Interest rates have been rising. After years of some of the lowest interest loans in the history of the United States, changes in the economy have pushed interest rates up, leading to an increase in costs for home buyers.
But that should not stop you from purchasing a home if your family is ready to move. Everyone still needs housing. Instead, it just changes what you need to consider in order obtain a loan and buy your dream home.
Always Go to a Wholesale Mortgage Originator
First, as interest rates rise, it becomes even more important to work with a loan originator that works in wholesale mortgages. Bank lending rates are almost entirely set for high profits, which means that if you choose to go with a traditional bank for your mortgage loan, you are likely to end up with interest rates that are sizeably higher than what you can obtain through brokers.
Because I am able to work directly with wholesale lenders, it is easier for me to take your financial information and obtain quotes that are much more competitive and have friendlier terms – something that is always important but especially critical when you’re talking about higher interest rate mortgages.
Plan Your Budget Accordingly
Second, it is even more important to have a good understanding of your budget, both now and in the future, and to take that into consideration when you obtain a loan. Make sure that you’re calculating factors like expected electric bills and minor upgrades. Be confident with the pricing so you can find a home that meets your needs.
Consider the Home Itself
At lower interest rates, it is sometimes worthwhile to buy a home that needs some work and make upgrades. At higher interest rates, there is benefit to making a larger down payment, so it may be worthwhile to find a house that is a bit more move-in ready so that you can use your savings in other ways.
Call to Get Started
The mortgagelending world is constantly changing, and it is important to have someone you can trust to help you make the best decision for your home and your financial future. Contact Mike Landrum of Landrum Loans today for a consultation, or to get started with your home purchase loan.