As time runs out and the calendar flips to 2014 the only thing I can say about the mortgage & real estate markets is that the more things change the more the remain the same. If you, or a client of yours are in need of mortgage services, just remember a few simple rules no matter the market and you will be fine.
1. Don’t borrow more (in dollars and in monthly payment) than your gut tells you makes sense. Qualifying guidelines allow for a max amount for you to borrow. However, it may not make sense for you to do that. A qualified pro (both mortgage & real estate) can talk you through finding your comfort zone. If they are selling you more house or payment than you are comfortable with, find another agent!
2. Rates are going up. Get used to that now and unless you are a single buyer, in your 20’s who likely has some moves coming due to job changes, getting married or having kids, get a fixed rate loan. Thank me later.
3. Getting approved is tedious and complicated, but not all that hard. Basically, we crawl through your life financially and triple check every detail asking questions about anything that appears inconsistent. That’s just how it is, if you want to borrow the money you will have to chase details. On the bright side, most of those details, (statements, paystubs, insurance info) are online and quickly available.
4. Real Estate is the cornerstone of personal financial health in America. Even if all you did was by one house at 30, pay it off at 60 when you retire and took a reverse mortgage at 62 to supplement your retirement income, you would be far better off than someone who rented their entire lives.
5. Use qualified professionals, for Mortgage, Real Estate, Insurance, Financial Planning, Home Repairs of all sort including Electricians, Plumbers, HVAC, Garage Repair. Here is the catch, the true professionals charge a bit more up front, but for that they will stand behind their work, explain everything in detail and take time to teach you about preventative maintenance, as it relates to their profession. This is worth a little extra dough.
So I thank everyone for your support of my team and our mortgage business. If we can help you, anyone you know or introduce you to a qualified pro in another field, just ask.
Best Wishes for a Happy New Year to you and your family!
