How to be successful as a buyer in today’s higher mortgage interest environment
This blog is for anyone wondering what you can do to succeed in the housing market today. Specifically, how can you succeed with BOTH mortgage rates and home prices being so high? Is it even possible to succeed as a prospective homebuyer?
The short answer: yes!
The long answer: read on!
📈 Mortgage rates are the officially highest they have been for over 20 years! At over 7%, it's higher than what we've seen lately. Will it go down?
☹️Unfortunately, low rates got us into the inflation mess so there is no clear future of low mortgage rates any time soon. (The Fed does NOT want to lower rates anytime soon.)
🤔 What should prospective home buyers do?
1) Don't wait to learn about your spending power and budget ⏲️
Talk with a great mortgage professional that will help you understand what you can afford (not just what you qualify for) and how you can make your future home work with your entire financial picture.
It's a lot to consider and plan for and things can sometimes move uncomfortably fast if you wait to long to get started.
Plus, we have no obligation, no cost, and no credit pull required!
If you aren’t ready to talk to a lender Financial Planners/Advisors, Financial Educators (e.g., Non-profits), or even friends or family members can all be resources that can help you get started with making a budget
Note: you WILL need to talk to a licensed/registered mortgage lender to know what mortgage program(s) you qualify for, but making a budget is something many people can help with
A conversation to get started is free and a great way to empower yourselves down the path to homeownership.
2) Shop your mortgage or Work with a Broker that will shop your mortgage for you! 🛒
Sticking with the first (or only) option you get is NOT the way to get the best possible deal, most often.
While your bank or credit union may be great for your credit card or bank accounts, chances are good that they are not going to get you the best-possible program or rate for your situation.
Working with a mortgage broker that can go to 10s or even 100s of different lenders allows you to find you the best possible program and rate quickly, and you can have the confidence that you
We have access to literally thousands of mortgage programs and are able to find the fantastic mortgage options and rates (relative to what's available today!) time and again.
3) Save as much as you can and work on your credit 💰
These are two tips that are nearly always a good idea. Both your savings and your credit impact so much in your financial lives, including the homebuying process.
If you are struggling with either your savings or your credit situation, don't fret! There are resources available to help and you do not have to be working on that alone.
I make financial and credit education a key focus of my business. While I am not personally a financial planner nor credit repair specialist, I play one on TV... (Just kidding). Actually, I do know quite a lot and have a great network of professionals that are also able to help. Many of them offer free or low cost services and getting started with a conversation just to see where you are at never costs anything.
4) Work with a skilled and trusted Real Estate Agent 🙋♂️🙋♀️🏘️
Yes, your Realtor matters A LOT with a home purchase. Go figure? Haha, yeah, this one almost didn't need to be mentioned but it would be silly to leave this out here.
Your Realtor is really the most important professional you have once you are actively looking at homes. If you are looking at homes online (Z-word, Redfin, etc.), then you start thinking about how you are going to find the right Realtor.
Don't be afraid to ask around for referrals from and make sure you are a good personality fit with your Realtor as well!
Comment if you found this helpful or if you have questions on anything at all related to mortgages, mortgage rates, homebuying, financial education or credit education!