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If you're new to investing in Kansas City real estate or buying Kansas City real estate for yourself and you don't know the first thing about interest rates, here's a good tip: the higher the interest rate, the more expensive it's going to be and probably the less you'll make. High interest rates mean you will have to pay back more on the money you borrow. Another good rule of thumb is that affordability increases if you use an adjustable rate mortgage (it's easier to qualify this way). Of course, there will be a wide range of prices that you can choose from, depending on what kind of financing you choose. Comparing ten Kansas City lenders and the top three online lenders for a Kansas City home buyer, rates differed by as much as ¾ of a point. In addition to rates differing by 3/4%, loan programs offered by the 13 lenders also differed. As experienced Buyers Agents, we were able advise our client on what loan product and interest rate was best for them.
Not even the Fed knows for sure what the rates are currently. The Fed holds a considerable amount of power, but they can't control everything. Mortgage interest rates are affected by many unpredictable political, economic and social events. So there is no guarantee what direction interest rates will go, despite the forecasts of the experts. Therefore, make your financial decision based on where things are today including your budget, your needs and your future plans. Locking in your rate today will not assure you the lowest interest rate. If you do decide you want to lock in at a certain interest rate, you will need to complete a loan application and send it to your lender as soon as possible. This must be done so that your commitment doesn't expire before your loan is approved.
Follow up and be se sure that the lender is receiving all of the necessary documentation. It’s not the lenders job to chase you down. There are deadlines built into buying a home, so make sure you don’t miss them or the consequences could be uncomfortable for you. Get a property appraisal, which usually costs about $300, through your lender as soon as possible. Although rising interest rates can create more problems for home buyers, waiting and hoping for low rates is not necessarily a smart move. You may end up paying a higher price. A good lender will have a backup plan for you if rates go lower. Also, refinancing is always an option in the event that interest rates come down.
We know of some great investor loan products that will help you make more money. Part of our job is to do the research and know our stuff so you can sit back and make money. The Investor Option Financing Product saved one of our investors $145.00 a month. Let's see how much we can save you!
If you have questions about your financing, contact the Dowell Taggart Team. Although we are not lenders, we have some really great ones that we would recommend.
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