10 Important Things to Consider When Buying a Home
Introduction
There have been a lot of changes in the loan and real estate industry over the last two years. A first-time home buyer should be aware of all these changes. We present to you an updated guide that will help you when buying a home.
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Below are 10 things a first-time home buyer should know
1. It’s easy to qualify for a loan ● Today, most lenders are accepting lower down payments and qualifying borrowers with a higher debt-income ratio. 2. Debt limits have gone up ● Last year, Fannie Mae stated that it would begin backing loans with borrowers. This will make loans easier to get, especially for borrowers with higher debt levels.
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Below are 10 things a first-time home buyer should know (contd.) 3. Home prices are rising gradually ● Last year, local real estate markets experienced a rise in home prices and those prices may continue to slowly rise. 4. Loan rates are expected to soar ● Last year, thirty-year loan rates were projected to rise in the second half of this year. ● House prices are also expected to go up.
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Below are 10 things a first-time home buyer should know (contd.)
5. You don’t need a down payment to buy a home. ● Today there are mortgage loan programs that require less of a down payment. ● The FHA loan program requires a lower investment. ● VA loans provide financing to qualified borrowers like military members and veterans. 6. Inventory is limited in many local housing markets. ● Low housing inventory was a trending story over the course of the past two years. ● This year we will see housing shortages in many cities nationwide.
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Below are 10 things a first-time home buyer should know (contd.) 7. FHA loans are more expensive. ● Last year, a reduction was seen in FHA mortgage insurance. However, HUD canceled this reduction. ● First-time buyers who use the FHA loan program will continue to pay higher mortgage insurance levels. 8. Many home loans require good credit. ● A report from Ellie Mae states that most closed home loans were issued to borrowers with credit scores of six-hundred or higher. ● A tiny number of purchase loans were offered to borrowers with credit scores in the five-hundred range. 6
Below are 10 things a first-time home buyer should know (contd.) 9. It's important to have a real estate agent. ● Today, many local markets are facing inventory shortages, making it more difficult for first-time home buyers. ● It's important to seek professional guidance from an expert real estate agent. 10. We have a lot of knowledge to share with you! ● Over the past few years, we have been educating first time home buyers. ● Find out if you're eligible for the first time home buyers program in MA (Massachusetts). ● We offer loan advice to first time home buyers and will help you make an informed decision. 7
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DREW MORTGAGE BRANCH OFFICES: Drew Mortgage Associates 196 Boston Turnpike Road Shrewsbury, MA 01545 Phone: 508-753-1656 Website: https://www.drewmortgage.com/
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