(Good Things Utah) – It’s a brand new year and that means brand new opportunities in Utah’s housing market. If you recently bought a home, have owned one for a while, or you’ve made buying a home a goal for the new year, now is the time to reengage and check-in on the market.
We’ve known for a long while now that Utah is one of the most difficult places in the country right now to buy a house. The ultra-competitive housing market recently smashed another milestone as the median price for all housing types hit a new benchmark of $400,000.
If you think holding out to buy a new home is the best option, read through this article and you might start to reconsider your options. Here are our top three reasons not to wait to buy a home in Utah:
1. Rate are still historically low
When mortgage rates are lower, buying a home is more affordable. No matter what generation you belong to, the current low-interest rates brought on by COVID-19 should be enough to inspire you to move forward with the home-buying process or consider refinancing. A lower payment may also help you qualify for a more expensive home. Before you do, it’s important to weigh your options and evaluate the state of the housing market – now, and for the future.
Fact: Mortgage experts expect rates to climb from now on, rising from the all-time bottom achieved in January 2021.
Most people actively in the market are in a great place to buy a home or don’t need to change much in their current situation. If you’re in a position to refinance, your debt could have piled up from other expenses. In these types of scenarios, there is plenty of room to take advantage of a home’s equity and get rid of the mortgage insurance – possibly even get some cash out of the home that can be used to pay off outstanding debt. There are ways to hit the reset button, free up a ton of money in the monthly budget, and get a fresh clean slate to start on their savings goals.
2. Home prices will likely go up
The housing market continues to be really active too, especially in Utah. If you’re looking to buy a new home there are some things you should do immedielty.
Get started right away. With historically low-interest rates that could change as the year goes on, the longer you wait the higher the interest rate may be when you finally pull the trigger. Remember, it’s not just you who is experiencing the competitive market during this extreme housing shortage. Home prices will likely be higher than they are now if you decide to ‘wait it out.’
3. New construction is a great option
Buying new construction is a fantastic way to get a home price tied up and possibly even a rate locked while things are as low as they are. The mortgage industry and company’s like First Colony Mortgage are in business to help home buyers find and afford a home they will love.
Loan limits have increased by almost 100K. Last year, if you exceeded a certain home price you had to dramatically increase your down payment. Now, customers who don’t have 20% down have a lot more options to buy homes at a higher price point. That increase is across almost all loan programs and will be a huge benefit. People who are serious need to get a professional to work on a pre-approval as soon as possible. They may be surprised at how much easier it will be this year to buy the home that they really want.
Whether you’re looking to purchase a home or refinance, you deserve great mortgage advice.
First Colony Mortgage advisers are local leaders who not only care about your short- and long-term financial goals but are equipped with the tools and knowledge to help you realize them. Through their winning blend of products, processes, technology, and people, they’re turning customers into happy homeowners.
Fieldstone Homes Preferred Lender
First Colony Mortgage is a Fieldstone Homes preferred lender. When ready to build a Fieldstone Home gives you an immediate advantage. They are familiar with Fieldstone Homes, their sales staff, policies, and requirements and know what both the buyer and builder need from the beginning to the end of the process. The team can give you quick and accurate answers to all loan questions and concerns, and provides a faster, less complicated loan process.
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