In times of uncertainty, future homeowners become nervous at the possibility of their plans to buy a home becoming interrupted or stopped altogether by the unknown. The most googled real estate questions in 2023 reveal how many people are eager for answers to prepare for a major life shift. After the uncertainty caused by the housing crash of 2008, many are still hesitant to make any decision regarding real estate, and there is misinformation or a lack of understanding dictating unease.
Mosaik Real Estate
believes its clients should be as educated as possible, especially when stepping into the California real estate market. Therefore, we at Mosaik are here to answer the most searched real estate questions in 2023.
Is the housing market going to crash?
Statistics all point to no. If the events of 2008 taught us anything, it’s learning what signs to look for. The ratio between supply and demand and how it’s balanced determines the prices of the local real estate market. The California Association of Realtors reported on housing market trends, noting a minor increase in interest rates caused a slowdown
in March 2023 sales while maintaining overall demand. This creates a balance in the market, making it more sustainable in the long run.
In addition, the real estate market crash was the result of low-quality loans given to people who didn’t have enough equity or qualifications to maintain payments. Nowadays, the process for getting a mortgage is more rigorous, requiring an adequate credit score and viable equity.
Which is better: buying or renting?
The answer: it depends. Dozens of factors are considered in the final decision to buy or rent a property, from financials to lifestyle to personal investment. Financially, conduct an overview of mortgage costs, reviewing your savings and assets concerning the inevitable costs of buying or renting a home.
Owning a home allows you to write off a percentage of your mortgage payments as a tax reduction. However, this might be difficult, given rising mortgage rates. There is also major security in owning a home outright, making the payments worth it in the long run. On the flip side, the mortgage may take a while to pay off, on top of state and local taxes. Having an emergency fund on hand for unforeseen maintenance issues also adds to the cost. It is the responsibility of these unforeseen problems that make renting a desirable option. If an issue arises, the financial and legal responsibility for the property lies at the feet of the landlord.
Now more than ever, people are embracing more unconventional means of work, such as remote work, allowing for a flexible living situation. However, as a renter, there is a lack of control regarding property costs. The real estate market has seen increased rent costs in the last two years. In addition, if your landlord is not reputable, there are higher risks of fraudulence or poor behavior, leaving you as the renter at a disadvantage.
How much is expected for a down payment?
For a conventional mortgage on a California home, at least 20% of your loan payment will have to be put down for a home. Though each state and mortgage lender will differ, the average payment for a down payment made on a California home can range between 15% to 20%.
When should I apply for a mortgage?
Apply for a mortgage when you have all your ducks in a row financially. Get your credit score to a place where lenders feel confident giving you a loan. Most experts advise between 740 and 850 for the best chances of acceptance. Another factor in timing is applying when you have a stable income.
Though difficult for entrepreneurs or new homeowners, having a stable income goes a long way in preparing for the financial responsibility of a mortgage. Most lenders check employment history and streams of income to determine eligibility. At the end of the day, they want to ensure you can make regular payments of the same amount. Finally, check your savings. Can they cover four months’ worth of expenses? If yes, then you have an advantage and can comfortably apply for a mortgage. These are all factors to consider when finding the right time to apply for a mortgage.
Do I need a real estate agent?
There are a few alternatives to take. However, it is advised to use a realtor. Realtors like those at Mosaik Real Estate
have the perfect balance between personal and professional. With concentrated efforts in the Bay Area, the realtors at Mosaik have over 20 years of experience navigating the local market, including real estate in the Richmond District of San Francisco. Our agents
act as advisors, allies, and advocates to ensure clients feel supported in the buying and selling processes. Testimonials from previous clients
help to exhibit our expertise, availability, and attention to detail.
Ready to take the next step?
Mosaik Real Estate has managed many homes for sale in the Sunset District of San Francisco, connecting buyers to reliable mortgage lenders and sellers to experienced staging services. We understand buying or selling a home is more than a simple business transaction and a major life change requiring immense care. Our agents are committed to making sure you reach your real estate goals.