The Coronavirus changed the housing market in unexpected ways. What was initially expected to be a crash instead turned into a boom. Right now, the market looks dramatically different than it did two years ago.
If you’re considering buying a new home this year, you should familiarize yourself with the current landscape. In this article, we’ll discuss the basics of home financing in 2021.
Home Financing in 2021: What You Should Know
Right now, home financing looks a lot different than it did in 2019 or even early 2020. This is largely due to the coronavirus. Mortgage rates dropped, people gained the ability to work remotely, and the inventory of available homes declined dramatically. All of this has affected home financing. Here are a few things you should be aware of as you begin your home buying journey this year.
Higher Home Prices
Right now, the demand for homes is higher than the supply. This has led to an increase in home prices. Prices, according to real estate experts, are projected to rise 5.9% in 2021 which impacts home financing tremendously. In hot-market areas, borrowers may have to take out a larger mortgage than they expected.
Low Mortgage Rates
2020 saw historically low interest rates offered by lenders. In 2021, rates are expected to remain low, currently averaging at 3.15%. While it is still a good idea for consumers to shop around for the best prices, now, more than ever, is a great time to pull the trigger on buying a home.
The Digital Age
Technology has accelerated tremendously because of the pandemic. These technological advances have made the process of buying a home faster. Now, borrowers can do virtual viewings and closings and complete many processes online. Paperwork is often uploaded online for faster reviewing.
Many lenders started to implement stricter requirements last year after the pandemic hit and the economy took a turn for the worse. This has made it more difficult to qualify for a home loan. The good news is, since the economy is beginning to recover, many lenders are now easing up on their requirements.
Navigate Home Financing with Ease
Now, more than ever, it’s important to work with an experienced lender you can trust. Having someone who understands the current landscape on your side can make all the difference. When you choose Mortgage Solutions Financial, you can feel confident knowing that you have a team of qualified experts at your side, ready to assist you whenever you have questions or concerns. Call our office today to speak to a lender about your home financing needs.