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There’s a different brand of consumer confidence when it comes to the real estate industry these days and it has a lot to do with whether people feel they are ready to embark on something new. At a time when the economy is only slowly improving at a snail’s pace many buyers, sellers and homeowners don’t know whether they should wait, or proceed.
We spoke to a seasoned mortgage professional to find out an insider’s perspective. Here’s what she had to say:
Buyers Seize the Opportunities – And There Are Many
This could not be a better time for buyers to purchase a new home. Whether they are interested in upgrading from an existing one or if they are anxious to become first-time homeowners, market conditions definitely make this the best time ever to buy. In fact, the government wants people to successfully buy homes – so much so that there are myriad programs available to people in all kinds of situations.
First-time home buyers, newly married couples, recently returned military personnel – all have programs that would help facilitate their home buying endeavors. First-time buyers with little money for a down payment can take advantage of FHA loans that allow buyers a minimum of 3 percent down as opposed to the traditional 20% required on most conventional loans. FHA borrowers are eligible to accept cash gifts from personal and professional relationships (as long as they are not financially vested in the home’s sale), making it possible for almost anyone to become a homeowner, including fresh graduates or newlyweds.
Military personnel, if qualified, can obtain loans backed by the Veterans Administration. The most popular benefits of these loans are no down payment and that the lending fee is either reduced or eliminated. Further, VA loans are assumable which means if the home is ever to be sold the interest rate would transfer to the new owner, a very strong selling tool given today’s phenomenal interest rates. To learn more about VA loans, visit the official site.
Sellers Beware and Be Aware
While today’s market is strong in some areas it remains a challenge for sellers. So the last thing you want to do is to list your home on the market and then waste time entertaining less-than-serious offers. One of the best ways to weed out the serious ones from those that are just window-shopping is to request a prequalification from a lender. When a buyer has gone through the lengths to obtain a preapproval from their bank, it means they have supplied personal and private financial information, including allowing a credit report check. Non-serious buyers would likely not want to delve into that much detail. An additional benefit of having a prequalified buyer is that you know up front how much they can afford. Last minute change-ups are not a good thing for sellers in the current buyer-controlled market. Rather than risk delays it’s best to start on the right foot.
Considering the historically low interest rates available right now, every single homeowner should get a mortgage check up to find out the possibilities that exist for them. Whether finding out if you can afford a better home for the same monthly payment, or obtaining information on home renovation and expansion loans – you won’t know until you find out. Even if it does not seem like moving in the near future is possible, find out your options so you can compare what you have with what you can have.
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Regardless of which side of the fence you are on it is important to know what your options are so you can make informed decisions based on that knowledge. To help you with your endeavors, contact your Realtor today!
