With spring just around the corner; you may be considering your options for buying a North of Boston home.  As the weather, slowly but surely, begins to go from winter's chill to the pleasant fresh air and warmth of spring; you’ll notice the North of Boston Real Estate market picking up to a lively pace.  To ensure that you find the North of Boston home that best fits your needs and lifestyle in a timely and efficient manner; you’ll want to be aware of some of the changes that 2011 has brought to the real estate market.

Lenders have tightened the reins on qualifying for a home loan.   Due to the struggle of the past few years in the housing market; lenders want to keep a closer eye on who is buying homes.  They want to see the market continue to recover and are taking on the roll of "protective mother" of the homes that are currently on the market. 

Before you get discouraged about buying a North of Boston home consider that, while it may be a little more challenging to get a mortgage loan; it’s not impossible.  Of course you want to make sure that you are getting the type of loan that offers terms and a rate that will work for you, which means doing your homework before you begin to look for a North of Boston home.  I’ve gathered four tips that will be very helpful in ensuring you qualify for a mortgage loan!

1. Know your borrowing limit- If you’re not sure how much you want to borrow, a good rule of thumb is to look at the Federal Housing Administration requirements.  FHA will limit mortgage payments at 31% of gross monthly income before taxes for most buyers.  This can help ensure that you’re not getting in too far over your head.  If we’ve learned anything over the past few years, it’s to play it safe in the housing market.

2. Have the right credit score- Credit scores are moving to the forefront of being approved for a North of Boston home loan.  Most lenders are expecting a credit score of 600+ even for FHA loans.  A good credit score will not only help you qualify for a home loan, but can lower your interest rate, which can save you thousands of dollars in the long run.

3. Shop around- The interest rate is important, but there are other costs to consider such as discount points and even the type of mortgage loan. When shopping for best rates, compare various combinations of discount points and loan types. Your North of Boston Real Estate agent can help you decide on the best option.

4.  Consider a No-Closing-Cost Loan- If you have positive equity, but are lower on cash up front, you do have an option to choose a no-closing cost loan.  This simply means that you’ll have a slightly higher rate, but the closing costs will be paid over time instead of up front.

If you have questions on any of these tips; I’d be happy to answer them!  As a North of Boston Real Estate agent; my goal is to provide you with up to date information on the housing market, along with tips and advice for venturing through the home buying or selling process with ease.  Please feel free to contact me anytime!  Whether you are hoping to buy a home in the North of Boston area, or need to sell your current home; I’m here to help!

Sven Andersen
North of Boston Real Estate Expert

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Searching for a new place in Winchester to call home? The Sven Andersen Team makes it easy for you to search for your new Winchester home. This FREE, NO-OBLIGATION service can help you find the home of your dreams! Simply visit http://www.northofbostonlistings.com/ and fill out the form to start your auto-email home search today! It's just that easy! The Sven Andersen Team is always willing to help and will always respect your privacy; we leave it up to you to contact US when you're ready to buy or sell in the Winchester area.

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If you, friends, relatives, or colleagues are considering buying or selling a home, condo, or land, please consider contacting Sven for assistance in your search. Sven coverage area includes: Winchester, Belmont, Medford, Woburn, Lexington, Arlington, Melrose, Stoneham, and Reading.  We also offer a complimentary referral service, called "Anywhere Agents," to assist folks who are looking to buy or sell outside our coverage area, including international locations. We will interview prospective agents in the area(s) you or a family member are considering to assure you get the most knowledgeable Real Estate Professional to assist in your home buying/selling needs.