Understanding Mortgage Rate Trends
Understanding mortgage rate trends and their influence on relocation decisions is essential in today’s housing market. As we dive into this complex subject, we’ll uncover how these trends impact one of life’s biggest decisions: choosing a new home. It will also help you avoid the most common mistakes when applying for a mortgage.
The Mortgage Rate Trends and The Impact on Home Prices
Contrary to what some might think, mortgage rates don’t directly set home prices. However, they do play a critical role in shaping them. Higher rates mean higher monthly payments, prompting buyers to adjust their budgets and expectations. However, when rates are higher sellers are usually more willing to offer selling paid closing costs.
Furthermore, most sellers are willing to negotiate on the price and terms of the sale of the home. Whereas, in a better home market, homes often go for more than their current asking price.
New To the Home Buying Process
If you are new to the home buying process, rest assure you are in good hands with Arizona Wholesale Mortgage Inc. We have been in business helping homeowner’s purchase their new dream home since 1998. To us it doesn’t matter whether you have good great or bad credit. We can always offer you a solution. However, if you have less than perfect credit, do not expect to obtain the exact same great as a 740 or higher fico score borrower.
Clean Up Your Credit
If you are even thinking about purchasing a home soon do yourself a favor. Clean up your credit. Make sure you do not have any late payments whether it’s on a credit card, truck payment, car payment, boat payment or even a motorcycle payment.
Loan Options
Next you will want to call us to discuss your loan options. If you are not putting 20% down, then you will want us to do the math for you to determine whether your total payment is less on an FHA or VA loan compared to a conventional loan. Depending upon where interest rates are at when you apply, your payment might be cheaper on an FHA loan even with the upfront mortgage insurance premium amount. At other times, depending upon our economy and the market it might not be. This is why, experience does matter. You need to work with a license seasoned loan officer who can do the math for you and help you make the right decision.
Give us a call today at 602-358-8717 to discuss your next dream home.