Should I Buy a House Now 2020-Josh Sarangal

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Josh Sarangal offers Luxury homes for sale in San Ramon, Danville CA, Real estate agent Pleasanton, San Ramon ca, Danville, Livermore, Indian realtor San Ramon.


Presentation Transcript

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Should I Buy a House Now 2020 Looking for luxury homes for sale in Danville Don’t get swayed by others’ opinions be on the lookout of the right Danville realtor who can help you get the perfect deal. I know that due to the pandemic there is a lot of uncertainty in the real estate market. You would think this is the worst time to buy a house but as a Danville realtor let me tell you why you’re mistaken and why this might be the time you can get the best bang for your buck. Why 2020 is beneficial for buyers As the cash flow in the market has gone down like never before the Federal Reserve System has had to cut down on the rate of interest on loans in an effort to start normalising the country’s economy as a whole. And as a buyer you can take advantage of this. We’ve all heard the question “what if the market crashes in another 6 months” While it sounds scary it might just be the reason why you should consider making a purchase now. If there is a crash in the coming six months these great interest rates will be gone and your buying capacity will be seriously affected. In such a case there is no chance you’ll get to exploit the same low rate of interest as you can right now. It is mostly when there is a market crash that investors with cash in their bank account start buying property. This means they can pick up lots at a really low price and then when the economy stabilizes they raise the prices. Hence if you are certain you will be having a fixed amount of cash inflow in the time to come as you have right now make that leap. Putting in your down payment right now is a smart move because there is great uncertainty about the future that can hinder your plans and an economic crash can significantly affect your buying capacity as interest rates go up. Why 2020 is beneficial for sellers The pandemic has scared off many sellers from the market however there are so many buyers in the market who are looking to make the most of the low rates of interest available right now.

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When there are so many buyers out there you don’t have to settle for a lower price for your property. It is a simple case of demand and supply. With a fairly priced property on the market you can attract many buyers and accordingly amp up the price too How to get the lowest possible rate of interest There are a few things which you should look out for to make sure you are getting the lowest possible rate of interest. Here they are: Credit Score Banks credit card companies and other lenders use something called a credit score to evaluate the potential risk of lending money to consumers and in order to mitigate losses due to bad debt. Credit scores not only determine who qualifies for a loan but also at the rate of interest for the loan and credit limits for cards that you apply for. A good credit score is crucial for you to get a loan at the best possible rates. The nature of your loan The kind of loan you get whether it is a VA loan a conventional loan or any other will certainly affect the rate of interest. You should definitely check out if you qualify for any of these and if you do you should undoubtedly make the most of these. Further it is obvious that the duration of your loan will also affect the rate of interest and will determine how much you’re going to pay over the long run. What that means is if your mortgage period is 15 years the rate of interest is going to be much lower than if the mortgage period is 30 years. The down payment you make Making a down payment reduces the term of a loan and the bigger your down payment the less you have to return to a lender. It is simple math then that interest on a small amount is going to be lower than that on a bigger amount. Since the interest rate is compounded throughout the tenure of the mortgage period a smaller amount not only means you finish paying back sooner but also that you pay less in interest. Remember the higher the down payment the better the rate of interest usually we pay 20 of the total cost of the property as down payment but it is worth considering if you can pay even a little bit more. Closing Cost

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Closing cost includes fees like surveys taxes deed-recording fees title insurances and much more. Generally if you put down 20 of the total price as down payment it includes these closing costs. However if you do not include these fees in your down payment then you end up paying interest on these as well as they’re included in your liability from the bank. To conclude There is a lot of research that goes into making a big decision like buying a house. You should proactively do your research to find every last offer or scheme that can help you save a buck as when the rate of interest compounds everything gets magnified. Consult multiple lenders and compare terms before you decide what loan you will be taking. Remember to talk to friends and family but more importantly get advice from a professional realtor who knows the area well. If you are looking for industry specific expert advice I can help you out. Do reach out to me for any help you may need. Phone: +1 530 760-8305 Email:

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