While the market continues to be incandescent, there are a number of tips out there for those looking to buy a new home.
“When you talk about real estate, it’s the best investment of your life,” said Tony Alvarez.
Interest rates remain historically low, but the lack of inventory along with soaring prices has made it a challenge for many – especially first-time buyers.
“You need to have good credit, you need to have a good credit history, you need to have a pretty solid down payment, at least 5%. You don’t need to opt for an FHA loan now. An FHA loan is a wonderful product, it is a great product but unfortunately it’s not that great for the seller, “said Alvarez.
Tony Alvarez is a mortgage advisor at RWM Home Loans.
In 20 years of experience, Alvarez has never seen a comparable seller’s market, but believes the highly competitive housing climate has become an obstacle for those who do not have a good credit score or at least 5% to settle.
“If they look at the offer and see a 3.5 percent FHA loan and there are 30 other offers here, they’ll go for the one that looks more solid,” he said. “So if you lower the minimum, you will no longer compete with the market.”
Even if you have all of your ducks in a row, there is still no guarantee of securing your dream home.
Many people are still learning what they qualify for only to find out the home was sold to someone else who offered tens of thousands of dollars above the asking price.
While the housing market remains extremely competitive and stressful for many, experts don’t expect it to slow anytime soon, especially with summer just around the corner.
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