Confidence in the real estate market is on the rise, and millennials still believe in the American Dream. However, there is a knowledge gap that calls for advice and guidance from real estate professionals. Consumers have their eyes on interest rates. Continue reading
Traditionally FHA mortgages were used to help first time home buyers with non-traditional credit backgrounds. However FHA mortgages have increased in popularity over the last few years. The low 3.5% down payment has helped buyers with limited savings to get into a new home. Move up buyers are using FHA mortgages more as they sell a home and may need to help offset money needed to bring in on the sale of their current home. If they owe money on their current home, it’s much easier to come up with 3.5% than 5% or more for a down payment.
When deciding if you can afford to finance a home, it is important to know how much you can afford. Lenders do not want to approve you for a loan that could potentially overload you. This is the perfect time to review your personal financial situation; comparing your monthly debt to your monthly income. You need to have the ability to cover your current bills, as well as save for the future, and pay for any unforeseen emergencies.