Can I Buy A Williamsport Home During The Pandemic?

When you are considering buying a new Williamsport home, you may wonder why you would shop during a pandemic. There are a few questions you should ask yourself as you prepare to buy a home because this is one of the best times for buyers to search. Read more as you prepare to buy a home, shop with a real estate agent, and meet with mortgage brokers. 

What Conditions Are Good For Buyers? 

When interest rates drop, buyers can save money. As the economy slows down, buyers can get good deals on houses.  

Shane Whitteker is the owner and chief broker at Williamsport mortgage broker Principle Home Mortgage. According to Whitteker, one factor in a buyer’s market is the supply of houses available for purchase. 

“A buyer’s market exists when there is a balance of supply of homes for sale to an excess of homes for sale,” Whitteker says. “Balance is better overall so that your home will increase in value.  An oversupply will typically decrease your property value growth or possibly cause a decrease in value.” 

How To Choose A Mortgage Broker 

When you are choosing a mortgage broker, you should make sure that you are working with someone who is experienced in all types of mortgages, as well as a broker who is local to your area. An experienced, local mortgage broker will be able to guide you through each step of the mortgage process, as well as help you select the mortgage best suited to your unique situation.  

Whitteker recommends considering several factors when selecting a local broker.  

“I think looking at a broker’s online reviews makes sense,” Whitteker says. “Obviously talking to the mortgage broker and getting a feel for how they operate is a good idea. Years of experience is also a factor to consider.” 
  

What Other Types Of Mortgages Or Loans Should You Get During This Time? 

You can also refinance, get a construction loan, or request a renovation loan because interest rates are so low. These loans are used to renovate homes. 

“Renovation mortgages are always a good bet for those that need this option,” Whitteker says. “They are also a good bet if you don’t want to pay a higher price for a home out there. You are also in control of the renovation so you are getting what you want. A reverse mortgage is really tied to needs, so if you don’t need a reverse mortgage then it’s not a good time to get one.” 

You can save money by refinancing your mortgage, and the payment will drop because you got a more favorable interest rate. 

Does Owning A Home Improve Your Financial Situation? 

Owning a home improves your financial situation because you are vesting yourself in the home with every payment. You will begin to accrue equity in the house that can be used for a loan, or you will make a profit if you sell the house. You can write off the interest on the house, and you can write off your property taxes every year. If you are renting, you are paying off someone else’s mortgage. You do not have any equity in the house, and you only get your security deposit back when you move.  

You can also rent a home to a tenant if you have enough money to move to another house. You can start a second career as a landlord. 

How Do Low Interest Rates Save You Money Over Time? 

Low interest rates save you money over time because you are paying interest on your principle balance. For example, you might get a favorable interest rate that lowers your payment $100 a month over other loans you applied for. 

A 30-year loan will have 360 payments, and you will save $36,000 over the life of a loan. That is a lot of money that you can use for other things your family needs.  

“For example,” Whitteker explains, “a $200,000 mortgage at 5% will cost $40,425 more over a 30 year period than a $200,000 mortgage with an interest rate of 4%.” 

Can You Refinance For A Lower Interest Rate? 

At the same time, you may be able to refinance to start saving money. If you get a favorable interest rate, you can have more money in your monthly budget.  

Whether or not you can refinance your mortgage depends on a number of factors,” Whitteker says. “Current rates, credit score, loan purpose, etc. Rates right now are lower than they have been for around 3-4 years. So if you took out a mortgage in the last 5 years this would be worth looking into.” 

What Can Disqualify You From Getting A Mortgage? 

Low credit scores, bankruptcies, collections, and high credit card balances can impact your credit and your debt-to-income ratio. Your local mortgage broker will tell you how to pay off debt and improve your credit score to qualify. Also, some companies will not offer mortgages to people who have foreclosures or evictions on their record. 

How Can Mortgage Brokers And Realtors Keep Their Clients Healthy? 

“I can’t speak to what Realtors are doing, though I know they are taking steps to limit contact with people. PHM is not allowing face to face meetings at this point. This protects us and our customers,” Whitteker says. 

To learn more about how you can take advantage of low interest rates, contact Williamsport mortgage broker Principle Home Mortgage today at 814-308-0959.