Now Is The Time To Buy Your First Home.
Sometimes the best opportunities come at the most inopportune times.
For example, you may get a cross-country job opportunity during a time that is less than ideal. But, it’s a rare opportunity, so you decide to take the chance anyhow.
At this current moment, with so much uncertainty due to the pandemic, the thought of buying a home may be the last thing on your mind. When we can’t even seem to plan more than a few days in advance, the thought of making such a life-changing decision may seem altogether crazy.
The pandemic has changed the way the real estate market is operating and things may be changing on a daily basis, but the essential parts of buying a home are still very much the same. You start with a home search, write and offer, apply for a loan, and eventually close.
So why should you consider buying a home during these uncertain and historic times? Read on to find out why now is the time to buy your first home.
Interest Rates Are Historically Low
Interest rates are historically low right now. With mortgage interest rates currently hovering around 3% for a 30-year mortgage, there hasn’t been a better time to buy your first home in a long time.
Let us take a closer look at why.
When mortgage rates are lower, homeownership is more affordable for first-time buyers. The lower the rate, the lower the mortgage payment. A lower mortgage payment can help you afford a more expensive home.
A lower mortgage rate will also mean that you spend significantly less over the life of the loan. Let’s take a closer look at how that can play out:
The average mortgage rate in 2019 was 4.75%. On a mortgage of $250,000, the monthly payment with just principal and interest would be $1,304.12, with the total interest paid over 30 years being $219,482.60.
In contrast, with the current rates at 3%. On a mortgage of the same amount, the monthly payment with just principal and interest would be $1,054.01, with the total interest paid over 30 years being $129,443.63.
With the current rates, owning a home is much more affordable with the current rates and you could save a great deal of money over the life of the loan. With the current mortgage rates, there is no saying how long they will last.
What To Know If You’re Buying A House Now
Before you embark on your home search, it’s important to know that the current market is extremely competitive. With a lack of inventory and an influx of buyers, the competition is tough. Homes are going quickly.
Still, don’t let this deter you from buying your first home. Here are a few tips to help make your home search easier.
- Be prepared. Get pre-approved prior to hitting the market. This will make the whole process easier.
- Know what you’re looking for. You can start your search online and help narrow down the prospects. Instead of looking at homes that are a waste of time, you can spend time looking at homes that are a better fit.
- Be ready to make a move. Once you find something you like or a potential home hits the market, be ready to make a move quickly.
- Trust your gut. If there’s a part of you that’s holding back from writing an offer on a home, it’s probably not the right one.
- Know that the right one will come along. It always does. Just be patient.
Buying your first Knoxville home is an exciting and overwhelming experience. If you’re like most first time buyers, you may not be sure where to start. If there is anything we can do to help you with your home search, please do not hesitate to contact us. We’ve helped countless homeowners buy their first home and we’d love to do the same for you. Rick can be reached at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be reached at 865-696-1888 or via email at Kati@KnoxvilleHomeTeam.Com.
Are you ready to start your home search? Visit our home search page to get started today. Or, be sure to keep up with our Knoxville First Time Home Buyer’s Blog to keep up with the latest information about buying your first home.