Helpful Pieces of Advice You Can Give Homebuyers in Today’s Housing Market

Helpful Pieces of Advice You Can Give Homebuyers in Today’s Housing Market

Buying a home in today’s rapidly changing housing market can be a frustrating, stressful experience for your clients. Homebuyers often have many legitimate concerns, and they may ask for your expertise with their efforts. What key pieces of advice can you give your prospective clients as they prepare for the experience ahead of them?

Prepare for Rising Interest Rates
Some homebuyers are not aware of how impactful rising interest rates can be on their home buying efforts. Even the difference of a quarter of a percentage point could price some potential buyers out of the home that they have their eye on. Rates are changing rapidly, and the Federal Reserve has indicated its intention to maintain its upward trajectory in the near future. Future homebuyers should be well aware of the need to lock in an interest rate as soon as they are ready to do so.

Avoid Trying to Time the Market
Some prospective loan applicants may be inspired to time the market, such as by waiting for the most ideal time to lock their interest rate or to make their next purchase. Both the housing market and the lending market are experiencing considerable turmoil, so timing the market could result in missed opportunities. Your clients should be aware that many factors influence interest rates, and it is not possible to accurately predict what they may be next week or month.

Get Prequalified Before You Search for a Home
Affordability is a critical factor for any buyer’s home search, and financing plays a key role in that. Some potential clients may shop around to compare interest rates offered by different lenders, and those individuals should be counseled to get prequalified before they get serious about their home search. A prequalification can strengthen their offer and may help them to focus on a specific price range of properties.

Your expertise is what clients value the most. These tips can help you build a good relationship with your clients and should make their homebuying journey so much easier to navigate. 

Have questions?  Speak to an expert for more information.