Tips for Prospective Home Buyers

Many consumers are now wondering if they've missed their chance to refinance to a really low interest rate after a recent spike in mortgage rates.  Therefore, we would like to share some tips for prospective buyers to help you all shop for a mortgage today.

Luckily, there has been a drop in mortgage rates just after the spike in rates, which should help many prospective buyers feel a lot better.  However, these low interest rates cannot last forever.  The government's plan of purchasing mortgage-backed securities will soon end and rates will begin to rise again.

Here are some tips for prospective home buyers shopping for a mortgage in today's real estate market, especially those who are looking to refinance an existing loan:

* Paperwork - Find a mortgage professional that you trust and like to work with and get started on the necessary paperwork.  Mortgage rates move on a regular basis.  Therefore, if your paperwork has already been started, your file can be processed much more quickly once rates are down. 

When starting the application process, your credit score will be reviewed and you will need to submit documentation forms, such as W-2's and pay stubs.  You also may be asked to update these forms as your closing date nears.

* Your Credit - Make sure your credit is in good shape by checking your own report and fixing any problems ahead of time.  Even very small problems can really hurt your credit score.

* Pick a Rate - Decide what rate you are willing to go with ahead of time.  For instance, if you have a 7% interest rate now, you should consider rates hitting 6% or lower before it would even make sense to refinance.  Your mortgage professional will help you understand the numbers better and how your new payments will work.

* Decision Making - It is very wise to stick to your decision once you make it.  Therefore, determine the rate you need to get to lower your payments and let nothing change your mind.  Many consumers find themselves gambling that rates will go lower and that plan usually backfires as rates rise.  It's just best to stick with your original decision.

* These Rates are Good - Let's not sit around waiting for another record low interest rate as a result of a stock market crash or a major bank collapse.  Who could possibly want to save an extra $200 a month on their mortgage but lose $50,000 in their 401(k) just to get lower interest rates than we have right now?  What we have is good enough and we really shouldn't complain. 

Realtors  ~  Jackson Mississippi Real Estate

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