Right now is a great price to buy a house. There is an important reason why this is so. Mortgage rates are near historic lows. This means the monthly payment on a loan is a lot lower than it has been historically for many decades. There are many Mortgage Lenders out there that are eager to do business with home buyers. It has never been more affordable to buy a home. All that’s needed is a down payment and good credit. Those who have been sitting on the sidelines for the last couple of years have been rewarded with lower prices and lower interest rates. Now is the time to strike before rates go up. Rates won’t stay this low forever.
The first thing to do is to get an Online Mortgage Quote. It is definitely worth it to shop around. Rates can differ considerably from one lender to the next. Those borrowers who don’t bother to shop around may end up paying much higher rates than those who do some basic comparison shopping. Keep in mind that different banks will have different underwriting requirements. Some of those with super low rates may be difficult to qualify without higher FICO scores and a bigger down payment.
The only real hurdle for those looking to get a Residential Mortgage Loan while purchasing a house is the borrower’s credit. It used to be easier to get a mortgage loan in the past. In fact, it used to be possible to get a loan with stated income and low down payments. That is no longer true. Buyers who can put 20% down payment with well documented source of incomes will have the best chance of gaining an approval from the bank’s underwriting department. Those that have a low debt to income ratio and a high FICO score will definitely want to apply.
Overall, now is a great time to buy a house. Many areas have very low prices on houses due to the weakness in the housing market. When combined with historic low mortgage rates, it only makes sense for families and real estate investors to consider buying a house now.
