3 Tips to Help with Your Fall Home Search

With interest rates expected to decline over the remainder of 2024, many potential homebuyers who have found themselves sidelined by elevated rates and prices in recent months could be ready to re-enter the market.

Lower interest rates can make the dream of homeownership more affordable for consumers, but it is important to have a plan in place so you’re ready to strike when the time is right.

Here are tips to help get your finances in order and land your next home this fall.

Have Your Ducks in a Row

Affordability and availability of homes in recent years has been tough for many consumers, driven by inflation, increased home values and rising interest rates.

With inflation easing and rates expected to decline, there is potential for increased competition in the homebuying market, underscoring the importance of having your finances in order. Make sure you know the key dos and don’ts to keep your mortgage process on track, including building your downpayment, watching your credit usage, limiting employment/income changes, and keeping your records updated and ready to provide to your lender.

It is also important to work closely with your lender to get pre-qualified and pre-approved, so you know how much you can borrow and how much house you can afford.

Stay in close communication with your lender and real estate agent, who can help evaluate opportunities in your desired neighborhoods, answer any questions, and provide information on first-time homebuyer or other affordable mortgage programs that may be available to you.

Balance Wants vs. Needs

With home values continuing to surge in recent years, it is vital to have a clear picture between your wants in a future house and your true needs.

A good way to evaluate your options is to make a list with two columns and write down the must-haves in one column and the nice-to-haves in the other. Must-haves will vary based on each consumers’ situation, but often include things like your minimum amount of space and bedrooms needed for your family, preferred neighborhoods and school districts. Nice-to-haves can include things like spare bedrooms, home offices, modern fixtures or even a swimming pool that may not make or break your decision. Remember, you can always make improvements over time if you plan to stay in the home long-term.

For those who already own a home, balancing their wants and needs can even come down to the decision of whether to move or to make improvements to their existing home. Depending on your home equity, you could leverage a home equity line of credit (HELOC) or a cash-out refinance to get the features you desire without the need for a move.

Consider Building Your Dream Home

While interest rates are expected to decline, supply has still been an issue for many aspiring homebuyers in recent years as many current homeowners are hesitant to sell after locking in at a historically low rate early in the pandemic.

Supply for existing homes can also be a bit lower in the fall, as many families look to stay put once the school year has begun for their children.

One alternative to searching for your next home is to work with a homebuilder and have one made to your specifications. Building your dream home can be more expensive than purchasing an existing home but can provide more cost and timeline certainty for your move.

By building your home, you also have the chance to put it in your own style, have modern amenities and energy efficient appliances, without the need for renovations that can come after you’ve moved in to an existing home.

Purchasing your first or next home is an exciting time for many consumers. By working closely with your homebuying team, including your lender and real estate agent, you can evaluate your various options and put a plan in place to land your dream home.