Just like the high desert temperatures of this state, Arizona’s housing market is hot, too. Since the Great Recession in 2008, this state’s home prices have rebounded significantly; a decade and a half later, the average home is worth over $400,000. This fiery housing market is due in no small part to the many retirees, flush with cash, who are looking to settle down in a warm climate that welcomes senior citizens.
However, the market is stabilizing in 2023, with homes staying on the market for over 30 days longer than last year; some sellers are even finding they must drop their prices to attract a buyer. While the market still favors sellers, if you’re ready to get the keys to your own castle, this is one of the best times to start pursuing a mortgage to finance a home.
This is especially true because mortgage rates are expected to drop significantly over the course of this year, which signals that you should start researching and saving now in order to capitalize on the greatest rates you can. But just because the market conditions are getting friendlier to buyers doesn’t mean that you should accept any interest rate available just to snap up a property; it’s essential that you’re still laser-focused on good deals when shopping for a mortgage.
Today, we’ll discuss why mortgage brokers like District Lending can be a make-or-break factor in whether your Arizona home-buying experience is a dream or a nightmare.
Mortgage Rates Are Dropping, But Even 0.01% Can Make A Huge Difference Over Time
As the economy weakens, mortgage rates also get lower for those seeking to purchase a new home. The Mortgage Bankers Association predicts that mortgage rates will drop as low as 5.5% by the end of 2023; the national average sits around 6.4% as of April 2023. With such favorable rates, you might be tempted to skimp on your mortgage search and go with the first one you see, but this can be an incredibly costly mistake.
One of the reasons that mortgage rates are so low when compared to credit cards or other loans is that mortgages are much larger than other loan types, and therefore a small difference in rates can stack up to thousands of dollars over time.
Even something as small as 6.1% versus 6.3.% can save you an enormous sum over the span of your mortgage, which can then be reinvested into raising your home’s value. If you take some time to calculate your mortgage payment at slightly different rates, you can see exactly how much you’ll save each month – the results may truly astound you.
Mortgage Brokers Are More Essential Than Ever In A Tight Housing Market
A mortgage broker is able to find you far more deals than you might be able to hunt down on your own because they work with dozens or even hundreds of lenders at a time. They’ll be able to look at your specific situation and find you the best rates based on your credit score, budget limit, down payment, and some demographic factors such as whether you are a veteran of the military.
More than that, because they have a relationship with these lenders, they may be able to negotiate for a better deal on your behalf. Another great component of working with a mortgage broker is that they can help those with less-than-stellar credit finance a home. With their long experience in the mortgage industry, they can help advise you on how to raise your credit score before applying, and they can also find lenders that have more flexible limits on how low of a credit score they are willing to accept.
For example, your credit score may make you eligible for a Federal Housing Administration loan, which has incredibly low-interest rates and requires a smaller down payment.
For veterans, they can help you apply for a VA loan, which requires no down payment whatsoever and has very favorable interest rates. Because a mortgage broker like District Lending gets to know you as a person, they can figure out exactly what’s right for your unique circumstance, hunting far and wide to get you the best interest rate.
They’ll also be able to guide you through the application process, ensuring that you won’t miss out on any important deadlines because of paperwork errors. You’ll have someone in your corner, ready to advocate on your behalf to the many lenders with which they work.
If you’re ready to take the leap into home ownership, don’t go it alone: even in the best buyer market, mortgage brokers can help you hunt for the lowest interest rate and most favorable terms possible.
The Grand Canyon State can have some truly grand prices on homes, but with the help of a broker, you can knock down those numbers to a far more delightful price tag.