Is it still a good time to buy?
As we head into prime home buying season–spring and summer–many first-time Oklahoma home buyers may wonder: Is it still a good time to buy? Mortgage interest rates have increased a bit with the Federal Reserve Bank slowly raising rates as the country emerges from the pandemic. Even with those increases, buying a home still makes smart financial sense for many people.
“When you compare paying a monthly payment toward a mortgage vs. rent, you’re building equity with every home loan payment–something of value,” said Mary Bailey, TFCU mortgage loans originator. “Homes are one of the best investments you can make long term. They almost always pay out.”
What’s the home buying market like in 2022?
“It’s still a seller’s market,” said Francisco Zepeda, TFCU Mortgage Loan Originator. “People are definitely still out shopping and there doesn’t seem to be enough inventory to meet the demand. In some cases, homes are selling for higher than the appraised value leaving buyers to (quickly) decide if they want to make up the difference with cash.”
The TFCU mortgage team encourages members not to be discouraged, though. Just be prepared before you start shopping for real.
How to prepare to buy a home?
Keep this in mind as you get your money matters in order to purchase a home:
- Keep your debt to a minimum.
- Save money and plan for a 3% down payment toward the purchase price or appraised value of the home, whichever is lower.
- Know what your credit is like–you must have some established credit to be a TFCU home buying candidate.
- Could you benefit from credit or debt coaching? It’s normal to need this help and direction! TFCU’s Member Solutions is here for you – just call (405) 319-7991 or email membersolutions@tinkerfcu.org.
Should you get preapproved before you shop?
It’s a great idea to get preapproved for a home loan before you start shopping. At TFCU, you can apply online or schedule a phone or in-person appointment with the home loan team by calling: 1-800-456-4828, ext 4448. Plus, check tips on information to gather in advance to help expedite the application process.
Note: This article was originally written in April 2022. TFCU is an equal housing lender.