6 Things To Focus on When Buying a Home Aside From Current Mortgage Rates
Written by
Jennifer Taylor
Edited by
Ashleigh Ray
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In case you haven’t heard, mortgage rates aren’t great and that probably won’t change anytime soon. If you’re looking to buy, consider concentrating on other aspects of the homebuying process.
On the plus side, mortgage rates aren’t as bad as they once were. As of August 15, 2024, the average 30-year fixed-rate mortgage is 6.49%, which is notably lower than the peak of 7.79% reached in October 2023.
“Mortgage rates are high right now, but that can change,” said Michelle White, a national mortgage expert with The CE Shop. “Until rates go down, buying a house is still an option.”
Here’s a look at six factors she said should also weigh into your homebuying decision.
Affordability
“Rates are a contributing factor to affordability, but they are not the only factor,” said White. “Before you begin your house hunting, be sure to check in with a lender to get prequalified.”
She said a lender will help you determine the loan amount you’ll qualify for and the monthly payment you can afford.
“Take a moment to look at your own finances and long-term goals,” she said. “Just because you can afford a certain payment doesn’t mean you should stretch yourself to your limit, especially if the payment is outside your comfort zone.”
White suggested looking for different ways to make homeownership affordable.
“Saving as much money as possible for the down payment can help to keep your loan amount in the affordable range,” she said. “You can also look for grants, gifts and special programs that may be available to you.”
Personal Preferences
The perfect home is different for everyone, so White recommended figuring out what it means to you, so you can keep that in mind throughout your search.
“If you don’t cook very often, don’t focus on the kitchen,” she said. “If you like to entertain, make sure you’re looking for a home with space that allows for entertaining and has good parking options for your guests.”
Square Footage
“Consider if the house you’re looking for will be your home for a year, 10 years or maybe a lifetime,” said White.
If you’re buying a house you plan to keep for years to come, she said you might be able to purchase a smaller home and add onto it. However, it’s important to ask about that first, as many communities have rules in place regarding home expansion.
“If your plan is to buy small to keep your home affordable now, make sure you know that you will be able to add on later,” she said. “If you don’t plan to be in the home for a long period of time, you can buy what suits you now while you plan for the future.”
Location
If you’re not finding anything in the neighborhood you want right now, White recommended asking about “up and coming locations.”
Some areas could have plans to add a coffee shop or even to rejuvenate their downtown area, making the locations much more appealing.
“If schools are not important to you, maybe you don’t need to live in the best school district,” she said. “Consider an area a little farther away from your work but with easy access to major roadways.”
Additionally, White said it’s a good idea to drive through a prospective neighborhood at night.
“It may look perfect during the day, but it may not be the neighborhood you think it is after dark,” she warned.
Good Bones
“Some houses on the market may look dated,” said White. “Color combinations like burnt orange and harvest gold give 70’s vibes and teal carpeting with a mauve accent wall take us all back to the early 90’s.”
This is why she said it’s important to look past the aesthetics of some properties.
“If a home has good bones, meaning your foundation, walls, roof, etc. as well as all the mechanicals are good, then consider it,” she said. “A little elbow grease and a few cans of paint can go along way when updating out-of-date décor.”
Getting a home inspection is a good place to start, so you can know exactly what you’re getting into with a property.
“This can tell you if you will be able to spend your money on paint or something more serious, like a roof,” she said.
Timing
“When a house hits the market that checks the most important of your boxes, go for it,” said White. “Act quickly on a house that mostly suits you, because the perfect house doesn’t exist unless you build it.”
She said buyers often hesitate, causing them to lose out on opportunities because other people are acting.
“Your new house doesn’t have to be perfect,” she said. “It just must be good enough with potential.”
If you’re hung up on the idea that something better might come along, she said you’ll have trouble being the first offer on a property.
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