Mortgage Advice to Reconsider As North Shore Buyer

When in the market as a North Shore homebuyer, it’s easy to fall for outdated mortgage advice.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 market goals this winter or spring season.

Janie Bress
Your North Shore Real Estate Expert

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