In August, mortgage rates soared to 7.23%, which is the highest they have been in 22 years. If you are buying a home during a time when rates are high, there are certain steps you should take to make homeownership as affordable as possible. Here are a few tips.

 Tips for Buying a Home

1. Have a plan for the future.You do not have to permanently be stuck with high interest rates just because you bought your home when rates were high. Whether you buy a home with a fixed or adjustable mortgage rate, you can refinance later.Also, if you go with an adjustable rate mortgage, it should come with a low introductory rate that can help keep it affordable during this period of high rates.
2. Take advantage of opportunities that might otherwise be unavailable.Homebuyers may turn shy when mortgage rates climb. Home supply is not as high as it could be, but if there is a sufficient drop in demand, the supply could become more available and more affordable. By shopping for a home now, you might find yourself with the chance to buy a home that would not otherwise still be for sale or within your budget. Research your local real estate market to identify these opportunities.
3. Improve your borrower profile. Regardless of when you are purchasing a home, improving your borrower profile can help you qualify for more affordable rates. But at no time is it more important to enhance your profile than when rates are high. When you contact us for a consultation, we will be able to sit down with you and give you personalized advice for how you can improve your borrower profile based on what you tell us about your financial situation.

The following may all help you find affordable mortgage rates:

• Boosting your credit score.
• Increasing your income.
• Decreasing your debts.

4. Make a larger down payment. When you put a large down payment on a home, you do not need to borrow as much. Lenders feel more comfortable with smaller loans, and may thus offer more affordable rates than they would to borrowers who are only putting down a small percentage. Of course, there are other factors that can affect your decision to make a larger or smaller down payment, but it is worth considering if it is within your means to do it.
5. Choose a mortgage company that will work hard to bring you affordable rates. One more tip for buying a home when rates are high is to pick a mortgage company that will strive to offer you affordable rates.

Buy A Home or Refinance in Farmington Hills

The team at MMS Mortgage Services can give you personalized tips to improve your mortgage qualifications, and match you with a lending product that will help you save now and in the future.  Please contact us at (248) 788-0800 to set up your mortgage consultation. We can help you buy a home or refinance in Michigan or 15 others states.

When it comes time to pick a mortgage company when you are buying a home or refinancing, it helps to know some important questions to ask during your consultation. This is a chance for you to learn more about buying a home in general, but also to ask questions about the mortgage company itself. Below are some examples of those types of questions.

 Choosing a Mortgage

1. What mortgage products do you offer? The first step is to make sure that the mortgage company offers the kinds of home loans that might be suitable to you. If you are not sure what types of mortgages would be appropriate for your scenario, that is something else you can ask at this stage. As a simple example, if you are self-employed, it would do you no good to try to work with a mortgage company that requires you to submit a W-2. You would need to find out if the company offers self-employed borrower loans.
2. What is the mortgage process like? Ask what the mortgage process steps are, and what you will need to do during each. Find out what the timeline will look like. How soon can you expect to close on average?
3. Do you have experience with my specific scenario? Just as you need to choose a mortgage company that offers the type of loan that is ideal for you, you also should try to work with one that has handled situations like yours before. This is especially important if there are obstacles you need help navigating around or complexities that the average lender would not be familiar with.
4. How do you communicate with homebuyers? If you want to avoid delays as you are applying for a mortgage, constant, reliable communication between you and the mortgage company is necessary. To ensure that communication is convenient for you, you also need it to suit your habits. If you always use phone, for instance, a mortgage company that always sends emails would not be meeting your needs.
5. Do you service loans? A lot of mortgage companies do not actually service home loans. But MMS Mortgage Services does. That means that you can work with us over the lifetime of your mortgage instead of dealing with another company.

Buy a Home or Refinance Now

To ask your questions about MMS Mortgage Services, please contact us at (248) 788-0800 to set up your mortgage consultation. We would be happy to answer the questions above and any others you have in detail. We can help you buy a home or refinance in Michigan or 15 others states.