Thinking of buying a Columbia SC property? Mortgage rates are still near all-time lows, but are being pulled in different directions right now. Borrowers who want to grab these unbelievable rates should act now before the tug-o-war ends.
The Federal Reserve has been doing whatever it can to hold rates down, including printing billions of dollars per month to buy mortgage bonds. But higher mortgage fees, imposed by the Federal Housing Finance Agency, will push rates up later this fall.
Starting Nov. 1, Fannie Mae and Freddie Mac will raise the guarantee fees they charge loan originators. On average, this increase translates into about a quarter of 1 percentage point in interest. It’s almost like the higher fees will be canceled out by the Fed’s open-ended buying program, or QE3.
Rates will likely stay near the lows until the election, he says. What happens next is anyone’s guess.
What if after the election, they say, “We’re stopping (the bond-buying program) tomorrow…” Borrowers who are on the fence should act soon. There is no reason to hold off on buying a Columbia SC property or refinancing at these levels.
Changes Coming for Columbia SC Property Short Sales
A series of new short-sale guidelines that go into effect Nov. 1 are supposed to make the process of short selling easier and speedier. Fannie Mae and Freddie Mac will allow servicers to streamline the short-sale process for borrowers who are in financial hardship and homeowners who have to sell their homes because of a divorce, disability or job transfer. The expedited process will open the door to more short sales as an alternative to foreclosures.
Columbia SC mortgage rates can be shopped for online, but you need to be aware of some “tricks of the trade” when using online websites to shop for loans. You might not be seeing the best rates available for a Columbia SC mortgage if you aren’t aware of this trick used by some websites…
To make absolutely certain you’re getting the best quote for a Columbia SC mortgage, check with several of our local lenders to see how their rate and APR compares to those you find online. It pays to shop around, especially when you’re looking for a home loan.
A Columbia SC mortgage is more difficult to get these days than ever, but there are some things home buyers tend to do that delay, or even kill a deal.
This seems to be especially true during the time after signing a contract, and waiting for the home to close.
6 Things To Never Do When Trying to Obtain a Columbia SC Mortgage
- Don’t make any large purchases like a new car or a bunch of new furniture for your newly purchased home. New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher ratios. Higher ratios make for riskier loans, and sometimes qualified borrowers no longer qualify.
- Don’t apply for new credit. It doesn’t matter whether it’s a new credit card or a new car, when you have your credit report run by organizations in multiple financial channels (mortgages, credit cards, autos, etc.), your FICO score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.
- Don’t deposit unusual cash into your bank accounts. By “unusual cash”, we mean, cash you would not normally come into, like money your parents gave you to help with the down payment. Lenders need to source your money and cash is not really traceable. Small, explainable deposits are fine, but getting $10,000 from your parents as a gift is not. Discuss the proper way to track your assets with your loan officer.
- Don’t co-sign any loans for anyone. When you co-sign, you are obligated. With that obligation comes higher ratios on your credit as well. Even if you swear you won’t be making the payments, the lender will be counting the payment against you.
- Don’t change banks or bank accounts. Remember, lenders need to source and track assets. That task is significantly easier when there is a consistency of accounts. Before you even transfer money between accounts, talk to your loan officer to make sure it won’t affect your mortgage application.
- Don’t close any credit accounts. Many people erroneously believe that having less available credit makes them less risky and more approvable. Wrong! A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both those determinants of your FICO score.
The best advice we can give home buyers when applying for a Columbia SC mortgage is to fully disclose and discuss your plans with your loan officer or mortgage broker. The smallest little blip on your credit report could cause you to lose the house you’re waiting to close on! Wait until after you’ve closed on your new home before doing anything that could adversely affect your credit score or credit report.