Home Buying in 2022, Tips You Need To Know

Date: February 25, 2022

Whether you are a first-time home buyer or selling your current home and downsizing, todays housing market presents challenges that many industry experts have not experienced before.

Most housing markets across the U.S. are competitive, with single family home inventory at historic lows.¹ So, what does this mean for home buyers?

It is a sellers’ market- This means that the negotiating power lies with sellers and not buyers. Prospective home buyers are challenged to position themselves as the most attractive purchaser, which can be difficult in a market with multiple offers, cash offers and bidding wars. Homes are being listed and receiving multiple offers within hours.

The first step you should take in the home buying journey is to speak to a Mortgage Loan Officer. The loan officer will ask you questions not only pertaining to your income and assets, but also what your plan is for the home. Do you plan to stay there 30 years? Is this a “starter home”? The answers to these questions will help your loan officer in determining what mortgage programs may be right for you. 

The next step would be to obtain a preapproval, a preapproval from Affinity states that your application has been approved for a specific loan amount based on factors such as income, assets, verified employment, and credit. Keep in mind thought that everyone’s circumstances are different and other documentation may be needed.

Understanding what you can afford and not getting caught up in the excitement of a bidding war is crucial, especially for buyers with a limited budget. 

With your pre-approval, you and your real estate agent can start shopping and be ready to submit offers quickly.

Having a pre-approval from a trusted institution shows sellers that you’re a viable buyer.

If this is your year to purchase a home, it is never too early to speak to a Mortgage Loan Officer. In fact the earlier the better! Affinity Federal Credit Union’s Mortgage Loan Officers, can assist you with finding a realtor who works with our Home Advantage Program. Visit the link to learn more about this extraordinary member benefit that offers AFCU members a rebate through our Home Advantage partnership network of realtors.

https://affinityfcu.mycuhomeadvantage.com/

There might be other options available to you — With the lack of inventory, finding your next home in the perfect neighborhood can prove to be a challenge. If your current home just needs an upgrade or maybe even added space, a home equity line of credit² (HELOC) might be an option for you. HELOCs can be used as an alternative to cash-out refinances or renovation loans in situations where your home’s value exceeds what you owe. HELOCs allow you to borrow against the available equity in your home and put that money to work for improvements, additions or even consolidation of high-interest debt to help you lower monthly payment obligations and improve your financial wellbeing.

You are not alone in your financial journey — At Affinity, we’re committed to helping our members reach their financial goals, from home ownership to debt management or saving for retirement. We can be reached over the phone or in person at a branch. Schedule an appointment today!³

This information is for informational purposes only and is intended to provide general guidance and does not constitute legal, tax, or financial advice. Each person’s circumstances are different and may not apply to the specific information provided. You should seek the advice of a financial professional, tax consultant, and/or legal counsel to discuss your specific needs before making any financial or other commitments.

¹ Retrieved from: https://www.nar.realtor/research-and-statistics/housing-statistics/housing-shortage-tracker