If buying a home in 2015 is on your list then you’re in luck. The market looks promising for buyers looking to purchase a home next year, and if you’re considering it, here’s a guide to help you get started.
Prepare Now
Like any new year, agents across the country will be receiving calls once the ball drops in New York, and if you’re unprepared the deal of the year could go sailing by.
Start by gathering the facts about a potential new home, such as: neighborhood, price range, size, location, proximity to work and school, and of course the “extras” you can’t live without. Once you know what you’re looking for, take a look at what’s available on the market within your parameters. This will help you and your mortgage team have an idea of the type of loan you’ll be needing.
Take as long as you want in this leg of your journey, because once you’re ready to move it’s full steam ahead.
Rates and Affordability
Though home prices across the nation are up 7% from July 2013, home prices overall are still down roughly 11% below the 2007 peak. Now is a great time to buy that new home, and with interest rates remaining low, the new year brings great opportunity homebuyers. The window of opportunity won’t be closing immediately either, according to Dave Norris, president and COO of LoanDepot, “I don’t see anything in the next two or three months to cause rates to rise” he stated, and in fact believes rates may continue the slow downward trickle into the beginning of 2015.
The 3% down payment mortgage is also making a comeback thanks to Fannie Mae and Freddie Mac. The two government backed mortgage institutions announced earlier this month that they will begin bringing back down payments of as little as 3% of the home’s price. There are several guidelines that will need to be met and documentation required in order to be considered for the 3% downpayment. Among other things, potential home buyers will be required to:
- purchase private mortgage insurance
- have a credit score of at least 620
- offer documentation of income, assets, and job status
- receive home ownership counseling
If you are in the market to purchase a home I hope you will contact me to help you get your financing prepared and in order. I can be reached at (214) 770-1499 or email me at jim@mortgagebyjim.com. You can always get prompt service by completing this online form.