As we all know, mortgage and real estate markets can fluctuate with market trends, banking rates, housing demand, investor confidence, inventory / availability and affordability of homes in particular regions. It also depends whether it is a buyer's market or seller's market, which is what determines the right time to buy or sell property laying the path for borrowers to take on mortgage loans.
Nonetheless, there are certain reasons that everyone should consider as among the TOP reasons to get a mortgage in favorable markets, assuming it is a good time to buy a house that you can afford...
Financial Readiness is fundamentally crucial toward qualifying for a mortgage loan that would be structured around your borrower qualifications, lending guidelines and your affordability level.
This is ranked as #1 because there are still many people who do not have the financial capacity to buy until later. You should only seriously consider taking on a mortgage if you have been saving and have a substantial amount for a down payment and/or a co-signer who will contribute toward a down-payment and buy-downs. Other important factors to consider are your combined monthly income that should be stable, FICO scores that cannot be below a qualifying score, amount of outstanding loans and credit cards accounts + your DTI (deb-to-income ratio) and Debt-to-Equity which will effect your financial solvency and how much of a purchase loan price you can afford.
Some other TOP reasons to get a mortgage in favorable housing markets are:
- Rates are Lower: keep watching the rates as they change fairly often. Due to lower rates, there is always a surge in mortgage applications creating more incentives.
- Secure Housing: the one is a classic incentive have a mortgage loan in order to be the owner of the property where you'd be considered the main decision-maker.
- Value Appreciation: real estate has a tendency to keep increasing in value over time thus providing a potential for an investment opportunity with a higher resale value. This, of course, also depends on the location, condition of the property, home upgrades an market demand.
- Home Improvement: mortgagors unlike renters have more freedom in what they can do with their own home - especially home improvement projects like remodeling, adding fixtures, ADUs / room additions and land development improvements and other value investments.