3 must do’s after a weekend of house hunting

It’s Monday…and you’ve just had an exhilarating weekend of house hunting. You’ve seen the good, the bad, and just about everything else while driving all around town. Some of the properties you just walked through may already be under contract – so you can cross them off your list!

A weekend of house hunting can be quite discouraging in a seller’s market. So how can you keep your head up when you feel like you are fighting a losing battle? Do these three things each Monday – and you’ll be ready to act when the time is right.

Catalogue the properties you viewed

Document the property address, style of home, list price, best attributes & other important details. Ask yourself this question: What kept you from being interested in the property or what made you want it?

By doing this, you’ll find that certain property features will come to the surface as most important. This will help guide your future searching and make you more confident (so you can act more quickly next time).

Check in with your Realtor

Contact your trusted Realtor to talk through the properties that were most attractive to you.  After learning of a small price change or other information, a “maybe” on your list could turn into a “yes!”

If you do find yourself interested in a property, the time to act is now. You can request a second showing or cut to the chase and get a purchase contract written up! Remember, you aren’t the only one eyeing that property in this seller’s market – so act quickly.

Stay current on mortgage rates

Interest rates change at least every day, and can swing drastically over the course of a week. A small change in interest rate can make a BIG difference in monthly payment – so staying up to date on available mortgage rates and programs is a must!

For example, the monthly payment on a $350,000 mortgage will drop by $26 if rates are just 0.125% lower! That’s a savings of $312 a year – or about one free car payment!

Just as it is important to shop lenders early in the process, it is also important to keep your knowledge level up as you hunt for that perfect home. After all, a dip in mortgage rates will make all homes more affordable.

Related posts:

What is a seller’s market? Look here.

Concerned about increasing interest rates?  Look here.

3 ways to keep your payment the same when rates are on the rise

When it comes to mortgages and the home buying process, interest rates are almost always front and center. This is not a surprising thing, as nothing else impacts the housing market quite like a quick rise (or drop) in mortgage interest rates.  Additionally, mortgage interest rates are one of the most commonly compared terms when consumers shop lenders and loan officers.

For most first time buyers, sticking to a budget is essential. So what is one to do when rates suddenly increase?  Well, there are a few options – some a bit easier to consider than the others.

Look for smaller homes in the same area

If your heart is set on purchasing a home in a particular area, interest rates have recently increased AND you are on a fixed budget, there is little you can do but search for a lower priced home. If you were looking for a townhouse, this may mean you need to reduce the bedroom and bathroom count or perhaps even switch to consider condominium units. You may no longer be able to afford a home with the upgrades you hoped to include or perhaps you can no longer afford the unit with a basement or garage.  In either case, some level of sacrifice will need to be made as the macro-environment of interest rates increases.

Look for homes in a less expensive area

Maybe your heart isn’t set on buying a home in a particular area – but rather the home’s amenities are front and center. If this sounds like you, then it may be easy to consider a home in a different school district, township or even over state lines (if applicable). Keep in mind that the school district can be a very important factor in reselling a property – so a bargain price today may be more difficult to sell in the future (and may appreciate at a slower rate overall).

Delay buying until next year

No real estate professional wants to see you delay the purchase of a home – and perhaps you don’t want to either. However, if you are set on a certain property type and location for your new home, this may be the most viable option provided that you can save money at a rate that will outpace the appreciation on the home and any subsequent increases in interest rates. Note: This may be a HUGE amount and ultimately be unknown until a time in the future. 

Keep in mind there are some significant risks with delaying the purchase of a home. First, the interest rate environment is largely unpredictable and rates could increase further – actually making the home less affordable next year.  Second, home prices could increase which translates to you spending more over the life of your loan, and missing out on a year’s worth of home value appreciation. Third, there is no way to know what the home inventory may look like.  If there are homes you would consider purchasing today, there is no way to guarantee the inventory will be available next year (Just ask anyone that wanted to buy a house in 2016 and waited until 2017 when inventories were down 40%!).