Consider cost not price when buying a home – this sentiment is true if you are a first time homebuyer or a repeat homebuyer and it is relevant wherever you are buying a home in the U.S. and in any type of real estate market too!
A homebuyer and a home Seller have different objectives. A seller, should be most concerned about ‘short-term price’ – where home values are headed over the next six months. A buyer should be not be most concerned about price, but instead about the ‘long-term cost’ of the home.
There are many factors in determining the ‘long-term’ cost of homeownership: the mortgage rate today vs the mortgage rate in the future, the current home value vs future value with appreciation and one that is missed by many, the additional benefit of amortization that would have occurred.
Getting a mortgage is not kinda of a big deal, it is a big deal! It should always be home loan first and then go find your home. Deploying a home loan first strategy allows a homebuyer to have clarity of the economics and to get fully approved so their offer is ‘same-as-cash’ — this provided the homebuyer and the seller with certainty. Certainty is critical and is the only common objective that a homebuyer and seller have in common.
Enjoy this brief video that Kevin Martini shared on Instagram: @KevinMartiniLive
Kevin Martini | NMLS ID 143962 | Chief Mortgage Strategist and Branch Manager | Martini Mortgage Group at Benchmark Mortgage | Ark-La-Tex Financial Services, LLC NMLS ID 2143 | 507 N Blount St Raleigh, NC 27604 | (919) 238-4934 | www.KevinMartini.com | Kevin@KevinMartini.com | Equal Housing Opportunity