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Success Strategies for 2022 Homebuyers

If you’re a homebuyer without a home to buy, the ongoing housing shortage is making housing to buy less affordable by the day. Certain factors should change with time, which should provide you with a better chance to buy a home in mid-to-late 2022.

If you’re a homebuyer without a home to buy, the ongoing housing shortage is making housing to buy less affordable by the day. Certain factors should change with time, which should provide you with a better chance to buy a home in mid-to-late 2022.

One factor that helped fuel the current housing market boom was record low-interest rates. According to the latest weekly Mortgage Bankers Association survey, the average contract interest rate for a 30-year fixed-rate mortgage (FRM) under $647,200 was 5.20% with 0.63 points. That’s a quick rise from the record low recorded by Freddie Mac in December 2020 of 2.68% for the same FRM loan.  As a borrower, you could ask your lender about a hybrid mortgage that gives you a lower adjustable rate for a fixed period of five years before the rate adjusts to a fixed rate. 

Since the Great Recession, there’s been a serious shortage of new homes being built. The National Association of REALTORS says the U.S. needs to add 550,000 more homes to its 1.5 million annual average for the next ten years to make up the shortfall that’s now calculated to be about 6.8 million homes, after accounting for demolitions. Builders need more labor, more land and an end to supply chain shortages to meet this goal.

What can you do? Buy an older home that needs work. You’ll have the option of improving it or tearing it down and rebuilding when the market improves. 

Home Inspections for Co-ops or Condos

Do you need a home inspection when you buy a condominium or a co-op? According to BrickUnderground.com, home inspections are common for single-family homes, but they’re also increasingly being requested by urban homebuyers of condos and co-ops. Condo and co-op owners share common spaces such as elevators, lobbies, parking, and grounds, but where they differ is who’s responsible for maintenance and what the inspection can cover.  

Condos are privately-owned units within a community of other privately-owned units, explains Bankrate.com. Owners share common areas, but inside their apartments, they own the air space and interior walls of their units plus the structural components of the exterior walls. Condos are managed by a homeowner’s association that collects monthly or annual dues to pay for common area maintenance, repairs and replacement. These services are typically provided by a third-party property management company.

In a co-operative, or co-op, a corporation owns the building, common areas and all apartment units. Instead of buying an apartment, homebuyers buy a share of the corporation, according to Amfam.com. The corporation holds the title to the property, and homebuyers build equity when future buyers pay more for their “share.” The board of directors is responsible for maintenance inside each unit and the building as a whole.

A housing inspection is the homebuyer’s right, but only for the unit and the major systems that the homebuyer is responsible for, including plumbing, electrical and heat and air systems, patio or balcony, kitchen, bathrooms, bedrooms, appliances, walls, doors, windows and flooring, advises AllAspectsInspections.com.

Late Payments and Credit Scores


Consumers who make late credit payments have no idea how badly their credit scores can be affected or how long it takes to repair the damage.  According to Nerdwallet.com, a late payment of 30 days or more can knock as many as 100 points off your credit score and stay on your credit report for up to seven and a half years.FICO scores, the credit-scoring system used by the Fair Isaac Corporation, help banks and other lenders determine a borrower’s creditworthiness. Your scores can change with every new report from a creditor, but nothing impacts credit scores like a missed payment. Your payment history accounts for 35 percent of your FICO score, advises credit bureau Experian.com. Other factors include the amounts owed (30%) credit history length (15%), types of credit (10%) and new credit (10%.)If you’re late making a late payment on an account, don’t despair. Equifax.com, another credit bureau, explains that the payment due date on your statement or bill is the last day you can pay on your account without incurring late fees. Lenders routinely report accounts to credit bureaus at least 30 days after the payment due date, and they often don’t report late payments until they’re 60 days past due.Even if your payment is late, go ahead and make it. If you can pay the amount due in full, some lenders won’t report the late payment. You’ll have to pay whatever late fees are levied, but your credit score will remain intact.