Buying real estate property is one of the most important transactions an individual will make in their lifetime. Whether you are buying for the first time or have owned homes before, the whole buying process can create a lot of emotions and feelings – excitement and stress. The best way to get through the entire process without getting overwhelmed is to be well informed and be prepared.
Reasons to Buy a Home This Year
If you belong to the group of people who wants to own a home yet you are too hesitant to take the first step in owning one, then the reasons below will help you change your mind.
More available homes
Real estate has been a thriving business for decades. House hunting has been a tough competition that homebuyers undertake. There are times when you find the home of your choice but it is sold before you can contact your real estate agent. According to the latest Home Price Insights by CoreLogic, the prices of homes being sold in the market is increasing and will continue to increase over the next few years.
Low mortgage rates
As shown on Fannie Mae’s Housing Forecast, the 30-year fixed mortgage average rates for the second half of this year will go as low as 3.7% which is 0.7% lower compared to 4.4% average rate in the first half. Smart home buyers should take advantage of this mortgage rate drop and start searching for a home to purchase.
A home has always been a good investment. Generally, home prices and mortgage rates are the two major factors that could affect your decision in purchasing a home. An increase in wages plus a decrease in mortgage rates is the perfect equation for homebuyers to be able to afford to buy a home.
Home Buying FAQs
Generally, home buyers will have a lot of questions throughout this process. When purchasing a home or any kind of property, always ask especially if there is something that you don’t understand. Here are some FAQs before you start the home buying process:
- Should I talk to a bank first before anything else?
Yes – definitely. Talking to a mortgage lender or a bank will help you determine how much you can afford. For first-time buyers, some banks will offer programs for you. These programs can vary from state to state but it pays to talk to the bank first to know what offers are available.
- Do I need a realtor when purchasing a home?
Buying a home without a realtor is possible but it can make the whole process a lot more difficult and risky. It is strongly recommended that you get a realtor when planning to buy a home. A realtor will represent your best interest and make sure you get the best deal for your money.
- Who pays the realtor fees?
Homebuyers scratch the idea of getting a realtor because they are worried about the realtor fees. In most cases, the seller pays the realtor fees and not the buyer.
- How long does it take to buy a property?
The time needed to buy a property can vary from one transaction to another. Generally, it usually takes 4-8 weeks before closing and finalizing the process and receiving access to the house.
- When will I be able to move in?
When you have already purchased a home, you are extremely excited and want to move in instantly. You can move on a date confirmed and agreed with your seller during the selling process. This is typically upon completion of the settlement process but other arrangements can be made and agreed upon as well.
- What should my first step be when buying a home?
Before you start searching for your dream home, it is always smart to get pre-approved for a mortgage first. This way, you will have an idea of the price of the home that you can afford. Thus, it makes your home hunting faster and easier. Your real estate agent will be able to assist you in finding trustworthy lenders. Most of them have built a good relationship with lenders and might be able to help you get a mortgage with lower interest rates.
When buying a home and there is something you are unsure of, just simply ask! If you got more questions that need answers, ask us – we’ll get back to you with everything you need to know.