Spring 2023: You’re Ready To Buy A New Home, But Is It The Right Time?

Why 2023 Is Different

If you’ve caught any financial news lately, you know that interest rates are top of mind for lots of folks. Due to a variety of factors, rates are starting to ease up and flatten out. That’s excellent news for would-be homeowners as we move further into the new year!

In fact, in an effort to improve affordability and accessibility for folks looking to buy a home, the U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) have lowered the mortgage insurance premium. That’s the typical monthly fee that FHA loan recipients pay on top of their mortgage payment. This 0.3% drop could save borrowers hundreds of dollars a year.

Another reason that your home buying outlook in 2023 can take a positive turn is that the power balance has shifted. While sellers reigned supreme for the past few years, buyers are now gaining more power and control over negotiations. Instead of having to bend over backwards and make big compromises to win a bid on a house that wouldn’t last even a month on the market, the flurry has slowed and sellers are more open to back-and-forth discussions.

Add to this the fact that fewer homes are selling above list price and the number of offers are down, and we can say with confidence–there’s no need to fear the current market. But maybe you’re not totally sure that you’re ready to buy. Let’s take a look at some key factors to consider.

Are You Ready To Buy?

We know that the market is easing and that right now is a great time to find the home you’ve been dreaming of, whether it’s a first home, forever home, or a starter home. But what matters even more than the market is your own personal and financial situation. You want your life goals and current circumstances to align.

So the real question to ask yourself is this: Am I in a good place and time in my life to buy a house? Let’s walk through this together.

The best time to buy a home is when you’re in a good place in your life. Otherwise, adding an extra stressor and financial responsibility might be difficult to manage. While homeownership can seem like an everyday thing, it’s on par with having a child or entering the professional world–it can be a major life change! That said, if you feel like you’re ready, we’d say it’s full steam ahead.

Here’s how you can know if it’s time:

• Regardless of the style or type of work you do, you have a steady, reliable income. This will make paying bills easier but it will also look great on your loan application.
• You have a handle on what your next few years will look like personally. While you can only do so much to control what happens from day to day, really setting down goals about things like expanding your family (or not) will affect your home buying decisions.
• You’ve been working on saving for a down payment and closing costs. If you have a nest egg put away for this purpose, then you’ve already cleared one of the biggest obstacles to homeownership. 
• There’s enough money in the bank for a healthy emergency fund. If anything serious happens (illness, job loss, etc.) this money will keep you afloat and keep the bills paid.
• You’re ready for home maintenance. Any kind of home you buy will require repairs and maintenance, and unless you own a condo, that responsibility will fall on you.
• Knowing what you like and need from a home will inform your decisions when it comes to the homes you look at and whether you’re ready to make the investment. It will also help you to determine if you can currently afford the lifestyle and features you dream of.
• Debt levels are within a healthy range. A balanced debt-to-income ratio means that you’re using available credit wisely and can earn major points on your mortgage application.

Let’s say you’re nodding along to the above list and you feel 100% ready to put down roots, but you want to be sure your finances line up. You need to know how much house you can afford–that’s where pre-approval comes in. You don’t need to commit to anything or sign any dotted lines, but a pre-approval allows your lender to check your credit and financial status right away. Then you’ll know how much you can realistically borrow, and that’s your first step to finding your new home.

There are, of course, a host of other costs to consider when buying a home and moving to a new place. But ironing out the most fundamental details will give you a clear picture and get you started on the right foot. You can easily pre-apply with Liberty Home Mortgage to learn if you are in the right financial situation to move ahead with your plans for homeownership.

Why Work With an Experienced Mortgage Lender?

Now that you know the steps to take, let’s get moving! When you work with a mortgage lender, you want to be sure of a few things up front: 

• Do they have a history of closing on time?
• Will they deliver on the quoted interest rate? 
• Do they have a habit of changing closing fees?
• Do their pre-approvals mean anything?

Here at Liberty Home Mortgage we can assure you that we stand behind our word, and our experience. We’ve been through this process countless times with our customers and they’re always happy to find that we have a track record of closing on time and delivering on promised interest rates while locking in closing fees. When we pre-approve a customer for a mortgage loan, that definitely means something, and we don’t take our clients’ trust lightly.

At Liberty Home Mortgage our purchase experts are here to help get you set up to buy your next home. You can lean on us for wise guidance, educational resources, and a wide array of available mortgage products. Have more questions? Get in touch with our team today to learn how together, we can make your dream of homeownership a reality. From a new mortgage to refinancing, we’re ready to help you get on track for a brighter future.