If you're planning on buying a home this year, consider buying it sooner rather than later. See how mortgage rates, home prices, and the closing date can give you an advantage when purchasing a home in 2022.
Mortgage rates are predicted to rise throughout the year, steadily increasing the amount you'll pay for your house over the life of the loan. Buying a home sooner rather than later means locking in a low-interest rate so you can save thousands of dollars over the life of your mortgage.
The average 30-year fixed-rate mortgage is expected to
grow substantially by the end of 2022.
With home prices predicted to grow throughout the first quarter of 2022, buying a house now can save you money. In addition, home prices are typically lower during the winter months (especially in the north) when fewer buyers are looking to purchase a home. You may find that you're competing against fewer homebuyers, which improves the chance of your offer being accepted by the home seller. Finally, sellers may want a quick sale of their homes, resulting in fewer negotiations.
When buying a house, the closing date holds a lot of importance and can give you an advantage over other homebuyers. Homesellers typically want to close quickly but extending the closing date may make the most sense in today's housing market. You see, these days, it's easy to sell a home, but finding another home to buy can be challenging. That's where homebuyers can offer an extended closing date, so home sellers have extra time to find another home to purchase.
Have your real estate agent reach out to the home seller's agent to determine if the seller needs a later closing date while looking for a home to buy. Your agent can share options for allowing the seller to stay in the house for a couple of months after closing (ex. paying rent to you). Offering the seller a later closing date may help your offer stand out from others.
If the housing predictions are correct, the longer you wait to buy a house, the more it will cost you in 2022. Now is the time to save on the price of a home, take advantage of low mortgage rates, and gain the benefit of home appreciation when you purchase a home. Enjoy watching the value of your home rise while others are losing money as they wait to buy their homes. It’s time to contact a mortgage lender to get pre-approved for a home loan, then reach out to your real estate agent and start looking for a new home!
If you think there are no homes available in your area, consider reaching out to a local real estate agent. Need help finding a real estate agent? Send us an email at firstname.lastname@example.org, and we will do our best to find a reputable agent in your area.