Home Buyers | Credit Scores & Down Payment Requirements Ease

October 16, 2013

If you are thinking about purchasing a home and are concerned about getting a loan due to what you’ve heard about and/or previously experienced when it comes to getting approved for a loan, it’s time to take another look.

A recent study by Housingwire, says that lenders are starting to ease up on borrowers. Lenders are beginning to approve more loans for those who have credit scores under 700. This is great news for all homebuyers who have some debt or discrepancies that held up the approval process in the past. Whether it is higher student loans, credit cards or a past short sale or foreclosure, you may now have the opportunity to purchase your new home, depending on your current credit score. The fact that lenders are easing up on requirements will make it easier for homebuyers to come in and get a loan to purchase the home of their dreams.

The Housingwire study also stated that banks have started to lend larger amounts of money while requiring a lower down payment. The minimum down payment for a Conventional loan could be as low as 3 to 5% and FHA is 3.5%, which is a low down payment for those who have cash flow, however, want to keep some of their nest egg in the bank.

If you are thinking about purchasing a home and/or need to sell your home, contact me today. We will go over current market trends and set you up with some fantastic lenders who are ready and able to assist you. I am a licensed Realtor in MN, working in the Twin Cities and greater Metro Areas and am dedicated to providing the very best service to all of my clients – past, present and future.

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Chelsea Knutson

Realtor- GRI, ABR, CDPE

763-496-2903

the Better Living Group

Keller Williams Classic Realty NW

Posted in Community /Real Estate News, Updates & Trends /

Appraisals: Who’s Paying for it Anyway?

August 12, 2013

Once you have found the right home and are ready to move forward from your inspection, your lender will then perform an appraisal of the home. Unless you’re paying in cash, this will be a required step for your loan approval process. The lender being used to purchase your home needs to ensure the home you’re looking to buy, is currently valued at the price you have chosen to pay.

With that, an appraisal is typically an out-of-pocket expense for the Buyer and usually occurs prior to closing. The bank will order a third party appraisal company to go out to the property, review the property with its most recent comparables, check current market trends and bring back an estimated value. The appraiser is an individual who’s professional opinion will be one of the deciding factors that will effect the final approval of your loan.

Lenders require appraisals due to the fact that they don’t always come out with the value we all may expect. If your appraisal comes in lower than your purchase price, you and your licensed Realtor will look at the different options to move past the issue. If your appraisal comes in high, your loan will move forward and you’ll know you are purchasing the property for less then what it has appraised for and may have instant equity.

If you have any further questions on the process of buying a new home, or selling a home, please contact me today. I am a licensed Real Estate Professional in the Twin Cities Metro and Greater Minnesota Areas and strive to provide the best real estate service, with the support of my team the Better Living Group, for all of my past, present and future clients. My clients, are my friends.

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Chelsea Knutson
Realtor- GRI, ABR, CDPE
763-496-2903
the Better Living Group
Keller Williams Classic Realty NW

Posted in Community /Real Estate News, Updates & Trends /

Fixed Rates for Mortgages sky rocket, the most since 1987

July 17, 2013

Three weeks ago the mortgage rates took a huge turn. A 30-year fixed rate mortgage went from 3.93% up to 4.46% in one week. Compared to last year when a 30-year mortgage was at 3.66%. The 15-year fixed rate went from 3.04% up to 3.5%. When last year the fixed rate for a 15-year mortgage was at 2.94%, this is a drastic change in a short period of time. This is the largest jump and change in interest rates since 1987.

A 30-year fixed rate mortgage is very common when taking out a loan on a house, so this increase will affect homebuyers. There is so much to look at when purchasing and or thinking about purchasing a home and current interest rates is at the top of the list. Because interest rates have such a major impact when purchasing a home, they have the power to change the potential buying power for current and future homebuyers.

When getting approved for a loan, many factors are reviewed which will give you a price range of what will be affordable for your lifestyle. Working in the interest rate will shift your “budget” lower or higher, depending on the rates at that time.

Due to the change and jump in mortgage interest rates, homebuyers will feel the affect on their monthly house payments compared to two weeks ago when the average interest rate was at about 3.75. Many people, including myself as a Licensed Realtor, will look at this with cautious eyes, and will keep watch on where they will go from here.

If you or someone you know has questions about moving forward with your new home purchase and/or are looking to see what your property value is in the current market – give us a call today! We have all the tools, experience and expanded referral list that you’ll need to move forward.

Posted in Real Estate News, Updates & Trends / 1 Comment