As 2011 winds down the Oklahoma City new home market continues to offer fantastic pricing and unbelievable mortgage interest rates.
For insight into current conditions for new home loans, Kent Carter with
Citywide Mortgage,
Ideal Homes' lending partner, provides an update.
Q. What's the current interest rate range of government loans (FHA & VA)?
A. "Government interest rates are 3.37-4.00% depending on credit, loan amount, and most importantly which day you are pricing," he said.
Q. Do you predict that mortgage interest rates will continue to be steady, or do forecasters think they will start to climb?
A. "Most in the industry predict rates to remain fairly stable for the next year," Kent explained. "The HUGE variable is Europe. The EU is in terrible financial shape, and American banks are heavily invested there. Trade with Europe makes up 27% of our foreign trade - far surpassing Asia."
Q. Is your #1 tip to potential home buyers to still keep a close eye on their credit scores?
A. "Yes, and to keep debt low and paid on time," he said.
Q. Are borrowers' credit scores improving?
A. "In 2007, the average FICO score was 630. Today it is 705," Kent explained.
Q. Other than keeping a close eye on their credit, how can prospective home buyers be prepared before starting the mortgage process?
A. "The largest hindrance to first time buyers is down payment," he said. "They need to save money before starting the process. "
