From Pandemic Lows to Today’s Highs: How Interest Rates Are Reshaping the Housing Market Video: https://youtube.com/shorts/S9k0tmj1rjA?si=vYLCe2kaZLAbRwxo In the midst of the COVID-19 pandemic, one silver lining for prospective homeowners was the record-low interest rates. Mortgage rates dipped to historic lows—some even under 3%—making homeownership more accessible and monthly payments more affordable than ever. Fast forward to today, and the story has drastically changed. A New Reality for Borrowers Today’s homebuyers are facing interest rates that have more than doubled since the pandemic era. With rates hovering between 6% and 7% in many cases, the dream of buying a home has become significantly more expensive. This shift impacts more than just the total cost of a home—it directly affects monthly mortgage payments, borrowing power, and long-term affordability. To put it into perspective: A $400,000 home at a 3% interest rate equals a monthly payment of approximately $1,686 (excluding taxes and insurance). That same home at a 7% interest rate jumps to about $2,661—a difference of nearly $1,000 per month. Fewer Buyers, More Hesitation As rates rise, so does buyer hesitation. Many potential homeowners who secured ultra-low rates during the pandemic are now reluctant to sell and buy again at higher rates. This has led to a decrease in housing inventory, further driving up home prices in many regions and putting added pressure on first-time buyers. Is It Still a Good Time to Buy? The answer depends on individual circumstances. While higher rates might deter some, others see opportunity—especially if home prices stabilize or decrease. Experts suggest focusing on long-term goals: buy when it makes financial sense, and consider refinancing down the road if and when rates drop. Bottom Line The contrast between today’s interest rates and those during the pandemic highlights a significant shift in the real estate landscape. Buyers must now be more strategic, budget-conscious, and informed than ever before. While the path to homeownership may look different, it remains possible—with the right planning and timing.

Stock Market vs. Real Estate - Choosing the Right Investment Path Video: https://youtube.com/shorts/A4aQtTK6tMw?si=tDhsd8zBcNYgwdJB Video Transcript: "Which is better: investing in the stock market or real estate? The stock market offers liquidity and the potential for high returns, but it can be volatile. Real estate provides tangible assets and steady income, yet requires more capital and management. Ultimately, the best choice depends on your financial goals, risk tolerance, and investment horizon." Article In the realm of wealth-building, two prominent avenues often come to the forefront: the stock market and real estate. Each offers unique opportunities and challenges, and understanding their nuances is crucial for making informed investment decisions. Stock Market: Liquidity and Accessibility Investing in the stock market provides a high degree of liquidity, allowing investors to buy and sell shares with relative ease. This flexibility is advantageous for those seeking short-term gains or needing quick access to funds. Additionally, the stock market offers a diverse range of investment options, from individual stocks to mutual funds and ETFs, catering to various risk appetites and investment strategies. Real Estate: Tangible Assets and Steady Income Real estate investment involves acquiring physical properties, which can generate consistent rental income and potential appreciation over time. This tangible asset class often appeals to investors looking for long-term stability and passive income streams. However, real estate requires significant upfront capital, ongoing maintenance, and can be less liquid compared to stocks. Making the Right Choice The decision between stock market and real estate investments hinges on individual financial goals, risk tolerance, and investment horizons. For those seeking liquidity and lower entry barriers, the stock market may be more suitable. Conversely, investors aiming for long-term growth and passive income might find real estate more aligned with their objectives.

Stock Market vs. Real Estate - Choosing the Right Investment Path Video: https://youtube.com/shorts/A4aQtTK6tMw?si=tDhsd8zBcNYgwdJB Video Transcript: "Which is better: investing in the stock market or real estate? The stock market offers liquidity and the potential for high returns, but it can be volatile. Real estate provides tangible assets and steady income, yet requires more capital and management. Ultimately, the best choice depends on your financial goals, risk tolerance, and investment horizon." Article In the realm of wealth-building, two prominent avenues often come to the forefront: the stock market and real estate. Each offers unique opportunities and challenges, and understanding their nuances is crucial for making informed investment decisions. Stock Market: Liquidity and Accessibility Investing in the stock market provides a high degree of liquidity, allowing investors to buy and sell shares with relative ease. This flexibility is advantageous for those seeking short-term gains or needing quick access to funds. Additionally, the stock market offers a diverse range of investment options, from individual stocks to mutual funds and ETFs, catering to various risk appetites and investment strategies. Real Estate: Tangible Assets and Steady Income Real estate investment involves acquiring physical properties, which can generate consistent rental income and potential appreciation over time. This tangible asset class often appeals to investors looking for long-term stability and passive income streams. However, real estate requires significant upfront capital, ongoing maintenance, and can be less liquid compared to stocks. Making the Right Choice The decision between stock market and real estate investments hinges on individual financial goals, risk tolerance, and investment horizons. For those seeking liquidity and lower entry barriers, the stock market may be more suitable. Conversely, investors aiming for long-term growth and passive income might find real estate more aligned with their objectives.

By Ralph Dibugnara By David McMillin March 24, 2025 Key takeaways Before you start looking for homes, take time to evaluate your finances and improve your credit score. There’s a big difference between meeting the minimum credit score requirement and showing your lender a credit score well above 750. Remember to account for the variable expenses of owning a home, which include insurance, property taxes, maintenance and repairs. While sellers still have the edge in most parts of the country due to limited inventory, buyers are gaining more bargaining power. Work with an expert real estate agent to develop a negotiation strategy and score a better deal on your first home. If you’re still renting your place, the thought of buying a home can feel pretty overwhelming. A recent TD Bank survey of first-time homebuyers found that 64 percent of people who have never owned a home are concerned about affordability due to high mortgage rates. Despite those worries, nearly half are working to save up for a down payment. If you’re one of them, read on for some money-smart moves that can put you on the path to successfully buying a home. House hunting tips for first-time homebuyers 1. Check your credit (and work on it) The higher your credit score, the better the interest rate on your mortgage. Pull your reports Thoroughly understand where your credit stands by pulling a free copy of your report at AnnualCreditReport.com. It’s not a one-and-done free ticket, either; the site lets you pull your report every week without paying anything. It’s important to note that your credit report may look different depending on the credit bureau. There are three main credit reporting bureaus in the U.S.: Experian Equifax TransUnion It’s wise to look at all of your reports because you never know which report a lender will analyze. “Look for any errors or past-due accounts that might have gone to collections,” says Ralph DiBugnara, president of New York City-based Home Qualified, an online resource for homebuyers. “These liabilities can create roadblocks when you apply for a home loan. If anything is amiss, contact the creditor to see if you can sort it out.” Fix and then monitor your credit In addition to contacting a bureau if you spot any mistakes, follow these steps to keep your credit in the best shape possible: Pay down your credit card balances: Most lenders like to see a credit utilization ratio of 30 percent or less, according to Lindsey Shores, business development manager with SchoolsFirst Federal Credit Union. “For many people, this number is something they have to plan for and work to pay down to achieve,” she says. If you’re over that number, try to pay down your balances. Pay your bills on time: Follow this step whether you’re trying to buy a house or not — you can make or break your credit by making your payments on time every month. Take advantage of free credit monitoring tools: Many banks have free credit monitoring tools built into their mobile apps, giving you the ability to check your credit score easily and more frequently. “You’ll get notified if your credit score changes, or if there’s suspicious activity on your report,” says DiBugnara. 2. Nail down your budget When you’re building a budget to narrow your search for properties, don’t just think about how much house you can afford, but how much in recurring costs you can handle once you’ve purchased your home. Consider these key items: Principal and interest: This will be the bulk of your monthly payment, and if you take out a fixed-rate mortgage, this chunk will never change over the course of the loan. Homeowners insurance: How much you’ll pay to protect the property can vary widely. If you’re buying in an area with higher risks for flood, wildfire or other severe weather, you’ll need to be prepared for higher, ever-increasing premiums. Property taxes: Your property taxes will look different depending on the location, and, in most cases, will increase as your home’s value increases and/or your local government needs to raise them for their budget. HOA fees: If you’re looking at condos or homes in a homeowners association, ask how much you’ll pay each month in HOA fees. If you’re looking at buildings with a gym, pool and other amenities, these can get very steep. In addition to these expected expenses, it’s a good idea to put aside some money regularly for maintenance and unexpected repairs. “As a rule of thumb, I tell clients to prepare to spend 1 percent to 3 percent of the value of their homes each year on house [expenses],” says Steve Sivak, a certified financial planner and managing partner of Innovate Wealth. You might need to set aside more if the home you end up buying is older, bigger or has maintenance-heavy amenities, such as a pool. 3. Consider your needs and wants Finding the ideal location and address can take more time than you expect, so begin scouting neighborhoods early in the process. “Drive and walk around that area at different times of the day and night,” says Bill Golden, a Realtor and associate broker with Keller Williams Realty Intown. “This will help you get a feel for what you like and don’t like.” Along with pinpointing the neighborhood, now is a good time to narrow down your preferences for the home itself by considering these essential questions: What type of house are you looking for? What can you compromise on? What are the dealbreakers? Are you willing to look at older properties that may require some updates, or do you want a move-in-ready property? Think about what you like and dislike about where you currently live — that can help inform your list of needs and wants. 4. Get finances in place Regardless of income level, you should be able to document to potential lenders that you have a stable source of earnings. “Your income and how much you earn monthly will be scrutinized by lenders, who will look for a two-year employment history and want to see consistent income — whether you’re receiving a salary, hourly pay or are self-employed,” says Tom Hecker, a loan officer with Cherry Creek Mortgage. If you’re self-employed, be ready for closer scrutiny than someone getting a salary or hourly wage. In terms of your liquid funds and overall financial health, in addition to reviewing your credit report, mortgage lenders typically look at your bank statements from the last two months when assessing your application. If you plan to make any deposits into your checking or savings accounts from other assets — such as a down payment gift — do it before that 60-day window. This gives the funds time to “season.” And it’s best to avoid opening new credit accounts or loans, or racking up more debt, at this stage, DiBugnara adds. All those activities could possibly ding your credit report. Learn more: How to save for a down payment Tips for finding the right mortgage 5. Comparison shop mortgage lenders At this point, you should know what monthly payment you’re comfortable with, what areas you can afford and how much you can put down. Now it’s time to shop for a mortgage. Consider these factors: Comparison shop: Compare mortgage rates from at least three different types of lenders, as well as different types of mortgages. What others have to say: Read customer reviews for lenders online to get a sense of what the experience is like with individual lenders. Interactions with the lender: Even “in this market, you can find competitive rates and service, but you want to pay close attention to lenders’ responsiveness and communication,” says DiBugnara. The mortgage terms: It’s also a good idea to focus on not just the rates lenders quote you but also all the mortgage terms. What are the late fees? What are the estimated closing costs? Is there a prepayment penalty? If you’re able to get a mortgage with the bank where you already have accounts, will you get a better deal? Sometimes, it makes sense to choose a loan with a slightly higher rate if the other terms are more favorable overall. Learn more: Different types of mortgage lenders 6. Get preapproved Once you settle on a lender, get preapproved for a mortgage. This will require documentation of your income and finances, and organizing your paperwork in advance can help the process run smoothly. It will also prepare you for mortgage underwriting, which will require similar documentation. Unlike prequalification, which is a projected loan size you’ll be able to get, a preapproval is an official letter from a lender stating exactly how much it will loan to you. A preapproval will put you in a much stronger position when you’re making an offer on a house, and it will ease the process once your offer has been accepted and you’re actually applying for your loan. Preapprovals usually expire after 90 days, says DiBugnara, so ask your lender how long yours will be good for. If you’re a first-time homebuyer with significant debt or so-so credit, you might want to apply for a preapproval as soon as possible to identify issues to fix. “Once you have a preapproval in place, keep sticking to your budget and savings plan and continue to pay all debts on time,” says Hecker. “Try not to make any extraordinary purchases or take on extra debt, either.” 7. Look for down payment assistance There are many first-time homebuyer and down payment assistance programs, including at the local, regional and national level, that can help cover your down payment or closing costs. These aren’t for everyone, though. To score some down payment assistance, be prepared for these eligibility requirements: Earn less than a specific amount per year, which typically varies by location and household size Purchase a home that does not exceed a maximum amount, which can vary based on targeted and non-targeted areas Take out a loan offered in conjunction with the state housing authority These programs are typically limited to borrowers with an income below a certain level (based on location), and can impose a cap on the home’s price, too. Keep in mind that many of these programs have terms that stipulate you must live in the home for a certain period of time to qualify for forgiving the loan and/or avoiding a recapture tax penalty that can come into play if you sell the property earlier than expected and earn a profit. Often, your loan officer can provide info on the available programs and what you might be able to pair with your mortgage. Tips for buying your first home 8. Work with a real estate agent After you have your financing squared away and a preapproval letter in hand, your next step as a first-time homebuyer is to hire a real estate agent or Realtor. An experienced real estate agent who knows the area you’re looking to buy in especially well can advise you on market conditions and whether homes you want to make offers on are priced properly. Your agent can also identify potential issues with a home or neighborhood you’re unaware of, and go to bat for you to negotiate pricing and terms. You can start by asking friends, relatives or co-workers for referrals. Interview several prospective agents to get a feel for who may be a solid match in terms of personality and expertise. “Don’t just pick [an agent] blindly — make sure it’s someone who works in the general area you’re looking in and whom you feel comfortable with,” says Golden. Offerings “come up every day, and a good Realtor will be on top of that and get you to see new listings as soon as they become available.” 9. Negotiate with the seller Even when you see the home of your dreams, don’t be afraid to negotiate the price with sellers. While it’s difficult in red-hot real estate markets, some areas of the country are beginning to see more homes sell for less than the asking price. As you work to get a good deal, consider these bargaining tactics: Use comps to justify a lower offer. A low offer can offend a seller, so work with your agent to look at comps that justify why a seller should consider your terms. Did a nearby property with an additional parking spot recently sell for the same amount? Are there other similar homes with nicer amenities listed for less? Back up your bargaining with evidence from the rest of the market. Ask for concessions based on the home inspection report. Is some of the electrical wiring incorrect? Does the furnace seem like it’s nearing the end of its lifespan? Are the windows going to need to be replaced soon? If your home inspector uncovers some minor issues with the home, don’t be afraid to ask for concessions that will require the seller to cover a chunk of your closing costs. And if the inspector uncovers some major issues, be aggressive in your negotiations — and don’t be afraid to walk away from the deal altogether. Request a different closing timeline. Negotiating your home purchase isn’t just about money; it’s also about time. Depending on your needs, you can ask the seller for a closing date that gives you more or less time to get the deal done. For example, if you really want to avoid paying another month of rent, don’t be afraid to request that the seller be prepared to move out earlier. 10. Draw up a contract When you find a home and prepare to make an offer, work with a real estate attorney to spell out any conditions or situations that will allow you to walk away from the deal. These are known as contingencies, and they often include: Major issues with a home inspection Mortgage application denial A lower appraisal than the offer price If these terms are spelled out in writing with deadlines, you’ll have an out if the transaction doesn’t go as planned — and get your earnest money deposit back, too. Bottom line For a first-timer, buying a home can feel overwhelming and endless. But breaking down the process into steps and tackling them one at a time can help you stay focused and get the job done. Doing your research in advance and working with a trusted real estate agent can help you stay on track throughout the process. Keeping your finances steady and limiting other big-ticket purchases can also help you qualify for a loan and get into your first home.

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