5 Top Reasons To Buy A Home Now For First Time Home Buyers
This Article Is About The 5 Reasons To Buy A Home Now For First Time Home Buyers
Homeownership is something that was somewhat elusive over the last few years. This is due to the crash and slow recovery of the economy. It is still one of the most traumatic experiences for a person to buy a home. In particular, buying a home with bad credit can be difficult if the homebuyer does not go to the right lender with little to no lender overlays. With mortgage rates being at the lowers level since the 2008 real estate housing bubble, homes are still in major demand. There is more demand for homes than inventory nationwide. Due to the shortage of homes, buying a home at a higher than the list price has been a common practice in 2021.
Due to rising home prices, both HUD and FHFA have been increasing FHA and Conforming loan limits for the past several years. Every year for the past five years, government agencies and Fannie Mae and Freddie Mac have been consistently increasing loan limits on government and conventional loans. HUD increased FHA Loan Limits to $356,362 for 2021. Federal Housing Finance Agency (FHFA) has increased conventional loan limits to $548,250 for 2021. The Veterans Administration now has eliminated the maximum loan limit on VA loans.
- Psychologically, many have never seen the amount of money it takes to buy a home in real life.
- Many probably never will.
- So when the reality of how much money is being loaned to the borrower settles in, the anxiety and worry begin to take their place in their minds.
Although this is generally true for most, it is still a wiser decision to buy a home now rather than wait until a better time in the future.
Real Estate Markets
The Real Estate market ebbs and flows in cycles. Right now, we’re still near the bottom of one of those cycles where it is a good time to buy a home and get financing to do so.
The Following Is A Shortlist Of 5 Top Reasons To Buy A Home Now
Interest rates are still low. Interest actually has been low for a while. While the FED keeps interest rates down, the rates overall for borrowing money will remain low. This makes it easier to carry the cost of borrowing money from a bank versus renting.
Rents are higher:
Rents are still going up. This is that part f the cycle where if you’re having to rent a condo for $1500-$2500 a month, it’s probably a good time to consider buying a home where you may be able to get a house payment in the $800-$1200 range. Think about this too. Interest is still a tax-deductible expense, and you have the ability to utilize a portion of your home if you choose to do anything home-based. It’s just a better situation to be in as an owner rather than a renter.
Housing Inventory Versus Demand
There’s Inventory finally. Just in the past few months, the major housing shortage got relieved. It is still a seller’s market. But most homebuyers are not buying homes at ridiculous markups over the listed price. Inventory around the country has gone up in number. Sometimes it’s because the banks and hedge funds have released portions of their portfolio holdings. It is also because builders have begun building again. So it’s a balancing act by builders and financial planners. In the end, you win.
Better home prices and better opportunities to find the home you want or a fixer-upper that you can turn into your dream home. In case you haven’t watched those two brothers that help people find homes, they are good at it and are good at managing budgets to turn “meh” into, “WHOA, THAT’S AWESOME!”
Escalating Housing Prices
Home Prices are going up. I know above it states that home prices are still low, but they are going up. This is about the bottom of the curve for home prices. This is not a time to wonder, it’s a time to decide. Find that home and get an offer on it.
Building personal equity:
- I couldn’t agree with this one more
- A lot of times when you are being considered for other purchases creditors want to know what you have as an asset
- Having a home in your name definitely helps
- If you have to show what your worth is on paper, it is good to have a house on it
As you build up your own portfolio of properties, both owner-occupied and investment properties, you build your worth in the eyes of creditors and of course, begin to build a legacy for your family to carry on.
Quick Tips On 5 Top Reasons To Buy A Home
If you are going to consider buying a home, find a licensed professional that you can trust. Someone that will help you find the right place. Then, find the right Lender. If you wish to find out how much you qualify for, you can click on this APPLY NOW and it will take you to a form you can fill out and someone will be in touch with you within 24-48 hours.
Find that home, and get to living!
Author Of 5 Top Reasons To Buy A Home
This article on 5 Top Reasons To Buy A Home was written by GCA Mortgage Group. Alex is a contributing writer and National Sales Manager for Gustan Cho Associates. Alex Carlucci is a 15 plus year mortgage industry veteran and specializes in originating, underwriting, and funding the government and conforming loans with no investor overlays. Alex is an expert in FHA Loans, VA Loans, USDA Loans, Conventional Loans, and Jumbo Mortgages. Alex Carlucci and his team of licensed mortgage loan originators can help renters become homeowners. All home buyers need a 3.5% down payment FHA mortgage loan is a 580 credit score. Homebuyers who have had prior credit issues, have high debt to income ratios, or were told they do not qualify for a residential mortgage loan by other lenders due to their overlays, contact us at Gustan Cho Associates at 262-716-8151 or text for a faster response. Or email us at GCA Mortgage Group at [email protected]