If you’re unsure about the market right now, you’re not alone. It’s hard to know what’s happening while the housing market emits so many mixed signals. As supply begins to mirror pre-pandemic levels, we need to recognize that it’s the result of rising interest rates. Is our market at a stalemate? Are sellers choosing to sit tight with their locked-in low interest while buyers stand by to ‘wait and see’? Or is the spring market in full Bloom? Statistics show that we’re moving forward ~ Are YOU ready?
Buyers are extremely cautious as they navigate purchasing right now, as you should be. You’re fearful that prices and interest rates may come down in the future. I get it, but it’s impossible to time any market perfectly; if you wait until interest rates drop or prices dip – then everyone will enter the market at the same time, and you’ll be right back to the same bidding wars and price increases (been there, done that). Now may not be the best time to sit on the sidelines and wait for another year.
Right now is a great time to buy, and here’s why:
- There are fewer active buyers out there, which means you have more time.
- You don’t have to make a decision in 15 minutes or less.
- You now have the ability to look at two or three homes before you make an offer.
- Sellers are having to make more concessions to find the right buyer.
Be Ready to Make a Move When the Right Home Comes Along
Lower Your Debt
Lowering your debt-to-income ratio will help you easily qualify for a mortgage pre-approval when applying for a loan. If you have bills to pay, such as credit card balances, it is always better to whittle them down before applying for a loan.
Even though there is a bit more breathing room now, buyers must be ready! While being pre-qualified for a mortgage based on financial information gives buyers a rough estimate of what they might be able to afford, pre-approval carries more weight. Once pre-approved, you get a conditional offer for an exact loan amount from a lender.
Respect What You Can Afford
If you’re ready and able to buy a home, the day-to-day movements of interest rates should matter less than finding a home you can afford. The priority should be buying the most house you can pay for comfortably regardless of the financing terms (which can be changed down the line).
Homebuyer Assistance Programs
Coming up with the money for a down payment is one of the biggest hurdles for new homebuyers. Special loan programs that provide down payment assistance are available for eligible borrowers and can be more affordable than conventional or FHA loans. There are programs for people working in specific fields like education, law enforcement, health care, and public service employees.
Shop around at different lenders. Look at options from other types of lenders, including a traditional bank, an online lender, and a credit union.
Another way buyers can reduce monthly payments is to ask for a seller’s credit or a seller’s concession as part of the deal. Buyers can then use that money to buy down the interest rate on their mortgage and reduce their payments.
Every prospective buyer’s best time to purchase a home is unique, and the ideal time to buy is not the same for everyone. However, based on the current data, there’s no reason why you should wait. It’s unlikely that prices will be lower any time soon, and spring buyers will benefit from a greater inventory, less competition, and the ability to negotiate with sellers. The process is simplified when you work with an experienced real estate agent. I am always here to help you find your way home! Email me at email@example.com or call me at 830.305-5248. I am here for you and always happy to help!