Are you a first time home buyer? Have you been on the fence on whether this is a good time to buy a home in Florida? You need to read this first time home buyer alert. Mortgage rates have been on the rise for the last two months. The mortgage rates have gone up almost a full percentage point since Bernanke’s last comment on Fed Tapering asset purchases in May 2013.
Taking into account average purchase price of $175,000.00 with buyers obtaining an FHA loan, this would result in an increase in monthly payment of $99.28 compared to a first time home buyer purchasing a home 2 months ago. You don’t want to get yourself in the nickel and dime game by waiting for the rates to go lower. Instead, take advantage of the still historical mortgage rates compared to the last decade.
Home prices are on the rise due to economic improvements and inventory shortage of Florida homes that are not a short-sale or bank-owned. Low rates and low inventory have created a market of multiple offers on homes that are not short-sales. If that’s not bad enough, we are seeing first time home buyers paying more than the appraised value of a home just because they are afraid that they will not find another property fast enough.
The fact is, most first time home buyers have been burnt on losing their opportunity to buy a home at a steal because they have been outmaneuvered by large hedge funds and cash investors. It’s stupid, because money is money. If you have been pre- approved for a mortgage then why shouldn't the sellers/banks accept your offer? Part of it may be the fact that there are less good mortgage brokers left and the large lenders are understaffed and overwhelmed by mortgage applications due to these low mortgage rates. As a result the sellers and banks seem to take lower cash offers instead of worrying about financed buyers meeting closing deadlines.
It isn't likely based on current mortgage lending guidelines and regulations. The fact is, since the appraisal process has become a completely independent process without the influence of mortgage originators and real estate agents, it becomes practically impossible to inflate the value of a property. This helps avoid a real estate bubble based on overvalued home price appreciations in Florida.