Two words that strike fear into the hearts of homeowners—or those who are considering buying a home—are “mortgage” and “bubble.” Those terms bring up memories of sweating over paperwork on the dining room table, wondering how to make it all work. Sometimes it didn’t.
We also remember the early 2000s, when we had access to easy money, even people with low credit scores. There were people buying homes who assumed they would refinance if the high mortgage rate became unaffordable.
But the days of easy money are gone and wages have not kept pace with prices. Investors are snatching up properties and building expensive homes on them. Bidding wars leave house-shaped shrapnel holes in buyers’ wallets, and a lot of buyers (and mortgage brokers) who are not well-versed in the mortgage business are making it worse. Builders are struggling to keep up with demand due to labor and supply shortages and many current homeowners would rather keep their existing home as a rental and purchase a new one. All these factors are contributing to the rise in home prices.
Working with a good mortgage specialist can help you navigate the brutal process of obtaining a mortgage in our fast-paced Colorado real estate market. Brett Popish, of Popish Mortgage, a Universal Lending company, explains.
“There’s a lot of competition for just one house in this area,” Brett says. “But that doesn’t mean you shouldn’t try. The time to make your move is now while rates are still affordable. Rates will go up. It’s just a matter of time.”
Buyers often ask Brett if they should wait to buy until they have saved more for a down payment. His answer is that you will never out-save the market. An example is a family that plans to save $10,000 over the next year for a larger down payment on their dream home. During that year prices will rise more than $10,000, so they would be better off buying now.
This also applies to refinancing. We have such a short window of decently low interest rates that anyone who has not refinanced should do so now. Brett says, “This could save thousands
over the life of your loan but not just with interest savings. Refinancing could eliminate private
mortgage insurance, consolidate debt, or give you equity to remodel your home.”
He recommends working with someone who understands your goals and who can tailor a
mortgage loan to help you achieve those goals. Otherwise, you are risking the financial security you have built for your family over the years. A mortgage is far more involved than interest rates and monthly payments. There are many more factors, including short-term and long-term costs.
Brett Popish and his team have over 50 years of combined mortgage lending experience
are well-versed in all loan types including FHA, VA, Conventional, and Jumbo Financing. They
also offer down payment assistance programs that include MetroDPA and Colorado Housing Finance Authority.
Call Popish Mortgage Group today to begin the journey of owning your future!