How to Prepare to Buy Your First Home in 2023

With the recent changes in the market, many buyers have taken a step back from the home-buying process. However, based on historical evidence, it could benefit many borrowers to stay the course as this could open up more opportunities for buyers.

Here is how well-prepared home buyers can benefit from today's current real estate climate.

• Home sellers may be more flexible:

Since the pandemic, the past few years have been considered a "seller's market." With record low mortgage rates, buyer's flooded the market with countless offers going hundreds of thousands of dollars over the asking price. But with rising rates and declining home prices, sellers are receiving significantly less competitive offers. Slowly but surely, buyers are gaining their purchase power back. 

• Mortgage rates could decline:

When economic activity slows down, it can be predicted that mortgage rates could drop lower. It is essential to stay up to date with the Federal Reserve to keep an eye out for any upcoming rate hikes or drops. 

• More inventory:

With the influx of home buyers on the market and open house lines wrapping around the block, homes have been flying off the market at an astonishing speed for the last few years. With a significant decrease in prospective buyers, sellers continue to stay on the market at pre-pandemic rates. Many industry experts believe the supply and demand dynamics will continue to open up a more extensive inventory for buyers to consider when purchasing their homes. 

• Lower prices:

As many sellers are finding themselves on the market for extended periods, they are more inclined to decrease their listed price than before. 

To ensure buyers are actively preparing for this market change, they must ensure that they are actively building their credit, creating a budget, and exploring flexible financing options with their loan officers. Now more than ever, having an LOS platform that can swiftly accommodate all the market and program changes is crucial.  LendingPad is here to get you through these unprecedented times.