High interest rates can feel like a major roadblock when you’re house hunting—but they don’t have to be. While it’s true that higher rates can increase your monthly mortgage payments and impact your buying power, there are still plenty of ways to land your dream home without compromising your financial goals. Whether you’re a first-time buyer or a seasoned homeowner, here are some practical tips for navigating a high-rate market with confidence.
Focus on What You Can Control
You might not be able to change interest rates, but you can control your credit score, debt-to-income ratio, and the size of your down payment. Improving any of these can help you qualify for better loan terms, even in a higher-rate environment. Check your credit report for errors, pay off smaller debts if possible, and avoid big purchases while mortgage shopping.
Get Pre-Approved—and Know Your Budget
Getting pre-approved gives you a clear picture of what you can afford and shows sellers you’re serious. But in a high-interest climate, it’s even more important to know your true comfort zone—not just what the lender says you can afford. Calculate your monthly payment based on your preferred budget, not the maximum you qualify for. Leave wiggle room for rate changes, taxes, and insurance.
Explore Rate Buydowns and Seller Incentives
Many lenders offer the option to “buy down” your interest rate by paying points upfront. Similarly, in some markets, sellers may offer concessions that can help cover these costs. Ask your lender:
- Can I negotiate for the seller to cover closing costs or buy down the rate?
- Are there temporary buydown options to lower payments for the first few years?
Of course, not all mortgage lenders are created equal. Rates, fees, and service can vary significantly. Get quotes from at least 3-5 lenders to ensure you’re getting the best possible deal. Don’t worry—multiple quotes within a short time period typically count as one credit inquiry.
Think Long-Term: Refinance Later
If rates drop in the future, you may be able to refinance to a lower rate. While there’s no guarantee that rates will fall, many buyers use the strategy of “marry the house, date the rate.” Always consider the closing costs and break-even point when refinancing.
Start Your House Hunt with Lisa Skumpija
Buying a home when mortgage rates are high might feel overwhelming—but you don’t have to do it alone. If you’re looking in Chatham County, Lisa Skumpija is a great local resource who knows the ins and outs of the area. She’ll help you find the right home, at the right price, with the guidance you need to feel confident every step of the way.
Ready to start your home search? Reach out to Lisa online or give her a call at 919-946-3486.