Todd Roberson takes the long view when considering today’s real estate market. As an experienced loan officer, he’s guided his clients at Vintage Home Loan through every market scenario imaginable over the years. His advice for today’s home buyer? Don’t panic. A combination of increased interest rates and rising housing prices can make people hesitant to take the plunge. But we need to have the right perspective, says Roberson. Here, he answers some of the most frequently asked questions about home loans, refinancing and when to buy a home.
What’s the Outlook for Interest Rates the Rest of the Year?
According to the Federal Reserve, we can expect three to four interest rate increases over the remainder of this year. Gradual rate increases are intended to help combat inflation, and you can see the signs of inflation all around us, in home prices as well as automobiles, gas, and at the grocery store. In turn, mortgage rates are going up as well, but they should remain at historic lows compared to past decades.
I’d Like to Buy a Home, But Should I Wait to See if Prices and Rates Come Down?
If you’re thinking about buying or refinancing, do it now, while rates have crept up only a little, not later, when they’ve risen a whole percentage point. Rates are going up but will remain competitive, and especially here in Texas, we’re still a better buy on homes than in most parts of the country. If you’re on the fence, it’s a good time to get off.
Is It Harder to Qualify for a Home Loan Since COVID?:
Early on, a lot of loan programs did go away, but most have come back. There are options for jumbo loans as well as investment-type loans. There’s down payment assistance for those who need it, as well as programs for borrowers with lower credit scores, and the requirement for your credit score has gone back down. Loans are like snowflakes, no two are alike. Whether you’re looking for a primary home loan, an investor loan, or you’re a first-time home buyer, there are programs out there that can work for your situation.
What’s the Number One Thing People Need to Know Before They Start House-Hunting?
Know where you stand! Beliefs are wide-ranging. Some buyers think they need 20 percent for the down payment, others think they don’t need any money to purchase a home. It actually all depends on your situation. You need to be financially prepared for closing costs and prepaids required by your lender for escrow. Even if your loan is through a special program, there are still costs involved. You need to have adequate, liquidable funds on hand in your checking, savings, or retirement account. If you’re unsure of the process, or where you stand, it’s always good to reach out to your lender and have a conversation about what’s needed and what the best direction is for your situation. Don’t wait until the last minute to start the process. Get qualified for a loan at least 60 to 90 days out before the time you want to purchase a home.
