Fundamental Steps for Homebuyers in Today’s Market

FOR IMMEDIATE RELEASE
Waldorf, Maryland, United States of America (Free-Press-Release.com) January 20, 2012 -- Freddie Mac announced yesterday that the 30-year fixed-rate mortgage decreased to 3.88 %, making it the new all-time record low marking the seventh consecutive week below 4.00 percent.

Michael Fratantoni, MBA’s Vice President of Research and Economics, said, “With mortgage rates reaching new lows, refinance volume jumped and MBA’s refinance index reached its highest level in the last six months.”

Paul Mullings, Senior Vice President of Freddie Mac, wrote in his blog that today’s mortgage rates are at 50-year lows, making homeownership within the reach of American families with good credit and stable income.

For its part, the Mortgage Bankers Association (MBA) announced last Jan. 18 that mortgage applications increase in the midst of record-low mortgage rates. Last Wednesday, MBA reported that mortgage applications rise to 23.1% from one week earlier.

Michael Fratantoni, MBA’s Vice President of Research and Economics, said, “With mortgage rates reaching new lows, refinance volume jumped and MBA’s refinance index reached its highest level in the last six months.”

Even as mortgage rates are at 50-year lows, the senior vice president of Freddie Mac cautioned buyers to get to know the U.S. housing market first.

In his blog, the Freddie Mac’s senior vice president listed four important first steps before seriously thinking of buying a home, whether this may be the first time, second time or the third time.

First step is to consider one’s present credit history and credit score. There are ways make, perk up, and sustain strong credit even if you have had credit problems before or even if you have no credit history.

Second step is to gather all necessary documentations. Conscientious lenders nowadays require documentations that prove that you have a stable income. This stable income proof includes employment records, W-2 forms tax returns, credit history, and assets that include bank statement.

Third step is to seek advice from your lender in order to look into your income, expenses, your financial goals and to decide on the type and amount of mortgage you qualify for.

Fourth step is to discuss with your lender regarding your application for a mortgage and securing a pre-approval letter.

Meanwhile, Stefanos Chen of Aol Real Estate advices would-be homebuyers to fix credit, prepare for a down payment and closing costs, figure how much house one can afford, how to get one’s money's worth, and to stay on course.

Whether you are a first time buyer, first time seller, empty nester, thinking about selling or buying a home, do contact the Guldi Real Estate Group . In Southern Maryland, the Guldi Group is the number one real estate team. Visit http://www.guldigroup.com and http://mdshortsalepro.com for more information.

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