Are you catching the bug to buy your first home?  Are you sick of paying rent every month instead of having that money go toward something that would benefit you in the long-term?

In this 4-part blog series, I am going to provide you with the most important things you need to consider before dipping your toe in this crazy frenzy called the local real estate market.

Market Update

From everything I’ve read, it appears that this crazy real estate market is here to stay, at least for awhile.  It looks like prices will continue to increase, although possibly at a slower clip than we’ve seen over the last year, interest rates will continue to rise slightly from where they are now, reaching into the high 5s by the end of the year and then possibly settling out just a slight bit lower, and no, there is not going to be another real estate crash like we saw back in the late 2000’s.

Things are very different this time around with the mortgage parameters still pretty tight, and people don’t seem to be using their home’s equity as if it were a change purse like they did in the lead up to the last housing crash. 

With Tampa being one of the top places in the US where people are migrating to, the Tampa Bay Economic Development Council forecasts Tampa will continue to grow by another 7 to 8% by 2026, which will cause demand to remain high.  So no, the market is not slowing down in the foreseeable future.

My advice to you is to GO FOR IT!  If you think you are ready to buy your first home, you can still make it happen even in the current market.  But there are things that you will need to do and keep in mind.

First Step

The first must-do in any market is to get pre-approved by a lender. This process will let you know what monthly payment or loan amount a lender will approve you for, as well as let you know if there are items on your credit report that first need to be addressed.

Ask your friends and family if they’ve worked with someone they felt comfortable with, or ask your Realtor for referrals. There are many options available. You can use a bank or credit union, a mortgage lender who lends their own funds, or a mortgage broker who works with several lenders and can choose the mortgage that best fits your situation. Take the time to find what works best for you. This is most likely going to be the biggest purchase of your life to date, and trust me, you want to feel comfortable with whoever is financing this purchase.

My experience is that at the end of the day, unless a special program is being offered, like a portion of your closing costs being paid by the lender or no private mortgage insurance fees being charged, you will end up paying about the same amount in fees and in the interest rate across the available options.

Join me next week when I share MORE advice on how to be prepared in today’s crazy real estate market, or contact me with any questions. I would love to hear from you!