Wondering if interest rates are going to go lower? Are you sitting on the fence and just can’t decide?
Don’t wait too long according to the Dallas Morning News.
Mortgage rates just fell for the third straight week, according to mortgage finance firm Freddie Mac.
“The credit markets are still tight, but they have loosened up significantly from 90 days ago,” said Scott Norman, vice president of the Texas Mortgage Bankers Association.
So is this a good time to enter a mortgage transaction? It might be, if you can qualify.
“The two biggest issues are going to be credit and down payment,” Norman said. “Those are really going to trigger your ability to get a mortgage in a decent amount of time.”
For those people who are thinking about buying a home:
“Clean up your credit score,” Norman said. Catch up on any late payments and pay off or pay down your debt.
First-time buyers have a sweetener in the form of an $8,000 credit on federal income taxes for homes purchased before Dec. 1.
It’s critical that you have a down payment because lenders want to see that you have skin in the game. Mortgages insured by the Federal Housing Administration require a 3.5 percent down payment, which can come from a family member, employer or charitable organization as a gift.
For a non-FHA-insured loan, lenders are requiring a 10 percent down payment, said real estate agent Brenda Rogers of Coldwell Banker Apex, Realtors in Plano.
For those people who are thinking about refinancing:
“Have plenty of equity,” Rogers said. Equity represents the ownership value you’ve accumulated over time by making payments, and lenders want you to have a financial stake in the refinancing.
“The lender doesn’t want to lend 100 percent of the value of the property,” said Norman, of the Texas Mortgage Bankers Association.
