The idea of owning a home is enough to bring joy to nearly anyone’s eyes. It’s part of the “American Dream” and can offer you the perfect way to build wealth over time, especially when you consider the fact that the value of real estate increases as time progresses. By the time you’re ready to retire, you could have accumulated a handsome amount of equity in your home if you play your cards right.
The reality is that many people are a bit skeptical about looking for a home in the present climate. Buyers in Boise or Portland may be apprehensive about meandering throughout someone else’s home, while sellers may be worried about strangers potentially contaminating their homes. That said, more sellers have been increasingly willing to list their homes as restrictions continue to ease and the economy continues to open back up.
But while the pandemic can make it hard for people to go outside and explore, now is still a great time to apply for a home loan.
This is a great opportunity for people to fulfill their homeownership dreams. There are a few reasons why now is a great time to look for a home.
The Property Prices Are Low
First, property prices are low right now. There are a lot of people who are looking to move and not many people are looking to buy a home. This means that property prices are lower now than they have been in the recent past.
Certain real estate markets are cool right now, which is a good thing for buyers. For instance, real estate research firm Zillow characterizes Seattle and Denver as having cool housing markets right now, and the average home price in each center is not expected to go very far over the next few months.
There are a few reasons why this matters. First, those who had a home in mind might be able to buy one for a lower price. Second, with a cheaper purchase price, the taxes on the home are going to be lower. This could also mean that a potential homebuyer might be able to put down a lower down payment.
Interest Rate Are Low
In addition to property prices being low, interest rates are low as well. This is perhaps one of the biggest reasons why buying a home today is a great idea. Some people might only focus on the sticker price of a home; however, the interest rate on a potential home loan is even more important. Even a few points of interest could end up making a difference of hundreds of thousands of dollars over the life of a loan.
As of mid-August 2020, the mortgage interest rate for a 30-year fixed-rate mortgage is 2.96%. That’s extremely low. In fact, mortgage rates have hit all-time lows eight times so far this year. This makes it more affordable for buyers to take out a mortgage. With rates as low as they are, buyers can save tens of thousands of dollars – or more – in interest paid over the life of their loan.
Mortgage lenders are looking for people to take out home loans right now. This means that they might be willing to give someone a break on their interest rate, particularly if they have money to put down.
Create a Work-From-Home Space
After the pandemic hit, millions of people were forced to work from home in Idaho or Colorado in an effort to limit interaction between individuals and curb the spread of the virus. Anyone who has managed to keep their job and their regular income by working from home is very fortunate, and perhaps you fall under that category.
The way of the future is more remote working among Americans, and as such, work-at-home employees need a dedicated space in their homes to carry on their daily tasks for work.
But perhaps the home you’re in right now does not afford you with any extra space you might need. If so, buying a home right now could allow you to take advantage of a good deal on a home and super-low interest rates while providing you with more interior space to accommodate a home office.
Take Advantage of More Space in a Single-Family Home
If you currently live in a condo or in a home that limits outdoor space, perhaps you may have considered buying a larger home with more yard space to roam free. Many homeowners and renters have experienced the negative effects that cramped spaces have had as we’ve struggled to maintain physical distancing throughout the pandemic.
And as such, more and more buyers are looking to make a change and are setting their sights on single-family homes with more space outside to enjoy. If you fall under this category, perhaps now is a good time to make a move to give you the additional space you crave.
Now Is A Time To Buy
There aren’t a lot of times like the present when it comes to buying a house in Washington or Oregon. There are many people who have been looking to buy a home but might not have been able to afford one. The current climate makes it a great time to apply for a home loan.
Why not get pre-approved and become a more competitive applicant for a current house on the market?
Ready to Apply For a Mortgage in WA, OR, CO, or ID?
Do you have questions about home loans? Are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest. Contact us today with any questions you have about mortgages.