Making a Game Plan for your Next Home
If you have been looking at moving over the past year, higher interest rates have most likely been on top of your mind. This may have caused many people to put things on pause as their monthly payments would be beyond what they can comfortably afford
What should you do next if you're in this situation?
It's important to have a gameplan in place until the rates fall within your monthly budget. Here are some proactive tips we recommend:
- Research and educate yourself: Use this time to thoroughly understand the local real estate market, local trends and the home buying process..
- Set a budget and save: Determine your monthly budget and start saving for your down payment, closing costs, and other associated expenses. Also, factor in your future emergency fund in case something needs fixing or replacing in your future home.
- Improve your credit score: A higher credit score can help you secure better interest rates. If needed, take steps to improve your credit by paying bills on time, reducing debts, and disputing any errors on your credit report.
- Get pre-approved for a mortgage: Contact lenders and get pre-approved for a mortgage. This will provide a clear understanding of how much you can afford and make you a more attractive buyer when rates drop and you're ready to make an offer.
- Connect with a real estate agent: Find a reliable and experienced real estate agent who can guide you through the home buying process. They can help you stay updated on market conditions and notify you when rates become favorable.
- Understand your Competition: Of course, everyone wants the lowest rates possible. When rates drop, so does the competition for buying a home. (Ask anyone who was looking to buy in 2020 & 2021!) If you can afford the temporary higher monthly payment and then refinance down the road when rates drop, this could be a great way to avoid bidding wars. ( If that’s not feasible with your financial situation, we recommend staying the course and being patient!)
It was my great pleasure to list our home with Khoa & her team of her husband and brother. They were able to get us the best record price in our area, which is a great help towards our new home purchase.
Being a parent with 2 little ones at home, I greatly appreciate the help with renovation, staging and the closing process. It was so well done that we got 5 multiple offers with no condition and short closing time.
I strongly recommend Khoa and her team.
- Vi Ngo
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