Denver Mortgage Blog
Denver Mortgage Blog
Real estate and lending has never been more complicated than it has become since the 2008 financial collapse. Everyone wants to ensure that they get a reasonable deal on the real estate that they purchase, but there are other things that need to be taken into consideration throughout the process as well. Take the following tips and tricks into account as you shop for mortgage in 2015 to make sure that you are able to get the deal that you want, without having to take on too much risk as a result;
Don’t Procrastinate, Refinance
If it has been quite some time since you refinanced, you are more than likely paying a much higher interest rate on your mortgage then you need to. You can take advantage of the record low mortgage rates that are available today by refinancing. Additionally, rates are expected to remain low for the early going of 2015, so now is the best time to refinance, rather than later on when the interest rates are likely going to get higher. At some point, the interest rates will begin to gradually increase over time. By that point, you will have missed your opportunity, and will likely regret not having refinanced previously. Some people report being able to save hundreds of dollars on their mortgage per month through simple refinancing plans that your lender will provide to you. You should attempt to avoid procrastination, and refinance now, rather than at a later date when the interest rates will undoubtedly be higher.
It’s Time to Buy
Now is certainly the time to buy as well, for the same reasons that it is the time to refinance. Rates are near the lowest that they have ever been, and it is a great time to look into buying a house. Before the interest rates begin to rise next year, now is the most affordable time to find a decent home at an excellent price. By seeking out a mortgage pre-approval before you begin the shopping process, you will be able to speed up the home buying process as well.
Another thing that needs to be taken into consideration is whether you are going to utilize loans from the Federal Housing Administration, or go the more conventional route. Using the FHA loans, you can purchase a house with as little as 3.5% down. Keep in mind that FHA fees can be quite high, and the costs of FHA mortgages are going to rise as well. They can be an excellent choice for individuals that are undergoing financial hardship, but are still looking to purchase the home of their dreams.
Credit Has Never Been More Important
Credit has always been an important consideration when you were looking into getting a loan. Even today, you want to make sure that your credit is as tight as possible when you are looking for a mortgage. Throughout 2013, a number of new mortgage rules were unveiled, but the one thing the changes did not do is create a situation in which lower credit scores are going to make it easy for you to obtain a mortgage. Many lenders are going to want to see a spotless credit history for a year leading up to your application on your credit report. Your credit score has to be at least 720 in order to qualify for the best rates that are available. There are other options for individuals that have less than top-notch credit and Hunter Lending will work with everyone to help get the best deal possible.
If you are currently underwater on your mortgage, it is imperative that you are able to refinance. Understanding how to properly go through the negotiation process in order to get yourself properly refinanced is important for homeowners that are currently underwater. Many run into obstacles when refinancing, but with a number of new regulations available, there should be a wealth of options available to you. Hunter Lending has experience working through any obstacles to get you the best terms possible.
Low Rates and Good Service
One very important thing that needs to be taken into consideration when you are looking at which lender to go with, is going to be both the rates, as well is the service that they provide. It is important for you to ensure that you are working with a company that is able to provide you with a high level of quality service, ensuring that you work with the company that is going to be able to meet you halfway, and help you throughout the process to get the best possible deal.
Breathe Easy Only After Closing
Although applying for mortgages is going to be a very stressful time for everyone, you need to make sure that you are able to breathe easy after the loan closes. Once you have submitted the final mortgage application and have locked the rate, it does not mean that your job is done. You will have to submit any documents that have been requested by a loan officer, and usually have a time limit of 24 hours in which you can submit them. If you delay in responding to the lender, you could be wasting valuable time.
The Federal Reserve’s July meeting minutes stated that the policymakers think that the U.S. economy is now strong enough to raise these interest rates. What the minutes didn’t inform people of is when to expect these interest rates to go up. With that said, there have been many predictions to suggest that these interest rates are on track to start going up in the spring of 2015. There has not been any increase in the Federal Funds Rate since June 2006; this would be the first time in 8 years that people would see an increase in these interest rates, and some think the United States’ economy is not ready for this.
Although the majority of the policymakers were in favor of increased interest rates, there were some that did not agree. John Makin, a conservative economist at the American Enterprise Institute, stated his opinion that these rates should continue to be kept low for now. Makin argued that although there was a 4% growth rate in the U.S. economy in the second quarter of this year, the first quarter showed only a .95% growth rate. If interest rates were to be raised now, that 4% growth rate in the U.S. economy could be very fleeting.
The minutes from the U.S. Federal Reserve’s July meeting, coupled with the Bank of International Settlements annual report, which was released in June, propose that some of the economic issues in the U.S. are not being addressed. Many of the individuals at the meeting were concerned that Americans are spending too little and saving too much. This combination is suggesting that the low interest rates may not be in the U.S. economy’s best interest. Many factors are contributing to the slow recovery of the housing market; some of these factors include low income, student debt, and the fact that it is difficult for first-time home buyers to get mortgage credit. With all these factors in mind, there has never been a better time, and there might never be a better time, for the American people to lock in low mortgage rates while they still can.
Call Hunter Lending if you are considering locking in today’s low Denver Mortgage Rate by refinancing or using the opportunity to buy additional property.
700 SEVENTEENTH ST,
Denver, CO, 80202