The Mortgage Minute by Chris Stawarz
Rising mortgage rates and an extremely competitive housing market…GREAT topics for Friday the 13th! The number one question Realtors and Lenders alike are asked is “When is good time to purchase a home?” My answer over the past decade has always been “NOW!”
Undeniably, homeownership is the most powerful way to build wealth. It is open to everyone with a steady income, decent credit, and a bit of savings. A gift from a family member, borrowing short-term from a 401k, and loan programs that offer down payments as low as 3-5% also help make homeownership a reality for many who never thought they could achieve it.
Many, many clients have chosen to wait to purchase, and when we get to the closing table, they NEVER have said “Chris, I am happy I waited a year (or 2, 3, 4 years) to buy this home.” Never. Why? Home prices continue to rise, as do interest rates.
Each month, the average home price in North Atlanta rises 1.6%. With the median home price of $690k in North Atlanta, that is $11k per month. As for interest rates, they have risen 2.5% this year. Waiting erodes your buying power and increases your monthly payment…that adds up to less home and a higher monthly mortgage payment.
My recommendation – find a knowledgeable lender you can trust, ask lots of questions, and have them run various scenarios for down payment, purchase price, appraisal gap, and cash at closing. Armed with this information, you will be able shop with confidence. Having the right real estate professional and mortgage lender leads to winning offers, and NO surprises at the closing table.
About Chris
Chris Stawarz is a 2022 and 2021 Five Star Professional Award winner, with nearly two decades of experience in the national housing market and mortgages. She lives in Roswell, GA with her husband and two dogs, is an avid golfer, financing fanatic (tough cases are her favorites), and a regular fundraiser and volunteer for the Alzheimer’s Association.