When it comes to buying a house, changes in the market or interest rates can be daunting. However, it may be the perfect time to take action and use a different strategy. In today’s market, supply and demand plays a major role in determining prices and competitiveness. As the market starts to cool, many buyers may freeze and not know what to do. But with the right approach, this is an ideal time to take action. Here are three strategies that can help you navigate today’s market as a buyer.
Expand your search criteria: If you can be flexible on some of your search criteria, it will give you more options to consider. Think about what you’re willing to be flexible on. For example, is lot size important? Do you have to have a pool? Are you willing to commute a bit further to expand your area search? As you start to think about it, many people’s initial non-negotiable list has some flexibility to it.
Look at different financing options: The market is constantly changing, and there are many good options for buyers today. One popular option is the 2-1 buy down, where the seller offers you a credit towards closing and you use that money to buy down your rate for the first and second year of your mortgage. Discount points, where you or the seller provide a credit and you can purchase a cheaper interest rate, are another option. Another great lending option is to get in the house and then consider a refinance down the road.
Get creative about where your money’s coming from: You can find grants, down payment assistance programs, or even get gift funds from friends and family. For example, the Florida Hometown Heroes Program provides an up to $25,000 grant for first-time buyers who qualify with certain occupations. There are also loan programs such as VA for veterans and FHA for first-time buyers, which don’t require as much money down.
In conclusion, with interest rates higher than we’ve seen in most of our adult lives, it’s important to be informed and take advantage of the market. Remember, it’s not a swear word, discount points can be your friend. Get creative and you can take advantage of this market and get into the house of your dreams.