Tips for HOME BUYING

By Lauren Caggiano

Like many consumers, you might be wondering if this is the year to buy a house or sit on the sidelines. Lisa Keirns, a mortgage banker, with STAR Financial, offered some insight into the current landscape and what potential buyers should keep in mind as they do their due diligence.

“Although inventory is increasing, it is still low. Pending sales are on the rise, so that shows us that there are still buyers out there ready to enter the market despite high rates,” she said. “The 10-year Treasury yield has risen quite a bit over the last year but peaked around October 2022, so we have seen rates come down a bit since then.”

If you were hesitant to make a move in 2022 because the market was too competitive or interest rates were too high, now might be the time to revisit those plans. Keirns said spring is a popular time to buy and sell. “So now is the perfect time to be sitting down with your lender to discuss your budget and planning out what loan program is a good fit for you,” she added.

Speaking of mortgage loan products, Keirns said it’s not a one-sizefits-all proposition. If you’re new to homebuying, it pays to do your homework so there are no surprises. You want to be in the best position going into the pursuit.

“There are great programs out there for first-time homebuyers,” she said. “Some offer as low as 3% down and some have credits toward closing costs. There are also down payment assistance programs that can help with down payment and closing costs, so talk to your lender about what your options are.”

Regardless of the programs, every buyer should have a clear understanding of their budget before getting too invested in a home. When looking for financing, it’s a good idea to leverage your current relationships. Your bank or lender can make you aware of opportunities. For instance, STAR launched a Home Hope Program this past year, which allows 0% down on a purchase. Regardless of where you go for financing, Keirns said potential buyers need to take the process seriously to save time, money, and frustration.

“My biggest piece of advice for a first-time homebuyer (or really anyone entering the market as a buyer) would be to go through the pre-approval process, so you are ready to make a solid offer when the perfect opportunity presents itself,” she said.

It’s important to know that some sellers will bypass offers that do not include a pre-approval letter. According to Keirns, having this letter shows a seller that you are a serious buyer and can afford to make an offer. It can mean the difference between landing the home of your dreams or losing it to a more prepared buyer.

Another consideration is that potential buyers shouldn’t feel unnecessarily stifled by a higher-than-ideal interest rate. Refinancing later is an option and can help buyers with a more attractive monthly payment.

Whatever you decide, know that you don’t have to go it alone. Whether STAR’s team or another financial institution, you can find a wealth of information and support as you look to achieve your financial goals. a

Resource: Star Financial Bank, Fort Wayne, starfinancial.com