Buying your first home can be challenging because it’s a whole new experience. You’re not sure what to expect and the process may sound confusing at times. Add a hot housing market to the mix and you’ve got a whole new set of challenges.
Increased competition, a shortage of available homes, and rising interest rates have created concern for many new home buyers in 2022. But just because things are challenging right now doesn’t mean you’re out of the game.
You just need to take some additional steps to set yourself up for success. Below, we’ve shared some of our tips for buying your first house in a competitive market.
How to Set Yourself Up for Success & Buy Your First Home in 2022
In case you haven’t heard, there’s been a huge surge in the number of people looking to buy a home in the last year. Low mortgage rates created a buying frenzy that turned into bidding wars and buyers paying far over asking price. While most of the frenzy has settled down, buyers today are still looking at a competitive market. Because of the number of home purchases made last year, there simply aren’t enough houses to go around.
This all has made things rather challenging for people who are buying their first home. New homebuyers who don’t go into the process fully prepared are having an extremely difficult time.
That’s why if you’re a first-time homebuyer, it’s important to take steps to set yourself up for success. Here are some tips that can help you do exactly that!
Tip #1: Reduce your debt.
Chances are, if this is your first home, you’re probably going to need a mortgage. One of the things that lenders look at when considering your application is your debt-to-income ratio. The lower your DTI is, the better chances you have of getting approved.
Tip #2: Work on your credit score.
Home prices are on the rise. While there’s not much you can do about this as a buyer, you can try to save in other ways – like getting a good interest rate. One factor that determines your interest rate is your credit score. Make sure your credit history is in tip-top shape and work on paying off high-interest debt.
Tip #3: Choose the right lender.
Having the right lender can make all the difference in today’s market. Having a lender who is able to meet deadlines will set you up for a successful closing. Competition is fierce right now. And chances are if your loan falls through, there’s going to be another buyer waiting in line to take your place. That means it’s important to do everything in your power to ensure that the closing goes smoothly, which includes choosing the right lender.
Trust Mortgage Solutions Financial
Buying your first home? With us, you’ll be in good hands. At Mortgage Solutions Financial, we’ve worked with countless new home buyers and are familiar with the intricacies of today’s highly competitive market. We’ll do everything in our power to ensure that you have a satisfactory homebuying experience. Call today to get in touch.