Friday, August 5, 2022 / by Jake Uriegas
TIPS TO KEEP BUYERS FROM BEING PRICED OUT OF THE MARKET
After a roller-coaster of two years with steep price increases and a low inventory of homes, the market has
been challenging for buyers, especially first-time home buyers. And although we see some relief on the
horizon with more inventory coming to the market, the feds have just announced another rate increase,
with more coming later in the year.
Here are four tips on how you can beat the Fed's rate hikes and turn the tables on challenging market conditions.
There's not a lot we can do in the case of global inflation and federally-set interest rates, but as a home
buyer, here are some tips to consider when home shopping that can ensure you don't get priced out of the
Tip Number 1:
Spend some time shopping for a sweet mortgage
There are so many different options available for home loans with different rates, fees, conditions, and
even perks. Making the right choice can save you thousands of dollars over the life of the loan. Before
signing any agreement, ensure you have at least two or three competing quotes for comparison.
Tip Number 2:
Pick a location that doesn't break the bank
Not everyone can afford to live in the city or neighborhood of their choice. It's an uncomfortable truth, but
it's easy to get priced out of an area as the cost of everything skyrockets. But that doesn't mean you can't
find a fantastic place to call home—the further out from the larger well-known cities, the lower the prices.
And there are still bargains to be found if you know where to look.
Tip Number 3:
Get a Low Down-Payment Loan
One of the biggest worries when buying a home is coming up with the down payment. Saving 10-20% of
the purchase price can seem impossible sometimes – unless you snag a loan with a low down payment
option. FHA and VA loans, to name a few, come with attractive down payment requirements, boasting a
minimum 3.5% and even zero percent down options.
Tip Number 4:
Consider Purchasing a Fixer-Upper
If you're prepared to get your hands dirty, you can turn your purchase into a lucrative investment. Most
people don't want the hassle of renovating an older home, but for the 21% of people who would consider it, buying a fixer-upper is a viable way to get into your dream home earlier.
If you're considering buying a home this year, it makes sense to act soon. With rising inflation kicking up
interest rates, and a cooling real estate market, purchasing sooner rather than later means you can
stabilize your monthly housing cost and invest in an asset that historically outperforms inflation.