BofA report finds homebuyer uncertainty at a three year high

New data from Bank of America’s Homebuyer Insights Report Homebuyer Insights Report reveals that uncertainty among homebuyers is at its highest point in the last three years: 60% of current homeowners and prospective buyers say they can’t tell whether now is a good time to buy a home or not, compared to 48% two years ago.

Despite this, 52% of prospective homebuyers are optimistic about the state of the homebuying market, saying it’s better now than it was a year ago. Three out of four (75%) expect home prices and interest rates to fall and are waiting until then to buy a new home, up from 62% in 2023.

With prospective buyers in South Carolina wondering how best to prepare for buying a home—now or in the future – below are some practical tips that can help with the process.

Tips to make homebuying easy:

Prepare your finances: Before you begin your search for a home, figure out what you can realistically afford. Take stock of your income, debt, savings and other financial obligations. Then use a home affordability calculator to get an idea of the home price and monthly mortgage payments that would work for your budget.

Prequalify for the right loan: The next move is to meet with a lender to discuss loan options and current interest rates. The lender can provide you with a prequalification letter, which will indicate the maximum amount the lender is willing to lend you via a mortgage. Taking it a step further, you may also want to consider getting preapproved for a mortgage, which is an offer to lend you a specific amount that is good for a certain amount of time, usually 90 days. Neither of these are a commitment to lend, but they can help show sellers you’re serious when you’re ready to make an offer.

Call a real estate agent: Once you know what you qualify for, save time and energy by narrowing your search to homes that fit your financial criteria. Try to preview properties online and have your real estate agent show you only listings that are right for your needs and your budget. When you find a match, your agent can help you make an intelligent, informed offer. If your offer is accepted, a purchase contract is drawn and typically contains a good-faith deposit (“earnest money”) to show your commitment, usually between 1 percent and 3 percent of the sale price.

Vicki Colmery, Lending Market Leader, Bank of America