Tip #1 – Pay Attention to Interest Rates
An increase in interest rate can increase the payment on your mortgage, but it has more impact than that. The more you plan to borrow, the more a change in interest rate will affect your loan, payment, and overall purchasing power. The interest rate can also affect the overall mood of the market. Changes in either direction can cause a sense of urgency in buyers and sellers alike.
Tip #2 – You Need to be Able to Afford More Than Just the Down Payment
At one time, home buyers could get away with just the down payment coming out of pocket. All other associated fees and closing costs were able to be rolled into the mortgage. But these days, lenders want buyers to not only have the down payment amount, but also their closing costs available in cash. And with some closing costs as high as 2.5% of the loan amount, this can really have an impact on how much home you can actually afford.
Tip #3 – Get Pre-Qualified Before You Start Seriously Looking for Homes
Getting pre-qualified for a home loan doesn’t guarantee you will b