4 reasons first-time home buyers should feel good about buying now

Buying a house is a big deal, and right now, it might seem like a scary endeavor. The media report that rising interest rates, high inflation and the whispers of a potential recession make it seem like now is the worst time to buy a house. But we have to disagree. There are some incredible advantages for buyers willing to jump in now. Here are four that can benefit you.

• Your FICO® score has probably improved. A recent change to the FICO® scoring system to discount medical debts is helping to boost many people’s credit scores. Effective July 1st, 2022, paid medical debts and medical debts under $500 wouldn’t be part of your score now. In addition, unpaid medical debts will not be calculated as part of your score for up to one year after they are due to give consumers time to address the debt without penalty. This change may significantly increase your score, which may help you qualify for a better interest rate when you apply for financing. *FICO® is a registered mark of Fair Isaac Corporation.
• Housing inventory is rising, and prices are falling. As a result, the red-hot real estate market of the past two years is finally starting to cool. The conditions of the past two years led many buyers to buy overpriced homes with large offers or without inspections because there was so much competition. Now that things are slowing down, buyers have the advantage over sellers and can snag a deal for less.
• Mortgage rates are still lower than they used to be. Current mortgage rates may seem outrageous after the last few years of significantly lower rates. But historically, mortgage rates are still much lower than they used to be. Look at the average 30-year fixed mortgage rate graph from 1975 to now to see for yourself!
• Rent is still rising way too fast. The nation’s rent crisis is leading to sky-high rental prices and evictions. Rental costs are rising faster than they have in three decades, and the median rent price is $2000 a month. In large cities, many renters pay much more than that. Inventory is also low, so it isn’t easy to find a suitable home you can afford, especially in big markets. Buying your home now will let you avoid paying record-high rent and start to build up equity for your future.

We know that buying your first home is intimidating. That’s why our loan advisors can help you take advantage of the right financing and mortgage tools to secure your financial future. With our help, you can become a homeowner today and feel good about your decision too!