In our last blog entry, we discussed several trends facing the mortgage world in the year 2018. These trends are particularly vital for first time home buyers, who have not navigated these waters before and need all the pertinent information they can get on the subject of mortgages.
At Altius Mortgage and our partners at Mortgage Ogden, we’re dedicated to helping all buyers get the home loan they deserve. Here is part two of our blog series on important 2018 mortgage trends to be aware of.
FHA Loans Are More Expensive
In 2017, then-President Obama approved a reduction in FHA mortgage insurance that would have brought major savings to borrowers. Unfortunately, President Trump quickly canceled this reduction upon takin office. This means that first time buyers who use the FHA program will have to continue to pay higher mortgage insurance levels – this is imperfect, of course, but far lower down payments and other benefits still make FHA loans well worth it for many borrowers.
Real Estate Agents Matter
The housing world has changed a ton over the last few years, with markets fluctuating between shortages and overages of inventory. There’s never been a more important time to have a real estate agent on your side to provide an experienced, objective view of the marketplace. When you consider that the seller generally pays agent commissions, this is an even simpler choice to make.
Inventory is Limited in Big Cities
Many big cities entered 2018 with relatively low supplies of housing, though there are exceptions here. This can affect everything from your first offer to your negotiating power as a buyer – sellers tend to have more leverage in a tighter market with limited inventory.
Most closed home loans in 2017 were to buyers with credit scores of 600 or higher, with over 99 percent of mortgages going to this group. As such, while a score in this range is not necessarily a steadfast requirement, it’s about as close as you can get – you should ensure you’re in this range if you’re considering buying.
For more on 2018 housing trends, or to learn more about any of our mortgage services, speak to the pros at Altius Mortgage today.