With home prices down significantly all over the country and in Santa Fe, finding an affordable home is not a problem, but given the meltdown in the financial market, qualifying for a mortgage can be. Lenders are being more careful than ever, and scrutinizing all paperwork and documentation carefully.
Mortgage rates are at historic lows. If you are planning on buying a new home or refinancing the home you’re in, here are a few suggestions to keep in mind.
- Keep your spending in check. Don’t apply for new credit cards or loans for at least 3 months before you apply for a mortgage. This will keep your credit score in check. The higher your credit score, the lower your mortgage rate.
- Make a big down payment. You will avoid Private Mortgage Insurance, and lower your monthly payment. You will also start out with more equity in your home.
- Shop around. Most rates from any given company are going to be within an 1/8th of a point, but over the life of the loan, that 1/8th can add up to thousands of dollars in interest.
- Understand the fees associated with your mortgage. Here is a list of common fees:
- Application fee
- Loan origination fee
- Locking in your rate. Make sure when your lender locks in your interest rate that you know how long it is going to take to close your loan. You don’t want the lock to expire before the loan closes.
It’s a great time to buy in Santa Fe and I am an experienced Santa Fe REALTOR®, who can help you find the home of your dreams. Let’s talk about what down payment option is best for you, and discuss what neighborhood you would like to live in. We represent a wide variety of properties from historic estates, quaint vacation condominiums, beautiful parcels of vacant land……….
Take a look at what we have currently and if the perfect property isn’t there you can search the entire MLS on the “Search” page of this site.