When in the market as a North Shore homebuyer, it’s easy to
fall for outdated mortgage advice. After all, we have the internet at our
fingertips, filled with information and opinions on all matters, and we have
friends and family members, who offer us tips from when they
bought a home.
The thing is, the North Shore real estate market is
constantly changing, so real estate advice can quickly become obsolete. The
best advice is straight from a real estate agent and mortgage lender in the
area where you’d like to buy. Both keep up with the latest stats and trends in
the area, and can help you make the best decisions as a homebuyer and mortgage
qualifier.
Here are a few common mortgage myths that might not be true
for you anymore:
1. You need to have a 20 percent down payment. Most homebuyers
still believe this to be true, even though in actuality, few first-time buyers
can make a 20 percent down payment anymore! There are traditional loans
offering 10 percent down or less, and FHA loans require as little as 3 percent. If you don’t have 20 percent saved, shop around to see what the best option is for you.
2. Choose a 30-year mortgage with a fixed interest rate. While
this is still the most common type of mortgage, it’s not the only option. If you’re
buying a forever home on the North Shore, this may save you the most money over
a long period. However, if you’re buying a starter home, but plan to move in
the near future, a five or seven-year adjustable rate mortgage might work
better. It’s best to check all of your options.
3. Wait for interest rates to drop. Because interest rates have
been at historic lows in the last few years, now that they are on the rise,
you’ll often hear the advice that you should wait until they drop again.
However, mortgage experts predict that interest rates will increase rather than
decrease this year and in the coming years. Right now, they are still near
historic lows, though not as low as they were in the past couple years. So
while you may have already missed the lowest they will be, the sooner you buy,
the sooner you could get a great rate before they increase.
As you can see, you have many mortgage options as a North Shore homebuyer! Your best bet is to meet with a mortgage lender to get
pre-qualified and find out what you qualify for, and to meet with a North Shore real estate agent to find out what houses are going for in the area you’d like
to buy.
Whether you’d like to buy in Glencoe, Winnetka, Highland Park, Deerfield, Northbrook, Lake Forest, Wilmette, Evanston, Glenview, Riverwoods, Bannockburn, and other North Shore communities, I can help you
out! Give me a call and let’s work toward achieving your North Shore real estate marketgoals this winter or spring season.
Janie BressYour North Shore Real Estate ExpertNorth Shore Real Estate
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Local Expert… with National Connections!