Derek McGowan says don't wait to buy a house. Improving your credit score saves maybe $30 to $60 a month, but mortgage rates jumped 0.5% recently, adding $130 monthly to a $400,000 loan. Lock in a good rate when you find one.
If I could give one piece of advice to pretty much every homeowner out there is if you have a great deal on your financing and the house, I would say jump on it. There's no timing the market. There's no perfect time to jump on an opportunity when it comes to a new home. It's taking a good deal and locking it in when you've got it. For example, I've seen far too many times people want to save up a little bit more down payment or help boost their credit score an extra 20 points. And usually that's all to shave off an eighth or a quarter on their interest rate. For an average $400,000 house, that's like $30 or $60 a month, which is important. Every $30 or $60 a month helps. But then things like this past Friday happened with inflation inflationary fears across the global economy, and interest rates for mortgages jumped about 0.5% Thursday and Friday this past week. A $400,000 house just got $130 a month more expensive, and some people were waiting to shave off $30 or $60 a month by boosting their credit score, working really hard. They could have just taken a great deal while they had it. That'd be the advice today for your new home.
