The current interest rates may be high, but don’t let them scare you. This may be one of the best times to buy. What is scarier is the limited inventory we will be facing in the DMV in the coming years. Builders have slowed new home construction, urban areas are running out of land and investors are buying up property. So don’t be afraid to buy now. Buying now will give you a better opportunity to pick a home that is best for you and there are ways to get around these interest rates! Let me tell you about a few.
There are lenders who have programs to lock your rate for 90 days to shield against future increases and with float-down options if rates drop. In addition, some lenders will refinance at no charge within 18 months when rates drop. This market is also seeing a return of practices such as 2-1 buy downs, which allow the seller to buy down the rate for the buyer for the first two years. You can also get an adjustable-rate mortgage which will lower your rate for the first 7 years. Truly. I have used this product many times as a homeowner. So don’t be frightened by the rates!
In addition, unlike the past two years, if you are a veteran, you are more likely to have a VA loan accepted by a seller and have a home inspection, an appraisal, and a financing contingency. This market has provided buyers with an opportunity to buy with more confidence and fewer risks that often comes with waiving some or all contingencies.
If you’d like to chat about making a move, just reach out below!
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