The Federal Savings Bank comments and informs readers about housing affordability and what they can do to purchase a property.

Chicago, IL (PRWEB) April 04, 2014

The Federal Savings Bank notes that first-time home buyers can look forward to favorable home prices this spring, as affordability is improving across the nation.

Home price appreciation has been one of the key concerns for new buyers. Many lack the credit history to compete with trade-up buyers, and institutional investors have presented fierce competition with their all-cash purchases. In conjunction with waning inventory that has helped appreciation along, these factors have at times priced first-time home buyers out of the market.

However, low cost mortgage options have been helpful in keeping new buyers afloat, not to mention that most markets across the U.S. are affordable

In the fourth quarter of 2013, American homeowners spent about 15 percent of their monthly income on their mortgage payments, a noticeable decline from 22 percent between 1985 and 2000. During the recession through 2012, the figure dropped to 13 percent. As the economy continues to improve and employment returns to healthy levels, homeowners are able to allocate some of their earnings to their home loan payments while having more left over for other expenses.

Affordability varies across the nation
While home prices are generally favorable, some areas, such as Los Angeles and San Francisco, are struggling in terms of affordability. Whether first-time home buyers are searching in one of these pricier markets or shooting for a more cost-effective location, finding a low rate mortgage can help with avoiding sticker shock when buying a home.

Here are a couple steps that help with getting a favorable rate:
Improve credit. shows that the average interest for a 30-year fixed-rate mortgage was 4.48 percent at the close of April 4th. Buyers can increase their chances of receiving a rate below this average by improving their credit rating. Higher credit scores and credit history with fewer blemishes tell lenders that a borrower is trustworthy and likely to pay their loan on time. It is important to pay down balances on existing cards, avoid opening new lines of credit and check the credit report for errors that may negatively affect the score. To learn more about improving your credit

Get preapproved. Having a preapproval letter from a lender allows buyers to shop the housing market with a better idea of their actual spending potential. Even in affordable markets, it is important to know how much a lender will finance, as a solid figure makes it easier to narrow home choices and provides a tangible guarantee of funds should a bidding war arise.

Contact the Federal Savings Bank, a veteran owned bank, to learn about first-time home buyer loans that can help with affording a home, even in the priciest of markets.

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