Based on statistics made by experts:
Compared to one year ago, the monthly mortgage payment increased from $1,265 to $1,944 (+53.7%)
If you’re planning on buying a home that may be a big increase in the monthly mortgage payment, and it may be causing you to postpone your home-buying plans. This increase is making homes less affordable, especially compared to the last two years when mortgage rates were at historic lows.
The good news is you can still work in today’s housing market with a few tips. Here are three things you may want to consider to help make your homeownership goals come true:
1. Review Different Financing Options
Working with a trusted lender to learn about the different loan types and options is very important. According to Nerd Wallet:
“A variety of mortgages are available with varying down payment and eligibility requirements.”
Experts know how to explore different ways and guide you in the right direction to find the best home loan for your case. With these increases in mortgage rates, it’s becoming harder to finance a home today, there may be an specific option out there your loan officer can find for you. This could make a home purchase more affordable and within your financial reach over the time of your loan.
2. Look for Gift Funds, Grants and/or Down Payment Assistance Programs
These are vary common nowadays due to the current housing market, even governments are offering assistance programs, there are many options available when it comes to securing the funding you need to purchase a home. One valuable resource to explore is downpaymentresource.com. Searching for specific down payment assistance options available in your local community could be a game changer when it comes to taking your first step toward homeownership. As NAR indicates:
“Many local governments and non-profit organizations offer down-payment assistance grants and loans, targeted to area borrowers and often with specific borrower requirements.”
Plus, there are programs and special benefits for individuals working in certain professions or with unique statuses, including firefighter, teachers, doctors and nurses, and veterans. specially in our case, Heroes Housing makes sure to contribute part of the realtor and the lender’s commission towards your closing costs, and that is on top of any grant or down payment assistance program you may find.
Also, there are many federal, state, and local programs available for you to explore. The best way to do that is to connect with a local real estate professional and your lender to learn more about what’s available in your area.
3. Expand Your Search Area and Filters
If you’ve been searching for a home in the middle of the city or a certain area that’s starting to feel out of your price range, you may want to try looking at a different area that could be more affordable. Expanding your search location or re-prioritizing the items on your wish list can open up opportunities you haven’t considered, and that could help you afford more of what you want and need in a home. As CNET notes:
“Area growth is likely to keep pace with the market, which means that the outskirts of town might be hopping within five years. Consider stepping out of your ideal location by searching in the nearby cities. You may find better prices and more square footage.”
If you’ve been looking for a home and have lost motivation because you’re been worried about increasing costs, let’s connect. Having a team of local professional advisors on your side may be just what you need to guide your search in a new and more affordable direction.