If you’ve heard that now is prime time to buy a home in the North Shore real estate market, you’ve heard right! As your North Shore real estate agent, I can tell you that because of record low mortgage rates, you could save a bundle over the lifetime of your mortgage loan. Though prices are high, and the market is competitive, it is still a great time to buy if you are financing, because of these low rates.
If you are currently renting, it’d be helpful to know that while the percentage of income needed to buy a median-priced home is declining, the percentage of income needed to rent one is on the rise. Historically, 25.8 percent of income is needed to afford median priced rent, but today, it’s 27.8 percent. On the other hand, historically, 21.1 percent of income is needed to afford a median priced home, but today, it’s 15.9 percent. This is making buying a home an increasingly attractive option!
Aside from record low mortgage rates and home affordability, lots of people have been moving, for an array of reasons, since the pandemic started. If working from home, many Americans are now looking for a home with more or better office space. Likewise, if kids are going to remote school, families are looking for more and better work spaces for the kids at home. Remote work also is allowing more people to move to an area they’d rather live, or closer to friends or family, without worrying about commute time.
Because many activities have been canceled or postponed, Americans are looking for bigger backyards to enjoy an array of outdoor activities in, and they appreciate outdoor amenities, such as patios, decks, outdoor kitchens, pools, playgrounds, fenced yards, nature views and more. Inside, people are more interested in space for home gyms, larger kitchens, bigger offices, toy rooms, etc. If you would like to relocate to a home that better suits your needs, I am here for you!
Buying a home is a great idea right now in Glencoe, Winnetka, Highland Park, Deerfield, Northbrook, Lake Forest, Wilmette, Evanston, Glenview, Riverwoods, Bannockburn, or other North Shore communities, but there are still important steps that you must take to score a low mortgage rate, and to score a house that you love. Before applying for a mortgage loan, do what you can to improve your credit score and lower your debt. Don’t make any big purchases before or after applying. Some mortgage lenders are making their rules stricter, so in order to score the best interest rate, you need an excellent credit score.
It’s also vital right now to get pre-approved for a mortgage loan before beginning your home search. In such a competitive market, where you may take part in bidding wars, being pre-approved for a mortgage loan gives you a competitive edge. It lets the seller know that you can afford their home, and it can make the closing process faster for all involved.