Tips for Your Love Life

So, what happens when you fall in love? Are you driven by the passion? Do you overlook any potential problems that might develop in the relationship? Or perhaps you are cautious from the get-go and prefer dating for some time before making a long term commitment. Believe it or not there’s a corollary to buying a house. That is especially true in today’s market.

Back to our tempestuous lover who has fallen head over heals. That can be the result of walking into a home. Some realtors claim a buyer makes a decision on a house within minutes of walking through the front door. Head over heals. But mortgage rates have increased substantially in recent months (although, as of this writing they’ve slipped downward). This love affair is going to cost you money. You just have to have this house. So, what to do?

Brad at VALoansMN has a solution. If you’ve talked to him perhaps you’ve heard him say “date the mortgage, marry the house”. This makes a lot of sense in today’s housing market. As mortgage rates increased there is downward pressure on home prices. About a year ago we were definitely in a sellers’ market. We were seeing great price increases and yet we also saw some multiple offers which, in some cases, drove the sale price above asking. That is not the case now.

The pendulum has swung back toward the buyer giving you more power at the negotiating table. Realtors always seem to say “it’s a good time to buy” but there may be truth in that. Now is a better time to buy than say one year ago. Home prices have stabilized or have fallen. So when you fall for that home remember what Brad says; go ahead and marry the home because you’re only “dating” the mortgage. 

Just because you’ve made a longer term commitment to the home doesn’t mean you will end up living with the mortgage for ever. You'll notice home loan rates go up and they go down. No one can predict the future. If you get a VA Loan today at 6% might that rate be less attractive due to a future of falling rates?  So take advantage of another VA Loan benefit and refinance at a cost much lower than conventional loans. Remember, you’re only dating the mortgage. You’re not married to it. On the other hand let’s say inflation is unforgiving and rates tomorrow are higher than your 6%. In this scenario you may look like a financial genius for locking in today’s rate.

Don’t let fear of fluctuating rates keep you from your true love. Go ahead, get married to that house and remember, you’re only dating the mortgage. At VALoansMN we will help you with your love life. Well, at least in terms of housing and mortgages.