Knowledge is Power
After my last blog, “WooHoo For Texas”, I am hoping you are considering a move to our great state of Texas. Better yet, considering Amarillo as your choice of best cities to live.
Most likely you will start your search for a home and community via the internet but then what? A knowledgeable buyer not only knows the market but their own personal purchasing capabilities. Today, buyers are most powerful when they are pre-approved to purchase a home.
Due to the sub-prime loan fiasco and the following credit crisis in the lending industry, much has changed in the last year. 100% loans backed by FHA and Fannie Mae are no longer available. Stated Income Loans now come with a very high price tag in terms of interest rates. Mortgage lenders have returned to the previously standard practice of requiring a down payment. Some loans programs will allow as little as 3% - 5% while others will require the more traditional 10 - 20% down. Down payment assistance programs are available on local, state and national levels. Check with your local lender or Realtor for what is available in your particular area.
Interest rates are currently 5.75% - 6%, about the same as 2003, which had a historically low interest rate. Rates and points change daily and even several times a day. So, don’t be confused if you hear slightly different numbers. Rates also change with the type of loan program the borrower selects.
Meet with a lender, know your purchasing abilities, get pre-approved for your loan and you will be a powerful buyer.
Tags: Amarillo, Texas, mortgage, lenders, loans, down payment
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