As you drive through your favorite areas in town, you can’t help but check out the houses, scoping out the “For Sale” signs. You’re already imagining the garden you’d like to plant in a few front yards, not to mention the family gatherings you’d like to hold inside. You’ve even got the colors of your accent wall picked out. There’s just one problem. Mortgage rates are too high to make taking action a wise choice.
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While you wait for the rates to lower again, you can do much more than twiddle your thumbs and sigh over paint swatches. GOBankingRates talked to real estate experts who shared their insights about the financial moves to put yourself in a stronger position to make your dream home a reality when those mortgage rates come down.
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Improve Your Credit Score
Before you start looking to buy a home, your credit score should be as solid as the house’s foundation hopefully is. According to Matt Schwartz, co-founder of the VA Loan Network, the time spent waiting for mortgage rates to stabilize is best spent doing whatever you can to boost your credit score.
“A higher credit score can significantly impact the interest rate [you’ll] qualify for when it’s time to apply,” he said. “It’s all about reducing debt, making timely payments and keeping credit utilization low. Even a small bump in your score could save thousands over the life of the loan.”
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Build Up Your Savings
Schwartz shared that another smart move to make is building up your savings for a larger down payment. Not only does having a larger down payment help lower your loan amount, it also strengthens your position as rates drop.
“Sellers and lenders both see a stronger down payment as a positive sign, which can lead to better terms and even more favorable negotiations,” he said. “Preparing now sets you up to take full advantage of better rates when they do come down.”
Look for Homebuyer Programs in Your Area
While Bob Driscoll, senior vice president and director of residential lending at Rockland Trust, thinks that if you’ve found a home you love — and can afford — it’s generally best to try and move on it, because it might not be available in days or weeks, let alone months, he does acknowledge that sometimes, you just need to wait.
And as you wait, you’d be well served to look into various homebuyer assistance programs that support people in your area or with your background.
“There are grants available to support first-time home buyers that are worth looking into,” said Driscoll.
Network With Professionals
As a real estate investor and owner of Sell My House Now, Johnny Austin understands that building relationships with real estate agents and mortgage professionals is important. He shared that if you’re looking to buy a home, one of the smartest things you can do is connect with these experts to learn more about upcoming programs or rates.
“Additionally, consider getting pre-approved for a mortgage, even if you decide to buy immediately. This will clarify your budget and signal sellers that you’re a serious buyer,” he said.
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This article originally appeared on GOBankingRates.com: Real Estate Experts: 4 Financial Moves To Make While You Wait for Mortgage Rates To Go Down
