If you've been living on another planet, you might not have heard all the media reports about the mortgage market conditions. It's been front page news for months - lots of doom and gloom that make home owners and prospective buyers doubt the wisdom of home ownership.
Guess what? The news about mortgages isn't all bad. In fact, it's quite the reverse. But if you only listen to the media stories, you may be missing out on an opportunity of a lifetime. Let's take a look at the myths that have come up over the past few months:
Myth # 1 - Mortgages rates are climbing, forcing home buyers out of the market. Actually, the opposite is true. Mortgage rates remain at historic lows. For home owners that are looking for a 30 year fixed, or 15 year fixed, interest rates are still at an all-time low. Sure, we occasionally will see ups and down with rates, but for the most part rates have been pretty steady over the past few weeks. If you are unsure, call your local loan officer to provide you with a hassle free quote. It does not have to cost you money for your loan consultant to provide you with some examples. (don't forget to get it in writing).
Myth # 2 - You'll never qualify for a loan in today's market place. In the recent past, some lenders made lending programs available to buyers that didn't have the credit history or score, income, or property value for a home. But that didn't reflect the majority of buyers. Lenders are always looking for home owners - those people that are the majority - buyers with good credit scores, sufficient income, equity in the property or a down payment, and with assets to back up the loan. The magical number for your FICO score to qualify for an FHA loan is 620.
Myth # 3 - The real estate market is in a free fall. It's true that the average home price has decreased across the country, but that doesn't mean the market is going to bottom out. When the national media talks about average home prices falling, they are averaging in home values in extremely depressed areas. Many parts of the country have seen decreases, but it hasn't been double-digit decreases. Some parts of the country had overly inflated home values, and this is simply a market correction. That's good news for buyers. You can get a great home at a far better price than a year ago. And, when the market rebounds, you've banked equity in your home. Think about it... what did your parents buy their first home for several years ago? How much would that home sell for today?
Despite the gloom and doom broadcast on the news, this is a great time to buy a home or refinance. Rates are low, there are lots of great homes to select from, and prices are set for a great investment.
Call me for more information about some of the many great mortgage programs that may be available to you.
Always available for your Frisco Texas Mortgage needs!
John Cannata Reliant Mortgage p# 214.545.5604
I'll help you get pre-approved for your Texas home loan and even suggest some very knowledgeable and professional Real Estate Agents in your area of choice. If you are available to talk, I am available to listen. Give me a call or visit my website for more details.
Do you want to know all of your mortgage options? Call me today and let's discuss them further.
Always available for your Texas Mortgage and Home Loan needs!
John R Cannata P#214.728.0449
NMLS # 322646
The views expressed on this site are mine alone and do not reflect the views of my employer.