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Preparing to Buy During the Spring 2022 Homebuying Season

In the coming months, mortgage rates and home prices are forecasted to rise. This will cut into your buying power, so it’s important to begin preparing financially as far in advance as possible. Building your credit score can help you qualify for a lower mortgage rate. You’ll want to save for a down payment, closing costs, and unexpected repairs and maintenance. Now is also a good time to start looking into first-time homebuyer programs. These programs can provide thousands of dollars to put toward your down payment or closing costs if you qualify.

Overall, most housing markets will be competitive, although some may be tougher than others. Brunker believes the increased flexibility to work from home could strengthen demand in certain areas. Neighborhoods close to large cities but still an hour or two drive could be appealing. “I think those types of areas will see a more rapid appreciation,” Brunker says. This is something to keep in mind as you determine where you want to buy.

First-time buyers looking for more affordable homes may also face more competition. “One of the segments of the housing market that’s been tougher to break into is that starter home price point,” Kushi says. There is a large demographic hitting the prime first-time buyer age range, and builders have struggled to build enough affordable homes for that type of buyer.

With it still being a strong seller’s market, that means you’ll need to be patient as a buyer. You don’t want to panic buy and end up with a home purchase you have regrets about. Given that specific areas or types of homes will have more demand, you may want to be more flexible with where you live or what you buy. A condo or townhouse a bit further away from where you originally planned on moving could be more affordable than a single-family home in an urban area. You may not find your dream home today, but a home that works for you right now can be a stepping stone to another home down the road.

Happy Buying!

 

Evduza Ramj

Inside Realty