Last week’s economic reports included readings on construction spending and Labor Department readings on private and public jobs growth. The Consumer Sentiment Index was released along with weekly readings on mortgage rates and new jobless claims.
FOR IMMEDIATE RELEASE
Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2019. In most of the U.S., the 2019 maximum conforming loan limit for one-unit properties will be $484,350, an increase from $453,100 in 2018.
If you are in the market for a new home, you've probably begun the process of choosing the neighborhood or community in which you want to live. The perfect spot to call home will depend on your age, the size and composition of your family, your working life, and other factors. However, one thing you may not know is that the community you choose to live in can also impact your mortgage. In today's post, we'll explore how the local area in which you live can affect your mortgage financing and interest rate.
Lender Pricing Varies By State
As you might imagine, the mortgage market is subject to a variety of legal rules and regulations. These laws vary from state-to-state, which means that they affect mortgages differently depending on where you live. All lenders have slight differences in their pricing depending on where you're going to live.
Also, if you are looking to buy in a rural area which isn't close to a major city, that can affect your mortgage as well. Some lenders might not service rural areas in your state, so you won't be able to access their mortgage products.
Are Other Local Homes Driving Up Prices?
Price is another factor that can change your mortgage. If you are buying a home in a popular or luxurious community, that will drive the price up. Moreover, while you may be approved for that bigger mortgage, it may also come with a higher interest rate because of the higher amount of risk involved.
Is The Local Market Hot Or Cold?
Don't forget that the pace of the local housing market may impact your mortgage as well. For example, if fewer new homes are being built or added to the local inventory, you may find that scarcity is causing prices to increase. Conversely, if no new homes are being built because there is no demand, prices are likely to be trending downward. Also, while few lenders set their rates on a community-by-community basis, if the statewide or nationwide trend is a decline in home purchases, you are likely to see interest rates decline to entice new buyers into the market.
In closing, it is important to remember that the community you choose to live in is one where you could find yourself situated for decades. Your mortgage interest rate should be less of a concern than ensuring you have access to great amenities, quality schools and a safe environment. To learn more about mortgage costs in your community of choice, contact our professional team and we'd be happy to help.
Buying a new home is one of the most exciting experiences a person or family can have. Of course, before you can step foot into your new dream home you will need to get prepared financially, especially if you are taking out a mortgage to cover some of the purchase price. Let's look at a few key steps that will help you to prepare for the financial background checks that are part of the mortgage process.
Are you thinking about buying a new house or apartment? If you are going to take out mortgage financing, one consideration you will have is your down payment, which is the amount you pay up front in cash to cover some of the purchase cost. Let's consider a few points that will help you to decide how much is the right amount for your down payment.
Have you been considering a mortgage for your next home purchase? As with any loan or financial product, there are a variety of fees and costs you may incur in the process of closing your mortgage. In today's post, we'll explore a few of these potential fees and the situations in which you may encounter them. Let's get started!
Whether you're just out of college, recently married or simply haven't jumped into the market yet, buying your first home is an exciting prospect. It can also be an expensive one, which is why most people will take out a mortgage to help finance the cost.
Are you thinking about buying a new house, condo or apartment? Whether you are upgrading, downsizing or investing, if you intend on borrowing the funds you'll need to be pre-approved for a mortgage. In today's blog post we'll explore mortgage pre-approval and why this should be one of your first steps in buying a new home.
Are you in the market for a new home? If you are going to rely on mortgage financing to cover some of the purchase cost, you will need to start the application process as soon as possible. However, what if you just need to know how much you will be able to borrow so you can start finding homes in your price range?
Let's take a quick look at the difference between being 'prequalified' and 'preapproved' for mortgage financing.
The Process Starts With Prequalification
The first step in obtaining mortgage financing is to speak with a mortgage professional to get prequalified. After sharing some quick information about your financial assets, income and any debts, your advisor will share a range of financing options and amounts that you may qualify for. Prequalification is typically done free of charge and either in person or over the phone.
Note that your mortgage lender will not be doing any digging in the prequalification stage. There's no credit check and no hard look at your assets. Don't get too excited if you are prequalified for a large mortgage as you will still need to be approved.
Once You Are Preapproved, You Are All Set
Preapproval, on the other hand, is a firm commitment to access to a certain level of mortgage financing. Your mortgage lender will require a variety of information to get an idea of your financial situation, your current and future employment, your level of risk and more. Once they have a good idea of how much mortgage you can afford, you will be provided with a conditional commitment letter. This letter outlines how much the lender is willing to offer to you as well as other vital information like your mortgage loan interest rate.
Speed Up The Process By Preparing Beforehand
Finally, it is worth a mention that you can speed up the mortgage process by having all your application paperwork ready before the initial meeting. Gather up your most recent income tax returns, pay stubs and bank statements. If you have investments or other financial assets, document those. You will also want to be up front about any outstanding debts that you are paying off. The more prepared you are, the faster the application and preapproval process will go.
Have you found the home of your dreams? Our team of mortgage professionals is ready to help you finance it. Contact us today and we will be happy to assist you with getting both prequalified and approved for a mortgage.