April is normally an exciting month for home buyers. The warming weather and the inevitable Spring Fever make house hunting more enjoyable than perhaps any other season.

This year should be very gratifying for many home buyers as they realize the impact of last year’s tax reform. Tax payers who receive their beefy federal income tax refund checks will payoff debt, make investments, and even seize the opportunity to buy real estate.

For most first-time home buyers, a decent tax refund check may serve as the basis of a down payment for a home purchase. For others, it may cover the cost of a refinance. Yet for others, it may help to start a long, profitable career as real estate investors.

With interest rates now on the rise now, lenders are getting very creative in their efforts to help future buyers leverage whatever purchase cash they might have. Of late, I have received updates from wholesale lending sources offering more lenient terms on previous credit blemishes, including bankruptcies, unpaid collections, and late payments. Meanwhile, I continue to receive dozens of calls on these wonderful interest-only products that allow buyers to maximize their buying power while not breaking their budget.

For those wishing to refinance, there are now opportunities to refinance without appraisals, without income verification, and without regard to discharged bankruptcies. In some cases such streamlined refinances take as little as five business days and make allowances for borrowers with credit scores as low as 540.

Regardless of your situation, now is an exciting time to move forward with your real estate plans. The competitive mortgage market seems to present viable and attractive solutions for everybody who is interested in looking.

A good “first step” may be to get a mortgage pre-qualification through a reputable mortgage banker or broker. Be sure to ask about things that are important to you like cash flow, building equity, or maintaining a flexible payment. Also, ask about the short- and long-term pros and cons of each option available to you so you can best make an intelligent mortgage decision.

Timothy Phillips is a mortgage banker and newspaper columnist.  Homebuyers should always consult a professional for guidance specific to their situation.

Be first to comment this article

Only registered users can write comments.
Please login or register.

Powered by AkoComment Tweaked Special Edition v.1.4.4