People buying new construction homes
These homes will be available after more than 3 months(Not guaranteed). Want to know how are people taking such a risk with interest rates bound to rise? Is it way below your home budget? Like a house but afraid to wait till March to close on it with todays pricing(Still overvalued)
Location?
You can do a 60 or 90 day rate lock if you shop for mortgage now before it skyrockets. We locked in at 5.1% in September for our home that will be ready mid November. It has gone to nearly 7% now.
If the builder pushes the date your lender will still honor the rate lock. That was the case with Wells Fargo
1) some builders preferred lenders will offer extended lock terms ( 4-10 months ) inquire about these option if really interested 2) if you are still interested - calculate what a payment might look like using a ficticious higher rate ( like 10% ) and see if you can handle this payment
Cash
Well! Hard to believe so many people have cash sitting!
Lotta folks sell on vest, if you saw this recession coming (as most people with eyes did), it wouldnât have been a terrible idea to build a large cash position over the last 6-12 months, especially if youâre expecting a house purchase. With interest rates rising and home values dropping for the first time in a long time, it may be time to pounce if you have the liquidity.