Financial Wellness Minute: Home Buying Process

Get smarter about your money with this Financial Wellness Minute. Today, we are talking about the home buying process. The home-buying process can be overwhelming, especially in this market of low inventory of homes and rising interest rates. It doesn't matter if it's your first time or if you have purchased many homes before. Here are some tips:

1. Know what you can afford. Start with your financial institution and meet with the mortgage loan officer. They can also get you a preapproval letter, which is the best shopping tool you can have.
2. Consider the term of the mortgage. Is a 30-year mortgage the best option? Maybe look at an adjustable-rate mortgage called an ARM, if you are planning to stay in your new home a shorter period of time. You will get the same 30-year amortization schedule, but you will enjoy a lower rate for that initial period.
3. Ask your local lender about down payment assistance programs in your area. Not all loans require a 20% down payment.
4. Consider comparing the cost of renting a home versus buying a home. You may find you can afford to buy a home and build equity in your area.
5. Finally, once you know what you can comfortably afford, reach out to a professional real estate agent. They know the local market and any special factors regarding the property you may need to consider and can help you make the best offer.

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