After years on a steady incline, interest rates are finally starting to come down, which makes now a great time to apply for a loan. Tim Lucas of TheMortgageReports.com attributes the lower rates to the Feds maintaining a “patient stance.” Who knows how long their patience will last? So, if you’ve been hesitant to purchase new property or refinance your home loan, now is the time to take advantage of low mortgage rates before the rest of humanity queues up to apply for new loans.
Act quickly because housing sentiment is already surging, thanks to those low rates, which have fallen by a full percentage point since late 2018. In fact, government-sponsored mortgage lender Fannie Mae’s monthly survey shows that positive sentiment in March jumped to its highest level since June of last year — which was just below the record high. The low rates are sure to boost housing markets across Southern California, where Exact Escrow is located. So how can you best take advantage of these unbeatable deals? Here are tips for capitalizing on record low rates:
3 Surefire Ways to Get the Absolute Best Interest Rate
- Apply early.
We know you’re eager to peruse websites in search of the perfect home. Resist the urge. There’s no use falling in love with something that is out of your price range or losing the perfect home to someone whose financing is already secure. Sellers feel more comfortable accepting offers from buyers with proof of pre-approval. So, bite the bullet and apply for your loan first. Then, you’ll be perfectly positioned to win the bid when you find the home of your dreams.
- Cough up some cash.
We know –this may take longer than you originally planned. But in the aftermath of the housing crisis, most lenders require about 10-20 percent of the purchase price of a new home. Of course, some lenders offer first-time buyer incentives and alternate exceptions. Your lender will be able to advise you about the amount you will need for homes in your price range. Unfortunately, the days of buying a $500,000 home with no money down are firmly behind us…at least for now - Better your credit.
Banks prefer lending money to people who have a high FICO score because they assume less risk of default. You may be surprised by just how much more you will pay if your ranking is in the 600’s as you would if it is in the 700’s or 800’s. To improve your score, spend no more than 20 to 30 percent of your available credit limit. Do not carry unsecured credit card debt. And pay your bills in a timely manner.
About Exact Escrow in La Verne, California
If you plan to buy a home or refinance your mortgage loan, please consider using Exact Escrow Inc. We are a full-service independent escrow company dedicated to exceeding our client’s every expectation. Our goal at Exact Escrow Inc. is to make sure even your most complicated transaction closes smoothly and efficiently. Call today to speak directly to an
