While mortgage interest rates stay low into the new year, buyers see plenty of incentive for purchasing a new home. Although, they need to know exactly how much mortgage they can qualify for. They need to know that before starting a home search. And, they should do their research while consulting with a home mortgage lender for the bottom line. In fact, when they do, especially first time home buyers should be made aware of how many things can influence qualifying for a mortgage. Also, they may be interested to know the low interest rates boost market activity, on a much broader scale. Not just buyers, but sellers stand to benefit. As a result, boosts in buying and selling kindle a healthy real estate industry, generally. That’s what the indicators say we have in store for 1st quarter 2021. Now’s a great time to start the process!
Low Interest Rates Boost Market Activity & Start of 1st Quarter 2021
Even with the virus, real estate in all four sectors of the domestic market has fared well for 2020. And, it’s great performance has carried on into 2021. In fact, we should see record numbers of new home buyers. We should see them wading into the 1st quarter with some confidence. Although, first time buyers should know what makes loan approval doable. It’s not simply that low interest rates boost market activity and make prospects easier. It also a matter of what factors come into play in the approval process. As a result, those specific factors set the bar for how much buyers can afford.
All mortgage lenders look at annual salary, credit score. They also look at debt-to-income ratio and interest rate. These together show how much a buyer can afford in monthly payments. Then, the loan may be pre-approved. And, a search for homes in the right price range can begin. As a result, decent salary, well-managed finances (good credit score), moderate to no debt and the low interest rate will pair a buyer up to homes priced within their means. And off they can go, with pre-approval letter in hand!
2021 1st Quarter Home Selling
Meanwhile, sellers should expect growing buyer pools and pricing benefits. And, many local markets have a limited home inventory to buyer ratio. As a result, now’s the time to sell! If you plan to in San Mateo County, you have some great options. You can find top notch mortgage loan assistance, home staging and selling. In fact, single family, resale home pricing is on the rise in the County. As a result, why not give market and home selling expert, Carmen Miranda a call? Also, ask for a free home value analysis.