Are renters soon to be future home owners thanks to Mortgage options appearing over the past few months? Perhaps… At the very least if you are a renter and you were considering home ownership then now is the time to find out what your personal needs are and what steps you can take to be in a home by your deadline. It may be far fewer hurdles than you think!
Housing crisis is behind us and let’s hope it stays that way. Prices and more importantly appraisals have begun a rebound, markets around the country are growing and although late to the party Connecticut is seeing modest improvements in prices and sales. Slow but steady would be welcome.
As a renter looking to come into the home ownership market it is good to look at where you are, where you have been and where you would like to be. Make those lists of what are the must haves and the desired items and then working with your REALTOR work to determine what is a reasonable mix of both within your family’s budget.
Which brings us to budget- what is your budget? Not what you ‘think’ it is. Not what you ‘think you know’ it is. Not what a computer app told you was your range of affordability after typing in answers to 5-10 questions. What is your budget for purchasing a home is information best gained by sitting down with a Lender and working through your particular situation and your particular numbers. This does not have to be a formal sit down- many, if not most, lenders will work with you over the phone to get the process going. The communication will continue back and forth to gather documents needed to determine actual financial power until you come up with a number. All of this information will be time and ACTIVITY sensitive. ACTIVITY sensitive? Well yes. If you participate in an ACTIVITY- such as heavy credit card use during holiday shopping, or purchasing furniture, car, or other item on a long term note- then the numbers of today will not be the numbers of tomorrow. This also works in reverse- if you CLOSE out a credit account, or pay off a long term note there could be a change to your financial buying power due to this ACTIVITY. Your lender will work with you to guide you through how each action will affect your power.
In recent weeks the announcements have come out that 3% down payments are back. “…Freddie Mac launched Home Possible Advantage, a conventional mortgage with a 3 percent down-payment requirement geared to low- and moderate-income borrowers. It’s a conforming conventional mortgage with a maximum loan-to-value ratio of 97 percent. To qualify, first-time home buyers are required to participate in a borrower education program….” (from Daily Real Estate News | Tuesday, December 09, 2014 )
So the question is Will this newest option be enough to move you from a renter into a future homeowner? If so, let me walk the journey with you…
Selling/Buying/Investing- You owe it to yourself to call Dawn McNary, REALTOR® , with Heritage Properties spc Today! Let me help ‘Make YOUR real estate dreams a reality!’
Let’s get the conversation started- Call me at the office Mon-Fri 860-739-4455 ext 33 or afterhours reach me via cell/text 860-575-5001