Buying A House-What I Wish I Knew Then

Someone recently asked me, "What is one thing you wish someone had told you when you first bought a house?”

I thought about it and this was my response:

 

"I wish someone had told me that debt was a bad thing.  Instead of using my house as a credit card I should have been focused on paying it off as soon as possible.  Times were different and values were escalating quickly."

 

Even though we lend money (create debt) for a living, we should make sure people understand that debt, any debt is just that, a liability on your personal balance sheet that is costing you money every minute you owe it.

 

Not only is it our goal to help you find the house of your dreams at the best interest rate, we also want to make sure our customers know the difference between what they qualify for and what they are comfortable paying.  Among other things, we want our customers to know how much property taxes can affect the monthly payment so you can budget accordingly.  We will even give you tips on how to pay down the loan more rapidly.  And of course, educate our buyers on special programs and funds for those who qualify.  We walk you through every step of the process, because the last thing we want to hear from our clients if asked the same question is: "I wish someone had explained the entire process up front."

 

What do you wish someone had told you before you bought a house???

 

 

 

 

 

 

 

 

The Damage Has Been Done

I never like to be the bearer of bad news.  Well, I have good news and bad news.  The good news: the June jobs report showed job creation was better than expected.    The bad news?  It affects mortgage rates. 

 

 Why does the jobs report affect mortgage rates?  It is confusing, but was put perfectly in an article I read today (link below):

 

     "The connection between mortgage rates and job creation is the Federal Reserve. That is, as the labor market picks up, the central bank will begin to reduce its support for the economy. And because its support for the economy consists, in large part, of bond purchases, its retreat will result in higher interest rates."

 

So, as predicted, the damage from the Jobs report has been done. The trend for interest rates is up, although based upon most predictions we are at the high end of where rates will be for 2013. They should remain constant in a .25% trading range for the rest of the year. 

That being said, inventory is shrinking and if you want a great house you are going to have to be ready and able when it comes on the market. Get pre-approved and be prepared to offer full price. Getting houses on a discount will not work in this market unless the house has been for sale for over 30 days. 

 

Please feel free to contact me if you have questions, or to find out how you can get pre-approved. 

 

All the best,

Chris

Your Residential Lending Team

 

http://www.fool.com/investing/general/2013/07/06/fridays-catastrophic-surge-in-mortgage-rates.aspx