Are you wondering when the best time is to purchase a house this year? Whether you’re a first-time homebuyer or not, we can help you navigate through the uncertainties of purchasing a home in 2021.
As we saw in 2020, the mortgage rates were historically low. Because these rates continue to stay, more and more buyers are continuing to purchase new homes in 2021. This has caused housing inventory to be at a record low, which has made it difficult for homebuyers to find an available home.
However, springtime is right around the corner, which is the most active time for the housing market. As long as you stay ahead of the competition, you’ll have no trouble moving into the home of your dreams. To help, we’ve gathered a few easy steps that you can take to stay ahead of the game and get into a brand new home.
First, check your credit score to see if it is 580 or higher. If your credit score is 580 or higher, the down payment requirement could be a little as 3.5% on a FHA loan. This can help you move into your new home faster as there is no need to save up a larger down payment! Some ways to boost your credit score include paying down debts or settling any overdue accounts.
Next, make yourself a more desirable buyer by getting pre-approved for a mortgage. Getting a mortgage pre-approval letter shows the lender what you can afford to spend and what your monthly payment will look like. This letter shows that you will be able to close on a loan faster, which is very appealing to the seller.
Lastly, know how much you are willing to spend. Setting a budget and sticking to it can save you time and money. The general rule of thumb is to make sure your budget doesn’t exceed three times your annual income. This will help you account for how much you’re willing to spend for purchasing your new home as well as any additional costs that may occur.
Although the housing market and economy have a large impact on buying a home, it ultimately boils down to your financial circumstances. If you’re wondering about the local housing market, or if you’re ready to move forward with the home buying process, talk with one of our lenders today!