Home Buying

Today’s historically low mortgage rates are a prime reason why now is a great time to purchase a home.  Low interest rates make the cost of borrowing money very inexpensive.  Today’s low rates are not expected to last much longer, with interest rates expected to increase significantly when the economy in general improves.  There is no reason to wait to purchase your new home!

Many prospective purchasers are worried that home prices may not be at their absolute bottom, while most experts believe that the bottom is here or not far away.  But, timing the market is very difficult.  Prices are very low today and the interest rates are very low today.  Even if you do not catch the absolute bottom of the market, lower interest rates will more than offset the difference in purchase price, resulting in a lower monthly payment.  Now is the time to buy while you have a larger selection of homes to choose from.

In a special report titled “NOW Is the Time to Buy a House! Here’s why… “ published in the July 15^th edition of Bottom Line/Personal, Mike Castleman, Sr., CEO and cofounder of Metrostudy, a company which maintains the largest database of housing market information in the U.S., writes, “Mortgage rates currently are so low that locking them in likely will offset any remaining real estate price declines, assuming that you intend to live in the home for five years or longer.  Let’s say you decide not to buy a home this year because you are afraid that real estate values will continue to decline… and let’s say you’re right, and prices drop by another 10%.  If today’s extremely low interest rates climb by just one percentage point, your monthly mortgage payment on a 30-year fixed-rate loan won’t be any lower despite the 10% lower purchase price.  If interest rates climb significantly more that one percentage point, your monthly mortgage payments will be higher – even if you are correct and home prices do continue to fall.”  Almost no one expects a 10% fall from today’s low prices, so the argument is very powerful.

Why put off the joy and contentment of homeownership?  NOW is the time to buy!

If you would like to read the full article, it can be found at NOW is the Time to Buy a House.

Rieger Homes is your Dutchess County new home builder and Orange County new home builder of choice.  We have been a leading home builder in the Mid-Hudson Valley for over 50 years.  A family owned company under its second generation of leadership, we are committed to building a successful relationship between our family of professionals and your family.  Our goal is to assist you and your family in building a new home of your dreams.  We hope that your home purchase is an exciting and memorable event. If you already know your future neighborhood in Dutchess County, Orange County or Ulster County, New York, we would love to be your builder!  Please check out our beautiful neighborhoods and exciting homes and floor plans.  Happy home shopping!

Rieger Homes has been a leading home builder in the Mid-Hudson Valley for over 50 years.  We are a family owned company under its second generation of leadership and are committed to building a successful relationship between our family of professionals and your family.  Our goal is to assist you and your family in building a new home of your dreams.  We hope that this series of articles helps to make your home purchase an exciting and memorable event.

 In step one of buying a home, we discussed the process to determine how much you could afford.  In step two, we will discuss ways to choose a mortgage lender.  This process of finding a mortgage lender takes time and energy, but in the end in could save you thousands of dollars.  In obtaining a pre-approval from your chosen lender before you start your home search, you are acquiring a tool that will show the seller that you are a serious and qualified home buyer. 

1.  Determine your loan needs – list items that are important to you like interest rate, points, low down payment programs, low fees.

2.  Review your credit report.  If you have not already ordered a copy of your credit report as suggested in the previous article, now is the time to check your credit report and know your credit score.  If you pay your bills on time and don’t have a lot of loans, you are probably OK; however, the reporting agencies can make mistakes.  Now is the time to clear up any discrepancies and fix any problems.  The bank will run a credit check as part of your mortgage loan process and you would like it to be as clean as possible.  The higher (better) your credit rating is, the easier it will be for you to qualify for a loan.  The large credit check services are Experian, TransUnion and Equifax.  These services’ websites also contain helpful information and advice on credit scoring and reporting.  One place to obtain a free credit report and advice is www.annualcreditreport.com.

3.  Use your affiliations.  Check with the membership services department for such organizations as your union, employer sponsored buying network, or credit union. Many times these resources are overlooked, however, they may provide special benefits not available to others.

4.  Get advice from trusted sources.  It is OK to ask for help, advice and referrals.  You may choose to speak with a professional.  That could be a real estate attorney that you hire, a housing counselor, a real estate agent or your builder.  You should always check with family and friends who have recently been through the process to have them refer you to reliable lenders that they have used and liked (or not).

5.  Understand loan options, prices and fees.  Mortgages have different options that will change the cost of the mortgage over its life.  Some mortgages have fixed interest rates, some have adjustable rates, and there are other features which may vary from lender to lender and product to product.  Shopping around and comparing the loan features and costs is the best way to avoid a more expensive loan.

6.  Pre-approval or Prequalification?  The difference between a prequalification and a pre-approval is documentation and verification.  A mortgage prequalification is usually granted after oral information is provided by the buyer to the lender and review of a credit report.  A mortgage pre-approval is a verified process that requires the purchaser to fill out an application and provide documentation of their income through W-2 forms, tax returns, bank statements and a credit report.  A pre-approval is a stronger and more reliable document.

Now that you have determined your price range, chosen your lender and have your pre-approval in hand, you are ready for the next step – deciding where to look.  Please check back with us as we discuss how to choose location.  If you already know your future neighborhood in Dutchess County, Orange County or Ulster County, New York, we would love to be your builder!  Please check out our beautiful neighborhoods and exciting homes and floor plans.  Good luck!