Four things that could make purchasing Real Estate easier in 2015

We’ve all had thoughts of “if only I’d known then what I know now…” Well, sorry, but here’s another one: The four things that could make purchasing Real Estate easier in the new year.

Loosened mortgage lending.

You may have heard the recent story about how former Federal Reserve Chairman Ben Bernanke was unable to get a refinance loan. When I read that, I wondered how many would-be home buyers also read it and just gave up on the idea. For many, logic would dictate that if Ben Bernanke couldn’t get a loan, they probably couldn’t. Well, one of the things the latest federal budget bill did is help loosen mortgage lending. Good news for Ben. Good news for you.

Down payment requirements will be lower.

After the financial meltdown of 2008, down payment requirements for mortgages went up as high as 25 percent, according to SFGate.com. But Fannie Mae and Freddie Mac are now offering lower down payments.

Growth in home prices will be slower.

This means there could be more bargains out there, relatively speaking – the real estate market in Colorado is still very strong. Of course, in some areas, prices will rise more sharply, while in others growth will be slower. But, on average, home values will grow at a slower pace than we’re historically used to. But eventually, growth in those values will increase. That will make buying a home a sound investment over the long term.

Low interest rates will continue.

This has been the 800 pound gorilla in the financial room for six years now. The federal funds rate has been at or near zero percent since December, 2008, and it’s expected to remain low for some time. As long as the federal funds rate is low, mortgage and other credit interest rates will also be low. Until now, that low rate has primarily benefited Wall Street and high net worth investors. But, when you add looser credit and lower down payment requirements into the mix, middle America will now reap some benefit as well.

Here’s the takeaway for those who would like to buy their first home, or upgrade to something larger:  You can wonder “if only I’d acted on what I knew in January”, or you can start actively exploring the real estate market in Colorado now.

Colorado Real Estate Agents

About 

Stephanie Iannone, ABR, CNE is a Colorado Realtor, Managing Broker and Owner of the Iannone Real Estate Group and Housing Helpers of Colorado. Named Distinguished Realtor of the Year and Top 25 Salespeople in Colorado by Colorado-Biz Magazine. Stephanie Iannone and her team of experienced real estate agents serve home buyers, sellers, and real estate investors throughout the entire front range of Colorado.
Contact Stephanie:
Stephanie@housinghelpers.com
(303) 641-7484
www.stephanieiannone.com

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