Home buyers are not waiting to see what happens with interest rates.
In what almost defies odds, despite the Federal Reserve’s decision to raise their base interest rate in December, home buyers are finding that their purchasing power is at its peak with nearly historic low interest rates.
According to a recent study, home mortgage applications jumped by nearly 9 percent in January of 2016. Borrowers are clearly seeing the advantages of acting now, rather than sitting on the fence.
And why not? Home prices on average rose 10 and a half percent in 2015. This average includes both single family homes and condominiums sold in the Santa Clarita Valley. The median price of a single family home rose 8.1 percent, while condos rose on average 12.9 percent.
I think I’m ready to buy a house. What do I do first?
The best thing to do, of course, is to contact Montemayor & Associates, and we’ll get the ball rolling to find the right lender who can let you know what your qualifying home mortgage rate and amount may be. Yes, you should do this FIRST before you begin looking at homes.
Your lender will be able to determine your loan amount based on your credit history and debt-to-income ratio. They both go hand in hand in the qualification process. If by chance you don’t qualify at first for your desired home loan, your lender should be able to provide you with information that will help improve your credit score, which in turn may increase your qualifying amount.
Once you have qualified for your home mortgage, one of our team members will work with you to find the perfect home that will suit all of your real estate goals.
Contact Montemayor & Associates with your real estate questions, and let us help you get on the path of home ownership today.