In the world of real estate, the past two years have been highly unpredictable. With the markets remaining volatile, inflation rising, and the pandemic still affecting everyday affairs, you can expect 2022 to be just as hectic. With its massive demand for housing, Florida stands to have an incredibly explosive year. All the same, there’s plenty you can do as a potential buyer to meet your homebuying goals in the months ahead. By making sound financial choices, researching the landscape, and planning, you can make a favorable purchase amid the real estate chaos.
Homebuying rules to follow
Even when the markets are hot and high prices, you can become a homeowner if you stick to an intelligent strategy. While you can’t control how the markets develop, you can manage your state of affairs. With a few wise choices and a bit of preparation, you can meet your home buying goals in 2022.
Aim for stability
If you’re like most people, you’ll need a loan to buy your next home. Securing a mortgage requires convincing a lender that you’re worth the risk, and the best way to prove your worthiness is by demonstrating consistent financial stability. Be diligent with paying all your bills on time and keep your credit card balance below 30% of your allowed limit. Also, make sure your savings are in a bank account rather than stashed away as cash. Finally, giving the lender an impressive statement is the best way to show you’re a reliable borrower.
Decrease debt and increase savings
Decreasing debt and increasing savings might seem like an overly obvious rule, but it’s undoubtedly an essential part of preparing for homeownership. For one thing, you’ll need some money saved up for a downpayment and moving expenses. Also, lenders look at your debt-to-income ratio when determining the terms of your mortgage. So if you can pay down your debts and set some money aside, you’ll have a much better chance of securing favorable terms.
Lay the groundwork for a quick purchase
Once you dip your toe into the housing market, you never know when you could come across the home of your dreams. That’s why it’s best to take care of all the preliminary work ahead of time. First, seek a pre-approved loan to know what type of budget you can get approval on. Set out your expectations by making separate lists of what you want and need from your home. With these preparations already taken care of, you’ll be ready to make a quick decision when choosing between available properties.
Find the right agent.
Having a talented, trustworthy real estate agent can make all the difference, especially when the market is hotter than usual. When demand is high and offers come in thick and fast, you need someone to give you an edge. Experienced real estate agents have a unique understanding of local conditions, and they can help you put in competitive offers for the properties that excite you.
Many experts agree that unpredictability will be the defining feature of the real estate market in 2022. All the same, there are specific trends you can expect to see developing in the months ahead. With industry experts strong in their predictions, we’re in for a red-hot market, rising mortgage rates, and high prices that eventually level off.
Last year was a massive year for home sales, and experts aren’t expecting a slowdown in 2022. The cost of rent has been steadily rising, pushing first-time buyers into a search for real estate. Increasing salaries and flexible work policies have also given people greater leeway to pick up and move. All of this produces abnormally high demand.
Mortgage rate hikes
With inflation higher than it’s been in decades, interest rate hikes are indeed in store. This increase will considerably affect prospective buyers in the real estate market. Not only will higher mortgage rates make it harder for some people to buy a home, but they’ll also make affordability an especially pressing concern.
For now, demand is high, and prices are soaring. However, as the increased mortgage rates take effect, you can expect the market to decrease slightly, taking price increases down with them. So, while it’s always challenging to make accurate predictions so far in advance, a reliable expectation would be that prices will level off as we approach the last few months of the year.
Florida’s market is hotter than ever.
While real estate markets are hotter than average all across the country, the Florida market is especially fiery. A confluence of factors has driven demand in the Sunshine State through the roof. With more people than ever working from home, many are taking advantage of their newfound flexibility to move to a warmer climate. Many also see Florida as an excellent place to see out the pandemic. Together, these factors have created high real estate prices in the state.
Lenders list for a successful homebuying experience
- Down Payment
- Loan-to-Value Ratio
- Debt Ratios
- Credit Report
- Automated Underwriting System
- Find Out if You Qualify
Strategize to make a purchase that works for you
Homes are costly in Florida and around the country, but you can still reach your homebuying goals in 2022. The sizzling market means that you have to be particularly strategic in your approach. But, by preparing correctly and putting your financial house in order, you can make 2022 the year that you finally buy your own home.
This article is for informational purposes only. It should not be considered Financial, Real Estate, or Legal Advice. The market fluctuates; therefore, not all information will remain the same. Consult a financial or real estate attorney before making significant real estate decisions.