LIME REALTY GROUP is one of the few real estate companies in the area following the mortgage rate on a daily basis. Despite analysts forecasts, the rate is still hoovering around 4%. Last week, we took a dive to 3.6%. By the weekend, it was back up around 4% at 3.95%. Today, we’re already seeing another dip. It’s at 3.87%.
I’m sure you’re asking yourself, what exactly does that mean…? Well, if you’ve been procrastinating, it means you can still get a good rate if you’re ready to buy. But if the numbers we’ve just discussed tell you anything, it’s that the market is still pressuring the rate and it continues to fluctuate daily. It seems like the rate spikes at the most about .4%. However, that can add up quickly while you’re shopping for a home if market pressure pushes the rate up. The best policy always is locking in a rate. Getting pre-approved and locking that rate will allow you the peace of mind to shop without the threat of losing a good rate.
In a recent LimeTV episode, Renae was asked what she suggests a home buyer do first when they’re ready to start shopping for a home. She said, get pre-qualified. That means finding out how much money you’re able to finance and then start shopping for a home within your budget.
The first thing someone who decides to buy a home does is start looking for a property. But that’s a very problematic situation. Sometimes a buyer falls in love with a property that isn’t realistic. It doesn’t fit their budget and they can’t qualify for the amount they need. This is one of the ways people get trapped in risky mortgages. They look for alternative ways to qualify.
Another side effect from buying a home you can’t afford is leaving yourself house poor. The monthly mortgage payment consumes so much of your income, it doesn’t leave room for anything else.
Knowing in advance the amount you have to work with, allows you to shop in confidence knowing you can afford the home you purchase.
For the moment, we’re riding a mortgage rate roller coaster. But you can cut through all of that by locking in a rate today. Keep in mind, if the rate gets excessively lower, you can always let go of the rate you’ve locked in and lock the lower rate. You can go lower. But you don’t want to go higher.
Keep checking back for more helpful tips and ideas from the only real estate option in Southern Utah, Lime!