Did you know that Fannie Mae is predicting a decrease in home prices and mortgage rates in the first half of 2023?
Fannie Mae has predicted that home prices may decrease up to 1.5% in Q1 of 2023. By Q2 home prices may decrease up to 5% and mortgage rates may decrease to about 5%. With the supply of homes increasing things will easily transition into a normal buyer and seller market.
Here are steps you can take now to prepare!
1. Determine How Much you can afford
- Lenders calculate your debt-to-income ratio (DTI) by dividing your monthly debt obligations by your pretax or gross monthly income
- You’ll want the lowest DTI possible to purchase the home you want.
2. Save For A Down Payment
- Conventional and FHA loans require as low as 3% for a down payment
- USDA and VA loans require NO down payment.
- A bigger down payment will often result in a lower interest rate
- Private Mortgage Insurance (PMI) is typically required for down payments of less than 20%
3. Find A Real Estate Agent You Can Trust
- Find an agent that’s not only knowledgeable about the real estate market but will also have your best interest.
4. Get A Mortgage Preapproval And Choose a Lender
- Shop around for a mortgage lender or let a mortgage broker shop for you!
Are you prepared?
Contact Chelsea if you have any questions on how you can set yourself up for success!