With the start of the new year and the warming weather, spring is a great time to buy a home. But when is it a great time to get a mortgage? That answer rarely follows the seasons, but thanks to several positive recent trends, now is a fantastic time to finance a new home or refinance a current one. Here’s why.
- Mortgage rates are still near historic lows (for now). While mortgage rates remain a bit above the rock bottom they hit several years back, they’re still at one of the lowest points seen over the past several decades. Despite falling recently, rates may rise again later in 2019, however, so getting a new mortgage sooner rather than later may be best.
- Getting a mortgage may be faster and easier than you think. You can apply right from your smartphone or computer, and today’s technology helps provide quicker processing and underwriting of your loan. You may not even need a home inspection or appraisal for the property you want to finance.
- Credit and debt challenges aren’t always a problem. If you think you can’t finance a home with your credit score or existing debt, you may be pleasantly surprised. Mortgage guidelines have been adapting to make it easier for those with lower credit scores or more debt to secure home financing.
- Many specialized programs are available. Every borrower is unique, and today, there are many unique mortgage options to suit them. These include loan programs with special advantages for military veterans, medical professionals, first-time homebuyers and many others.
- There are flexible alternatives to traditional requirements. You don’t necessarily need paycheck (W2) income and a spotless credit history to get a mortgage. There are home financing options for those who are right out of bankruptcy, and assets rather than income may be used to qualify for a loan.
- Condominium financing guidelines have relaxed. Financing a home in a “non-warrantable” condominium building – such as one with too much commercial space or too many units owned by one owner – can be challenging. Thankfully, the guidelines for warrantable condos have recently been loosened, making condo financing more widely available.
If you think you may be purchasing a home or refinancing a current one in the future, we encourage you to get “mortgage-ready” as early as possible. We’re happy to help show you today’s options and provide you with a complimentary mortgage consultation at no cost. Please contact us if you have any questions.
Programs included in this article are subject to approval based on individual program guidelines and borrower’s credit and underwriting approval. Contact your Draper and Kramer Mortgage Corp. professional for full program details.