How to Prepare Yourself to Buy a House in 2021
Is now a good time to buy a house?
Record low mortgage rates have created a favorable buyer situation, yet strong demand for homes has pushed prices up. Mortgage rates are expected to rise this year but still remain relatively low historically. The 30-year fixed-rate mortgage fell below 3 percent in December. Meanwhile home prices are not getting any cheaper. According to CoreLogic (a real estate data firm), by October 2021, annual home price growth is expected to increase 4.1%. Buyers that wait too long may get priced out of more-desirable neighborhoods. The pandemic changed home sales activity last year, creating pent up demand and behavior shifts - shopping in the off-season does not apply now.
How To Buy A House In 12 Steps
Most home sales involve the following 12 steps:
- Decide Whether You’re Ready to Buy A Home
- Check Your Credit Score
- Create A Housing Budget
- Save For A Down Payment And Closing Costs
- Shop For & Get Preapproved For A Mortgage
- Hire A Real Estate Agent
- See Multiple Homes
- Make An Offer On A House
- Get A Home Inspection And Appraisal
- Negotiate Repairs And Credits
- Do A Final Walkthrough
- Close On Your New Home
We can discuss each of these steps and guide you along the way, just give us a call.
January 26, 2021