This is a guest post written by Hollie about finding the best mortgage rates.
Ever dreamt of living in luxury real estate, or maybe just a decent dream home in the US? Well look no further because there has been a lot of great news in their housing market over these last few months. I myself have been looking for a home in Nevada since me and my husband decided to move in the US to be with my other relatives, and what great opportunity it is to share with you the good things we can expect on purchasing some great homes there.
For starters, home prices in America have begun to increase again, signaling economic stability. Interest rates are lower than they have ever been over the past few decades, and the availability of homes on the market provides buyers with the best selection they have seen in many years. So for those who might want to look at properties for purchase in the US, you will find that this is still the perfect time to buy the home of their dreams. Yes! Home prices have risen by two percent starting a few months ago, but this is only minimal when compared to the amount of value lost during the recession.
And based on my research, on the average, home values dropped by 34 percent across the country during the recent US recession. In some of the harder hit areas, such as California, Nevada, and Florida, home values dropped at 60 percent or more. With this in mind, you can still find homes at an approximate 32 percent discount, if not more. Not bad right?
Combine these large discounts in pricing with the record-low interest rates, and buyers will find that they can adjust their budgets to accommodate more than what they initially expected. Looking at it, these people who once thought they could not afford to live in exclusive neighborhoods are finding that home prices and interest rates are low enough to allow them to buy with confidence in these areas.
So when you are looking for a home to purchase in the US, it is always advisable to search for a lender prior to your home search so that you can lock into a specific low mortgage rate. Many lenders in America will always conduct a pre-qualification process for you to be applicable for a mortgage and guarantee you with an interest rate and service fee structure for at least 30 days. Always shop around to see which lender is offering the best loans in your area.
Additionally, when you pre-qualify for a mortgage in this manner, you will now possess increased buying power, and sellers will now know that you are a serious buyer and will be more willing to negotiate on the asking price to meet your requirements. Real estate agents will also be able to streamline the search process by knowing what you desire to spend.
It is also important to work with your lender on establishing the right type of loan for your purchase. Looking at it, adjustable rate mortgages may offer interest rates that are unbelievably low, but they will adjust to a higher rate at a future time. Conventional loans are always preferable because they will have a locked in interest rate for the entire length of the loan. While these luxury homes may be quite affordable at this time, it will not remain that way for long. And our family is hoping to find some good prospects soon and eventually push through with moving once everything is settled.
Good luck on your US house hunting!