And now that the tax credit has ended, you may find that there are fewer people looking at, making offers on, and buying the homes that you’re interested in. As a buyer, this means that you have an advantage. Instead of feeling like you need to write an offer because it’s the only house available in your price range, homes may stay on the market longer, letting you take more time to look at and decide on a the right home for you.
While interest rates remain low, you can afford more home for your money. For example, when interest rates increase, even half a percent, the average mortgage payment in the Silicon Valley increases by $100 per month or more. Since you purchase your home based on how much you can afford to pay monthly, with a lower interest rate, you’re able to afford a more expensive home. And since the required debt-to-income ratio has loosened slightly, you may be able to qualify for a slightly larger mortgage than a just a month or two ago.
But don’t count on interest rates remaining low or debt-to-income ratios staying the same. Interest rates have remained stable for a long time, but with the increasing instability in the global financial markets, interest rate increases are becoming more likely, and, as always, lending requirement are subject to change.
If you’re still not sure about buying a home now, keep in mind that as people return to work and get their finances in order, more people will be buying homes in the San Jose Area. More buyers help stabilize home prices and creates appreciation in the housing market
All of these things add up to one thing: If you are ready to buy a home, now may be the right time for you. Call or email me today to start you on your dream to home ownership.
For more information, check out End of Home Buyer Tax Credit Unlikely to Deter Most Real Estate Buyers
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