For more home buying tips, go online to www.FreddieMac.com.
Jim Pletcher writes a weekly real-estate story for the 蘑菇视频 from a variety of angles. If you have an interesting story about buying or selling a home in Fayette County and would like a story written about it, please contact 蘑菇视频 Executive Editor Mark O鈥橩eefe at 724-439-7569.