Do you want to become a homeowner this year? If you have kept tabs on the real estate market so far, you will know that mortgage rates are going to rise this year, and may go over 5%. As such, you have to act as quickly as possible so that you can get a better deal. But what if things are delayed and the rates rise? What will you do then and how can you still get a better offer? There are plenty of ways that can keep you on top if you know what to do.
Here is what the real estate industry experts have to suggest in this regard.
Have your finances ordered
As you may already know, 2014 calls for tougher mortgage requirements because of the new laws. When offering home loans, lenders are going to be extra careful and will take steps to ensure that you can easily pay off the loan later on. A proper record of all your finances can help in this regard and ascertain to the lender that you can afford being a home owner. Make sure you have multiple copies of your bank statements, w-2s, tax returns, investment accounts and any other documents which you feel can be helpful.
Utilize the locked-rate feature
Once you decide on a lender, lock in a mortgage rate at your earliest. Even if rates rise later on, you will not be affected by them.
Take advantage of the lenders
2013 was the first time mortgage rates fell in the past several years. People took opportunity of the situation straight away and most of them had their mortgages refinanced so as to get a better deal. Refinancing was big business for the lenders last year, and now there is hardly anyone who can use refinancing. Obviously, the lenders now have to focus on homebuyers because that is the only business they have this year. This provides you with an extra edge and if you shop and persuade your lender, you might still get a lower rate.
Know your rights
Mortgage rights have changed this year. Ask your real estate agent and get an update so as to ensure that you do not miss out on anything.
Maintain a good credit report
With the requirements becoming tougher, it is vital that you maintain an above average credit score.
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