Category: Housing Market (Page 1 of 36)

The Cost of Waiting Tool – Available Now!

March 31, 2025 / Tom Bonetto / 0 Comments

Attention real estate agents and investors…I have a new tool available for you to share with you or your clients who are waiting and trying to “time the market”.

So many consumers have been delaying a home purchase as they hold out for interest rates or home prices to drop.

My reporting tool helps demonstrate how delaying a purchase for even a year or two could cost buyers thousands in appreciation, amortization, equity and more.

The Report

For example, if a buyer opted to wait on a $800K purchase, thinking that mortgage rates would drop by nearly three-quarters of a percent (from 6.75% to 6.125%).

In fact, they would actually only save $74/month in their mortgage payment…but would miss out on over $35,000 in appreciation over that year.

Secondly, they could easily purchase now and refinance in a year – and still have a net benefit of buying now of over $30,000!

Here are the specifics:

This Cost of Waiting tool will help show you or your buyers how delaying their purchase could have more of an impact on their long-term wealth than they realize.

Reach Out to Me

I can provide this information to you at any time, so please reach out to me and find out more. You can schedule a time to go through this tool with me here…as it would be my pleasure to help you!

The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions.

Waiting to Purchase a Home Can Actually Be More Costly

March 17, 2025 / Tom Bonetto

Many prospective homebuyers wait to purchase a home in hopes of finding a better deal, saving for a larger down payment, or waiting for lower interest rates.

While these reasons might initially seem financially sensible, waiting to buy a home can often lead to higher costs in the long run.

Rising home prices, ever-changing mortgage rates, and missed opportunities for equity growth can actually make delaying a home purchase more expensive than acting sooner.

Rising Home Prices

One of the most significant reasons waiting to buy can be costly is the continuous rise in home prices.

Real estate markets tend to appreciate over time, meaning that a home that costs $300,000 today could be significantly more expensive in just a few years.

By postponing a purchase, buyers risk paying tens of thousands of dollars more for the same property in the future, making homeownership less affordable.

Missing Out on Equity Growth

Owning a home allows buyers to build equity as property values increase and mortgage balances decrease over time.

When buyers delay purchasing, they miss out on the opportunity to build wealth through home appreciation.

Homeownership acts as a forced savings plan, and the longer one owns a home, the more equity they accumulate. Waiting means missing years of potential financial growth.

Renting Costs Add Up

Many people choose to rent while waiting to buy, but rent payments do not build equity or provide long-term financial benefits.

Additionally, rental prices tend to rise over time, often making renting more expensive than a fixed mortgage payment.

The money spent on rent could be used to pay down a mortgage instead, helping buyers secure their financial future.

Limited Housing Inventory

As demand for homes increases, inventory often becomes more competitive, making it harder to find an affordable home.

If a buyer waits too long, they may find themselves in a market where fewer homes are available within their budget.

This competition can drive up prices even further, making it more challenging to purchase a home at a reasonable cost. Find out more on that here…

In Conclusion

While it may seem like waiting to buy a home provides financial advantages, the reality is that delaying can lead to higher costs due to rising home prices and lost equity opportunities.

Renting also provides no return on investment, while housing market competition can make future purchases more difficult.

For many buyers, acting sooner rather than later can be the most financially beneficial decision. Do reach out to me so we can put a plan together that will help you purchase a home in the very near future!

Now Is the Time to Apply for a Mortgage – Mid-March 2025

March 10, 2025 / Tom Bonetto

If you’ve been sitting on the sidelines waiting for the “perfect time” to buy a home, this might be the sign you’ve been looking for.

Mortgage applications just jumped 20% in a single week, according to the latest C NBC report, mostly due to falling interest rates.

two red balloons with percentage symbols on white background

What does that mean for today’s buyer? It means the window of opportunity is open—but it probably won’t stay open forever.

Mortgage demand is surging as rates drop. Don’t wait—now’s the time to apply and lock in your opportunity before competition heats up.

What’s Happening in the Market

After months of higher rates, interest rates have dropped, and homebuyers are wasting no time. More buyers are getting pre-approved, locking in rates, and hitting the market before competition picks up even more.

We’re already seeing the shift. The number of mortgage applications surged, and with spring homebuying season just around the corner, this is just the beginning.

When demand for homes pick up, so will the price of buying that home. You can find out more on that here…

Why Do a Mortgage Application Now?

Here’s what’s happening in the marketplace today:

Rates dropped – and we don’t know how long they’ll stay this on this downward trend.
Competition is rising – as more buyers jump back into the market, the best homes will go fast…and the rest will become more expensive.
Waiting could cost you – not just in rate increases, but also in bidding wars as demand grows.

What This Means for Would-Be Buyers

If you’re serious about buying this year, you have a couple of choices:

Take advantage of today’s rates and get pre-approved before the rush.
Wait, hope rates stay low, and risk higher prices and more competition.

The Bottom Line

There’s a lot in this housing and mortgage market you can’t control. But getting ahead of rising competition and securing a better rate is something buyers can do right now!

If you’ve been thinking about buying, do reach out to me here.

We can take a look at your options, answer any questions, and help you get prepared to take full advantage of this moment.

Is It Time to Move Out for a Place of Your Own?

February 11, 2025 / Tom Bonetto

Is it time to own a home of your own?

Sure, living with your parents has its upsides. Free laundry, home-cooked meals, and (hopefully) no rent. But if you’re one of the many young adults still living at home, you might also be feeling a little stuck.

And that’s OK —life is expensive right now. Student loans, rising rents, and the cost of housing have made it harder than ever to take the leap into homeownership. But here’s the thing…waiting too long to make a move might cost you more in the long run.

While living with parents can be a practical solution in certain circumstances, exploring homeownership can offer long-term financial benefits and wealth creation.

Why Owning a Home is Worth Considering Now

Living with family may help you save in the short term, but buying a home is one of the smartest financial moves you can make for your future. Here’s why:

– Equity is like a savings account (but better). Every mortgage payment you make builds your equity—essentially money in your pocket for the future.

– The average homeowner’s net worth is 40 times that of a renter

– Your home is your domain. Imagine customizing your space exactly how you want it, without asking anyone’s permission.

– Stability matters. With rent prices skyrocketing, locking in a fixed mortgage payment can help you plan better for the future.

Billionaire Andrew Carnegie famously said that 90% of millionaires got their wealth by investing in real estate.

With that in mind, purchasing a home to build long-term wealth is something that should seriously be considered. Find out more on that here…

But What If I Don’t Think I Can Afford a Home?

This is where things get interesting. Many first-time buyers think they need a massive down payment or a perfect credit score, but that’s not necessarily true.

Let’s take a look at FHA loans, for example.

FHA loans are fantastic options for first-time buyers. They require a much lower down payment—sometimes as little as 3.5%—and are more flexible with credit scores.

This lower upfront cost opens doors for prospective buyers who may struggle to come up with a significant down payment, providing a more attainable path to home ownership.

So if you’ve been building your savings but feel like you’re still not quite there, an FHA loan could be the key to unlocking your dream of homeownership. You can find out more about FHA loans here…

Take the First Step Today

You don’t have to figure it all out on your own. The best thing you can do is talk to a local mortgage professional. We’ll walk you through your options, help you understand what you qualify for, and make a plan to get you out of the nest and into your own place.

Switching from renter to homeowner is simpler than you might think. It’s a strategic move towards securing your financial future.

Picture This…

Your first place—your rules, your space. A cozy kitchen for hosting friends, a backyard for your dog, or even just a living room where you can finally hang that weird painting you love.

Doesn’t that sound better than your childhood bedroom?

It’s time to explore your options and take that first step toward homeownership. Reach out to me today to see if an FHA loan or another program might be the perfect fit for you.

You can set an appointment with me here…and you very well might be closer to owning a home than you think!

Navigating Home Affordability: A Practical Guide for Home Buyers

February 3, 2025 / Tom Bonetto

Looking to make your dream home a reality? I’d like to share a few expert tips to help you tackle the challenge of home affordability with ease.

As a seasoned mortgage lender, I understand that navigating a home purchase can be a daunting task, especially for first-time homebuyers.

However, with the right guidance and practical knowledge, you can make informed decisions and achieve your dream of homeownership.

This practical guide aims to give you the essential information needed to make sound financial choices when it comes to buying a home.

Understanding Home Affordability

When considering purchasing a home, it’s necessary to evaluate your financial position realistically. Home affordability is not just about the price of the house; it includes various factors, including your income, existing debts, credit score, and the down payment you can afford.

It’s important to understand that lenders assess your ability to pay back a mortgage by analyzing these factors.

Understanding Your Financial Condition

Start by carefully evaluating your current financial situation. Take stock of your income, monthly expenses, outstanding debts, and any potential future expenses. It’s critical to have a clear understanding of your financial health to determine the amount you can comfortably afford to spend on a home.

Know Your Different Mortgage Options

There are various types of mortgages available, each with its own set of terms and conditions. It’s important to explore your options and choose the one that best suits your financial situation and long-term goals.

It would be my pleasure to coach you through the particulars of different mortgage options to help you make an informed decision.

Setting Realistic Expectations

While it’s natural to have grand visions of your dream home, it’s crucial to set realistic expectations based on your financial position.

Be open to exploring different neighborhoods, property types, and home features that align with your budget. Remember, finding the perfect home is about striking a balance between your desires and financial reality.

Saving for a Down Payment

Saving for a down payment is often one of the biggest obstacles for potential homebuyers. However, with diligent budgeting and financial planning, you can work towards accumulating the necessary funds for a down payment.

I can definitely p rovide valuable insights into low down-payment options and other resources that may be available to you.

Improving Your Credit Score

Your credit score plays a significant role in determining your mortgage eligibility and the interest rate you may receive. Take proactive steps to improve your credit score by paying bills on time, reducing outstanding debts, and maintaining a healthy credit utilization ratio.

A higher credit score can potentially lead to better mortgage terms and lower monthly payments. You can find out more on building and improving your credit score here…

The Mortgage Pre-Qualification

Before starting your home search, consider seeking pre-qualification for a mortgage. A pre-qualification not only gives you a clear understanding of your budget but also signals to sellers that you are a serious and qualified buyer.

It’s my job to assist you in obtaining a pre-qualification, taking into account your financial details and helping you understand the implications of the pre-qualification process. Find out the specifics here…

Consulting with The Lending Coach

Navigating the complexities of home affordability can be a little bit overwhelming, especially for first-time homebuyers. That’s why it’s essential to consult with a knowledgeable and experienced mortgage professional like myself who can provide personalized guidance tailored to your specific needs.

I can offer valuable insights, answer your questions, and help you make well-informed decisions as you embark on your homebuying journey. Schedule a call with me here…

Moving Forward

If you’re ready to explore your options and discuss your specific homebuying needs, I encourage you to reach out to schedule a consultation. Together, we can work towards achieving your homeownership goals and navigating the path to home affordability with confidence.

My expertise and commitment to personalized service can provide you with the guidance and support you need to make informed decisions and move closer to purchasing your dream home.

Don’t hesitate to take the next step – contact me today to begin your journey towards homeownership.