Everyone knows that Mortgage rates today are at a historic low so what does it take to capitalize & catch the market while it hits that proverbial bottom?
Understanding if you what you qualify for can take the burden of uncertainty out of the home shopping experience.
If you are purchasing a home, there are plenty of programs to take advantage of. First time home buyers qualify for Obama's $8000 tax credit. FHA loans require a minimal 3% down payment and they can be coupled with DPA (down payment assistance) programs that exist in most MN townships. Looking at the foreclosed inventory? A 203k loan can provide funds to get a distressed property in to move in condition. If you want to take advantage of super low conventional rates you need to be aware of a few things. Conventional lenders are requiring more documentation than ever to approve your loan so be prepared with all of your income and asset documentation at the ready. Also, don't go car shopping or apply for any credit during the mortgage process as inquiries can negatively effect your credit score. In order to avoid any rate bumps, a conventional borrower needs to have a 740 credit score.
Refinancing? Having some equity in your house is key to getting a new loan. If your current mortgage is less than 80% of the value of your home or less than 75% of your condominium or co-op, you should have refinancing options.
If your mortgage is between 80% and 105% of your home value, you're current on your payments and your loan was bought by Fannie Mae or Freddie Mac, you may be able to refinance under a two-month-old government program called "Making Home Affordable." Fannie and Freddie have different requirements, so go to the program's Web site (www.MakingHomeAffordable.gov) or contact us to see if you qualify. 952-548-8840.
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