Home prices are sky high, but loan interest remains low, and according to experts, Latinos are buying the most.
According to experts, it is predicted that in the next 20 years, the Latino community will make up 70% of all new homeowners in the country, but what should you know, before venturing to buy yours? An expert explains.
Owning a home is an essential part of the American dream, and in the last year, that dream took on another meaning.
“During the pandemic, a house stopped being a place where you eat and sleep, to a place where you eat, sleep, work, study, exercise, entertain yourself,” said Andrew Grant-Godoy, manager of Wells Fargo Home Loan Market.
Precisely, according to the census bureau, some 700,000 Hispanic families bought their home in 2020, and the trend continues.
“70% of the houses that are going to be bought in the United States, from now on, until the year 2040, 70%, will be by Hispanics,” said Grant-Godoy.
And while home prices have skyrocketed, low interest rates on home loans make it a good time to buy. But beware, you have to do it intelligently.
“The joke about buying a house is not just buying a house, it’s keeping the house, it’s taking the house and keeping it for the long haul,” Grant-Godoy said.
And how do I calculate how much I can spend on a house?
“A general rule of thumb is 3 to 1: of what I earned, I can probably buy three times what I earn. So if I make $ 50,000, I can buy something that costs $ 150,000, ”Grant-Godoy said.
When looking for a loan, it is important to understand your situation, for example: how much you earn, how much savings you have, if you are at the beginning or end of your career, or if you can pay a higher or lower down payment so that your monthly payments are minors.
Therefore, it is recommended to go to a professional to guide you, but first, you can do your homework, and give yourself a good idea to know which loan you could qualify for.
You can visit sites like wellsfargo.com, realtor.com or zillow.com where they have calculators that will help you determine how much you can afford to pay for a home, among other tools to finally fulfill your dream of owning a home of your own.
The main thing is not to make impulsive decisions when buying a house, remember that the secret is to keep it long term, so if someone offers you a loan for more than you know you can comfortably pay, get a second opinion , and prevent your dream from turning into a nightmare.
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