If you’re in the market for a new house, higher interest rates and prices may have you concerned.
MSUFCU Chief Marketing Officer, Deidre Davis, talks about why it’s still a great time to buy a home and how you can prepare.
Now is a great time to buy a home. Mortgage rates have been unusually low for several years, and they remain relatively low despite recent increases. The historical mortgage rate average is about 8%, according to mortgage investor Freddie Mac, while the current average is about 6%. So, you can still find an affordable home even though rates have risen.
Review your credit report and dispute any errors before you apply for a home loan. You should also check your credit score. A clean credit report and high credit score will help you qualify for better interest rates.
Once your finances are in order, find a reputable lender you’re comfortable working with. A good lender will be upfront about the costs you need to consider and mortgage officers will take the time to answer your questions and explain the loan process.
Next, after you choose a lender, ask for a mortgage pre-approval. This letter will include the amount you are approved to borrow, the interest rate, and the loan term. A preapproval demonstrates to sellers that you are a serious buyer, which can give you additional leverage in a competitive market.
MSUFCU offers fast, convenient mortgage preapprovals. MSUFCU members can apply for mortgages through the MSUFCU Mobile app, online at msufcu.org.
The Credit Union also offers a wide range of mortgage products to help you get into the home of your dreams, from a First-Time Homebuyer program to conventional or adjustable-rate mortgages.
Visit msufcu.org/homeloans for more information.
This segment is sponsored by MSUFCU.
