Higher interest rates have scared off some buyers — but did you know that mortgage interest rates were around 15% in the early 1980s? That makes a 6.5% mortgage seem not so bad!

The reality is that you probably can afford to buy a home this year! With homebuyer grant programs and practical ways to get a lower interest rate, there’s no reason to wait.

If you want to stop renting and move into a place of your own, or if your family has grown and you need to move up (or you’re ready to downsize), here are the things you should start doing this month to be ready for the spring real estate market.

Assess Your Finances

While it may be fun to start popping into open houses and look at homes online, your first step should be assessing your finances. Find out what your credit score is (people with higher credit scores can get better mortgage rates) and work on raising it if you need to.

Also, take a hard look at your budget and figure out how much of a monthly payment you can afford. Remember that homes can come with more expenses than just the monthly mortgage. You’ll have to factor in property taxes and homeowners’ insurance, and you may have higher electric bills, repairs to pay for and a lawn to mow. All of those need to be considered!

Get Pre-Approved for a Mortgage

Did you know you can go shopping for a mortgage? One mortgage lender may have access to different programs than another, for example, or different levels of flexibility with rates. Come to CommonWealth One first to talk to our talented mortgage professionals! Be sure you get pre-approved, not just pre-qualified! Pre-approval gives sellers the confidence that you will be able to purchase their property without a delay.

In addition, use this time to learn about how to “buy down” points to lower your mortgage rate, learn about assumable mortgages and understand what an adjustable rate is, too! The more you learn about mortgages, the better deal you can get on a home! Register to join us on Wednesday, February 21 at noon for our webinar, "A Guide to Mortgage Types" to learn more about the options available to you.

And remember: The rate you get for your mortgage this year may not be the rate you always pay! Refinancing once mortgage rates cool off a little bit can save you money later on and is often worthwhile. If you want to learn more about refinancing in the future, check out the recording of our webinar, "Refinancing: Is It Right For You?"

Make a Down Payment Plan

It’s usually a good idea to have a down payment on your home! It can lower your monthly payment by lowering the total amount you borrow. But just like mortgages, you have some research to do! If you’re a first-time homebuyer, you might be able to take advantage of local, state or federal grant programs that will boost your down payment. There are also specials programs and grant programs for military veterans, people who work for nonprofit organizations and more. Your mortgage officer can help you navigate this, and your realtor can, too!

Interview Real Estate Agents

Your cousin might be a real estate agent. Or the friend of your neighbor. There are a LOT of real estate professionals available, but you need to choose one who you feel comfortable with and who specializes in your needs.

You may want a real estate agent who is really familiar with your most-desired neighborhood, or one who is really good at working with first-time homebuyers, downsizers or mid-life moves. You’ll be working closely with your agent for several months, so it also needs to be a person you like! CommonWealth One has a great program for members called HomeAdvantage*.

HomeAdvantage gives you access to trusted local real estate agents who will help you with your search and the buying or selling process from start to finish. Plus, when you use a HomeAdvantage agent or broker, you will receive a cash rebate when you close on a home!

Make a Wish List

It’s also really important to know what you’re looking for in a home. There’s a long list of questions to ask yourself about where you’re living, what you like and don’t like about it, and what you want in a home.

• Do you want a condo, a townhome or a single-family home?
• Do you have a favorite neighborhood?
• Are there things you really like about your current home that you want to keep? Or things you hate and want to avoid? Do you love cooking or want a dedicated home office?
• Are you ready for a fixer-upper that you can make your own, or do you want to move right in?
• Do you have (or want) a dog or children who might need or want certain things?

Make a list of what you want and don’t want, and then prioritize that list. Are there certain things that are absolutely necessary and other things that would just be nice to have? Make sure your real estate agent has your list and understands your needs.

Go Shopping!

Ok, now you can get to the fun part — shopping! We wish you luck in finding and buying your home whether it’s your first time or fifth.

Keep CommonWealth One in mind for not only your mortgage, but for home equity lines of credit or home equity loans for your future renovations and home needs. For more information to aid you on your homebuying journey, watch our "Homebuying 101" webinar — it’s free and filled with practical tips!