subject: Real Estate Market Advantage For New Home Buyers [print this page] The real estate market is offering the opportunity of a lifetime. Low interest rates and a variety of loan options has fueled a surge in home buying. This gives everyone the opportunity to take advantage of this once in a lifetime chance to obtain a home at a payment that is less then rent and have his or her very own home.
Currently, there are a large number of loans available to purchase homes. There are plenty of loan products banks and other lenders have available to fit any prospective home buyer. It is possible to obtain a fixed rate mortgage or an adjustable rate mortgage.
Even though adjustable mortgage offers lower rates at the current time, one should keep in mind that when interest rates go up so does the interest on the mortgage, therefore causing a high monthly payment. This means the payments can increase with no recourse to the borrower. The payment and interst rate remains the same with a Fixed Rate Mortgage (FRM).
The borrower must be qualified to show they are responsible and can make the payments, which holds true like any other type of loan. Since a credit check will be required, it's imperative a new borrower shows a trend of timely payments on current obligations. Depending on the age of a bankruptcy, additional restrictions may apply.
A good employment record and show of income is another requirement. In some cases, the amount of the house payment should not be more than 30% of one's income. This is to make sure one does not have financial problems with other obligations that would affect the loan payment.
Information regarding loans, rates and other information can be obtained from a mortgage broker, lender, bank or Federal agencies. Any one at these facilities can give full details regarding the current interest rate, closing costs or fees, type of loans and so forth. One can also look on the Internet and obtain some information.
Throughout the country there are many places to live. Some have access to many beautiful beaches and its ideal weather makes it a very attractive place to spend one's life. If children are involved, there are excellent educational facilities available from kindergarten through college. With a number of large cities, as well as open country, one has the opportunity to live in either location.
The current real estate market is a chance that will never come again for a person to own a home in an ideal location that cannot be matched anywhere else in the world. Owning the home of your dreams becomes possible due to the current price of homes and low interest rates. Many times the loan payment is less than the rent one is currently paying, offering an opportunity to have a home that is dream come true.
