Okay, let’s face it, buying a home is one of the most expensive and taxing decisions a person can make in their life. Where do I buy? Am I ready to buy? Or even one of the biggest questions haunting today’s prospective homeowners – is now the best time to buy? Some believe that the current housing market may not be the most ideal to purchase or refinance a home, especially after those drastically low mortgage rates during the pandemic. 

So, why not just wait? Well, you may find that waiting may leave you in a particularly sticky situation – caught in another lease, not building equity, and unable to make your house a home. 

Date the Rate

According to the Fannie Mae Home Purchase Sentiment Index from September, only about 17% of individuals are optimistic that now is a good time to buy a home, and they could be right. Despite persistently high home prices and interest rates, the number of available listings has steadily increased. Additionally, homes are staying on the market longer, giving buyers more time to make informed decisions.

With that being said, it may be beneficial to consider the “marry the house, date the rate” strategy. Purchase the house at the current rate. If rates fall – “dump it.” Then, if you qualify, you could then refinance at a more attractive rate. Meanwhile, enjoy the desirable features and amenities of your property that make it YOUR dream home. 

If you are able to refinance, you could have the opportunity to unlock your home’s potential and utilize the equity you’ve built. Make it work for you! You could potentially use that equity to consolidate debt, or to add on or do needed repairs! Talk to our loan originators for more options. You also have the ability to control your living space. Want to build an extension? You can! Add a pool? Go for it!

Waiting may seem like a safe option, but real estate may appreciate in value over time, and you could begin gaining equity in your new home. Building equity may assist in increasing your financial security and generational wealth. So, how do you know when it may be time for you to make a move? 

When to Strike

Buying a home can seem like a leap of faith these days, so it’s important to recognize the signs that it may be the most appropriate time to take the plunge. Knowing when you’re ready to purchase a home involves considering some key factors. What are your lifestyle needs? Do you need more space for a growing family, or do you desire stability rather than flexibility in moving? Consider your long-term plans. Are you planning to stay in the same area for the next 5–7 years? Buying a home is a long-term commitment, and you’ll want to ensure you’ll be staying long enough to offset the costs of buying and selling a home, such as closing cost, or down payment.

Speaking of down payment, consider how much you have put aside in order to make the purchase. When you approach the closing table, the more you pay initially towards the purchase price, the less you will have to borrow. Make sure not to use all of your cash though! In case of an emergency, you want to save some funds in order to have a cushion to soften any blows to your finances. 

Don’t think you have enough, but are ready to snag that home? Down Payment Assistance Programs (DPA) are here to help! Dealing with the initial upfront payment of a home can be challenging, but with support from a DPA program, financial assistance may be just within reach. Depending on where you live and your eligibility, you could qualify! 

Lastly, you should be knowledgeable of your finances and credit score. It is beneficial to have a good credit score, but even if you don’t, there are still potential options for you! We understand that every individual has their own unique circumstances which is exactly why our loan programs are just as unique. You may not fully understand how to care for your finances or want to know how to improve your credit score, Silverton’s Community Lending division is here to help! By providing local expertise through workshops and financial counseling, we hope to empower individuals dreaming of homeownership through affordable financing. Learn more about Community Lending and explore your options! 

The Future with the Fed

What does the future hold for potential homebuyers? Well, on September 17^th during the Federal Reserve meeting, the committee decided to make its first big rate cut – good news for what may lie ahead when it comes to interest rates. Rather than the anticipated 25 basis points, we saw a slash of 50 points. This long-awaited reduction has the capability of influencing mortgage rates and causing a, definitely slow, but steady increase.

Buying a house, even in a “perfect” market, can feel overwhelming. With Silverton Mortgage, we are here to make your homebuying experience as smooth as possible. With seasoned lenders and the mortgage process done completely in-house, we can assist in making this new phase in your homeownership journey efficient and thoroughly communicated. Find your Mortgage Loan Originator with Silverton and let us help you find the best fit for you!