15 Jul Best Ways to Navigate Getting a Home Today
2020 – You started thinking about buying a house.
2021 – Ok, let’s get some money together to be ready to buy a house.
2022 – Prices are high so you slowly start looking.
Rate hike after rate hike, and now you can’t afford a home you want?
The same home at the same price, but the monthly cost is higher because of the rate hikes?
Historically speaking, interest rates are still relatively low compared to previous years. Instead of focusing on the interest rate, focus on the total monthly payment for your mortgage. Mortgage payments consist of four to five things;
- Property Taxes
- Homeowners Insurance
- Mortgage Insurance(if applicable)
Team up with your real estate agent to look at homes with low property tax rates and stay out of flood zones. This can help lower your overall mortgage payment to be more affordable. When the rates do go back down, you can refinance to a lower rate.
What should you do now?
The best way to navigate getting a home today is to follow this simple process:
- Work with a trusted loan officer.
- It is very crucial to work with an educated loan officer that you trust. They will help you navigate your finances and ensure you are getting the best deal possible.
- Improve your credit as much as you can.
- There are a few quick tricks to ensuring your credit is in the best shape possible. Keep credit card utilization low, try to minimize the amount of inquiries on your credit report, and continue to make on time payments
- Save money.
- Save as much money as you can, even if you don’t need all of it for your down payment or closing costs, “reserves” can help strengthen your file as a whole
- Work with a trusted real estate agent.
- It is a misconception that you have to pay a real estate agent for their services. While they do have to get paid, the seller pays the fees, not you. This being said, it is even more reason to work with a real estate agent to help you navigate negotiating contracts and having someone advocate for you.