If your goal is to become a homeowner, now is the perfect time to make that dream come true. Whether you plan to buy a home in the North Scottsdale area or elsewhere, buying soon can increase your chance of getting the house you want, within your budget. Here are just a few reasons that buying a home soon may be a great decision for you.
It’s Now Easier to Qualify for a Mortgage
Maybe it’s not quite as easy to buy a home as it was during the housing boom, but it is much easier than it was during the bust that followed. You can now get a conventional home loan with a credit score of about 620, and your score can even be in the 500s to qualify for an FHA loan.
Additionally, you no longer need 20% down to buy a North Scottsdale home or buy elsewhere in the Valley. Conventional loans only require about 3% down, while FHA loans require about 4% down and VA loans only need about 2% down. So, if you have been putting off buying a home because you weren’t sure if you could qualify for a loan or make a 20% down payment, this info should be welcome news.
Interest Rates Are Low for Now
Currently, interest rates are pretty reasonable, which is a relief if you’re looking to buy a home. For a 30-year home loan, the rate is about 3.89%, and it’s 3.09% for a 15-year loan. The interest rate on adjustable-rate mortgages is even lower, at about 2.93% for 5-year ARMs and 2.62% for one-year ARMs, according to Freddie Mac.
These rates are much lower than usual, considering just last year they were closer to about 4% on 30-year home loans, and 6% and higher a few years ago. But they won’t stay this low forever. In fact, they appear to be on the way up soon, so now is the time to start looking into the Scottsdale housing market if you want to lock in a great interest rate.
Rent Is Going Up
If you’re currently renting, it’s a good time to get out of your lease and buy a North Scottsdale home, because rental prices are about to increase. In fact, they have already increased by more than 4% in several markets, including Phoenix. In some major cities, rent has increased by as much as 14%, and that trend shows no sign of stopping.
At the same time, the price of homes for sale has either stayed the same or even slightly decreased in most areas. This means you may be able to own a home for about the same price you pay to rent, which is amazing considering that the end result is that you will have an asset that appreciates over time.
Realtor | Founder
The Matheson Team – RE/MAX Fine Properties
21000 N. Pima Rd., #100, Scottsdale, AZ 85255