Homebuyers Should Know That There Is Plenty Of Loan Money Available

With interest rates at record lows, now is one of the best times to consider purchasing a new home for you and your family. Gaining access to loan money from lenders and mortgage brokers is sometimes easier than most people might imagine. Even those who were previously unable to secure a mortgage loan during the downturn because they didn't have the full 20% needed as a down payment can now find affordable loan options. Borrowers with a FICO score as low as 675 are frequently able to capture a loan of around $400,000.

It is also important to note that roughly 60% of mortgage refinancing was getting approved as recently as in the fourth quarter of 2016. This is a much higher approval rate as compared to even 2014 and 2015. That said without question the best interest rates are still available to those with a FICO score of about 800. Even those with scores higher than 750 are enjoying favorable interest rates and excellent terms.

Borrowers should exercise caution when choosing interest-only type loans, as they are now available again today as they were several years ago. If possible it is best to avoid interest only loans because ultimately they will end up costing you more later on down the road. The biggest draw and attraction with interest-only loans is that borrowers will not have to pay any principal initially. This will change over time and ultimately will have a big financial impact on homeowners as the principle becomes due.

Work with your Mt. Vernon WA real estate professional to find an experienced and knowledgeable lender or mortgage broker. This is one of the best ways to gain access to all of the many lending programs available today to homebuyers. Realtors routinely work with a wide variety of buyers that have a full range of credit scores. Once you have established your budget and the type of home that you wish to buy it is best to secure a pre-approval or pre-qualification letter so that you are able to proceed with confidence and ultimately buy the home of your dreams.

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