Mortgage rates are high, but sellers are reducing their prices. Is now a good time to buy a home? The ideal time to purchase a new home is when you are ready to move. It doesn’t matter if the rates aren’t where you’d like them to be. The perfect time to begin house hunting is when your job, family, or lifestyle motivates you to do so.
When you are ready, we recommend you get preapproved for a mortgage. Knowing how much house you can afford will save you heartbreak. The worst-case scenario would be to fall in love with a house that is out of your price range. And don’t call the first lender that pops up in your online search. Research mortgage companies and ask for recommendations. Then learn what lenders are looking for so you can get the best rate possible.
A high credit score will result in reduced rates. Make a large down payment to avoid PMI costs. Consider paying points on a mortgage. Mortgage points are a fee you pay to the lender in exchange for a lower interest rate. Just make sure you are paying for a permanent buydown and not a temporary one. If you are a first-time homebuyer, take advantage of programs that are offered on the state and federal level.
Once you’re in your new home, keep an eye on mortgage interest rates. Refinancing can be beneficial when the savings from a lower rate outweigh the closing costs. If you’re ready to invest in property, now is the perfect time to buy a home. If you are happy where you are for now, wait until rates are more appealing. Just remember, when the rates drop the prices tend to rise. Happy house hunting!