Since the election, mortgage rates have risen significantly. First time homebuyers may worry that rising mortgage rates may affect their ability to secure a mortgage loan for their first home. Yet, comparatively, mortgage rates are still historically low. Here’s how you can take advantage of securing a loan before rates raise even more.
Identify a Range
Review your monthly budget and speak with a licensed mortgage professional. While the general rule of thumb is a debt to gross income ratio of 40%, over 26 factors can alter the debt to income percentage and affect credit scores. A mortgage professional can assist in identifying an accurate range. When assessing a monthly budget, also take into consideration home modifications, initial repairs, and home upkeep.
What Are You Looking For?
Are you looking for a multi-level or ranch style home? Do you have or plan on having children? Would you have a multi-generational family member living with you at some point in the future? Do you need access to public transportation, shopping centers in close proximity, or a shorter commute? These questions can help you narrow your search.
Repair Your Credit
Work with a mortgage specialist to repair and maintain your credit score. While you think that paying off an old debt in full will help you, it will temporarily pull your credit down, in some cases by more than 100 points. A mortgage specialist will help you prioritize what to take care of first, and how to give your credit a boost.
Use Online Resources
Zillo and other online real estate applications can help you narrow your search by home amenities, mortgage range, and market availability.
The David M. Damaré Team is here to answer your questions about financing options and mortgages for first time homebuyers.
“Mortgage Lending is Our Business: Customer Service is Our Passion.”
Stay tuned and stay in touch with your mortgage professional. Thank you for the opportunity to serve you.
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