As 2023 draws to a close, homeowners are considering refinancing their…
To say that the economy is unpredictable is an understatement, particularly in recent weeks and months. Economists, politicians, and industry leaders are offering their takes but at the end of the day, no one really knows how things will play out. In the meantime, policy changes are impacting pricing and industries, including banking and lending, in profound ways. The hope is that incremental interest rate hikes will thwart inflation and stabilize the economy. As a result, interest rates are at levels not seen in many years.
These are things that our out of our control.
For homebuyers, that means biting the proverbial bullet and purchasing a home if they must. For others, it means toughing it out in hopes that the climate changes for the better soon.
Control the Things That You Can
If you are planning to buy property, there are things you can control to ensure that you are in the best position possible when you either need or want to buy in today’s market.
Set Your Budget
Virtually everyone has lost buying power with the recent interest rate hikes. The 350k house you could have afforded last year may be out of reach today based on how your monthly payments are calculated once a larger interest payment is factored in.
In times like these, it’s best to be realistic. Overreaching on budget right now may not be the best course of action.
Manage Your Credit Score
Everyday credit management helps to improve your credit score. Even 10 or 15 additional points on your credit score can mean a significant improvement in the interest rate a bank will be willing to extend to you. Pay credit cards down, pay on time, and be mindful of the lines of credit that you open. There are many resources available to track and manage your credit score. Consider researching and choosing the tool that works best for you if you’re planning to buy a property soon.
Save for a Down Payment
If you’re planning on putting off a home purchase for a few months, keep saving. The larger the down payment, the smaller your loan will need to be. A larger down payment can mean thousands in savings in the long run.
Seek Out Knowledgeable Real Estate Professionals
Local real estate professionals have knowledge and resources within the area you’re looking and can help you navigate a home purchase. They are highly familiar with the local market, and can help you make the decision that is best for your situation. Most good agents want their clients to find the right home.
Nothing is Forever
As markets continue to shift and rates (hopefully) start to settle back down, you’ll be able to refinance your home for a more favorable rate. You can also move if you had to settle for less home than you originally wanted.
Principle Abstract and Settlement Service has years of experience assisting homebuyers through their home purchase. We have relationships with some of the most reputable lenders and real estate agents in the area, and can help you save on your title work.
Ready to get started? Give our office a call and a member of our team will be happy to assist you.