Now is Still a Good Time to Buy a Home
- Kindred Homes
- October, 13, 2023
As a longtime leader in the Texas homebuilding market, Kindred Homes wants to be a resource for you through whatever the housing market may bring. We’ve worked hard to come up with a solution to the current changes through financing incentives and the ability to work with our in-house lender. We understand that you have many reasons why you’re looking for a new home. Yet we don’t want the current market conditions to hold you back from one of the greatest purchases you’ll make.
Lately, mortgage rates have been somewhat unpredictable. Many are wondering if they should put their real estate plans on hold or purchase a new home. The reality is that interest rates are still close to historic lows, and the benefits of homeownership, as you may have already guessed, are undeniable. Here are three top reasons why now is a great time to buy plus tips to prepare your finances and take advantage of today’s rates.
3 Reasons Why You Should Buy a Home in 2023
REASON #1: Affordability
Home prices have stabilized, and mortgage rates have come down! (Even though they are higher than they have been in the last few years, rates are still historically low.) Now is the perfect time to think about locking in your new home. Then, you can still refinance at a lower rate when rates come down. Plus, Kindred Homes offers exclusive financing incentives that make our move-in ready homes even more affordable!
FACT: Mortgage rates were 6.33% for the week ending Dec. 8, down from the previous week’s 6.49%, according to Freddie Mac.
REASON #2: Benefits of New Construction Homes & Homeownership
While buying a home takes a lot of thought and planning, the benefits of owning a new construction home outweigh any doubts.
- Building equity. When you purchase a home and make monthly payments you build equity. The value of your home may also increase over time, so you can make a profit when you sell.
- Tax benefits.
- Peace of mind. A Kindred home comes with energy efficiency & brand new everything. You have the protection of new home warranties and the comfort of an expertly built home.
- Convenience. Our move-in ready homes are sparkling new and just waiting for you!
- Long-term stability. When you rent, your monthly payment may increase after your lease expires. When you own your home, your payments will stay the same year after year.
- Financially smart. When you rent, you are paying your landlord's mortgage and building their equity and credit. When you own, you are building good credit for yourself.
- Control. When you rent, you are at the mercy of your landlord. When you own your home, you can make your own rules! Plus, you can design your space and choose exactly what YOU want.
REASON #3: Our Process
Buying a new home with Kindred Homes is easy, clear, and straightforward! We have many homes available in various stages throughout the San Antonio and Dallas/Fort Worth areas. Many homes are already in process or at completion – making finding the home you want a breeze. No matter which home you choose, you’ll enjoy the freedom of creating a space that reflects your lifestyle and taste.
Our In-House Lender Makes Financing Easy
Regardless of the current market, there are always things you can do to stay in control. One main thing is getting your finances to get a head start on your home-buying journey. With Kindred Homes, we have Kindred HomeLoans, our in-house lender, which makes it even easier! From finding the right type of mortgage to helpful tools, we’ll ensure you’re confident and have everything you need to prepare for homeownership. Here are a few things to remember when preparing your finances for a new home purchase.
1. Understand what lenders look for.
The lender's main goal is to look deeply into your finances and determine your ability to repay your loan. Some things they may look at are:
- Credit scores and credit history
- Down payment amount
- List of assets (including stocks, real estate, etc.)
- Income and employment history
- Tax returns
- 2-3 months of bank statements
- Desired loan amount compared to the value of the home
- Total debt-to-income ratio
2. Know your credit score.
Check your credit score to ensure you're in range for the best deal. You can obtain a free credit report once per year at AnnualCreditReport.com. Scores range from approximately 300 to 850. Generally, the higher your score, the better the loan you'll qualify for. Check your report for errors. If there are any, dispute them. If your score is low, do what you can to improve it before applying for a loan.
3. Save for your down payment.
The more money you can save for your down payment and other costs the better. With a higher down payment lenders will see you as a lower-risk borrower. If you’re a first-time buyer, there are many programs that help with down payments and closing costs.
4. Maintain a low debt-to-income ratio.
The debt-to-income ratio is another way for lenders to determine your ability to repay your loan. This measures your outstanding debt as a percentage of your income before taxes. Debt can include student loans, credit cards, and personal loans. Ideally, you’ll want this percentage to be 43% or less.
5. Figure out how much you can afford.
With any large purchase, it’s a good idea to set a budget. Online mortgage calculators will help you calculate an affordable monthly mortgage payment. Don't forget to factor in the money you'll need for a down payment, closing costs, fees, and the costs of moving, buying new furniture, etc. You can also consider getting preapproved for a mortgage. Just make sure you’re comfortable with the loan amount you can borrow.
In the end, our experienced local lending professionals at Kindred HomeLoans will help you along the way with easy-to-use tools and resources to determine the right mortgage for your specific situation.
Connect with Kindred Homes for New Homes in Dallas Fort-Worth and San Antonio
Because of the unpredictable nature of the real estate market, the best time to buy is when you are ready. If you are ready to make a move and purchase a home now, with the financial means to do so, then there is no question that it is a great time to buy. Interest rates, as previously mentioned, are still at historic lows, which means you may be able to afford to make your move! (And there is no guarantee that tomorrow, next month, or next year will be a better time to buy than today.)
If you are ready to buy, we are ready to build! Contact us today to learn more about our process and move into the home of your dreams sooner than you ever expected.