Have you been planning to buy a home or invest in one for a while, but you keep hesitating? Why is that? Is it because you do not know what kind of loan you can get? Is it because you think the loan amount you were approved for is not enough? Or are you hesitating for some other reason?
Last week, Realtor Magazine reported that mortgages for home purchases have reached a record high. Because the prices of homes are going up so are the loan amounts that banks are approving. The Mortgage Bankers Association reported on the week of January 22nd the average mortgage loan amount hit an all-time high to $395,200. This average is for the entire country and clearly, we all know that California Real Estate is more valuable and more in demand.
Joel Kan who is the associate vice president of economic and industry forecasting for the mortgage bankers association, said “ Average purchase loan amounts in early 2021 continue to rise across all loan types, driven by a strong pace of home sales, tight housing inventory, and high home price-growth,” while reporting the latest data on mortgage applications for the week of January 29th he said “Conventional, FHA, and VA purchase loan sizes all set new survey records last week.”
Home prices are going up so that affects the loan amounts, but it is also likely that potential buyers are taking out bigger loans than they need due to the record low mortgage rates. Depending on your financial status, your intention with the purchase – first time home, upgrade to a bigger home, or an investment property – you have to understand your own financial limits and make sure that as a borrower you are not overreaching for a loan amount that will have a negative effect on your finances.
We at Amin Vali Real Estate Investment have your best interest in mind, we are not motivated by the high loan amounts and expensive price tags, we are motivated by the happiness and financial stability of those around us. We can be the sounding board you need to make sure you are getting the right loan amount and buying the right size and price property to ensure your future success and stability. We do the research; we look at the data and we get prepared to keep you from feeling overwhelmed on the beautiful journey that is property ownership.