Owning a home is a dream and ultimate goal for many people. Finding your dream home can take some time, and when you find it, you are ready to apply for a mortgage so you can purchase the home and move in as soon as possible. If you are new to the home buying process, you might be unaware of the mortgage process and determine factors that contribute to real estate pricing. Read further to find out more about some factors that can determine the value and pricing of homes before heading out to find your dream home.
Updates and Upgrades
One factor that determines the price of homes is whether or not the home has any updates or upgrades to the interior or exterior. Upgraded appliances that are state of the art and Energy-Star rated and efficient, a fresh paint job, new roof, stormproof windows and doors, attractive landscaping, pools, and other comforts will bring in top dollar for properties. Home buyers won’t mind paying extra for the added comforts of upgrades. Many homeowners are also more likely to be the updated homes rather than homes that are not updated.
Interest rates also play a part in the pricing of real estate. Interest rates can make or break a home buyer’s ability to meet their mortgage payments. There are mortgage calculators available to help home buyers determine what their mortgage payment will be based on current interest rates. When the interest rates in the real estate market are lower, the ability to obtain a mortgage is more feasible for more home buyers, which in turn drives up the prices of homes. The opposite occurs when the interest rates are higher. The higher the interest rates, the more difficult it is to obtain a mortgage, decreasing the prices of homes.
Another factor that determines the value of a home is the location and neighborhood of the home. In fact, the location is typically the largest factor in determining home values. Obviously, the better and safer the neighborhood, the higher the value of the home. An example of a location that would have higher valued homes is a neighborhood that has lower crime rates, good schools, away from traffic and busy streets, close to parks and other amenities, etc. Homes in neighborhoods without these qualities will be valued much lower.
The Current Economy
The current economy also affects the value of a home. When the economy is healthy, so is the real estate market. A healthy economy is determined by current employment rates, production of goods, the price of goods and services, and the GDP.
Highland Mortgage has a team of professionals waiting to help you get a mortgage you can afford. Contact them today to get started on the road to owning your dream home.
The team of professionals at Highland Mortgage is ready to help you on your home buying journey. They can assure that you have the best possible home buying experiencing on every level.
Contact the experienced professionals at Highlands Mortgage. We are a mortgage brokerage firm in Delaware, and will help you find the best mortgage rates around so you can buy the home of your dreams.