For many would-be buyers, today’s mortgage rates can make the idea of purchasing a home feel intimidating.
Cindy Quinn understands the hesitation. But she also believes buyers shouldn’t automatically rule out homeownership simply because rates aren’t where they would like them to be.
The key, she says, is understanding what you can afford today and making informed decisions based on your individual situation.
Start With a Conversation With a Lender
For first-time buyers especially, Cindy says the first step shouldn’t be scrolling through home listings.
It should be talking to a lender.
And she recommends talking to an actual person rather than relying solely on an online third-party site.
A lender can help you understand:
- How much you may qualify to borrow
- What type of loan may be right for you
- How much you may need for a down payment
- Potential closing costs
- What your monthly payment could look like
- What your current savings situation means for your purchase
Getting pre-approved gives you a much clearer picture of what you can realistically afford.
“You don’t want to fall in love with a house and then realize you can only afford half of it,” Cindy said.
Knowing your numbers first can save buyers a lot of frustration later.
Today’s Rates Don’t Change the Value of Homeownership
One of the biggest challenges Cindy sees with buyers is the gap between what they could afford a few years ago and what they can afford today.
That’s a difficult adjustment.
Higher rates can mean a buyer who once qualified for a certain price range may now need to consider a less expensive home.
But Cindy doesn’t believe buyers should automatically wait for rates to change.
Interest rates have been much higher historically, and today’s rate environment doesn’t necessarily mean homeownership is out of reach.
And if rates eventually decrease, homeowners may have the opportunity to refinance.
The important thing is to make a decision based on what works for your finances today, rather than trying to perfectly predict what the market will do tomorrow.
Expect the Unexpected During Inspections
Another part of the home-buying process that frequently surprises buyers is the inspection.
A home can look great when you’re walking through it. But an inspection can uncover issues that aren’t visible to the naked eye.
There may be water intrusion, electrical concerns, plumbing problems, structural issues or other surprises hiding beneath the surface.
That doesn’t necessarily mean a buyer should walk away. It means the buyer needs to understand what they’re purchasing.
Inspections provide an opportunity to learn more about the property and, depending on the situation, determine what needs to be addressed before moving forward.
Is It Still a Good Time to Buy?
Cindy’s answer is yes, for buyers who are financially prepared and ready for homeownership.
The market may cause some people to pause. Buyers may be experiencing sticker shock, and some may be waiting to see what happens with rates.
But people still need to move. Jobs change. Families grow. People downsize. Marriages happen. Divorces happen. Parents move. People relocate.
There isn’t one perfect moment to buy a home that applies to everyone.
Instead, Cindy encourages buyers to understand their own financial situation, talk to the right professionals and determine whether homeownership makes sense for them right now.
The best place to start isn’t with a house.
It’s with a conversation.