Interest rates are very low right now so many people are considering buying a home instead of renting. Buying a home can be a great investment, if you buy at the right time and at the right price. But sometimes, when the inventory is low it can increase the average home prices up which means you’re paying more for less house. Having an experienced realtor, who understands your local market, can help steer you in the right direction.
Industry experts believe that interest rates in 2021 will remain low, however there has been little inventory available in many parts of the country as people are delaying selling their homes because of the COVID-19 pandemic.
I have compiled a list of useful information for home buyers in the upcoming year.
Rule #1: Get your finances in order before you look. Check your credit score, dispute any mistakes and pay off your debt before getting pre-approved. Make sure you have all your employment information and financial records before you contact a lender.
Rule #2: Make sure you have at least 20 percent down so you can avoid additional fees like private mortgage insurance (PMI). Some mortgages have different requirements but the more money down, the better the mortgage rate.
Rule #3: Shop around. Not every lender is a good fit. There are many programs available to first time homebuyers and Veterans. Your lender and your real estate professional should be able to guide you.
Rule #4: Homes are typically more affordable in months like January and February because no one wants to move when the weather isn’t always cooperative. Waiting for months like June and July isn’t ideal either because the market gets quite competitive. The weather is more ideal, and families want to move before school starts.
Rule #5: Be flexible. Making an offer that is contingent on the sale of your home makes your offer weaker than someone who wants to move in right away. However, you don’t want to buy a home you can’t afford while waiting for your home to sell.
If you have questions about buying or selling a home in New Jersey or Pennsylvania give us a call. We can help you find the home of your dreams.
