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Mortgage Update For Buyers Of Huntsville AL Real Estate

By: Huntsville Real Estate Expert Mike Manosky On April 20, 2013

mortgage4Good news!

  • According to Freddie Mac’s most recent Primary Mortgage Market Survey (PMMS), interest rates on mortgages decreased for the second week in a row.
  • One out of five bank -risk professionals now expect the approval criteria for loans to become less stringent for Huntsville AL real estate, the third highest level ever registered for looser lending standards in the three year history of the FICO survey.
  • Housing prices are beginning to rise, and the increase is expected to continue.

So…

What better time to consider buying Huntsville AL real estate?

Before you begin searching for property in earnest, however, it is important that you begin planning for obtaining a mortgage.

  • Obtain a copy of your credit report before loan shopping.  Go online for your free credit report from each of the three bureaus and examine it carefully to detect any errors/misinformation.
  • Gather all documentation.  Lenders will ask for a great deal of documentation regarding your salary, savings, job stability, debts, and the like.  You will need to provide pay stubs for the past 30 days; W-2 forms for the past two years; bank, retirement, and investment account statements; and a listing of debts and monthly expenses.  If you are self-employed, you will also have to submit two years of tax returns and possibly a profit-loss statement.  Click here for a more detailed listing.
  • Calculate your debt-to-income ratio. This ratio compares the gross amount of money you earn to the amount you owe to creditors (mortgage payment, car loans, credit card payments, etc.).  The lower the number, the better.  Lenders generally require scores at or below 36%.  To figure your own ratio, use an online calculator.
  • Check out this free site that updates available interest rates daily and discloses the best “par rate” in your area.  In addition, if you provide contact information, the site will forward that information to the local lender offering the best rate.
  • Consider making a larger down payment.
     
  • Make as large a down payment as you can.  Given the prospect of not being able to get out of paying private mortgage insurance, some experts say borrowers who can afford to put down more than 3.5 percent on Huntsville AL real estate should consider getting a loan that’s not backed by the FHA, sometimes known as a conforming loan.
  • Comparison shop for the best terms.

Search all Huntsville AL real estate and Huntsville homes for sale.

Having lived in the Huntsville AL area for most of his life, Mike Manosky understands exactly what makes this community special.  In fact, those who know him well will tell you he carries the same traditional values and focus on the future as Huntsville. 

Mike brings with him a keen eye for the details of buying or selling a Huntsville AL home and seemingly boundless determination and energy, which is why his clients benefit from his unique brand of real estate service. Rooted in Tradition, Focused on the Future – Mike Manosky will help make the most of your Huntsville AL real estate experience. Give him a call today, 256-508-0211 Direct or 800-803-0053 Toll Free, and discover the difference he can make during your family’s move.

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