3 Tips for Buying When Rates Are High
These three tips will steer you through this high rate environment.
How do I buy a house when rates are so high? It's very obvious that rates are high. They always seem to be fluctuating, but they're still expected to go up for at least the near future. So what can I do to effectively purchase while rates are high? We've got three things for you today.
Position yourself the best you possibly can with your current financial situation. The starting point here is where your credit’s at. There's always improvement unless you're in the high eight hundreds. There's always something you can do. Lenders will analyze where your credit's at. If you are at a really, really good credit score, you can maximize the cost of buying down interest rate points. If you're at the highest point, you're going to start where the rates are great. You're going to get a great market rate. So that's a great starting point.
Be creative with the type of loan program that you're actually using. What type of loan makes the most sense? Am I going to check out what an ARM looks like versus a fixed rate? Being creative and analyzing and having enough knowledge on the type of loan to get past this high interest rate period. Because it is a temporary thing. There's always going to be an opportunity to refinance. So if you're looking to effectively purchase, being intelligent with the decision you're making on the loan side is going to be a really good strategy.
"What can I do to effectively purchase while rates are high?"
Strategize the type of home you're purchasing. We have a really unique situation right now where people are getting priced out of the marketplace with where rates are at, and so there are fewer buyers. We're in a winter market with fewer buyers already. So it's really important to strategize and have a good game plan to get the right product, meaning the home, to effectively negotiate where that price point can be if you can save money upfront. That's obviously going to drive that monthly payment down as well. Then, when you get to refinance, you'll have extra equity built in because of the negotiations you did at such a rare opportunity in the marketplace.
So if this is something that interests you or you found value in it, please check us out. If you want to check out what kind of programs we have as well as what some of our other clients are using, please reach out. We'd love to help you guys out.