F I N A N C I N G D EC I S I O N S STA R T W I T H H O M E WO R K
Buyers should keep an eye on key factors
Interest rates are going to change. Up or down is anyone’s guess. That makes the financing
aspect of buying a home even more crucial and buyers can ready themselves by doing their
homework and being aware of the changing mortgage landscape.
Do research “Do your research to find an experienced loan officer with areputable company,”said Sally Doherty,amortgageloan officer with Cherry Creek Mortgage. “Ask your friends and familywho they used and would they recommend.”Start by getting preapproved, whereyou provide income and assetdocumentation to your lender.
Be skeptical Doherty advises having ahealthybit of skepticism researching financing. “Don’tbelieve everything yousee on the Internet,”she said. “When it comes to buying and selling, thereisnothinglikeexperienced reputable professionals to getyou through the intricacies of the selling/purchase process.” Thereisnoshortageofpotential potholes that can break adeal.
Watch balances One of the big changes this year will affect areas with high prices.Fannie Mae nowaligns high-balance conforming loans —above $417,000 in Los Angeles and Orangecounties —toregular conforming loans, including reducing the minimum down payment to 5% from 10%.
Rates changing “Rates aregoing to change—that much is certain,”Doherty said. “I am hard-pressed to see howmortgagerates aregoing to rise in the near future, since negative economic news generallypositively affects mortgage interestrates.” In fact, rates started off the year back below4%, according to aFreddie Mac survey released earlier this month.
