04/06/2024
🔝🏡 From 2022 to 2024, the rate for a 30-year fixed-rate mortgage has more than doubled, which has had a significant impact on what you can afford. However, there are several ways to boost your buying power!
Here are four ways to do so:
1. Down Payment Assistance
As a first-time homebuyer, you can take advantage of several financial assistance programs that can help you with down payment, taxes, or refinancing your loan. These programs can help you make the most of your available dollars.
2. Certain Loan Options
There are more loan options available than just the 15-year and 30-year mortgage. If you’re a veteran or have other select jobs, you could qualify for a loan with low-rate options.
3. Getting Pre-Approved
Getting pre-approved will help you with many uncertainties in the homebuying world. When you can show a seller that you’re serious, it gives them confidence in your offer. It also shows you your budget for what you can and cannot buy, giving you a clear picture of what’s possible.
4. Better Credit = Better Options
Your financial history and future are among the most important factors that influence your buying power. Your credit will be pulled when you get a mortgage, showing loan officers your credit score. This, along with your debt-to-income ratio and future assets or expenses, will help your mortgage company determine your rate. Based on whether they like what they see, you could be paying less each month.
SILVER LININGS IN THE CURRENT MARKET
With mortgage rates higher than they’ve been in years, you may think that now is not the time to buy. However, there is still good value to be found out there, and with fewer buyers, you may find that there is less competition. This will help you when negotiating the price.
Sellers may also be eager to offer concessions, or even help you buy down the rate of your mortgage for the first few years of the term. However, to get the best and most detailed answer and finding the best solution for your specific homebuying needs, we recommend talking to a loan expert.
Source: Guaranteed Rate Affinity
