It's time for you to buy a house now. The time has never been better. Smart buyers are taking advantage of 2020 and what the coronavirus has done to the market. If you are in a position to purchase a home, now is definitely the time to do so. There has NEVER been a time before where rates where this loan. It's simple actually. Buying a house right now is actually cheaper than it's ever been.
That's very important because if you buy a house now, you'll be getting much cheaper payments than you would have if you purchased this exact same time last year. While that may not seem like a motivation, you should consider a number of factors that can go into this. Lower rates mean lower payments. Lower payments mean you may be able to afford a little more expensive house than you could have before. For those that are limited in income, you may actually be able to qualify for the home because rates are now lower. Believe it or not, I've had a client not qualify for a home over 8 dollars in payment. I literally had to restructure his mortgage to make it 8 dollars cheaper so he could afford a home.
While 8 bucks may not seem like a lot of money; when it comes to qualifying for a mortgage, you must be within a certain ratio. If you go over that ratio by 8 bucks, then the underwriter will say you do not qualify. There are no grey areas.
Buy A House Now, Save Money for everything else
I'm no economist or anything like that, but I can keep it really simple for you. The less money you are spending on your mortgage payment, the more money you'll have to keep in your pocket to do other things with. That means more money for insurance, eating out or if you're smart, simply for investing or saving. Why would you not want to purchase your home when it's the cheapest time to purchase one. At the time of this blog post rates are currently in the 2's. Yes, you read that correctly. You can get a mortgage rate in the 2's for a 30 year fixed. Want to be smart? Let's look at a 15 year note in the 1's and let's watch how much money you'll save.
Waiting to see what rates do to buy a house
If I had 1 million dollars for each time someone gave an excuse for the reason they were waiting to buy a house I'd be the richest person in the world. The best one is I want to see if rates are going to go lower. How much lower do you need them to go before you decide to purchase your home? Rates were extremely low back in 2012. It's 2021 and this has happened again. That was 9 years ago and they finally dropped to insane levels. Another thing people like to tell themselves is they want to see what the administration is going to do. What does that have to do with you taking advantage of what this market has provided to you. Take advantage now! The cost of waiting can literally cost you hundreds of thousands of dollars. Let's take a quick look at the image below. If rates were to go up to the levels of what they were before the pandemic, this particular home could cost you another $266 dollars per month. Talk about a stimulus package. Here is one you can give yourself! Why would you talk yourself out of buying a home. It's only math and the numbers don't lie.
Buy a house now and save even more money!
Smart buyers will use the Hybrid Agent Program to purchase their home. By using the Hybrid Agent program you can save even more money buying a home. This is possible because the lender is a Real Estate Agent as well as Licensed Realtor. When this is utilized you're able to get up to half the real estate commission to go towards your closing costs. In the above example, the typical real estate commission is 3%. That could mean a rebate of up to $6,000 dollars going towards your closing costs. You can use that money in a number of different ways. If you were to buy the rate down, your payment would be even lower saving you even more money. You could also be in a position to where you just don't have all the money you need to bring to closing. That additional money could definitely help closing that gap. You can also buy out the PMI. In the scenario above, that would save you an additional 107 dollars a month.
Think about that... Your savings are now $373 dollars a month over the life of the loan. Are you seriously considering waiting to buy a house at this point if you can get your house for 373 bucks less per month? Ladies and Gentlemen. That's a car payment or a way out of debt. That could take care of your credit cards if you have any.