As we near the end of the year, many people are looking forward to 2017 and perhaps you’re considering buying your first house or another house or property in the new year. It’s always important to think ahead, plan and prepare, especially for such a large purchase. Fannie Mae and Freddie Mac have recently agreed to increase loan limits starting January 1 of next year for conforming loans. The loan limits are going up nearly $10,000 for both standard loans and high balance loans, which means that any people can increase their loan limit on homes that they may not have been able to afford this year.
But there are other ways you can plan and prepare your financing if you’re looking to purchase property in 2017.
The feds will continue to raise rates. As our economy improves and our housing market grows, interest rates are naturally going to rise. However, they are not set to go up exponentially. We have enjoyed over time a result of a recession that has been difficult for the US economy to recover from in lower interest rates. If you’re planning on purchasing it’s best to get all of your finances in order now so that you can make a better financial decision later on when the time comes.
Find out about what your mortgage options can be. Once you speak to a mortgage professional, you can get a better understanding of what options there are and put yourself in a better position to purchase.
Keep in mind the locking in a mortgage rate only works once you have a scheduled closing date on a particular property, so although you can get preapproved or prequalified for a home loan, you may not enjoy the same rate as you would today. Mortgage lenders can only lock in a rate once you have a contract.
Start looking at neighborhoods, the type of house you are interested in, and what you need out of a property. Take notes, the sense of the type of home you desire, and then talk to your mortgage lender about how much home you can actually afford.
Get a copy of your credit history and report so that you are well aware of what the lenders will discover about you financially. Correcting the errors or mistakes and pay off bills if you can. If need be, work with a financial advisor to take the steps to get on the right track towards home ownership.
It might be difficult to freeze your spending, especially at Christmas time, but the less you put on your credit card or take out any new loans, the better.
If you are self-employed, you should have a conversation with your mortgage professional to make sure that you qualify for a home loan. Often, self-employed individuals will need more proof of income so make sure you have your profit and loss statements accurate, up-to-date and ready to go.
Being prepared for a home loan by getting your finances in order now means the next steps you’ll need to take will run much more smoothly. For more information please contact us today or to get started with a mortgage officer or loan officer in your area call us for referrals and recommendations.