If you feel like the historically low mortgage rates of the last few years are here to stay – think again. Buyers and homeowners who want to lock in a low mortgage rate should act now! It’s time to take (home) ownership. Literally.

For 40 years, De Young Properties has been building homes in the Central Valley. They understand that financing is the final (and most daunting) hurdle for most families, and together, with their affiliate De Young Mortgage, offer families smart, one-stop financing to make the home buying experience as simple and satisfying as possible.

We understand that the process can be overwhelming but you aren’t alone! Here are our top mortgage tips for 2014:

1. Documentation is Your Friend – New 2014 regulations mean lenders will be stricter than ever. The more documentation you have (tax returns, bank statements, W-2’s, proof of assets, etc.), the better.
2. Lock and Load– The Federal Reserve is expected to pull back on the economic stimulus program, and analysts predict mortgage rates could go up this year – so lock in a low rate as soon as it makes sense for you and your family. Talk to a De Young Mortgage loan specialist regarding the 6 month rate lock.
3. Asking Makes the Difference– Explore the possibility of refinancing. With a little bit of information, a De Young Mortgage loan specialist should be able to run the numbers and see if refinancing makes sense for you. If it does – you’ll be glad you asked!
4. Credit is King– Bad credit or lack thereof can be a deal-breaker. Lower credit scores mean higher mortgage rates, so anything you can do to boost or clean up your credit will be worthwhile. Here are some helpful tips on improving your credit score.
5. Live Within Your Means– Your debt-to-income ratio is incredibly important in terms of the kind of loan you’ll qualify for. Try to keep your monthly debt below 43% of your income for the best options. Here is some advice on living within your means – painlessly.
6. Time is Money – Consider a seven or 10-year ARM, which can be as much as one percentage point lower, than a traditional 30-year fixed rate loan. De Young Mortgage can help you explore alternative mortgage options, which can save you time and money.
7. Breathe – This is one of the biggest financial decisions you will ever make, and it can be overwhelming. Find advisors and lenders – like the specialists at De Young Mortgage – that will listen to you, work with you, and help you get in the home of your dreams.

AUTHOR: Ernie Escobedo, Chief Financial Officer

{Image Source: The Financial Couch, Queen Of Credit Restoration}

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