Friday, September 16, 2022 / by Laura Larson
The average monthly mortgage payment increased by 53.7% to $1,944 from $1,265 during the course of a year. That's a significant increase in a monthly mortgage payment if you're considering buying a home or have already tried to do so, and it might be prompting you to put your plans on hold. Particularly when compared to the previous two years, when mortgage rates were at historic lows, this increase has made homes less affordable.
The good news is that with a few straightforward suggestions, you can successfully navigate the current property market and this environment of escalating rates. Here are three factors you might want to think about to make your dream of becoming a homeowner a reality.
1. Extend the Range of Your Search Criteria
You might want to try looking a little further afield in a place that could be more reasonable if you've been looking for a property in the city center or a certain area but it's starting to seem out of your price range. You may find chances you haven't considered, which would enable you to afford more of the features you need (and want) in a home. You can do this by broadening the scope of your search or re-ordering the items on your wish list. As CNET observes: "Area growth is likely to keep up with market growth, so the town's periphery might be bustling in five years. Search in the adjacent cities as an option for venturing outside of your chosen area. You might discover additional space and lower pricing."
2. Examine your options for alternative financing
It's also crucial to consult a reliable lender to learn about the various loan options and types. Nerd Wallet claims: There are several types of mortgages that have different eligibility and down payment criteria.
When it comes to examining options for locating the finest house loan for your scenario, experts know how to steer you in the correct direction. There might be a perfect solution out there that your loan officer can introduce you to given that rising mortgage rates are making it more expensive to finance a property today. Over the course of your loan, this can make buying a home cheaper and within your financial reach.
3. Keep an eye out for grants, gifts, and down payment assistance.
When it comes to finding the money you need to buy a house, you have a lot of possibilities. Downpaymentresource.com is one excellent resource to investigate. When it comes to taking the initial step toward homeownership, looking into the specific down payment aid programs that are available in your neighborhood may be the difference between success and failure. As NAR suggests: Many local governments and nonprofit groups provide grants and loans for down payments that are intended for local borrowers and frequently have specific applicant restrictions.
Additionally, there are programs providing specialized benefits for people in particular occupations or with particular statuses, such as teachers, doctors, nurses, and veterans. That ultimately means that you have access to a wide range of federal, state, and local programs. The easiest way to do that is to speak with your lender and a local real estate agent to find out more about what's available in your region.
Contact Laura Larson now if you've been looking for a property but have found yourself abandoning the process due to concerns about growing costs. A neighborhood expert on your side could be exactly what you need to steer your search in a fresh, more inexpensive direction.