Home Buyer Scaries
Happy October!! Seems like time is just flying right by and I’m adding more and more layers every day! As we’re getting into the winter months here in New England, most people tend to hunker down and hibernate, if you will, for the winter and start showing their shadow again in April.
If you are skipping the hibernation this year and happen to be in the market to make a move in the next few months, but are apprehensive about the current market, let me assure you that there are benefits to buying now and there are ways to prepare yourselves for success.
While the current housing market is scary, the interest rates are not. Depending on the type of loan you’ll be taking on (15 year or 30 year) the interest rates are staying pretty steady between 2.6% – 3.3% (guaranteedrate.com). This means that you can lock in a pretty sweet deal. So while housing prices are trending higher, especially in Southern RI, the interest rates are not and can be locked in at a tremendously low rate. This means lower interest to pay off over 15 or 30 years which means you can allot more of your savings to your monthly payment on the principal, which will bring that big purchase price number down faster.
Another advantage of buying in the winter months is that, historically, the housing market tends to be less saturated or busy as we get into the holiday season. This is good news for you because there will be less competition for homes, and hopefully no open house cage matches. While there is no certainty that more homes will become available in the coming months, there usually are less buyers, your competition, looking for homes. With that being said, I have a hunch that with less buyers saturating the market and homes staying on the market longer, we may see a drop in prices. This is just a personal thought based on nothing more than a little research, but hey, you never know!
So what can you do to put yourself in the best position possible to purchase a home in the next 6 months? BE PREPARED! Are you working with a mortgage lender and a Realtor? These two people can help guide you into starting the process of buying the right way and have your back through the whole transition, soup to nuts! Your mortgage lender will help you get pre-approved which is a major first step, especially now, because you want to know how much you can afford before you go frolicking through homes AND a lot of showings/open houses offered are only allowing serious buyers in. And a “serious buyer” is someone who has their finances in order and is pre-approved to purchase a home. Your Realtor will work closely with your mortgage lender and you to understand your exact wants and needs in a home and have great insight into what’s on the market and coming soon too! Both of these “team members” of yours will guide you through each step and ensure that they have your best interests on top of mind.
So after all this, think you’re ready to get your feet wet in the home-buying market? If you’re still a bit apprehensive, let’s chat! We can take a more cautious approach and set our timeline out 6 months – 1 year! That way, you have plenty of time to prepare yourself, get pre-approved, and watch what comes on the market to understand what is popular in your area and what may stay on a bit longer and give you a better chance of success! I find that having a really comprehensive idea of what my clients are looking for and setting expectations early ensures great success.
As always, reach out anytime for answers to your questions, advice, guidance or to start your home-buying adventure!