Buying a new home in a dynamic area like College Station, Texas may be the most desirable thing to do when you’ve grown tired of renting. The move is a major one, however, and has to be done with careful consideration of all factors, particularly those that relate to financing. You should first try to learn the basics of property buying and be cognizant of the new amendments to various home ownership and real estate regulations.
A report on News4Jax.com informs would-be buyers of the recent changes in mortgage rules and the impending increase in interest rates, along with other factors that could make home buying tougher this 2014:
New federal mortgage rules, established by the Consumer Financial Protection Bureau, go into effect January 10th.
The new rules, passed under the 2010 Dodd-Frank bill, are meant to prevent bad lending practices that led to the housing market crash in 2008. It requires banks to make sure loans are affordable, or face strict penalties. Under the new rules, lenders must carefully determine that borrowers have the ability to repay their loans.
On top of new mortgage rules, home buyers should keep a close eye on interest rates that could increase monthly payment. Time.com reports Freddie Mac and Fannie Mae announced consumers will have to have a higher credit score to get their lowest interest rates of mortgages. The new rules could “add as much as 0.05% to the interest rate that a fixed rate borrower pays.”
If you are confident enough to proceed with buying a home, it would greatly benefit you to work with reputable realtors in College Station, Texas who can not only steer you through an array of beautiful homes for sale, but also provide you with the assistance you may need in looking for the right financing.
There are various tools that you can use to guide your home buying decision, including online calculators that can compare the costs of home buying and renting. However, while doing the math on your own is the responsible thing to do, the guidance of home financing experts that work with reputable realtors can also be invaluable.
These pros’ experience and network will help lead you to the financing package that will be right for your present and future financial situation. Established realtors in College Station, TX, such as those at Traditions Realty Firm, are therefore in an ideal position to assess your financial capabilities and find the right home that will be appropriate for these.
(Article Information and Image from New mortgage rules going into effect, News4Jax, 02 January 2014)