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When you drive through your favorite part of town, you can’t help but check out the houses and look carefully for “for sale” signs. You are already imagining the garden you would like to plant in some front yard, not to mention the family gatherings you would like to hold inside the house. I also chose the color for the accent wall. There’s just one problem. Mortgage interest rates are too high, so taking action may not be a wise move.
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While you wait for rates to drop again, you can do more than twiddle your thumbs or sigh at paint swatches. GOBankingRates spoke to real estate experts to share their insights on financial moves that will put you in a stronger position to achieve your dream home when mortgage rates drop.
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improve credit score
Before you start considering buying a home, your credit score needs to be as strong as the foundation of your home. Matt Schwartz, co-founder of VA Loan Network, says the time you wait for mortgage rates to stabilize is best spent doing whatever you can to improve your credit score.
“A high credit score can have a big impact on the interest rate you get when you apply,” he said. “The key is to reduce your debt, make on-time payments, and keep your credit utilization low. Even a small increase in your score can save you thousands of dollars over the life of your loan.”
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increase savings
Schwartz said it’s also a smart choice to increase your savings for a larger down payment. Having a larger down payment will not only reduce your loan amount, but will also strengthen your position even if interest rates drop.
“Both sellers and lenders see stronger down payments as a positive sign that could lead to better terms and better negotiations,” he said. “Preparing now will help you take full advantage of favorable interest rates when they drop.”
Find home buying programs in your area
If you find a home you like and can afford, it’s generally best to move on, says Bob Driscoll, senior vice president and director of home lending at Rockland Trust. I’m thinking. He admits that sometimes you just have to wait, weeks rather than months.
And while you wait, you may want to look into the various homebuyer assistance programs that help people in your area and from your background.
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“There are grants available to support first-time homebuyers and they are worth considering,” Mr Driscoll said.
Network with experts
Johnny Austin, real estate investor and owner of Sell My House Now, understands the importance of building relationships with real estate agents and mortgage professionals. He said if you’re considering buying a home, one of the smartest things you can do is connect with these professionals to learn more about upcoming programs and rates.
“Plus, even if you decide to buy right away, consider getting pre-approved for a mortgage. This will give you clarity on your budget and let the seller know you’re a serious buyer.” You can,” he said.
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This article originally appeared on GOBankingRates.com: Real Estate Expert: 4 Financial Moves to Make While Waiting for Mortgage Rates to Lower
