Jake Simmons with Schuber Mitchell Homes and Andrea Malcolm with Flat Branch Home Loans are breaking down things you might be hearing on social media or in the news concerning the current housing market.
Everyone is talking about how it’s a “scary time” for interest rates, housing prices, etc. While it can be unsettling, we want to put that into perspective. One of the key things experts discuss is the current economic status.
Many are concerned about interest rates rising. However, if you look at things from a historical perspective, these interest rates are not uncommon. For example, the 1990s boasted a booming economy and even then, rates were between 7-10%.
Really, today’s rates are not as scary as they may be portrayed.
But how does this compare to 2008?
Well, really it’s night and day different. In 2008, there were a lot of “bad loans” made. There were little regulations regarding pre-approvals, so as long as it went through the computer system, shoppers could be approved pretty easily. On top of that, there was a near housing surplus at the time.
These bad practic es culminated together, creating the perfect storm that we associate today with 2008. Today, all of these practices have been regulated, so it is not something that experts anticipate happening again.
What is “date the rate, marry the home”?
This phrase has been around for a long time, and there’s a few different takes on it. Andrea explains it simply: You fall in love with the house, not the rate".
When you go house shopping, don’t look at the homes as interest rates, look at them as a place to spend time with family and friends, host holidays, live day-to-day life. Marry the house!
Rates come and go, and there’s options down the road to refinance. Date the rate! You aren’t married to it!
The good news for house shoppers in this market, is that builders are starting to get caught up from COVID-related delays, so there is more inventory for buyers to look through to find their dream home! Additionally, Schuber Mitchell is making strides on developing land and creating new community experiences with exciting amenities that will make that homeownership even more exciting!
What will rates do while under construction?
The only thing that can be guaranteed are today's rates. The good news is, there are rate-lock programs and options available for buyers building new construction homes! That way, they can get today’s rate when their home is completed down the road.
Flat Branch is a fantastic resource that has lots of different loan and down payment options. Their loan officers will go through every single loan option available to the buyers, and see which one will make the most sense for that home purchase.
How can I prepare my credit score for a home purchase?
Think of your credit score as a hot air balloon. The more you fuel that balloon, the bigger the balloon will get, and the higher it will rise.
Figuring out how to control that hot air balloon is tricky and takes someone who knows what they are doing. A common mistake that people make is paying too many things off. This can actually deflate that balloon, putting you farther away from your credit score goals.
It’s always best to meet with a professional who can create a roadmap preparing you for that home purchase. Flat Branch loan officers will give you action steps for getting that balloon higher off the ground before it’s time to proceed with the home buying process.
