According to a U.S. News & World Report in March of this year, about half of homebuyers say affordability is their main concern when looking for a home in today’s market. The next biggest concern for most homebuyers is availability. The housing market it still strong, and even with these concerns, most Americans on the house hunt say they’re optimistic and hopeful that they’ll purchase a home sometime this year or refinance their current mortgage.
Common Mortgage Loans
Conventional 30-year fixed rates are typically the most common loans, coming in around 34% of homebuyers. Right behind those are conventional 15-year fixed rates at about 30% of loans. The third most common type of loan is a conventional adjustable-rate, followed by government-backed mortgages such as FHA. The 30-year conventional loan is generally most popular because it offers a low monthly payment. At InterWest Mortgage, we have access to all loan types and can help homeowners find out what works for their needs.
Tips for this Market
If you’re shopping for a home in this wild market today, there are some things to you can do to make it a little more manageable and less stressful. You’ll want to be very realistic about your target budget and location needs. Your real estate agent can, and should, help you with this, but you can also check home sales around the neighborhoods you’re interested in to see what the average selling prices are. Trends can vary by cities, but they can also vary greatly just by neighborhoods, too. Another tactic homebuyers are using today is increased earnest money and/or an increased down payment. You can lower your monthly mortgage payment greatly with a large down payment, and it can help you to get the home you’re looking for without a stressful monthly payment. If you don’t have a down payment, be patient and start saving—you’ll get there, but there are also loan options without down payments, so don’t get discouraged. Earnest money has increased as well to help buyers lock down contracts in this competitive market.
Another great way to get ahead in this market is to build up your credit score. Pay attention to your credit utilization ratio, which is the amount of credit you have used compared to the amount of credit available to you. It’s a big deal because it makes up 30% of your FICO score. Pay down debts, or eliminate what you can, before applying for a mortgage.
You should also check into what resources are available for first-time homebuyers. There are actually a lot of benefits that you can take advantage of when you know what to look for. From down payment assistance to tax benefits, there are ways you can save money. Navigating today’s market can be tricky and overwhelming, but with the right team, it doesn’t have to be. InterWesst Mortgage is always up to speed on current information, and we know how to provide the best service no matter the situation in the housing market.
