Does it feel like you are frozen out of the current real estate market? You aren't alone. Mortgage interest rates haven't dropped yet like we'd hoped, and the already low inventory levels remain constricted as potential sellers try and wait it out. The number of homes available for sale are very low.

Not a sitting-on-the-fence kind of person? Or do you need to relocate this year despite what is happening in the market?

These three strategies have helped my clients make progress this Spring!

If you already own a home...

Use some of the increased equity in your current home to pay for a temporary interest rate buydown on the new home. This would allow you to buy now rather than wait and may prevent a huge jump in your monthly mortgage payment. Then, you can refinance the home loan on your new home if/when rates drop. Two other options are to offer seller-paid points to a buyer or even using an adjustable-rate mortgage on the new home as a way of "unfreezing" your housing situation in the current market.

If you want to buy your first home...

Use gift funds, down payment assistance funds, or some of your own down payment funds to pay for a temporary interest-rate buydown on the new home. There are several affordable lending programs that have recently come on the market that may be worth your consideration. Keep in mind that if you wait for interest rates to drop to buy a home, you may get priced out of the market... again. That's because all the buyers who have been waiting on the sidelines will likely jump back into the market. When that happens, housing demand and home prices will likely skyrocket, negating any savings you had hoped to gain by waiting.

If you are unhappy with homes currently on the market...

We saw a lot of this during the pandemic — investing the money you've saved for a down payment on renovations for your current home. I know there are limitations to what your current property can do, so if that is not a viable solution, consider home-shopping with renovation in mind. Find a property that is relatively close to the home you need, and budget for renovations to take it the rest of the way. The good news is that you can finance the entire renovation because your loan amount would be based on the as-completed house value.

What is the Next Step?

At the end of the day, the best time for you to buy a home is when you are ready. If that time is now and you find the current real estate conditions difficult, send me an email at Leo@Anzoleaga.com and we'll create your personalized mortgage plan to find the best path forward together.

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