Buying a home can be one of the most exciting yet nerve-racking experiences in your life, no matter if you are a first-time or seasoned homebuyer. There are also an overwhelming amount of options to choose from. You could purchase an older home and remodel it, a fairly new home that has just about everything you were wanting, or you could take it to the next level and custom build your home with the builder of your choice. Finding the right real estate team and mortgage lender can make this entire process easier, so be mindful when choosing your real estate agent and mortgage provider. If you are personally ready and financially prepared to purchase a home, check out these three reasons why right now is the perfect time to do so.
1. Historic Rates
Mortgage rates are near historic lows right now, making people itch to buy a new home. Lower interest rates create more opportunities for homebuyers. Their buying power is increased allowing them to be able to get pre-approved for more expensive homes that they normally wouldn’t be able to. One of the keys to getting pre-approved is having a monthly payment that fits into your debt-to-income ratio. A more expensive house with a lower interest rate will fit in your debt-to-income ratio the same as it would with a less expensive house with a higher interest rate, allowing you to get more for your money.
2. Selling your Current Home
When you feel that you are ready to purchase your next home, the first step is to get your current home on the market if you have one. While that may also seem like a stressful task, now is the prime time to put your home up for sale. With interest rates being low, that puts sellers at an advantage. Demand is high and generally inventory is low when interests rates are low. People will find a home they love and have to put an offer in immediately if they don’t want to risk losing it. Another bonus to selling your home while interest rates are low is that people who wouldn’t be able to afford a more expensive home normally, they can now, which creates more opportunity for your home to sell.
3. Room for Negotiation
When interest rates are near historic lows, this creates a favorable environment for the homebuyer even in the mortgage world. Besides being able to get approved for a more expensive home, you also have some negotiation power with mortgage lenders because their market is just as competitive. With not being required to put 20% down and having 100% financing options available or as little as 3% due at closing on your new home, that often leaves closing costs as one of the biggest expenses due at closing. Don’t be afraid to shop around at different lenders and negotiate those extra fees such as the application, processing and origination fees.
Embrace this exciting time and let a Staten Island Real Estate team assist you. Wonica Real Estate has many helpful features on their website including a Home Value Report that will help give you a listing price for your current home. Most importantly, enjoy the journey to finding your next home!