What is a credit crunch? That’s what lots of home purchasers with strong credit and sufficient cash for the down payment are saying throughout the existing slump in the property market. They are in a much better location than they were before the market crashed.
And now, even the 30-year fixed mortgage rate is at a low. Home prices practically everywhere have fallen. If you want to purchase a home and you have the credit certifications, it’s a great time to purchase.
So what changed?
Mortgage rates have actually dropped since the start of the real estate downturn. Since homes aren’t selling, lending institutions are doing everything they can to attract purchasers, including low financing rates. Treasury securities and the housing downturn helped drive mortgage rates down.
Home rates are lower now than last year and are down in the majority of states, according to the National Association of Realtors. Purchasers with sound credit have a lot of bargaining power. For some people, real estate appraisers are coming up with lower home values, which allows buyers to change the rate.
Lenders fear the subprime market crisis will continue, but some still offer jumbo loans. Neighborhood and nationwide banks have stepped in to offer these. They can fund them with consumer deposits. Numerous loan providers have actually abandoned these jumbo loans.
Lastly, rates on ARMs, which are almost always based on Treasury yields, have fallen. This brings rates down all around.
Think about it: what better time than now to purchase that home you’ve been putting off for so long? Now is the time because it probably won’t get much better than this.
Find out your credit score. You can do this quickly and online. Second of all, shop the local loan providers initially. See if they can provide you with a loan that will start out low but will not get you far off the road. Then put in the time to contemplate the market. Make sure you are aware of what is going on and consider how you can benefit from it.
It always makes sense to get in touch with a real estate lawyer prior to committing to a long-term loan. If later on you can actually pay for the payments of a jumbo loan, these real estate legal representatives can help you figure it out.
That’s what many homebuyers with solid credit and sufficient cash for the down payment are saying during the current recession in the real estate market. They are much better located than they were prior to the market turning down.
If you want to buy a home and you have the credit qualifications, it’s a fantastic time to purchase.
Lenders fear the subprime market crisis will continue, but some still offer jumbo loans. Take the time to consider the market.