As the first quarter of 2013 comes to an end and tax refunds begin pouring in, many renters plan on making their dream of owning a home a reality before summer arrives. The housing market has slowly been recovering since its unfortunate and untimely crash in 2008, and many people don’t want to miss out on the action of getting a great deal before it’s too late. If you’ve been on the fence about whether or not buying your first home should be at the top of your to-do list before 2014 rolls around, consider these points.
One: Home Prices Are Rising – Home prices fell to a historic low in 2008 when the country sunk into a recession, but as the economy has picked back up, home prices have been steadily rising. Home prices have yet to meet or exceed the rates they were at in the mid-2000s when the economy was in top shape, and in fact, are 40% lower still in most parts of the country. Now is the perfect time to buy a house before home values climb back up to their mid-2000s values and secure yourself an excellent deal – especially considering LGI Homes is the leader in affordable home building.
Two: Mortgage Pre-Approval is Expiring Faster Than Ever – Before the housing market crash, aspiring home owners often had the luxury of their mortgage pre-qualification staying valid for upwards of three months. Today, many lenders will only offer pre-qualification rates for 30 days. If you’ve recently sought out a pre-qualifying rate from a lender, you’ll need to act fast if you want to secure the rate offered to you.
Three: First-Time Home Buyer Programs Are Depleting – Many state-offered first-time home buyer programs are quickly running out of their allotted funds, so if you have any hope of securing a grant, you won’t want to wait it out and let this opportunity pass you by. For example, the My First Texas Home program for Texas home owners had an original allotment of $600 million when it was created in October 2012. As of March 2013, only $10 million is assistance is still available in program 79.
Four: Mortgage Rates Are at a Stable Low – While home prices have been on the rise, mortgage interest rates have managed to stay at an almost unheard of low. Since your interest rate determines the exact total you’ll pay for your house over the course of your mortgage, don’t wait too long and give rates the chance to rise. As of March 2013, average rates for a 30-year fixed mortgage are sitting right at 3.5% for qualified borrowers.
Five: You Can Do it With No Down Payment – Have you watched the housing market and economy rise while your salary has stayed the same? As you’ve been focused on spending money on rent, you might not have had the funds to set aside for a down payment on a house. LGI Homes offers a no down payment option for qualified buyers, so you could purchase your home this year without paying anything up front!
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