In the Market: Making the path to ownership smoother
This weekly feature is a real estate news roundup from a millennial’s point of view. When a young professional moves from Indianapolis (median home price $125K) to San Francisco (median price $1 million), you can expect an adventure. Nneka Madus, a marketing analyst in our Mortgage Division, did just that and has plenty to share in her quest to own a home in San Francisco.
I just rented my first apartment in San Francisco, but let me tell you, it was tricky! There are so many things I wish I would have known beforehand to make my apartment hunting experience smoother.
As with renting, knowing where to start and asking the right questions can help you decide if now is the right time for home ownership. Brendon DeSimone from Zillow gives millennials and first-time homebuyers tips to take into account when you begin down the path to home ownership.Credit scores are one of the more important items — though certainly not the only one — used by lenders in the loan approval process. But there’s so much information than just a credit score in a credit report! What should you focus on — especially if you have had some trouble in the past? Denny Ceizyk from the Motley Fool reviews 5 things lenders want to know if you’ve had “rough times in your credit past.”
“Interest rates are rising! Interest rates are rising!? Have we heard that in the news lately? If you’ve been shopping for a mortgage and following rates closely, you may have noticed that there hasn’t been an increase. Amy Hoak from MarketWatch explains why interest rates have not gone up as fast or as much as people expected and how mortgage shoppers can take advantage. My takeaway: Pay attention to improvements in employment and increases in inflation — these could be signs that rates may begin to rise.
As a young professional living in San Francisco, I am amazed at the sky-high rent prices for cozy apartments in the city and can only wonder if I’ll ever be able to afford a home on my own. In the Bay Area, rising home values are making it difficult for many potential first-time home buyers to get a mortgage on their own.
Kathleen Pender from SF Gate writes about a phenomenon happening in the Bay Area and nationwide — about a third of first-time homebuyers get help from friends or relatives. I plan on staying in San Francisco, but if home values continue on this trend, I’m pretty sure that I, too, will become a member of what Pender calls “The Bank of Mom and Dad.”