Three Things Buyers Can Do in Today’s Housing Market
It is evident that rising mortgage rates have dominated the housing market in 2022. It has grown more expensive to buy a home since rates have increased. According to the National Association of Realtors (NAR):
“Compared to one year ago, the monthly mortgage payment rose to $1,944 from $1,265, an increase of 53.7%.”
That's a significant increase in a monthly mortgage payment if you're considering buying a home or have already tried to do so, and it might be prompting you to put your plans on hold. Particularly when compared to the previous two years, when mortgage rates were at historic lows, this increase has made homes less affordable.
The good news is that with a few straightforward suggestions, you can successfully navigate the current property market and this environment of escalating rates. Here are three factors you might want to think about to make your dream of becoming a homeowner a reality.
1. Extend the Range of Your Search Criteria
You might want to try looking a little further afield in a place that could be more reasonable if you've been looking for a property in the city center or a certain area but it's starting to seem out of your price range. You may find chances you haven't considered, which would enable you to afford more of the features you need (and want) in a home. You can do this by broadening the scope of your search or re-ordering the items on your wish list. As CNET observes:
“Area growth is likely to keep pace with the market, which means that the outskirts of town might be hopping within five years. Consider stepping out of your ideal location by searching in the nearby cities. You may find better prices and more square footage.”
2. Examine your options for alternative financing
It's also crucial to consult a reliable lender to learn about the various loan options and types. Nerd Wallet claims:
“A variety of mortgages are available with varying down payment and eligibility requirements.”
When it comes to examining options for locating the finest house loan for your scenario, experts know how to steer you in the correct direction. There might be a perfect solution out there that your loan officer can introduce you to given that rising mortgage rates are making it more expensive to finance a property today. Over the course of your loan, this can make buying a home more cheap and within your financial reach.
3. Look for Grants, Gift Funds, and Down Payment Assistance
When it comes to finding the money you need to buy a house, you have a lot of possibilities. Downpaymentresource.com is one excellent resource to investigate. When it comes to taking the initial step toward homeownership, looking into the specific down payment aid programs that are available in your neighborhood may be the difference between success and failure. As NAR indicates:
“Many local governments and non-profit organizations offer down-payment assistance grants and loans, targeted to area borrowers and often with specific borrower requirements.”
Additionally, there are programs providing specialized benefits for people in particular occupations or with particular statuses, such as teachers, doctors, nurses, and veterans.
That ultimately means that you have access to a wide range of federal, state, and local programs. The easiest way to do that is to speak with your lender and a local real estate agent to find out more about what's available in your region.
To sum up
Let's connect if you've been looking for a home but have decided to stop because you're concerned about growing costs. A group of neighborhood experts on your side could be exactly what you need to steer your search in a fresh, more inexpensive direction.