As the RTP Market Trends Up, Don’t Let Financing Stand in Your Way
If you’re looking to invest in Research Triangle area real estate or you’re in the market to buy the perfect home, consider yourself lucky. Interest rates and prices are still low, making this a prime buyer’s market.
But before you shop for a home, you should evaluate your finances and consider financing options. If your money situation isn’t in order, you could end up finding the home of your dreams only to lose it.
Check Your Credit Score
Acquire a copy of your credit report and FICO score. A mortgage lender will use your FICO score to see if you qualify for a loan or a lower interest rate. The higher your credit score, the better. If you have a lot of debt, pay it down. If you have multiple credit cards, consolidate into as few as possible. And ensure you have no late payments. All of these can lower your FICO score.
Examine Your Budget
Look at your financial situation. Do you have the income to make payments on a mortgage? Consider a scenario where you might face an unexpected expense. Would you still have the funds to keep up with your monthly payments? A budget is a helpful tool to keep track of your expenses. Plan out how much money you will need to spend monthly on things like taxes, homeowners’ insurance, utility costs and maintenance. Include your expected mortgage payment in your budget. Your ability to own a home will become clear as the budget numbers add up.
Consider Your Financing Options
If after the above steps you’re ready to purchase real estate in the Research Triangle, explore some loan options:
FHA Loans—A Great Choice for First Time Home Buyers
If you’re in the market for your first home, you should consider an FHA loan. Though once avoided for the difficult inspection process associated with these loans, the Federal Housing Administration has streamlined the process. Insured by the FHA, this loan offers a low fixed rate, reduced mortgage insurance premiums and more flexible credit approval. As an added bonus, Fonville Morisey Lending Services is an FHA underwriter. This means your loan can be approved at a much faster rate than most other lenders in the Triangle area.
Mortgage Loans—Always Get Input From a Qualified Professional
What if this isn’t the first home you’ve purchased? Our mortgage consultants can still help to find the best loan with the lowest rates. Working locally, we can easily coordinate with your Triangle REALTOR and answer any questions you might have about the mortgage application process.
Investing in a new home is not only a difficult decision but also an exciting one. Take advantage of the financial opportunities available to you. Don’t let your dream home slip through your hands.