In 2020, 30-year mortgage interest rates plummeted to momentous lows. The highest interest rates ever recorded was in October 1981 where mortgage interest rates skyrocketed to 18.45 percent. When it comes to purchasing a new house, the process can be complex. There are so many factors to consider including house price, extra fees, job stability, neighborhood safety, and much more. In 2021, finding the perfect “home” requires knowledge of lender qualifications, waging war against other buyers, and socially distancing from others. In this blog, here are some things to expect when buying a house in 2021.
Competitive Housing Market
The search for an ideal home at an affordable price is overwhelming and exciting at the same time. And when a sensibly valued house in good quality is found there will be many other people making an offer. According to Christopher Arienti, broker and owner of Re/Max
Executive Realty in Franklin, Massachusetts, he states, “It is a seller’s market in just about every part of the country.” The solution to coming out on top of a seller’s market is to be flexible and make some concessions. Also, it would be best to offer contingent on the sale of a current home.
However, there are risks of any concessions and don’t make an offer that is unreasonably unaffordable. Speaking to a professional real estate agent can help make a solid offer.
Home Prices Rising
According to an average of the latest forecasts from Fannie Mae, Freddie Mac, the National Association of Realtors, and the Mortgage Bankers Association, they saw the costs of existing homes are increasing 5.9% in 2021. In 2020, the housing market saw an increase of 10% in house costs. The price of houses depends on the time of year, however, it does not change the price significantly.
Mortgage Rates Still Low
30-year fixed mortgage rates have only increased by about 1% from 2020 to 2021 according to the economists at the National Association of Realtors and Mortgage Bankers Association. The low rates can help future homeowners who have good credit get an excellent mortgage rate. However, this all depends on financial circumstances, mortgage lenders, and finding the best deal.
Buying a House Digitally
Digital tools are helping people keep safe during the COVID-19 pandemic while looking for a new home. E-closings, small open houses, virtual home tours, and webcam meetings are helping real estate transactions to be simple and safe. Each state, county, and city have different laws and regulations concerning social distancing and the reduction of the COVID-19 virus so it would be important to find out the rules.
Shopping for a Lender
A rookie mistake that homebuyers make is looking for a house rather than a lender. Finding the right lender can help get finances in order, check credit score, and get a terrific financial loan. Lenders will need details about income, debt, employment, and financial accounts to get pre-approved. Getting a pre-approved loan shows real estate agents and sellers that the buyer is determined to purchase a home.
Buying a home in 2021 does not have to be difficult especially when you have understood these few tips given. However, it is still not easy to purchase a house without having somebody to help you with a mortgage loan. At American Mortgage Resource, Inc., we can help you with getting the best mortgage loan. We provide various services including jumbo loans, reverse mortgages, home equity loans, and much more. Set an appointment with us by visiting our website today!