There are a few very important reasons that make now the time to buy in our market.
 

If you’re thinking of buying a home in our market, now might be the time to take action, and there are a few reasons why.

First, there are two main real estate myths that keep people from buying homes in our market in the first place that I want to dispel.

The first is that you need to put down at least 20% for your down payment. Not only is this not true, but there are loan programs out there that require far less than 20%. FHA loans, for instance, only require as little as 3.5% down. Some conventional loans only require 3% down. USDA loans don’t require any money down at all. Some lenders will also loan you money for your closing costs if you’re a first-time homebuyer.

The second myth is that you need a FICO score of at least 750 to qualify for a loan. On the contrary, over half (53.5%) of all loans are given with credit scores between 600 and 750.

To learn more, click here.

If you’re planning on buying a home but you want to wait, you might be in for a surprise. Right now, interest rates are very low and hovering between the high 3% and low 4% range. By the end of this year, however, they’re projected to climb closer to 5%.

What does this mean in terms of dollars and cents? If you’re looking to buy a home for $250,000 and you lock in a loan with a rate of 3.9% right now, your principal and interest payment for that home would only be $1,179 per month. If you waited until the end of the year to purchase that same home, our central Florida market’s 10% rate of appreciation will have increased its price to $261,750. Furthermore, if you have to lock in a loan rate of 4.5% or 4.6% instead of 3.9%, your principal and interest payment would increase to $1,341 per month. That’s a difference of $162 each month. There’s a lot you could probably do with an extra $162 in monthly savings.

“You can’t lock in a low mortgage rate if you don’t have a property.”

As you can see, you don’t have to wait to buy a home if you’re ready now. The fact is, you can’t lock in a low mortgage rate if you don’t have a property.

The cost of renting is another factor to consider. Historically, the percentage of income needed to afford the median cost of rent has been 25.8%. Now, that percentage has increased to 29.2%. The percentage of income needed to afford a median home, on the other hand, has dropped from its historical average of 21% to just 15.8% right now. The reason for this decrease is interest rates are so low.

To learn more, click here.

You owe it to yourself to consider making the leap from renting to homeownership. One way or another, you’re paying someone’s mortgage.

It’s a great market for homebuyers out there, so if you have any questions about what it would take for you to buy a home or you need an agent to help you become a homeowner, don’t hesitate to give me a call or shoot me an email. I’d love to help you.