If you have been watching interest rates and waiting to make a move, you have a newly opened window of opportunity. This week, the Federal Reserve announced it would continue to purchase mortgage-backed securities and Treasury bonds, according to a September 19, 2013 CNNMoney article. In other words, the Fed will not taper these purchases – which should keep mortgage rates at least the same, if not slightly lower, for awhile.
The question remains as to whether or not we are headed toward a 5% mortgage rate; however, (as sited in CNNMoney) Freddie Mac’s chief economist, Frank Nothaft, said rates could hit 5% by mid-2014. To keep things in perspective, these rates are still relatively low - but they offer a chance at savings for buyers that are on the fence now about purchasing a home.
If you are in the process of buying a home now – awaiting your settlement/closing – consider these tips (courtesy of Chris Hoenen at Schab and Barnett):
If you are paying cash:
- Arrange for your certified funds in advance of closing to allow time.
- Make sure your insurance is in place, even if you are not using a lender.
- Get a survey! Even if you do not have a lender requiring it, a survey protects you as the buyer.
If you are selling a property:
- You have closing duties, too! Complete the letter/checklist your attorney sends you, which includes requests for your mortgage lender, a survey (if you have one) and association contact information. Privacy laws prevent payoff without sellers’ authorization. Sellers can greatly expedite closing by returning this information.
If you are looking for a property to buy – or if you have one to sell: