Hope Leitner, Realtor®, CRS

  Knowing what to budget for when buying a home may feel intimidating — but it doesn’t have to be. By understanding the costs you may encounter upfront, you can take control of the process. Here are just a few things experts say you should be thinking about as you plan ahead. 1. Down Payment Saving for your down payment is likely top of mind. But how much do you really need? A common misconception is that you have to put down 20% of the purchase price. But that’s not necessarily the case. Unless it’s specified by your loan type or lender, you don’t have to. There are some home loan options that require as little as 3.5% or even 0% down. An article from  The Mortgage Reports  explains: "The amount you need to put down will depend on a variety of factors, including the loan type and your financial goals.  If you don’t have a large down payment saved up, don’t worry—there are plenty of options available . . ." A trusted lender will go over the various loa...

If you are a prospective homebuyer, things have changed in the past year.   Most notably, mortgage rates have more than doubled which has created an affordability gap that has taken approximately 15 million buyers out of the market. Inventories are growing but it isn't because more people are deciding to sell their homes; it is because it is taking longer to sell properties because less people are qualified.   Current housing inventory is a little more than a quarter of what it was in 2008. Buyers are wondering when the market will return to normal, as if mortgage rates at three and four percent should be commonplace.   The average mortgage rate between April 1971 and November 2022 is 7.76%. Predictions for mortgage rates in the third quarter 2023 range from 4.5% for Fannie Mae, 5.0% for Mortgage Bankers Association, and 5.2% for Freddie Mac. Traditionally, over the past 35 years, there is a 175-200 basis point difference between the 10-year Treasury and th...