Are you a homebuyer in the market for a mortgage? If so, then consider yourself lucky. The rates recently dropped to historic lows -- as low as 2.75% for top-tier borrowers on a 30-year fixed mortgage. It's the first time that rates have ever fallen below 3%. Since borrowing is a bargain, savvy house hunters are locking in now.
The incredibly low mortgage rates have prompted a rebound in the housing market. In fact, mortgage applications recently climbed 5% and were up 13% compared to last year. That spike shows that homebuyers are confident about jumping back into the market, especially now that coronavirus lockdowns are coming to an end.
Besides low mortgage rates, increased demand for homes has also prompted a rise in applications. Many buyers are attempting to close deals by this summer, mostly as a result of the pandemic. Why? They want detached living — more of a standalone, single-family home — versus a townhome, condominium, or apartment. They want room to breathe, certainly not a shared wall. Supporting that is a recent LendingTree survey that reports 53% of homebuyers are more likely to buy a home within the next year because of the COVID-19 pandemic. As remarkable as that is, a more significant issue is the current shortage of homes available for sale.
Since there is a lack of listings, many homes are selling fast. If you're in the market to buy, speed is critical. These tips can put you in a better position to win the home of your dreams:
- If you see a property that you like, arrange to look at it as quickly as you can (virtually or otherwise.) If it's a great house, you may need to compete with other offers, so act fast if it's the one.
- Get a home inspector before you start looking at houses. Having a pre-inspection done before you make an offer will speed up the closing process. Some inspectors include their clients in their inspections via Zoom or FaceTime. Seeing what they see gives you a better idea of the home's value -- and the offer you want to make (safely, from a distance.)
- Get your home loan fully pre-approved, where an underwriter has looked at your file and given it the OK to move forward. That way, your financing is only subject to an appraisal, clear title, and no other hindrances.
- Sell your house first. You'll be in a better position to win in a multiple offer situation since yours won't be contingent on the sale of your current home.
Here at Harbor Club, homes are selling fast -- both new construction and resales. There's a lot of demand since ours is one of the few Southern Living-Inspired Communities in the Southeast. It also doesn't hurt that we're located on Lake Oconee, have an award-winning, Weiskopf/Morrish-designed golf course, and that our kids have access to some of the best education in the country.
If you're one of the many people taking advantage of the low mortgage rates right now and are interested in buying a home in Lake Country, consider Harbor Club. Take a look at our current listings and contact us to schedule a tour or ask questions. But don't wait too long! Inventory is going fast! It's the perfect time to buy a home at Harbor Club on Lake Oconee.