Time to Get Pre-Approved Again? (Buying a Home In Ann Arbor)

If you are a buying a home in Ann Arbor, give your lender a quick call to verify your Pre-Approval.

Why Should I Get Pre-Approved Again?

When a lender qualifies you for a home purchase, they look at your debts, income, credit scores and the interest rates to give you an amount of a new mortgage you will qualify to finance.

Rates have jumped .75% the last 6 weeks. Give your lender a quick call to verify you are still qualified for that amount.

Example of the Difference in Payments

Here is an example of how your payment can change based on the % of interest you will pay.This is based on a $200.00o  loan with 3.5% down. This example is an FHA loan. More and more homeowners are using FHA loans to finance in Ann Arbor especially first time home buyers.

Back in mid-November rates were approximately 4.17%.

Today they are between 5 and 5 1/4%

In November if you purchased your home at the 4.17% rate with 3.5% down, your monthly payment would have been $940.43, principal and interest.

Today if you purchased that same home at 5.00%, with 3.5% down,  your monthly payment would be $1036.06, principal and interest.

Now to many folks, this payment of almost $100.00 more will not make any difference but to some $95.63 a month could change the price of the home you can afford to purchase.

Predicting the Future

I don’t have a crystal ball to tell you what is going to happen to interest rates in the next few months, but .75% jump in 5 weeks is a strong indicator that interest rates will rise.

Homes for Sale in Ann Arbor

Comments

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One thought on “Time to Get Pre-Approved Again? (Buying a Home In Ann Arbor)

  1. Great advice, Missy. As rates increase, some will have to reduce their ranges a bit to stay where they want to be. I know a couple of my clients wish that they had gone ahead and purchased several weeks ago when the rates were so much lower.

Thoughts?