JACKSONVILLE, Fla. –
This week is Real Estate Week on The Morning Show.
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You’ve decided you’re ready to purchase a home -- so what you need to know about mortgages?
Tyler Tatum, of Bank of England, breaks down interest rates, when to lock in and dives into what loan options are available to buyers.
The Federal Reserves raised their rate by .25% Wednesday and rates are at their highest levels in four years. Mortgage rates over the last 10 years are still historically low and there are still some great deals out there. It’s more important now than ever for buyers to manage their credit score and personal finances so they qualify for the best terms available.
Tatum says “For the vast majority of buyers, we work with we typically advise them to lock in their interest rate when they are under contract and within about 30-45 days of closing to secure the best deal.”
There are a tremendous amounts of loans available to buyers these days, but the best way to find out exactly what program is right for you is to contact a local mortgage banker who has devoted their life’s work to helping people achieve homeownership.
First-time buyer perks: Do you still have to put down 20 percent?What is a jumbo loan?
The minimum down payment for conventional financing is 3% and there are programs out there that provide closing costs and down payment assistance for first-time homebuyers. A jumbo loan is any loan amount over the conventional loan limit of $453,100. Most people are aware they can use their Veterans Affairs benefits for VA jumbo financing as well.
What is a good FICO score to attain a mortgage?
A score of 760 and up is the holy grail for most types of financing. The higher your credit score, the better terms you be able to qualify for with your new mortgage. Tatum states that there’s still a miss conception out there that cash is king and having no open lines of credit is actually a good thing. In all actuality, according to Tatum, having no credit scores can be just as bad as having low credit scores. It’s important to use credit responsibly and for people to keep in mind that their credit scores did not become low over night, so increasing their credit scores isn’t something that is going to happen overnight, either.
What type of loans are out there?
Honestly, FDIC insured mortgage banks typically offer over 100 different loan types or variations of loans from first-time home buyer grant programs through the state of Florida, VA and VA jumbo financing, 0% down payment options for rural areas, conventional, FHA, adjustable rate, renovation and construction loans, among many others.