7 Reasons to Buy a Home Now
The coronavirus pandemic has forced many of us to take a break from our typical lives and get used to a new system of working from home, educating children at home, and developing creative ways to entertain ourselves and our family without leaving home, and much more. If you considered buying a home before COVID-19, you might delay the home search process—thinking this might not be a good time to buy the property. However, if you hesitate for a long time, these factors below may affect your decision.
1. Low mortgage interest rate
Lower interest rates mean lower monthly home loan payments, and the administration has been slashing rates to support market buyers. Mortgage rates hit a low point for the first time in March, continued to decline, and currently reached historic lows. As mortgage rates may fluctuate and rise, buyers should now seriously consider fixing interest rates. The rate lock can guarantee your interest rate for a certain period, thereby protecting you from rising interest rates.
2. More house-buying power
Comprehending your home buying power—how many houses you can afford—is the most crucial step in the home purchase process. With a plummeting mortgage rate and increasing wages, there is good news for various potential buyers: they are paying less for their apartments than they previously thought. You can use the mortgage calculator to measure the purchasing power of your home and estimate your monthly mortgage settlements.
3. Increasing incentives to purchase
In addition to low-interest rates and increased buying power, there are multiple ways to save money on new houses as many buildings and estate buyers provide appealing incentives to homeowners.
Many communities across the country offer summer discounts and special commissions on new houses for a limited time. Homeowners can save tens and thousands of dollars through these promotions. Some firms also launched the hometown hero plan, which offers hero discounts to everyday heroes in our society, such as teachers and healthcare professionals.
4. Lowest Housing Prices in Years
No one knows when the property market will hit bottom, but prices are at their lowest level in a few years and may rise again. Therefore, buying a home now or in the future may be the right time to become a homeowner. In addition, apartments are currently available at the lowest prices due to foreclosures and falling prices.
5. Low Down Payment Mortgages Available
Low down payments financing by the Federal Housing Administration guaranteed that a mortgage is available as an additional incentive to buy a home. The minimum deposit requirements are also different and will increase as the market grows, thus encouraging potential buyers with less cash to complete the transaction immediately.
6. Easy to Qualify, Easy to Borrow
Credit standards have recently become less stringent, making it easier to obtain mortgages. Experts recommended that potential buyers become pre-approved for mortgage loans from financing institutions. It means that the lender’s guarantee of loans depends on the property’s appraisal value. But the good news is that pre-approval is required because lenders are now ready to allow prospective customers to borrow more funds than the previous formula presents: a percentage of monthly income.
7. Motivated Home Owners Willing to Sell
Despondent sellers of existing homes also provide enchanting incentives to promised buyers, including warranties for appliances, air conditioners, and ranges. More so, some suppliers even offer cash or furnishings, refrigerators, washing machines, and dryers as rewards. With numerous existing homes in repossession or flooded– bargain costs abound in this bleak market.
The Bottom Line
With the convergence of the above factors, each item is beneficial to potential buyers and may be more suitable to purchase a home than now. It is a buyer’s market, so these bargain deals won’t last like everything in life.