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Should you buy now, or wait for a better rate?

8/28/2023

Short Video: https://www.youtube.com/watch?v=0F2Etz-rwYc

Many buyers and sellers are waiting for rates to drop before entering or re-entering the housing market. Some buyers may not qualify and need to wait. If you are pre-approved and can afford to purchase now, there are some great advantages to acting now, and refinancing later.
Homes for sale are typically sitting on the market longer. Buyers have an advantage and may be able to purchase a home with better price, terms or lender incentives paid for by the Seller. With fewer buyers, seller's are more willing to work with and negotiate to get their house sold. This is a great advantage to buyers right now.
The US is about to have the most 34 year olds in its history. This is significant because the average age of the first time home buyer is 34 years old. A larger pool of buyers is about to enter the housing market, and that demand will increase for the next several years. At the same time, nationally, the number of new homes being built is at the lowest it's been in decades. Demand is increasing and supply is decreasing. While the spike in home prices may be going through a correction, the laws of supply and demand will protect home values from dropping significantly. Here in northern Colorado, home prices will continue on an upward trajectory (although that correction I mentioned is still happening).
When rates do drop, we expect a surge in the market, as those waiting for some movement in the right direction to push them back into action. When that happens, we may see a return to a strong seller's market. We may not see the extremes we saw at 2 and 3% mortgage rates but buyers can expect much more competition. Buyers may be faced with overbidding, losing some of their protections, and multiple efforts to get into a home.
I hope this short video provides some more insights and direction. If you can afford to purchase a home now, there are great advantages to buying now, and refinancing later.
If you are considering a purchase or sale, please contact me. I'd love to help.
Thanks for reading and I hope you enjoy the video.
Georgi Grover, RE/MAX Alliance
(970) 670-0246
www.youtube.com/watch?v=0F2Etz-rwYc

Improve your mortgage rate by improving your credit score.

8/10/2023

Improving your credit score is a gradual process that requires consistent effort and responsible financial behavior. A higher credit score can indeed help you secure a better mortgage rate. Here are some steps you can take to improve your credit score and increase your chances of getting a favorable mortgage rate:

Check Your Credit Reports: Obtain free copies of your credit reports from all three major credit bureaus (Equifax, Experian, and TransUnion) and review them for errors, discrepancies, or fraudulent activity. Dispute any inaccuracies you find.
Pay Bills on Time: Payment history is a significant factor in your credit score. Make sure to pay all your bills, including credit card payments, loan payments, and utility bills, on time. Set up reminders or automatic payments to avoid missing deadlines.
Reduce Credit Card Balances: Keep your credit card balances low relative to your credit limits. A high credit utilization ratio (balance-to-limit ratio) can negatively impact your credit score. Aim to keep your utilization below 30%.
Don't Close Old Accounts: Length of credit history matters. Keep your old, well-managed accounts open, even if you don't use them frequently. Closing accounts can shorten your credit history and potentially lower your score.
Diversify Credit Types: A mix of credit accounts (e.g., credit cards, installment loans, mortgages) can have a positive impact on your credit score. However, don't open new accounts just for the sake of diversification.
Avoid Opening Multiple New Accounts: Opening too many new credit accounts in a short period can lower your average account age and make you seem riskier to lenders.
Be Cautious with Credit Inquiries: Whenever you apply for new credit, a hard inquiry is made on your credit report. Multiple hard inquiries within a short time can slightly lower your score. Limit your applications for credit to what's necessary.
Pay Off Past Due Debts: If you have any past-due accounts or collections, work on settling or paying them off. Even after they're paid, these negative items can continue to impact your credit score, but their effect diminishes over time.
Use Credit Responsibly: Responsible credit use involves only borrowing what you can afford to repay. Avoid maxing out your credit cards or taking on excessive debt.
Build Positive Credit History: If you're new to credit or have limited credit history, consider becoming an authorized user on a family member's well-managed credit card or starting with a secured credit card. These actions can help you build positive credit history.

Remember, improving your credit score takes time and consistency. While there are no quick fixes, by adopting good financial habits and managing your credit responsibly, you'll be on the path to a better credit score and a more favorable mortgage rate over time. If you're planning to apply for a mortgage, start working on improving your credit score well in advance to give yourself the best possible chance of securing a competitive rate.

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Relo2NoCO Blog

Should you buy now, or wait for a better rate?

Improve your mortgage rate by improving your credit score.

Georgi

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