With mortgage rates falling for the first time in four years, now could be an ideal time to buy a home. There are 25% more homes on the market than last year while 26.3% of sellers are cutting their prices. Despite improving market conditions, it’s important to ensure you’re mentally and financially prepared for homebuying to avoid rushed decisions.
According to Zillow’s Market Heat Index, the market is in neutral territory, meaning it’s neither a buyer’s nor a seller’s market. This gives you extra time to find your dream home, as the typical listing on Zillow was on the market for 51 days this past July — 11 days longer than last year.
Before you start shopping, research the fees associated with homebuying to ensure you’re making the right decision for you. Hidden fees such as HOA dues, closing costs, and homeowners’ insurance often get overlooked, giving people a false understanding of their financial situations.
Resources such as a affordability calculator can help you make an informed decision about your financial future. Doing research on the types of loans available and using a loan comparison calculator can also help.
After gaining a better understanding of your financial situation, double check important documents such as your credit report to enable a smooth application process.
Remember that there will never be a perfect time in the market to buy a home. As experts from Forbes recommend, plan to make a purchase when the time is right for you.
