Are you ready to upgrade your house this summer? With the sun showing up all day long, this is the best time to look out for a house. In addition to the favorable weather conditions after an unexpectedly harsh winter in 2015, mortgage interest rates are at their lowest level as compared to the last two years. According to Freddie Mac, mortgages were available at national average interest rates of 4.17% and 3.98% in 2014 and 2013, respectively. In March 2015, the average mortgage interest rate was 3.77% making it a favorable period for homebuyers.
Top 5 Tips for Buying Home this summer
Choose old-fashioned open house viewing against online shopping: According to the market experts, the inventory is likely to stay low during summer and even if it improves, the demand is likely to overrun the supply. In addition to it, an old-fashioned house viewing will help you identify potential problems with the chosen property. A quick decision would serve you well so make sure to study market rates to identify the right opportunity.
Take the benefit of low mortgage interest rates: As mentioned earlier, mortgage interest rates are comparatively lower in the past few months. However, the feds are considering an interest rate hike this year so you might want to capitalize over these interest rates. Interest rates are also favorable for the existing homeowners who are planning for a refinance loan.
Study current local market trends: Having a pro-active real estate agent in your team is always helpful but relying solely on the agent for latest market trends is a bit exaggerating. You can use online platforms such as Curbed.com to identify the market trends in your target area.
Find professionals you need for the deal: A real estate transaction requires expertise and you need several key professionals to close the deal. It is best to find an attorney, home inspector, and a lender before choosing your dream home. Having a complete team gives you the freedom to close a deal quickly.
Get ready to face competition: Always have strategies to deal with equally prepared competitors while buying a house. You can try an escalation strategy and offer a fixed amount that adds to the top competitor bid. For an instance, if you have a current bid of $300,000 with an escalation clause of $5,000 and your competitor bids $305,000, the escalation clause with automatically upgrade your bid to $310,000.