Borrowing money to finance a home is one of the hardest things to do today, and it is not going to get any easier according to the real estate market in 2014. Home prices are currently undergoing an upsurge, after the revival of the housing industry, and mortgage rates are at an all time high now. Experts in the real estate industry are advising people to get their finances in order and grab the initiative as quickly as they can before mortgage rates sky rocket. In order to do that, you will require some in-depth knowledge about the state of the real estate market, and luckily for you, here are the best tips and advice for mortgage borrowers in 2014:
Documentation of Your Finances
Money lenders are becoming extra diligent in 2014 due to the new regulations regarding mortgage loans, which come into effect in January 2014. These rules have put additional pressure on money lenders to get proper verification from borrowers, to ensure that they can repay the loans back.
This means that you will have to show immaculate financial records, which proves that you are financially stable in order to qualify for a mortgage loan. Proper documentation of your assets and credit records will allow you to qualify for the mortgage, so keep that in mind.
Lock Rates as Quickly as Possible
The mortgage rates are set to skyrocket in 2014, which is why it is imperative that you lock a rate as soon as you can. The Federal Reserve will reduce the speed of the economic stimulus program, which in turn will see a dramatic rise in the rates of mortgage loans.
Refinance as Soon as You Can
Refinance your home, if you still can, since the rates are expected to jump once again in 2014. Speak with your loan officer, and find out if you can still qualify for refinancing loans. It is best to act fast in the New Year if you want to take advantage of the real estate industry.
More Bargaining Power for the Buyer
The New Year will see more bargaining power for home buyers, since the money lenders lost a significant amount of money due to the rising mortgage rates. With so money homes on the market, the money lenders are targeting new home buyers, which allows buyers to use their bargaining power and get the best deals. Use it to your advantage and reap the benefits of acquiring the best interest on loans.