Four reasons why 2016 is a good time to buy a home

2016 is a good time to buy a home – Don’t wait!

With 2016 fast approaching, now is the time for renters to get off the sidelines, start organizing their finances and take on the excitement of homeownership.

But given the recent history of the housing market and Americans’ increasing need to stay mobile, it is understandable that it can be nerve-wracking to invest your hard-earned money in a home.

However, unlike years past, all key economic indicators are ripe and there are two major changes to the mortgage process that help make 2016 a good year to buy a home.

1. Rental rates continue to rise

With the on-going low supply and high demand of rental units, rental rates are continuing to rise. In the last 12 months, 88% of property managers have raised their rent prices. And there is no sign of that stopping given that 68% of property managers predict their rental rates will rise again in 2016.

2. Interest rates are historically low

Freddie Mac’s latest survey of lenders shows little change in the 30-year fixed-rate mortgages, which averaged at 3.89% for the month of September compared to 4.16% a year ago. Low interest rates make home buying more affordable.

 

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3. Clear mortgage terms

The recent TRID announcement has mandated clearer terms at the closing table. For first-time homebuyers, this is a huge benefit because it will ensure there are no surprises at the closing table. These clear terms will help homebuyers better understand both their financial commitment and what is expected of them.

4. Down payment protection will be available

Writing a check for a down payment on a home is often one of the largest investments someone will make. Down payment protection is a new option that can give modern homebuyers the flexibility they need to more confidently and securely buy a home. When homebuyers put less than 20% down at closing, this kind of coverage protects their down payment just like private mortgage insurance protects the bank.

Given that the average employee tenure in the U.S. is 4.6 years overall, and 3 years for millennials, it’s understandable that the modern home buyer may be nervous to commit to living in one location for an extended period of time.

However, the current state of the market and these major mortgage changes will help to ensure that when life happens, the home buyer won’t be completely out of luck when it comes to protecting their nest egg.  

Sun American Mortgage Company has some of the lowest rates in town. Give us a call today to see what you can qualify for. Over 31 years in the business, with seasoned staff that have been here for 15 years or greater! 

(480) 832-4343

Article provided by www.housingwire.com

6 Home Buying Tips for Hot Housing Markets

6 Home Buying Tips for Hot Housing Markets

The housing market is heating up! For buyers, this may lead to submitting multiple offers or a potential bidding war. If you or someone you know is in the market to buy a home, here are six ways to give your offer the best chance for seller acceptance, especially when the competition is stiff:

1. Get pre-approved for your loan and have a strong cover letter prepared for your seller.

2. When making offers to purchase a home, try to be first and don’t lowball. Being first to the negotiating table plants you in the seller’s mind. But when listings are scarce, lowball offers are a losing strategy.

3. Opt for an escalation clause that tells the seller you’ll beat any offer exceeding your bid by $1,000, up to a maximum amount of your choosing.

4. Perform inspections upfront. It may cost a few hundred dollars, but it shows you’re serious. And when you make an offer without contingencies, sellers pay attention.

5. Tell them you love it by asking your agent to deliver a letter listing the reasons why this house is perfect for your family (include pictures and be specific).

6. Don’t overpay. Instead, research the market by reviewing comparable property sales prices, schools and online reviews for local businesses. Chatting with neighbors can also provide a wealth of information.

Source: CNBC

There are other things that can be done to help increase your chances of getting the home you desire, but in the end, sticking to these simple 6, will prove valuable as you go to make that offer. Don’t hesitate to reach out to one of our seasoned loan officers to see exactly what your buying power is at. Get pre-qualified today in 4 easy steps with our mortgage online application. 

Good luck in finding that home you’ve always wanted. We hope we’ll be right there with you when it happens.