Timing can be huge in real estate. If you are home buyer who has been holding out for the best time to buy a house, there are a number of reasons this could be one of the best times to make the big purchase.
Banks have eased their standards for leasing on a number of mortgages making it easier for prospective home buyers to get approved. Also, organizations like the FHA have been loosening their standards to encourage lenders and home buyers to use their mortgage program.
By easing some standards, it becomes easier for applications to get accepted even if their history or credit score isn’t perfect.
The number mortgages are getting approved has also been increasing. According to the New York Federal Reserve, less than six percent of mortgage applications were turned down this spring. Just a year ago, that number was 24.5 percent. As a result of fewer mortgage applications being turned down, more mortgages get approved.
Another reason this is an ideal time to purchase a home is because mortgage rates continue to stay near record low levels.
Buying a home sooner than later could prove to be a good move. Home prices are steadily increasing after they bottomed out during the Great Recession. As the housing market continues to improve, homes will begin to get more expensive. While low mortgage rates can cancel out rising prices, homes will eventually become much more difficult to afford.
Click to see current mortgage rates.
Strong Housing Market is Good For Home Buyers
The housing market has been one of the strongest sectors of the economy in 2016. While other industries have faltered at times, the housing market has continually grown despite low mortgage rates. There is a high demand for homes, and lenders are eager to create mortgages to meet the demand.
Because lenders want more business, they are making mortgages easier to get for home buyers. This, coupled with low rates, makes home buying much easier than it was just a few years ago.
Perhaps the most difficult part of buying a home today is finding a home that fits your personal needs. There is a general shortage of homes across the nation, and depending on what area of the country you live in it could be difficult to find a home.
For those in areas with tight housing supply, getting pre-qualified for a mortgage is a great first step to finding the right home. By getting pre-qualified, home buyers can get an idea of how much a lender would be willing to give them in a mortgage.
Pre-qualification is also the first major step in the home buying process. If homes are being sold at a quick pace in your area, getting pre-qualified will better prepare you to make an offer on a home when it becomes available.
Click to being the pre-qualification process.
Check Your Finances Before Buying A Home
Buying a home is a big move, especially if you are a first time home buyer. There are a lot of costs associated with home buying that many don’t consider.
One such expense is the downpayment. Depending on what type of mortgage you get, you could have to make a sizeable downpayment on your home.
There are ways to avoid paying a large downpayment. For some home buyers, and FHA mortgage could be the solution. FHA mortagages require a downpayment of as low as 3.5 percent and required credit scores can be as low as 580.
Another mortgage available to some home buyers is the USDA mortgage. USDA mortgages allow the home buyer to put zero down on their home. However, those applying for a USDA mortgage need to purchase a home in an area designated as “rural” by the USDA. These areas often include suburban neighborhoods.
If your finances are in order, buying a home could be easily achievable. There are affordable homes on the market, and low rates combined with the right mortgage can make your dream home a reality.
Check your mortgage eligibility here.
Low Rates Fuel The Market
While there are a number of reasons that purchasing a home today is a good decision, the biggest reason is low mortgage rates. Rates have been at or near their lowest levels in the past three years. Also, rates haven’t shown any signs of rising anytime soon.
Low mortgage rates make homes more easily affordable, and mortgage rates likely won’t get much lower than they have been lately.