Now that we’ve stepped into 2014, the clock is ticking for the homebuyers and the homeowners who are looking forward to grab a low mortgage rate in 2014. After a long stretch of record-low rates on mortgage loans, the rates are predicted to rise higher in 2014. But it has not yet increased to a bad extent for the homebuyers and the homeowners. If you want to stay on the top of your game, you have to keep your personal finances in order and also act quickly so that you can grab the most attractive mortgage deals in the industry. Under the new Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, many more ambitious homeowners won’t be able to qualify for mortgage loans.
Tips for the struggling homeowners to snag a lucrative deal
After going through the introduction of this post, you need not fret to think that you might not qualify for a fair deal on a home loan. There are some tips that you may follow in order to obtain one of the most attractive deals on a mortgage loan and thereby save a few hundred dollars. Here are some tips to take into account.
1. Keep a watchful tab on your finances: Remember that 2014 is going to be a pretty tough time for the borrowers as the lenders will be extra diligent and choose while underwriting home loans in 2014 due to the new mortgage regulations that will go into effect in January. The new rules actually pressurize the lenders to ensure whether or not the borrowers will be able to repay their mortgage loans on time. So, you need to keep good record of your finances, your bank statements, your tax returns, W-2s, investment accounts and some other assets. Be ready to explain anything that you’re asked.
2. Lock a mortgage rate as soon as possible: If you’ve been struggling to make the monthly payments on your current mortgage loan, don’t wait for the rates to fall lower. Rates will rather keep climbing with 2014 and hence you should lock in a rate as soon as you feel that you’re comfortable with the numbers.
3. This is the time to refinance: Yes, there were many unfortunate homeowners who have lost the opportunity to refinance to a lower rate as the rates jumped higher in 2013. But if you’re someone who’s still paying above 5% rate on your mortgage, this is perhaps the best time to refinance your mortgage before things become worse for you.
4. Use your bargaining power if you’re buying: Due to the rise in the mortgage rates, a large number of lenders lost a huge chunk of their refinance business. This is why they will soon turn their attention to the new homebuyers in 2014 so that they can bring back the lost pace in their business. Shop around for getting the best deal if you’re out in the market for your first mortgage loan.
Hence, we can well understand the reason behind the experts recommending the homebuyers and the homeowners to fix their mortgage woes right away. Follow the above mentioned tips to make your journey smoother.