Update as of January 6th. Although interest rates remain at historic lows, some speculate that his could change. Nothing is for certain, but worth keeping your eye on if considering buying a home at this time.
Interest Rates remain incredibly low and a boon for Buyers. With housepayments often less...sometimes much less...than mortgage payments, homeownership continues to be a "Possible Dream" for many.
In today's market, one has to obtain proof that they are actually qualified for a loan for the amount needed to purchase, (more than just a pre-qual letter), prior to submitting an offer. With inventory currently at an all time low in Idaho, Sellers won't even consider an offer unless this is secured. It also saves much time and heartache for a Buyer who has set their hopes on a property outside their capability of purchasing. So, before you begin a serious search, make sure you know what you can afford.
Also, be aware of items that can negatively effect your credit: to include going into debt on a large dollar item. For example: A person contacted me with a list of new homes to look at, all prepared to purchase as soon as the right area/home was found. As the recipient of a sizable estate, the plan was to pay cash. What I did not know was that, just a day or two prior to finding the home, this person had purchased a large, new vehicle; paying a large down and getting a loan for the rest. The assuption was there was plenty of money left to do the same on a home purchase. In fact, the vehicle purchase placed the income to debt ratio out of reach for a loan on the property. A similar scenario occurred, just at the point when their long-term goal to purchase was solidly within reach, when my buyers decided to obtain schooling in order to advance their careers. It made sense to increase their income in so doing; however, the newly created income to debt ratio issueput them out of reach of their dream for two more years.
My hope in writing this Blog is that it will be of help to 1st time home buyers in turning their quest of a Possible Dream a reality!