Preparing Yourself For Buying A Home In The Northwest Valley Before The End of 2019
Buying a home in 2019 is pretty much the same as always-except there are a few differences and changes you need to know about. The more you know and prepare, the better off you’ll be and with fewer unwanted surprises. Some of the items you need to take note of in 2019 including a changing lending landscape, rising interest rates, and changes to expectations regarding down payments within the local market. This just means that you need to prepare yourself for buying a home in the Northwest Valley before the end of 2019.
Importance of Pre-approval
One of the most important changes in the home buying process, especially before 2019 ends, is the importance of a pre-approval. Inventory is quite low so having a pre-approval has become vital for buyers. With such a strong sellers’ market with fewer cash buyers, so sellers want a strong buyer coming to them with a pre-approval in hand.
This shows a seller that you are a serious buyer and less likely to have a problem financing the purchase. Your first step for buying a home in the Northwest Valley before the end of 2019 is going to be getting a pre-approval from a lender, rather than setting up showings to view houses.
Rising Interest Rates
Additionally, mortgage interest rates are rising which is important to consider for buying a home in the Northwest Valley before the end of 2019. In 2019, interest rates are expected to get up to as high as 5% for 30-year loans. So, if you’re considering buying a home, it may be best to do it earlier rather than later to save on interest.
Credit Score Still Matters
While there are options to get a mortgage loan without a perfect credit score, good credit does still matter. Typically buyers will need at least a 620 credit score (although there are some lenders that can help buyers with a credit score as low as 580). In terms of ratings, average credit about 620-680, good credit is 680-740, and great is over 740. These are the scores you need to shoot for if your goal is buying a home in the Northwest Valley before the end of 2019.
Bigger Down Payment = Better
You don’t have to have a 20% down payment in order to purchase a Northwest Valley home. There are multiple loan programs that give you the option to buy a home with as little as 3% to 5%, or give you down payment assistance to come in with as little money as possible. So don’t worry if you don’t have 20% cash on hand.
It is important to know when buying a home in the Northwest Valley before the end of 2019 that a bigger down payment will give you an advantage. In a strong seller’s market with high competition, having a larger down payment helps your offer stand out and help you with the winning offer. And many agents will advise their clients to accept a buyer who does have a higher down payment.
Speed to closing is another change that will have an impact on buying a home in the Northwest Valley before the end of 2019. The average days been mortgage application and closing are shrinking. They averaged about 42 days for both purchases and refinances most of 2018. This average time has decreased about 3 days. The home buying process is changing fast and it’s best to be prepared for every step of the home buying process.
It’s critical to have a good agent in your corner when buying a home in the Northwest Valley. Let us help – contact us today! (602) 529-3380
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