The world has been in a state of flux for the past few years as the coronavirus pandemic changed the global economy. Among the many markets facing a dramatic impact from lockdowns, quarantines and more, the housing market is no exception; prices have seen unprecedented shifts, and there appears to be both a surge in costs and a large number of homes entering the market. Is now the right time for you to buy a house—and if so, how do you properly prepare? Before you make a commitment to a property, be sure to familiarize yourself with the important factors at play in this home buying guide for 2022.
Is Now The Time To Buy A House?
The time to buy a house is when you need one—if you simply cannot wait because you lack housing in general, the best time to commit is as soon as you are able. However, if you have the means to enter the market at any time, 2022 may seem like a turbulent year to do so. The demand for homes and high purchase power of landlords scooping up properties in residential neighborhoods has driven the price of the average home to new highs. That being said, market instability has resulted in lower than average mortgage interest rates, so choosing to commit before the market fully returns to equilibrium could net you thousands of dollars in savings over the life of your loan.
In the end, your financial readiness is the metric by which you should determine the timing of a home purchase. As spring begins to creep across the country, peak buying season begins—but more buyers than ever are interested. Be ready to stick to your guns and walk away if the deal is not right.
Preparation Is Key for Homebuyers In 2022
As you prepare for a home purchase in 2022, it is vital that you adequately prepare, both in terms of finances and also with your generalized life planning. Do your research before you begin looking at homes; it is difficult to give up on a property that you like, even if it does not fit your needs. This is why you must determine what those needs are before you fall in love with a home. Do you need to consider school districts? Access to restaurants and entertainment? Are neighborhoods you are considering loud or quiet, well maintained by the city and more?
Do The Legwork On Finances
Your finances are the primary driving factor behind a home purchase. Take time building your credit score, paying down debt (to improve your debt-to-income ratio) and calculating your home budget. The amount you are preapproved for does not necessarily reflect what you can actually afford. Remember that your mortgage payment is just one cost; you will also need to pay for insurance, property taxes and unexpected home repairs. The size of your down payment will impact your mortgage rates too.
Select Your Partners Carefully
You will likely not approach the homebuying process alone, which means you need to take time to vet those you work with. Your real estate agent, mortgage company, home inspector and more are all important individuals in your journey, and you should be able to trust them. Do not rush a purchase with partners who do not have your best interests in mind.
Do Not Neglect Important Closing Processes
Closing on a home can be a stressful time, with mountains of paperwork to complete. However, do not neglect some vital decisions during this process—including title insurance. You may be tempted to remove this line item from your closing costs, but title insurance is a critical element in protecting your financial investment. Without title insurance, you could lose any equity in your new home or even the home itself should an issue arise with the title to the property. For a one-time cost that is a percentage of the home’s overall value, you can rest assured that you are protected for as long as you live at that location.
Trust The Experts To Help You Make The Best Decision For Your Financial Future
Whether you are considering buying your very first home or you need to move from your current residence, all of the minute details of the process can feel overwhelming. The good news is that experts are always available to help; if you need guidance on title insurance and other real estate matters, do not hesitate to reach out to the experts at Mathis Title Company. We would be happy to help you make the best decision for your financial future. Reach out to learn more or to schedule an appointment.