Realtor Advice Mt Pleasant SC: Good News For Buyers
Here is some helpful Realtor advice Mt Pleasant SC for people thinking of buying a home in Mt Pleasant SC, but not sure if now is a good time. If the extent of your real estate market knowledge is what you hear on the news, then you probably either are unsure if the market is right, or worse, think that now is a bad time. However, that is why I am here to look into the numbers, give you some perspective and offer some expert Realtor advice Mt Pleasant SC.
Let me break this down into two parts: Availability of Credit vs. Losing Purchasing Power by waiting.
Realtor Advice Mt Pleasant SC: Mortgage Credit More Readily Available
There is good news for home buyers currently in the market, or wondering if now is a good time to buy. After the housing market crash and mortgage meltdown, banks tightened up lending standards.
This really wasn’t a surprise since a big part of what lead to the meltdown was the very loose standards banks had prior to it. The joke back in the high flying days was that if someone held a mirror under your nose and you could fog it, then you got a loan.
In other words, if you were breathing, you got a loan. Needless to say, as reckless as that appears in hindsight, that was common back in the day. It’s no wonder things crashed.
But as is typical in the lending industry, if the pendulum swings one way, it will eventually swing the other way just as dramatically as a correction.
And that pendulum swung back to the conservative side dramatically. In previous years it was difficult to get candidates with excellent credit a loan. However, the banks are finally starting to loosen up a little.
Other good signs to buyers are the average FICO score needed to get a loan. In the next couple graphics you can see what the average FICO score for Conventional Loans and FHA Loans were for the previous 2 years, and what they were for October.
This means that you do not need to have perfect credit to get a mortgage in the current market. If your credit has some dings, chances are you could still qualify. If that is not the case, then working with the right Mt Pleasant SC Realtor and the right mortgage loan officer can help get you there as fast as possible. Fortunately, I know the right people to help you in that regard, more on th at later.
Some other good news for buyers is a recent quote from the head of FHFA, the organization that oversees both Freddie Mac and Fannie Mae.
At last month’s Mortgage Bankers Association’s meeting, here is what Mel Watt had to say:
Look very closely at that quote. His organization is working with Freddie and Fannie to get loans to more people only requiring 3% down.
There has been a big misconception with many home buyers that you needed at least 10%-20% down payment to buy a home. But that is not the case. As of right now, you only need 3.5% to 5% for a down payment, and soon that could drop to 3%.(If you are a Veteran, National Guard, or Active Duty Military, you can still get a VA loan with 0% down payment).
In fact, this misconception is so prevalent, I actually covered this in greater detail in a previous blog post here.
Realtor Advice Mt Pleasant SC: Buying Now Is Cheaper Than Waiting
Now, a little bit of bad news. However, this just makes the point stronger that now is a good time to buy as opposed to waiting (which I will cover in greater detail in my next post).
That is to be determined, but here are the latest projections according to leading market analysts:
According to some projections, rates could increase as much as a full point, if not more. In fact, the next graph shows the rates from the beginning of last year up until this month.
The next graph shows what the rates would look like if the trend the way Freddie Mac predicts they will go:
Tomorrow I will look more in depth at the predicted rise in interest rates, and show you tangible numbers to show what affect they could have on your purchasing power. I will also look into the current Mt Pleasant SC real estate market conditions and how they affect buyers.
And if you need help with your credit, I have an excellent mortgage loan officer that will work with you to get your credit in the best shape for a mortgage as quickly and efficiently as possible.
Realtor Advice Mt Pleasant SC: Free Fall 2014 Buyer’s Guide
You can also fill out the form below and receive a free copy of my Fall 2014 Buyer’s Guide.
Stay tuned for more Realtor advice Mt Pleasant SC for buyers tomorrow!