More buyers enter housing market, aided by affordable residential financing
Posted on Wednesday, September 25, 2013 at 1:35:16 PM
In July, the number of existing-home sales reached its highest point in more than six years, according to the National Association of Realtors. Chief economist Lawrence Yun believes that changing mortgage rates has inspired more people to buy now, and that there is a slightly smaller inventory in some regions.
A number of borrowers are concerned about rising residential financing rates. Preparation is an important step when buying a home, and recently Patrick Deady, vice president of Home Loan Investment Bank, took the time to offer some advice for prospective homebuyers.
"Borrowers should be concerned about rising interest rates," explained Deady. "An increase of 1 percent on a $200,000 mortgage will increase your monthly payment by $140 on a 30-year mortgage. In a competitive market any new buyer and borrower should consult with a mortgage professional and get pre-qualified before conduction a home search."
Residential financing rates have been shifting as of late, although still near historic lows. The changes mean homebuyers should constantly monitor their financial situation.
"Moreover, any borrower who has been pre-qualified should revisit their qualification due to the recent rise in interest rates," said Deady. "Pre-qualified buyers may want to adjust their target price lower to ensure they are in a comfortable payment range."
For many potential buyers using residential financing, it can be difficult to find the perfect home. However, the opportunity will come, and everyone should be as prepared as possible.
"The key to acquiring the home you want at the price you want is patience," added Deady. "Homebuyers should take their time getting educated on housing availability in their market by doing an extensive home search. Finally, they should work closely with their mortgage professional to ensure the new housing payment will fit within their budget."