It’s no secret that the housing market is undergoing significant shifts, presenting both challenges and opportunities for new homebuyers. Even with higher interest rates and low housing inventory, the competition has remained fierce across the country. Despite these conditions, new construction homes have become an increasingly favorable option for many, especially first-time homebuyers!
The Appeal of New Construction Homes
Even with higher interest rates, homebuyers can still find advantages when financing a new construction home through a homebuilder’s affiliated lender. These lenders often offer competitive interest rates, low down-payment options and specialized loan programs. In addition, incentives such as closing cost assistance or rate-lock guarantees can also improve affordability. Partnering with a homebuilder’s affiliated lender can streamline the financing process and ensure a smoother, stress-free experience for new buyers!
Homebuyer Strategies When Interest Rates Are High
Interest rates have remained a challenge for homebuyers today, but here are a few strategies that could help when planning to buy a home.
- Improve your credit score: Take steps to improve your credit score as much as you can by continuing to pay bills on time, reducing debt and addressing any errors on your credit report. A higher credit score can potentially help you secure a more favorable interest rate!
- Consider an Adjustable-Rate Mortgage: Adjustable-Rate Mortgages (ARMs) often offer a lower introductory rate. After this initial offer period, the rate will adjust depending on the market. This means you won’t need to refinance to take advantage if rates decrease!
- Explore Down-Payment Assistance Programs: If you are struggling to save for a down-payment, there are numerous loan programs available to help you get into a home with a lower down-payment. Ask your lender about any program you may qualify for in your area!
- Be Patient and Persistent: Remember, for most people, buying a home doesn’t happen overnight. Give yourself plenty of time and don’t be disco
