What The Futures Holds For Home Buyers This 2013?

| May 14, 2013
Home Buyers

Home Buyers

Everybody dreams of having their dream house come to life. To be able to do this, you need to have sufficient amount of money. If you have all the money, then owning a home is not a problem to you. However, if you are an average person owning a home can be an elusive dream for you. If you want to become a homeowner, then 2013 will be very good to you.

Why purchase a house this 2013?

The year 2013 is a perfect time to own a house because the mortgage interest rate is on the low side. This is actually a favourable time for home buyers because the monthly mortgage is cheaper than monthly rental. As you know, mortgage is tax deductive so you will be able to save money on the long run.

Loan programs to choose from when planning to buy a home this 2013

FHA Fixer Upper loan

This loan is suitable to homeowner who wants to fix or repair their existing home.

FHA Home Buyer Programs

Through this program, you will be able to enjoy a lower down payment and is usually 3.5% lower. This type of loan assistance can be used to homes up to 4 units. So this can be a favourable program, especially if you are planning to purchase a duplex home.

Down Payment Assistance Programs

Home buyers, especially first time home buyers find it difficult to secure down payment. As you know, some institutions require huge down payment and a regular person may have difficulties generating money for the down payment alone. This program offers assistance with the down payment, especially for first time homebuyers.

VA Loan

This is a home loan program offered to veterans. What’s good about this loan is that it offers up to 100% financing. On top of that, you will also be given significantly lower interest rates.

The impact of interest rates on your mortgage

When applying for home loan or any types of loan, be it short term or long term, the very first thing to check is the interest rate. Literally, the interest rate plays a huge impact on the monthly payment. The mortgage rate in 2013 is significantly low, which makes it perfect for people who dream of having their own home. If you take advantage of the lower interest rate, you will be about to save relative amount of money. The housing market significantly improves and is foreseen to continuously improve in the coming years. This is because of increased home construction, better jobs, and overall good socioeconomic condition.

What to do when applying for home loan?

When applying for home loan this 2013, you should submit all the needed requirements such as:

  • Identification card (at least two (2) valid ID’s)
  • Offer to purchase
  • Proof of income
  • Bank statement (3 months bank statement for employee and 6 months for personal and businessmen)

Another important thing to note is that you should contact to an FHA approved mortgage lender. If you are a veteran, then you have to search for a VA approved mortgage lender. The bank statement and credit information are important tools because it directly indicates how much mortgage you can afford. Pre approval is essential for it indicates your financial capability on a monthly basis.


The current mortgage rate is indeed the perfect time for future homeowners like you. It is best to lock in this lower rate so that you can fully enjoy its benefits. If you have a regular source of income, then locking the mortgage rate can be a very good option. On the other hand, if you think you will have difficulties in keeping up with the monthly payment, then you choose adjustable mortgage rate.

Author Bio

Clarence Evans is a financial analyst who works with a company providing support systems for various firms. He studies everything, from financial conferences, e-learning activities about finance, or even the twitter feeds of knowledgeable finance point persons such as Reza Bundy. Follow him on Twitter @ClarenceMEvans

What The Futures Holds For Home Buyers This 2013?


Category: Loans

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