5 Reasons Why You Shouldn’t Wait to Buy
Timing can mean the difference between getting a home at a good value or missing out completely. Right now, the West Michigan housing market is red hot. If you are thinking about buying a house in West Michigan, here are five reasons you shouldn’t wait much longer:
1) The growing economy.
Grand Rapids has entered a new life outside of its history as a rust-belt city. Currently it is listed at 31st in Forbes Best Places for Businesses and Careers. Unemployment is at 3% with jobs growing at a rate of 2%. That growth, in turn, means homes purchased in the region will increase their worth as investments.
2) Increased demand for homes.
In 2016, Grand Rapids ranked third for housing shortages, according to the National Association of Realtors. Forbes Magazine forecasts that 2017 will be similar to last year in terms of housing demand. Last year, homes averaged 52 days on the market. Experts believe the window of opportunity will be even shorter in 2017. Securing your mortgage is key, so you can get the home you want before it’s too late.
3) Interest-rate increases.
The Fed increased interest rates in March 2017 for only the third time since the 2008 financial crisis — and there’s no sign the rates will decrease again anytime soon. In fact, the rates may increase again before the year is over. Currently, the National Association of Realtors averages nationals rates at 3.39 percent for 15-year mortgages and 4.14 percent for 30-year mortgages. To see what kind of rate you could get for a mortgage, try our mortgage rate calculator.
The Trump Administration has moved toward rolling back the Dodd-Frank Act, the Obama-era federal reform legislation that put the government in charge of regulating the financial industry. Trump’s financial deregulation may benefit mortgage seekers by loosening restrictions on lenders. Home buyers would be able to secure loans easier, but it would mean the pool of available home buyers would likely increase.
5) Options for imperfect credit.
If your credit is imperfect, options are available that could help you buy a house anyway. FHA loans require a 580 credit score with a 3.5% down payment. However, you can still get an FHA loan with a credit score between 500 and 579 with a 10% down payment. Another option is asking a friend or relative with a better credit history to co-sign on your loan. Just be careful about co-signing, because you could strain your relationship with the person if you run into any financial trouble. Other than FHA and co-signing, you can always pay down your debt, decreasing your debt-to-income ratio, or find a way to increase your housing-to-income ratio.
Given the rise of interest rates, a high demand for homes, and a potential ease in mortgage regulations, 2017 is shaping up to be another year when demand will outpace the available supply of homes. So, the longer you wait, the less likely you are to get the kind of home you want within your budget.
To start the process now, check out our pre-approval page or contact one of our mortgage loan officers for more information at 1-800-555-2098.