You can’t turn on the news without hearing negative information about the economy. Gas prices have skyrocketed, inflation is at rates unseen since the 1980s, and the government raised interest rates for the fourth time this year in July. People considering purchasing a home are rightfully concerned; when is the right time to buy a home?
However, potential homebuyers must realize that the economy shouldn’t be a deciding factor in purchasing a home. Instead, personal finances, your needs, and your budget should be your primary considerations. The economy has ups and downs, but the housing market has consistently grown throughout history, despite numerous recessions and economic downturns.
How To Buy a Home: First Time Home Buyers
First time home buyers often aren’t very familiar with the home buying process. It may seem very overwhelming. However, with a bit of help, it is pretty easy to find a home that fits within your budget and meets your criteria. The first step is to obtain pre-approval for a mortgage.
Banks offer mortgages to individuals who financially qualify. To obtain pre-approval, you’ll need to provide evidence of your income and undergo a credit check. Once the bank reviews your documentation, they’ll provide you with a pre-approved home loan. The pre-approval indicates the amount of money the bank will lend you for your mortgage. You’ll use this information to search for homes you can afford in your local market.
Sellers and realtors favor individuals who have a prequalified home loan. Pre-qualification signals you are serious about buying a home, and a lender has approved you for financing, making the home purchase process much smoother. If you’re not sure where to turn for prequalified mortgages, check out Fast Financial. Fast Financial partners with various lenders and provides a quick pre-approval application that you can complete in minutes.
Should I Buy a Home in the Current Market?
You shouldn’t let the current economic market affect your decision to buy a home. While mortgage rates have increased, there are excellent buying opportunities available. Furthermore, by prequalifying for a home, you can lock in the current rates for some time – usually up to 60 days [1]. Potential homebuyers who plan to look for a home in the coming months can take advantage of the current mortgage rates by paying an additional fee to lock in the rate for their home alone. Most lenders will agree to lock a rate for up to 180 days in exchange for 0.25% to 1% of the purchased home’s value [1].
The decision to purchase a home is a personal one. However, by buying a home, you’re investing in a place to live that will gain value over time. Instead of paying a landlord a monthly rental fee, you’re paying a mortgage. Once you pay off your mortgage, you’ll own your home free and clear.
Get Help Buying Your Home with Fast Financial
Fast Financial is a mortgage broker that helps potential home buyers obtain the mortgage they need to buy a home. We partner with lenders including Fannie Mae, Freddie Mac, Quicken Loans, and many others. To start the pre-qualification process, visit our site today or call 877-687-FAST.