Buying a House When Interest Rates Drop – Preparing for the Summer
February 7, 2023
Why is Summer Expected to be Great for Home Buyers
Coming out of the pandemic and economic fluctuations in 2022, we’re beginning to see the market move in favor of buyers. In the past few weeks alone mortgage rates have started to lower and predictions for the housing market are all pointing toward a “buyer’s market”.
Many experts expect interest rates to go drop by summer to as low as 5%, which is over 2% lower than current averages. While home prices have been through the roof in the past year, by summer they will likely stabilize, with Forbes predicting a national housing price drop of 5%. 2023 is the year to dive into the housing market and take advantage of low rates while they las
How to Prepare for Lower Interest Rates
If interest rates do drop in 2023, how can you ensure that you are prepared to move quickly when this shift in the market comes? One of the best ways is to make sure you are one of the first to know, follow TMFNCF on social media to ensure that you get the latest and up-to-date news on the housing market in Gainesville, Ocala, and all of North Central Florida. In the meantime, there are some personal finance practices that you can take part in to make sure you are financially ready for a drop in interest rates.
Pay off credit card debt
One of the main factors in determining your mortgage rate is your credit score. The less debt you have, the higher your credit score will be. Instead of costing yourself more money with a high mortgage rate or being at risk of denial for a mortgage, boost your credit by paying off your debt. The sooner you do so the more impact it will have on your score.
Start saving for a down payment
As your biggest upfront cost, a down payment should always be something you’re saving for. You can also choose to use some of your savings for a mortgage buydown, where you pay more upfront. By paying a lump sum of money at purchase, a mortgage buydown will allow you to pay a lower interest rate for a predetermined amount of time. This can be useful when rates are very low, and when rates are very high.
Check your credit score
Keeping up with your credit report is extremely important because there are a variety of factors that can cause your score to fluctuate. Even if you’re confident that your score is high, it is a good idea to do a monthly check to ensure there aren’t any red flags. You can also look at your bank’s website or app to see if they have the option to view your credit score. Other websites that you can check your credit score on include Equifax and Free Credit Report.
Prepare for refinancing
If you’ve already bought a home at high rates, rest assured you can still take advantage of these low-interest rates. With a refinance, you need to have your finances in the best shape possible, just as with getting a new mortgage. It’s crucial that you keep your credit score high and gather the paperwork your lender requires. As a last step, prepare your home for an appraisal, as many lenders require this in the refinancing process.
Make Your Move With The Mortgage Firm North Central Florida
Have you been holding off on making your move? 2023 is the year to buy a home while rates are low and you have the housing market is in your favor.
Finding the right mortgage is like finding the key to your dream home. Let us handle your financing so you enjoy your new home. Give us a call at (352) 500-1000 to get started today.