Buying your dream home is a huge decision. Deciding the right time to buy can be even more daunting. Add to that an ever-changing housing market and fluctuating interest rates, and the home buying process can feel overwhelming. 

The good news is the perfect time for you to buy a home is when you are ready to make the leap toward your dream of home ownership. It is impossible to time the market perfectly, but there are things to consider making the most of your investment when you decide it’s time to take the leap.

Focus on the Monthly Payment

Rather than focusing on what current interest rates are, focus your attention on the purchase price and what your monthly payment will be for your new home. Don’t let an interest rate dictate whether it’s a good time to find your dream home. Interest rates are constantly changing, with no guarantee of knowing which direction they will go. The good news is, if you take out a home loan right now and the interest rate is not favorable, you can always refinance and take advantage of lower rates in the future. At GreenStone, you have an even better option. GreenStone members don’t have to refinance to take advantage of falling rates. With an interest rate conversion, GreenStone members can quickly and efficiently capture savings when interest rates drop without the need for a credit check, appraisal, or title fee.

How do you know what monthly payment you can afford for your new home? With GreenStone, the first step is submitting an online application to get prequalified for a purchase. You can also do some preliminary work on your own. GreenStone has a free loan payment calculator available here to help estimate this expense into your budget.

Consider Additional Home Expenses

It can be tempting to rush into making an offer when finding your dream home, but before you do, there are plenty of things to consider to make sure it’s right for you.

Outside of your monthly payment, you should also consider other costs you’ll incur to purchase your home. To start, your lender will require a down payment on your loan. We offer flexible down payment options personalized to meet your needs, which could be as little as 5% down with Private Mortgage Insurance (PMI) if your property qualifies. At GreenStone, interest rates for home mortgages vary based on credit score, down payment amount, and property type.

Another thing to consider when determining your overall “cash to close” costs are the fees or closing costs associated with your purchase and the loan. A good rule of thumb is to plan for 2-5% of the cost of your home to go towards closing costs, as it can vary depending on the loan amount, acreage involved, and documentation needed for your loan request.

Another often forgotten cost associated with a home purchase is the new estimated property taxes. To get an idea of what your estimated property taxes might be ahead of time in Michigan, click here. If you’re looking for a home in Wisconsin, view your estimated property taxes here.

One last often overlooked cost in every home purchase is the cost of moving. Whether hiring professionals or getting help from your friends or family, moving takes and can be pricey. After purchasing your home and closing on the loan, be sure to budget in the upcoming costs for the move, having utilities transferred to you from the previous owner, and any furniture or other items you’ll need.

Work with a Specialized Lender

Over the past few years, a demand in homes immediately following the pandemic has led to an increase in home prices, often resulting in accepted offers over the list price. This has changed as supply has slowly increased, interest rates are holding, and the overall market has become balanced, giving buyers a better chance of buying the property they have been working towards.

Buying a new home can feel overwhelming, but GreenStone’s dedicated team of lending experts are here to help you every step of the way. Call your local branch today to learn more about our specialized lending options for your unique needs.