01/04/2024
Interest Rates Fell Again This Week!
Would you rather buy a home for 3.5% or 0% down now?
Or
Wait until interest rates are so low that everyone and their dog come out to party, causing you to have to outbid multiple offers with more cash.
For instance, right now, we are getting everything we ask for as a buyer.
Rate buy down to almost 5%
Repairs done
Upgrades like: New Roof, Electrical, Windows, Flooring, etc.
Below asking price - sometimes instant Equity
Or if we wait until interest rates a so low that we find ourselves in multiple offer scenarios. This will cause you to have to come out of pocket substantially more, little to no repairs done and certainly no upgrades.
Low Interest Rates and Multiple offers mean:
If you have a pre-approved loan to buy a home for 3.5% down on a $450,000 property. You will need $15,750 for the downpayment.
But if another offer comes in and say's they will buy the home for $500k. You will need to come up with another $50k cash to match the offer.
This means you will have gone from a good deal at $15,750 down, repairs made, upgrades negotiated, and a rate buy down.
To a deal where you'll have to put down $65,750, little to no repairs and no upgrades.
This is because the bank will only loan you the amount THEY think the house is worth. If they think the house is only worth $450k, they will only loan to you for that value.
If you have to beat a multiple offer scenario that comes in at $500,000 then you will have to come up with the difference in cash.
Do ya'll remember during covid, unless you had a lot of cash, it was almost impossible to outbid and win multiple offer scenarios?
Most likely you will have until Spring to beat the wave and find a good deal.
Call or DM me and lets set up a Mentor Meeting to get you ready to buy.
801-618-9034
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