Waiting for a drop in mortgage rates before buying a home? You’re not the only one…

Don’t wait until rates fall and the numbers pencil as you would like to get ready to put in a competitive offer that has a high likelihood of getting accepted. 

Here are 5 things you should start working on today, even before rates drop:

Find Your Mortgage Lender

Click here to see questions you should ask a mortgage lender prior to having your credit pulled.  It’s important that you find a Lender you feel comfortable with, ideally you’ll interview 3 - 4 options and come away feeling good about at least 2 of them.  Especially if you’re likely to need lending products that are more creative than the straightforward 20% down, etc. etc. The Lender you select is often determined when the property you want to make an offer on has been identified.

Get Preapproved for a loan

A preapproval is very different from a prequalification.  A preapproval is necessary to PRIOR to looking at homes.  Be cautious if an agent is willing to show you homes prior to having a preapproval letter.

Understand Your Buying Power at Multiple Rates

Ask your lender to provide side-by-side scenarios showing monthly payments at today’s rate and at lower target rates. This helps you set realistic expectations and move confidently when rates shift.

Find Your Real Estate Agent

And be sure to interview more than one - finding an agent that is able to represent you and advocate for you is vital to a successful home transaction.

You should absolutely interview agent ~ check out the 10 questions you should be using to frame your conversation!

Decide on Must-Haves vs. Nice-to-Haves

Clarify your non-negotiables (like school district, acreage, or home size) versus flexible features (like flooring type or paint color). This ensures you can act quickly on the right property.  I suggest documenting the lists and carrying a copy with you when looking at homes - it helps to ground Buyers from making highly emotional decisions.