Fannie Mae to help out first-time homebuyers!

More good news has surfaced for first-time homebuyers, even as interest rates begin to slowly climb. Still on the fence about buying a new home? We think this might help: Fannie Mae is now offering to pay closing costs up to 3% of a home’s value, for first-time homebuyers.

That’s right, there really isn’t a catch! All you must do, is participate in the mortgage entity’s counseling course. For first-time homebuyers and families who do not have adequate savings, but qualify for a mortgage based on credit history and ability to pay, this new option will be extremely helpful.

So let’s do the math. If the home you’re waiting to build is $150,000, and Fannie Mae will pay up to 3% of that home’s value, you will see a closing cost deduction of $4,500. Here’s a little more information regarding the first-time homebuyer program.

Spring is the perfect time to build your brand new, customized, dream home. And now, thanks to Fannie Mae, the upfront costs associated with purchasing a new home are now much, much less.

Are you ready to move into a brand new Faber Home? Visit our website today or give us a call: 585.889.4840.

The time to buy is now

It’s been a buyers market for the last several years, with interest rates at all-time lows, but all of that is about to change, according to many recent reports, including this one from Reuters.

In the article, Atlanta Federal Reserve President Dennis Lockhart states that the U.S. central bank intends to raise interest rates as early as June, barring a significant downturn in the U.S. economy.

Last Wednesday, the Fed moved a step closer to raising rates for the first time since 2006, but downgraded economic growth and inflation projections. The Fed is in no rush to push borrowing costs, however firmer timelines are now being put into place that set increases in motion in our very near future.

So what does this mean for potential buyers? Time is running out. There is much to speculate on when, following the month of June, interest rates will rise, and by how much, but now we know it is coming this summer.

That said, interest rates are currently hovering around 3.93% for a 30-year fixed mortgage, and 3.06% for 15-year fixed. Now is the time to buy, and if you’ve ever considered building a home, the market is in your favor for another two to three months!

Faber Homes maintains several neighborhoods on the West side of Rochester, so if you’re a current resident looking to move, or if you’re moving here from outside the area, contact one of our sales representatives today. We have model homes for every family, including cozy two bedroom ranch floor plans, and four bedroom spacious colonials perfect for growing families. We’ll work with you to ensure your home is built to the highest standards making no compromises to quality, and becomes the home you’ve always dreamed of.

Not sure which type of mortgage is best for you? Our skilled representatives can help set you up with a mortgage consultant from the beginning and walk you through the entire process. Buying a new home can be scary, but with Faber Homes behind you, the process will be seamless and we promise you’ll feel supported through every step of the process.

Top 5 Mortgage Mistakes

Securing a mortgage can be a bumpy road. Not every borrower’s path is the same, but generally speaking, there are a few key mistakes made by homeowners that can be avoided. Here are five of the most common mistakes:

Not checking credit reports. Waiting until you apply for a mortgage to check your credit can be a deal breaker. Credit report errors happen all the time, but you do have the ability to correct errors and increase your score, which will help you secure a lower, more favorable interest rate.

Waiting for the lowest rate. Mortgage rates fluctuate all the time, and my borrowers wait for rates to hit “bottom” before making a move. Unfortunately, interest rates continue to be on an upward trend, and more than likely the market’s “bottom” can only be realized after the fact.

Failing to lock in a rate. Once you’ve seen a rate that is most favorable, a huge mistake is not locking in that rate. Timing is very important, especially if you’re building a home. 

Mis-truths. False statements on mortgage applications can come back to bite you, to the tune of jail time, a $1 million fine (or both), and a completely ruined credit score (as if it matters at that point). Quite simply: don’t do it.

Lastly - going in blind. There are a lot of costs involved in finalizing a home purchase. Above just the annual percentage rate (including actual interest and any additional costs), you may also incur closing costs, commissions, points and other fees that may not be included in the mortgage.

Do your homework, and work with Faber’s experienced professionals who will help walk you through the process.

Quick Mortgage Tips

Getting a mortgage used to be a much simpler task, but now the lender must do more due diligence before approving a borrower than in the past. It’s not impossible to be approved, but there are certain things mortgage shoppers can do to expedite the process.

First and foremost, it’s important to get a copy of your credit report. Fully digest its contents and flag any discrepancies. If you’re positive you paid off that debt or late charge, dispute negative marks as soon as possible. Generally speaking, it is always a good idea to pay off debts and loans prior to applying for a mortgage, but if you just can’t swing it, keeping your debt to credit ratio under 20% will go a long way.

When filling out your mortgage application, it’s important to be as transparent as possible about all assets, debts, and incomes. Chances are, the truth will be revealed in some fashion, so it is better to be upfront from the get-go and reduce delays in the process.

Once you’ve figured out your debt-to-income ratio and are comfortable with a monthly commitment, do your best to come up with the largest down payment possible. Not only will lenders look favorably on this, but you’ll be doing yourself a favor in the long run by lowering your monthly financial commitment.

Still have questions about applying for a mortgage for your Faber Home? Our sales associates will help you get on the right track and connect you with lenders and credit counselors. Give us a call today!