It's A Great Time To Buy!
Interest rates are rising.
Interest rates are not at the near-historic lows like a few years ago but they are still attractive. But that’s changing with mortgage rates scheduled to continue to raise throughout the year.
The market is competitive.
Competition is getting fierce in markets all across the country, with many homes being sold immediately and above asking price. Homes are getting more expensive. Since 2012 Home prices have rose steadily every month. When you combine rising interest rates and rising home prices, you’re looking at paying a great deal more a year from now than you would today.
Less available inventory.
Low inventory is a major factor in rising home costs. With rising interest, people are less likely to put their homes on the market -- choosing to hang on to the lower rates they current pay.
Before you start searching for your new home there a few financial matters you should consider to ensure a better home buying experience. Here are five tips to get you started.
- Start saving for a down payment early.
It’s common to put 20% down, but many first-time homebuyer programs allow as little as 3%. Putting down less than 20% may mean higher costs and paying for private mortgage insurance. Some tips for saving for a down payment include setting aside tax refunds, work bonuses and setting up automatic savings plan.
- Determine how much you can afford.
Before you start looking for your dream home, you need to know what's actually within your price range. Use a home affordability calculator to determine how much you can comfortably afford to spend on your new property.
- Check your credit.
When you're taking out your mortgage loan, your credit will be one of the key factors in whether you're approved, and it will determine your interest rate and possibly the loan terms. So check your credit before you begin the home buying process. Dispute any errors and look for opportunities to improve your credit.
- Research mortgage options.
Is a 30-year fixed rate mortgage a given, or is another loan type right for you? If you can afford larger monthly payments, you get a lower interest rate with a 20-year or 15-year fixed loan. Or you may prefer an adjustable-rate mortgage, which guarantees a low interest rate for the first few years of your mortgage.
- Get a pre-approval letter.
You can get pre-qualified, which simply gives you and estimate of how much a lender may be willing to lend based on your income and debts. But as you get closer to buying a home, it’s smart to get pre-approval where the lender thoroughly examines your finances and confirms in writing how much its willing to lend you and what terms.
If you want a lower interest rate and a lower price for your new home, it’s time to get moving.
Fill the form below so we can reach out to you and discuss your needs and see how we can help you realize your dream of homeownership.