Real estate has been a big topic within the past few months and seems to be a part of nearly every conversation you overhear and is even being discussed in many news outlets. With the current global pandemic, unemployment at an all-time high, business closures and social distancing, there are many people who are facing the question, should we still be buying a house? While the process in itself may be different, luckily now is actually a great time to buy and many people are starting the home buying process.
Contrary to what some may believe, surprisingly the housing market is booming. The amount of both loan and refinancing applications have nearly doubled as buyers and homeowners try to take advantage of the current interest rates. Across the country we are seeing lower interest rates than we have seen in the last 50 years, making it reasonably understandable as to why so many people are still deciding to move forward with purchasing a home despite COVID-19. Renters who have been on the fence about buying are suddenly back in the market and ready to commit, millennials who were “waiting” for a market crash are now purchasing homes, retirees are purchasing their dream home, families are purchasing the perfect homes to raise their children, across the board, more homes are being sold now than prior to the pandemic and at a much faster rate.
Another common fear currently circulating our media is the risk of purchasing a home that will instantly crash in value and turn you upside down in your loan. While there is no way to say with complete certainty if this will happen or not, there has been a steady rise of home prices and valuation in nearly all states. With the current market, it is expected that the home values will continue to rise offering buyers nearly immediate equity with their purchases.
While many people are wanting to take advantage of the current interest rates, the standard approval process is still intact and specific standards need to be met. Regardless of the rates, they are only available for those who qualify and are not being given to every applicant. Those with bankruptcy, poor credit, large collections, late credit card payments, foreclosures and evictions, may have a hard time gaining approval from a lender. Now is a great time to start monitoring and improving your credit if needed so that you can work your way toward owning a home with a locked-in rate for the term of your loan.
With rates at an all-time low, a hot market, and the expectation for home values to rise, there has never been a better time to buy a home.