Buying a home is one of the biggest and most important decisions you will ever make. It’s also likely the most expensive purchase you’ll ever make. It stands to reason that a lot of research, consideration, and emotion will shape this decision.

While you might be tempted to wait for the quintessential “right time” to buy a home, it can be hard to truly define when exactly that is. There will always be variables such as your unique needs, living demands, existing and new home inventory, mortgage interest rates, and more.

Currently – and with good reason – conversations abound regarding rising interest rates and whether it’s a good idea to purchase a home at this time.

But here’s the thing: life goes on whether interest rates rise or fall. People get married and divorced, children come along, high school grads go off to college, employment situations change, and before you know it, retirement looms on the distant horizon. In other words, life is a dynamic force that is perpetually in motion and always moving forward. The only thing we know for certain is that there is no recapturing yesterday. So if you’re questioning whether you should put in an offer on that special house, we have some tips and advice to bear in mind when evaluating your decision.

Read on for a fresh perspective on buying a home during this robust and ever-changing real estate market.

The silver lining of current interest rates

While eyes are rolling and heads are shaking at the current state of mortgage loan interest rates, one positive does shine from the situation. The past couple of years have seen homebuyers coming out in droves. However, the current rise in interest rates has slowed the pace of eager buyers a bit. This could translate into fewer prospective buyers, and ultimately, less competition for the house that you have your eye on. 

You can always refinance later

While your new home could be your forever home, there’s nothing written in stone saying that it has to be. If you do decide to stay for years to come, and you are not happy with your interest rate, refinancing to a different rate or loan in the future is always an option. “Just make sure to keep your credit on track,” advised Danny Tutt, branch manager for Red Oak, Texas-based Trinity Oaks Mortgage. Above all, Tutt said to remember that a home purchase or loan does not have to be permanent.

The lowest rate does not always equal the best loan

It may seem counterintuitive, but Trinity Oaks’ Tutt said that sometimes the lowest rate does not always translate into the best loan for a buyer. He said sometimes it makes better financial sense to take a slightly higher rate with a lower down payment and reducing other debt. The buyer could then take the money saved and apply it to the principal of the loan and pay it off years earlier or invest it elsewhere. “There is not necessarily a right or wrong way, it is what is right for you,” said Tutt. “We like to present options and let the customer determine that for themselves.”

Don’t underestimate home value appreciation

If you are renting an apartment or home and are considering buying, remember this: even though interest rates are a bit higher at this time, you will be making a solid investment with a home purchase. Instead of essentially giving your money to someone else through rent, you will be making payments toward a tangible brick-and-mortar investment that should earn a profit if you decide to sell down the road. You will also enjoy tax benefits that come with homeownership. Interest rates have fluctuated to some degree for decades, but, historically, home values generally appreciate over time. On the flip side, rents are likely to continue climbing, as well. Where would you rather put your money?

Dallas - Fort Worth housing market still strong

Recent headlines are raising eyebrows with talk of mortgage interest rates approaching 6 percent, reduced home inventory, and rising labor costs and home prices, but take a deep breath before panicking too much. It’s essential to keep in mind that local and regional housing statistics do not necessarily reflect national market data. Just because the housing market is one way in Chicago, it does not mean that Dallas, Kansas City, or Atlanta is the seeing the exact same trends. North Texas is undeniably a hot real estate market which is why there is a continuous influx of residents moving in from other states. That’s resounding proof of this region’s appeal to homebuyers.

Programs for buyers

Sometimes, a buyer doesn’t really have the luxury of waiting to see if interest rates will come down before buying a home. A job change or family situation might dictate a move now. The good news is that while mortgage rates may not be the lowest they’ve ever been, there are myriad programs available to first-time buyers and seasoned homebuyers, as well. For example, John Houston Homes is currently offering a promotion that features below-market interest rates through late summer to homebuyers. The most important thing you can do is get financially educated to elevate your purchasing power and score more bang for your buck.

Mortgage questions? Call for a consultation

It should go without saying that the right mortgage lender will be worth his or her weight in gold. This means finding someone who listens to your needs, can patiently explain real estate and mortgage complexities, and whose knowledge will enhance your homebuying experience. “I always tell people to meet with a mortgage lender to consult, problem-solve creatively, and discuss options,” said Tutt. “Then I tell my clients to speak with their parents, CPA, or financial advisor – someone who has a vested interest in them.” Partnering with an experienced real estate agent and knowledgeable lender can mean the difference between a good homebuying experience and a great one. Interested in a free consultation to have your questions answered? You can call Trinity Oaks Mortgage at 866.429.5010

Closing Thoughts

At the end of the day, your home purchase should be defined by so much more than an interest rate. And the truth is, the best time to buy a house is when you can afford to.

“Don’t not get a home you love because interest rates are causing your payment to be $100 more a month,” said Trinity Oaks’ Tutt. “Your home is your life – your neighbors, your kids’ schools, where you sleep, and where you eat dinner with your family. If you can get into the market, then get in there.”

To learn more about purchasing a new home, contact a John Houston Homes New Home Advisor today at 866-217-9069