Ways Homebuyers Can Get Ahead in Today’s Market
Temporary Mortgage Buydown
Some select lenders have launched a new product, adding confidence to today’s challenging and uncertain market. The 2/1 mortgage temporary buydown gives your Buyers and homeowners access to potentially thousands of dollars in savings and a lower mortgage interest rate!
The way it works is as follows:
2-1 Temporary Buydown
- 2% lower interest rate in the first year
- 1% lower interest rate in the second year
1-0 Temporary Buydown
- 1% lower interest rate in the first year
The 2/1 temporary mortgage buydown is for purchase loans, covering Fannie Mae, Freddie Mac, FHA and VA fixed-rate mortgages. It is funded by an escrow account carrying a credit balance, which can be contributed to by the seller or even a realtor. The 2/1 temporary buydown is a great product option to help provide buyer’s relief and afford the house of their choice.
Remember and Follow the Formula For Success
In today’s rapidly moving and challenging market, accomplishing the goal of homeownership is tougher today than it was just a few months ago. The formula for success is Preparation + Opportunity = Success. Therefore, one must be ready to seize the opportunity when it presents itself, if they are to be successful in today’s market. It is important to ensure that you have all your ducks lined up in a row, all your I’s dotted, T’s crossed now, before you begin your house search. Things you want to address prior to enter the housing market as a buyer:
Affordability: How much house can you afford and what is your maximum monthly mortgage budget?
Raising Interest Rates: Interest rates are fluid these days. Make sure to keep an eye on them daily. Interest rates can diminish a Buyer’s purchasing power.
Pre-Approval: A solid pre approval letter carries a lot of weight in the real estate industry to all parties involved. Be sure to get pre approved by a reputable and reliable lender.
Be Ready To Act Fast: The early bird gets the worm. When it comes time to make your move, be ready…
Stay Vigilant
As the saying goes, “Anything in life worth having is worth working for.” The real estate market during the Pandemic and even now, has not been easy for buyers. Don’t be easily discouraged. If you see a property you like, do you research, and be ready to pull that trigger. You can’t win a game, if you don’t take a shot…
It’s no secret that many prospective homebuyers are finding the current real estate market challenging. One of the more unexpected consequences of the Covid pandemic was the hyper-focus on one’s home. This has resulted in a robust market where sellers are seeing advancing home sales prices and multiple offers.
While competition is fierce, clearly for sellers to sell, they need buyers. If your goal is to find a new home this year, there are a couple ways you can maximize your ability to have your offer accepted.