Mortgage Rates Are Rising, And Here Is What You Should Do
If you have been near anywhere with a wifi signal, you have heard the ramblings of the steadily increasing interest rate. Homebuyers, especially first time homebuyers, found themselves clamoring all over a market that seemed impossible. Interest rates had bottomed out to an astonishing average low for the past decades at 2.68%.
Homes were flying off the market in record time. Sellers were positioned in a space conducive to winning, while many buying clients found themselves gridlocked in the market. The consensus was if you are a first time home buyer in any Michigan city, and relatively anywhere, prepare yourself to battle against investors and other buyers willing to pay large sums of money over asking to close the sale.
The Feds eventually responded to the mounting market chaos (and other economic happenings) with a Fed Hike, which affected the interest rates. Perspective mortgages have increased, and many have abandoned the idea of taking on their first mortgage in the current climate. In this market, the key to owning a home in MI is understanding how to connect the dots strategically.
Start With Lenders To Discuss A MI Home Loan
The rates are up, but it does not mean that the market is against you. Before heading out with your REALTOR® to scout out homes for sale in Southfield, MI, seek out the assistance of a lender who is willing to review your finances, minimum credit score requirements, and other important information necessary to access to qualify you for a home loan. Lenders and REALTORS® are crucial to helping you understand the market. Their advice is based on their experience, along with the facts referencing what they are seeing. Based on your economic profile and other lifestyle-related costs, lenders work to understand and advise the ideal monthly payments that best suit you, including taking into account applicable hoa fees.
While loan officers cannot directly affect loans’ interest rates, they can utilize the tools and knowledge available to them to help lock you into the best-offered interest rate. They will suggest the most suitable first time homebuyer loan in MI, conventional or FHA. They are also available to cover the details of any available programs, including cost assistance programs that may be available for buyers to take advantage of, and outline the accuracy of each program’s details. Knowing where to start with buying a home in Michigan is critical to know what to do with the rising rates.
Grants, Down Payment Assistance, And Other Programs Will Help You Save
When the rates increased, they unwittingly solved another problem created for first time homebuyers in MI. It allowed better management of the market’s chaos and inadvertently opened the door to reviving the statewide down payment assistance programs. Money assistance programs can significantly help new home buyers purchase their first home. Each program will have guidelines, and a Michigan lender can help you with that. Still, when buying your first single-family or manufactured home, additional cash can help by covering some of your downpayment costs while allowing you to retain more upfront cash or use it to buy down the rate temporarily.
A down payment assistance program is helpful, but note that it does not rid you of higher mortgage rates. The program can be a sounding board in the home sale, and it helps decrease the cash payment needed to bring to the closing table.
Are You Searching For Homes For Sale In Southfield, Mi?
The key to combat rising mortgage rates is to form a strategy geared toward home purchase readiness. Every podcast you listen to or article you read, including this one, will share one important tip: It’s important to remember that the best time to buy a home, regardless of rates, is when you are ready. Whether you are searching for a home in Detroit, Southfield, Warren, or any city in Michigan, mortgage loans will carry the same structure. The primary goal is to purchase when you are as financially and economically ready as possible. Historical trends have taught us that what goes up, including mortgage rates, must come down. Buying a home in a market boasting a higher rate means you are not required to maintain a high rate for the life of the loan. When rates decrease, and you have owned the home for a given period, typically between 6 and 12 months, there may be the option to refinance the MI home loan and, in the process, obtain a better rate.
Tired Of Rent And Ready To Become A First Time Homebuyer?
Maneuvering the market, interviewing realtors, mentally calculating every payment for the 3rd time, and remembering the HOA fees and all of the affiliates of the process can be tedious. Still, obtaining a MI home loan while partnering with the finest REALTORS® in Michigan to help you become a homeowner for the first time is possible. We specialize in assisting individuals in firing their landlords and becoming Michigan homeowners.
P.S. We also help calculate the HOA fees.
Interested to learn more? We love to chat, contact us today. We are all about helping new home buyers!