What to know before you buy a home in 2025
If 2025 is your year to buy a home, now is the time to start preparing your finances so you can make a competitive offer immediately.
Many first-time homebuyers were shut out of the housing market in 2024 because of soaring sticker prices, few choices and high interest rates. But this year, buyers are looking better.
Lawrence Yun with the National Association of Realtors advised now is the time to start getting your finances in order so you're ready to make an offer when you find the right home:
- Make sure your credit is in good standing
- Figure out how much you can afford
- Find a mortgage lender
"Look for the mortgage lender who offers the best rates and even consider adjustable rate mortgage," Yun said.
However, be prepared to pay a higher rate for your mortgage. As of last week, the national average for a 30-year-fixed mortgage rate was 6.85% according to Freddie Mac.
"If you are in the market for a home, you're going to pay a pretty steep interest rate," economics and political commentator Catherine Rampell explained. "I wouldn't necessarily count on interest rates to come down a lot in the immediate future."
You should also calculate your down payment, which usually ranges between three to twenty percent of the home's price.
And last but not least-- don't forget to include closing costs and move-in expenses.
Experts caution buyers to stay within their budget.
