Are You Ready To Buy In The Most Affordable Housing Market In 35 Years?
According to recent reports, the homes on the market today are more affordable than they have been in the past 35 years. But there is one hitch in this affordable housing market, the ability to save enough for a down payment and to get financing with the best interest rates and terms. Below are a few tips on doing just that:
- Check your credit score today. Don’t guess about your creditworthiness, check all the major credit bureaus and pay to take a peek at all three FICO scores. Take the average of the three credit scores and now you have a good idea of what lenders will see when they view your credit report. If you have a credit score above 700, you are golden for a prime mortgage loan, if your credit score is between 620 and 680, you may be able to qualify for a mortgage loan. Anything below a 620 FICO score virtually disqualifies you from any type of loan in this credit market, if so then check out loans for people with bad credit. All this is provided your debt to income ratios are good, you have documentable income and steady job history.
- Improve your credit score immediately. If you’re score is below 620, you may want to take a few steps to begin improving your credit score immediately. Paying delinquent bills, clearing up liens and paying all current credit card bills and other loans on time will go a long way in improving you FICO score so that you can qualify for a mortgage.
- Start saving today. The days of getting a mortgage with only a 0% down payment may not be totally relegated to the past; but it is becoming a rarity. Many lenders are now requiring at least 3.5% down payment because it involves less risk for them. The good news is that a larger down payment also means fewer closing costs for homebuyers.
- Get Pre-Approved. Every seller in today’s market wants the buyer to prove they can finance a home before they even review the offer. Also, offer on bank owned properties and short sales can not even be submitted if the buyer is not pre-approved. If you want to learn more about financing strategies online, read more on flexy finance
Why is housing so affordable today?
The answer lies in Snohomish County Home Prices and Trends. This was a class I taught to other real estate brokers about the local market. You can always check out our latest Statistics posts.
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