December 2016 – My Blog

With mortgage rates and home prices rising, the housing market has become more hostile to home buyers in 2016. But in the next year, major factors that influence the housing market stand to change both for the better and the worse. Read on for what people looking to settle down into a new home can expect in 2017.

Mortgage rates will soar.

Mortgage rates have been on the rise for nine weeks straight, with 30-year fixed rates reaching 4.32 percent Thursday, up from 3.47 percent at the end of October. The increase is a result of the Federal Reserve’s decision to hike its interest rate target in mid-December and the surge in U.S. Treasury yields over the past several months—both of which mortgage rates follow closely.

Shockingly, enough people still do things that can cause themselves heartache when applying for mortgages. Here’s what you need to know if you’re thinking about buying a home in 2017.

Your ability to buy a home rests on the numbers and documentation your mortgage lender has. If there is a change to any of these, your chances of buying a home can be jeopardized. This means that when there is a change to your credit, debit, income assets, or job during the escrow process, you might not be able to buy that house and you’ll risk losing your money. Here are five things to watch out for.

1. Applying for Credit

After you get a contract to buy your house, it’s best not to apply for any credit. This means not applying for car loans, credit cards, utility bills, cell phone bills or any other form of credit whatsoever. Doing so could change your credit score and impact your rate lock and/or fees associated with closing on the house.