How to Buy a Home During Interest Rate uncertainty
Home buyers are in fact faced with a litany of woes in today's market. From climbing home prices, to inventory challenges and volatile mortgage rate, that as of this morning is 6.89%. What is a home buyer to do? While experts recommended paying no more than 33% of your monthly income on housing expenses, with recent mortgage rate volatility, this may be a problem for some people. Here are 5 steps you can take that may help you move forward.
- Be aware of interest movement.
- Get pre-approved, but keep in mind that most pre-approval are only valid for about 30-60 days.
- Consider different loan options you may want to consider an adjustable rate mortgage with a fixed introductory rate that will not change for at least five, seven or ten years.
- Once you found your home, dont forget to lock your rate. You can usually lock your rate 30 and 60 days. Some lenders do offer rate lock of 90 days as well.
- Ask your lender about a float down option. This will keep your rate from increasing while allowing you to get a lower rate if rates fall during your lock.
Currently some home buyers have decided to wait and see what will happen as the feds work to lower inflation. For all other home buyers who are actively looking, it may be a bit of a bumpy ride, but it can be done. As always, thank you for visiting. Until next time... Diana