Buyers’ opportunities and affordability may be declining, so don’t wait.
Buyers, your window of opportunity and affordability may be closing. Last week, interest rates increased past 4%, meaning you have less borrowing power for a new mortgage. Home prices are also expected to continue climbing. Even if prices only jump up 3% to 5% this year, it’ll cost you significantly more to buy a home.
If you’re serious about buying a house, here are the two things you should do:
1. Contact your lender. Get pre-approved, or if you were already pre-qualified or pre-approved in the last 30 to 60 days, get it updated with current rates. You can’t lock in a rate on a house until you’re under contract, and the time between getting pre-approved and going under contract on a house could be three to six weeks. If interest rates rise during that time, it can cost you thousands of dollars on your purchase.
2. Contact a real estate agent. Start aggressively looking for homes with your agent so that the rates stay current and prices don’t skyrocket before you find the right one.
Armed with a pre-approval and a great agent, you’re certain to find the house of your dreams. If you have any real estate questions or a topic you’d like me to cover in a future blog, just send me an email or leave a comment. I’d be glad to help you.