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According to the April economic forecast from Freddie Mac, now may be a good time to purchase real estate because of where rates are headed.

Specifically, the report states that 5/1 adjustable-rate mortgages and 30-year fixed rate mortgage estimates were decreased from the previous month’s forecast. Here is more from the report:

“The economists expect the fixed rate average for the year to be 4.3 percent and 4.5 percent in 2019 and 2020 respectively, lowered from 4.5 and 4.8 percent in their March forecast.  They predict the 5/1 ARM will remain at 3.8% for the remainder of this year, the same as last year and down from their earlier forecast of 4.0 percent.”

This may be ideal news for prospective buyers in the Roseville area who have been waiting for an ideal time in the market to make the move toward homeownership.

For first-time homebuyers in Roseville, it is important to understand the home loan process before they jump into looking at home listings. That is because it may be ideal to get approved for a loan before trying to put in an offer on a home. Element Mortgage focuses on educating buyers so they can make wise decisions about their financial futures.

To help, we outline the loan process below.

Step 1 – Obtain a Pre-Approval

By contacting a loan officer and getting pre-approved, you will know how much home you can afford and your offer may stand out to a seller.

Step 2 – Apply for a Loan

You will submit financial documentation such as proof of employment, tax statements, employment history, etc., so the lender can give sign off on your loan.

Step 3 – Pick a Loan Program

There are a variety of loan programs out there, from FHA, VA Loan, Conventional, etc., and there may be one that fits your particular financial situation better than others. Your loan officer can help you determine this.

Step 4 – Underwriting and Processing

The loan will then go through this phase where an underwriter examines all documentation closely in order to get final approval.

Step 5 – Loan is Approved

After all the closing conditions have been met, a clear to close is delivered from the underwriter and the loan is approved.

Step 6 – Loan is Closed

All documents are delivered to a title company where the signing of the documents will take place. Following this, everything is recorded and the loan process is over!

If you have any questions about getting a home loan for Roseville real estate, don’t hesitate to contact us!

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