You may be asking yourself: is now the right time to buy a home? Will interest rates keep rising? If I don’t buy now, will I regret it?
Well, if you’ve been actively researching real estate online, you may have you heard the phrase, “marry the house, date the rate.” It’s been spreading throughout mortgage and real estate industry news sites and social, and it makes a lot of sense. But what does this mean to homebuyers?
If you find a home that’s on the market, one that you can afford, and one that you love, don’t let the current interest rate prevent you from buying it. The house is long term, the interest rate is not. Plain and simple.
Most people refinance their homes at some point, maybe even multiple times, to either save on their monthly payments, take cash out, or make home improvements with the equity built.
Committing to a house doesn’t mean you have to commit to the financing forever. You can always refinance to better terms in the future should better rates or products become available; but if rates get higher, you may be upset that you didn’t marry the house or marry it sooner!
On the other hand, you should keep in mind that there’s the possibility you’ll be dating the interest rate longer than you’d like to, and without a crystal ball, there’s no way to know if or when the rates will level out or get lower. Most mortgage professionals don’t anticipate rates dropping to the levels we saw in the last couple of years, so don’t get your hopes up.
The good news is that inventory is increasing and it’s getting a little less competitive in the buyer’s market, but if you’re looking to buy a home, it’s important to work with an experienced and knowledgeable real estate professional.
It’s also important to get a mortgage preapproval, which is more than just getting prequalified. Getting preapproved means a lender has reviewed your finances and has given you the okay on the amount of money you can borrow.
Anyone actively looking to buy a home should get this done first, as it gives you the advantage over competing buyers and shows the sellers you’re serious about buying a house and can afford it. If you need a lender for preapproval, I work with many trusted professionals I can refer to you.
I have been helping families buy and sell homes in the Palm Beach County area for nearly 20 years, and I’ve seen the market rise and fall. But regardless of market activity, it comes down to doing what is best for you, both emotionally and financially. Your home may be your biggest investment, and if you plan to stay in it long term, you’ll want to love the home you’re in.
If you’re looking to buy a home this year, I’d love to help walk you through the process, from exploration to closing and beyond. Let’s sit down and discuss your financial goals, your family’s needs, and come up with the best plan to get you into the home of your dreams at the best possible price and with the least amount of stress. Don’t let your dream home slip through your fingers.
