The spring brings new homes and more buyers to the market, meaning more competition with the home inventory being real-tight all over the country. A desirable home can be sold within hours which means that you’ll be ready to pounce fast.
Here are the 7 best home-buying tips for the Spring Market:
According to CoreLogic’s latest U.S. Home Price Insights report, home prices have appreciated by 4.4% over the last 12 months. The same report predicts that the prices will continue to increase at a rate of 4.6% over the next year. Because prices will continue to rise, there is no sense in waiting to buy a home.
Getting pre-approved is a really smart idea as it shows sellers that you’re serious about buying a home and aren’t just window shopping. A buyer with a pre-approval letter has already been vetted, so the deal is more likely to go through. A pre-approval is not the same thing as a pre-qualification, which doesn’t verify any of your finances. Don’t bother with a pre-qualification if you’re ready to buy now.
As per Freddie Mac’s Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage came in at 4.41% last week. Experts predict that the rates will rise over the next 12 months. The National Association of Realtors, Freddie Mac, Fannie Mae, and the Mortgage Bankers Association are in unison that the projecting rates may increase by this time next year.
Increased rates could have an impact on your monthly mortgage payment For example, if you wait and purchase a home in a year, essentially you would have a higher mortgage payment than if you bought today.
The best homes can go really quickly during the spring market. If your agent notifies you that a new home is on the market then it’s best to jump on it right away, or else, you just may be out of luck.
Additionally, be quick to get the paperwork needed for your loan as a delay of a day or two can put you much further down the underwriting line, especially during the busy spring season.
The ‘cost’ of a home is ascertained by two major components: the cost of the home and the current mortgage rate. It appears that both are on the rise. But what if they were not? Would you still wait?
Assess the actual reason why you are buying the home and decide whether it is worth waiting for. Whether you want greater safety for your family or want to have a great place for your children to grow up, or just want to have control over renovations, now could be the time to buy.
One of the toughest parts about buying a home can be coming up with the down payment. If your down payment is coming from a relative, retirement account, work bonus or anything instead of the good old savings account, let us know as soon as possible as we don’t want it to hold up things.
Ensure that you don’t make any work or financial changes while searching for a new home. New cars, jobs, credit cards or anything new can really delay the process and force us to re-disclose or explain things to the underwriter who will provide the final stamp of approval on your loan. It is quite significant to keep everything as it is- all the way through the process.
If the right thing for you and your family is to purchase a home during the spring market, then buying sooner instead of later may lead to substantial savings.
PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Florida Office of Financial Regulation MLD646. Opinions expressed are solely my own and do not express the views of my employer.