Navigating the Market from a Loan Originator Perspective

Estimated reading time: 3 minutes

Our Licensed Loan Originators are experts when it comes to navigating the housing market. After all, they help customers with their homebuying successes every day. As we all adjust to a post-pandemic market, we asked our own experts: how would you suggest navigating the current market?

How Do I Know What I Can Afford?

“It’s important to know your budget,” Cunningham explained, “and even more important is being comfortable with making your payments.” Using tools like mortgage and affordability calculators can provide an estimate of what you can afford. Fortin agreed, stating, “back into a payment you’re comfortable paying each month.”

Should I Wait for Interest Rates to Lower Before I Buy a Home?

Over the past year, interest rates and home purchase prices have both risen to price out some buyers. As certain purchase markets begin to normalize with more affordable prices, should buyers wait for interest rates to drop as well?

Our Loan Originators say no. “I’d advise you to stay in the market if you can purchase,” Turner explained. “With recent higher rates, it allows for less competition.” Competition in the housing market can lead to bidding wars and rising prices. In addition, if you’re priced out of the home you really want, you may be stuck renting. Cunningham shared this sentiment. “You can always refinance when the rates drop,” he said.

What Happens if I Purchase Now and Rates Drop?

“When the rates come back down, it’ll allow homeowners to gain equity,” Turner said. “When the demand of all those people that went to the sidelines come back into the market, you’ll have more equity and a lower rate to refinance into.” Refinancing may help you eliminate short-term debt, shorten your mortgage term, or improve your credit score.

Should I Aim for Pre-Approval or Pre-Qualification?

“Have a pre-approval, not just a pre-qualification in hand,” Cunningham advised. Pre-approval requires a lender to pull and review a person’s credit report, score, and proven documentation. When your information is verified, you receive a letter of pre-approval that details exactly how much you can afford. If you make an offer with pre-approval, the seller is more likely to trust that you have the funds necessary to purchase.

Who Should I Talk to When I’m Ready to Buy?

When you use a Licensed Loan Originator from Homestead Funding in combination with the expertise of a Real Estate Agent, you’re setting yourself up for the best success in the homebuying process. “Your Real Estate Agent can keep you up to date on all new listings that suit your needs and wants,” Cunningham said. In addition, both a Real Estate Agent and Loan Originator are leading industry experts that help you save energy, time, and money. When you’re ready to dip your toes into the market, contact us today.