One doesn’t need to be an experienced real estate agent to know that the American dream of home ownership is changing. The number of United States citizens who own a home is the lowest it’s been in fifteen years. According to the latest Census data, to 65 percent this past quarter—the smallest percentage since 1997.
Everyday, Linton Hall hears from people who want to enter into home ownership but has found it difficult to secure a mortgage or the down payment needed to purchase property. Although industry-lending standards will remain strict in 2012, there are things that people can do in order to snag an attractive mortgage rate:
- Be Honest with Yourself: Your Credit Report: As a good credit score is more important than ever in qualifying for home loans, it’s essential to plan ahead if you’re thinking of moving or refinancing your home in order to get the best interest rate. Avoid revolving debt (credit cards) and pay down your balances to increase your score and chances of an attractive mortgage rate.
- Be Honest with Yourself: Know What You Can Afford: Sure, a huge home may seem attractive—but if you enter into a mortgage you can’t afford, the consequences can be severe. In addition to a lower credit score and even home foreclosure, one will find it much harder to reenter home ownership once finances are restored. Err on the side of caution and make sure that your home is one you can afford. After all, home is where the heart is, right?
- Shop Around and Compare Options: When making a decision about anything in life, it’s always best to compare one’s options, as well as the pros and cons of each. The same is true when searching for a home and a mortgage rate. Getting quotes from three or four lending companies will help a potential homeowner get the best rate to secure their dream home.
703-485-4663
