Buying Home During an Uncertain Market
Buying a home can be a very exciting yet stressful time in one’s life. This can be very stressful when you are buying during an uncertain market. The Financial Mobility Survey reports, most consumers are still planning on making big-ticket purchases this year, with two-thirds (66%) intending to make at least one large purchase in the next year. KeyBank, who released the survey, gives these tips to those who are looking to buy a home in our current uncertain market.
1. Assess finances
Before you start searching for a home, you need to review your budget to see how much home you can afford. When looking at your budget for home expenses, you need to include the down payment, monthly mortgage payment, interest, taxes, homeowners’ insurance, moving costs, renovation fees and other expenses. A good tool to use to make sure you understand the costs associated is an online mortgage calculator.
2. Save for a down payment and additional expenses
A down payment can be a big expense that you need up front. For a mortgage, the typical down payment can cost you anywhere from 5% to 20% of the loan amount. Closing costs will also need to be considered along with moving costs or renovation costs. Talk to a local mortgage lender or banker who can help explain the different down payment programs.
3. Find the right mortgage loan officer
Finding a loan officer is just as important as finding the right Realtor. You want to find someone that clicks with you and understands your wants and needs. A loan officer can offer you tons of advice and additional insights and considerations while you are making your decision. Choose a lender that is familiar with your market and has a history of closing on time.
4. Consider all financing options
Last, you want to make sure to look at all of your options from adjustable-rate mortgages to fixed-rate mortgages. Different loan programs such as FHA, VA and USDA loans have different options to fit different needs. You will want to understand the differences to make sure you choose the right one for your financial obligation.
Remember owning your own home has tons of rewards but you need to work with both a Realtor and a mortgage lender who knows your current market. Remember, real estate is a long-term investment and homeownership can help provide a tangible asset in an uncertain market.