Real estate experts agree that now is the best time to purchase a home. There are various reasons why this is so.
Firstly, interest rates are at an all-time low ranging from 4.6 to 5 percent for fixed-rate mortgages of up to 30 years. In fact, the rate for a 15-year mortgage can go as low as four percent.
The second reason why you should buy a home now is the steady supply of homes on the market. Keep in mind that when supplies are high, prices normally go down.
But in order to succeed in getting the best residential real estate deal, there are some things you need to take into account. Following these steps will ensure that you don’t default on your mortgage and you keep your home for a long time.
Always ensure you have a steady income. You have to have sufficient funds to be able to support your mortgage moving forward. The basic loan types you can get today are the 15-year and 30-year fixed-rate mortgages. Also when you’re purchasing a home, you need to provide a down payment so that’s why a regular monthly income will be most helpful to you.
Another thing you have to make sure is a good FICO score. If possible, you need to maintain a 700 or higher score. When you have a 760 FICO score, you already have a good chance of availing of the best interest rates. This rating is a major consideration of most lenders today in addition to a stable financial condition, a savings account in the bank and even an approved loan application from a competing financial institution. It would also help if the neighborhood you’ve chosen is a stable one and the appraised rates of the homes there are within or above the contracted price. With these aspects in good standing, you will surely get the attention of lenders.
In searching for the right home, look in new places and if possible with lots of foreclosures in the surrounding area. While you’re free to choose foreclosures if you wish, you will need the services of a good real estate agent and one who is HUD-certified to get the best deal.
The better option is to find a residential property owned by a person with a high equity. The house should be in an area where foreclosures abound so that the seller will be encouraged to lower his home price. Compared to getting a foreclosure, this property will be in better condition that won’t require much renovation and maintenance.
For those with extra funds, it is also a good idea to buy a second property at this time. Think of it as an investment property which can give you an extra income in the future. What you can do with this house is rent it out so you gain a regular monthly income or you can renovate it a bit and resell it at a higher price than what you originally paid for it.
If you desire to give your family a home where you can all live comfortably and you are confident of staying long in your current job, then consider buying a house at this time.