In the market today, both new and old homeowners face many challenges.
Home buyers need to overcome a low housing inventory. This causes more competition against other home buyers and higher prices for the homes that are for sale.
However, since January of this year, there has been a steady increase in mortgage rates. They may increase with more months to come. There are also chances that the poisoning of the Federal Reserve will lead to it raising its benchmark fund rates to come March, and this will affect the rising of the mortgage rates as well.
But this should not scare you in case you are looking forward to getting a new home because, in this guide, we have your back. We will discuss some of the best tips that can benefit you in navigating the complexities of real estate and the housing market and even find your way to winning your way to the top of this competition.
The National Association of Home Builders’ assistant vice president in the forecasting and analysis field, Michael Neal, said that in the current housing and mortgage industry, it would require a lot of patience for a homebuyer to get a good month. It even takes one, several months or over three, to find a good home with a good deal.
The scarcity of houses and homes that are below $200,000 on the market today makes Neal’s saying true because an entry-level homebuyer will experience a lot of straining in regards to such deals.
Neal has also explained why homebuyers today should tie their shoelaces and be ready to lose a few bids that they put in this mortgage industry journey. Finding a home at the market entry level is already tiresome and challenging for anyone. There has been a continuous decline in home sales and thus puts any new-entry level buyer in a position of looking for a backup plan that he or she will land on, in case of failure of the original plan.
Locking in your mortgage rates is the best way to deal with lack of supply and rising rates. A borrower who is prequalified for a loan and secures the rate has the allowance of locking in today’s current rate. The duration can be up to 120 days for some of the closed rates.
This is of great benefit to people that are looking forward to a multiple offers submission and are avoiding to encounter a hike in mortgage rates while they are in the process. Make sure that before you lock a rate, you are aware of the approximated fee. You will be lucky to have it secured with no charge depending on the length of the lock and the lender.
It is essential to work hand in hand with a real estate agent that fully understands the local market you are interested in. Not all markets have the same requirements. It is vital to have one that will be of aid to you in navigating a specific area or location.
Are you in the market to buy a home in Orange County? Click here to contact the Ryan Grant Team today!