Financial changes that will help you be ready to buy a home in 2025

This year experts predict the housing market will get a bit more affordable and if you're planning to buy a home in 2025 now's the time to start getting ready. Jen Sullivan shows us some of the financial changes you might want to make now so you can start making offers as soon as you're ready. 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 is looking better for buyers. More choices, more inventory that will lead to boosts in home sales roughly by 10% in 2025. Lawrence Yoon with the National Association of Realtors says now is the time to start getting your finances in order so you're ready to make a competitive offer when you do find the right home. First, make sure your credit is in good standing. Second, figure out how much you can afford. Third, find a mortgage lender. Look for the mortgage lender who offers the best rates and even consider adjustable rate mortgage. 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 and I wouldn't necessarily count on interest rates to come down a lot in the immediate future. Next, calculate how much your down payment will cost. According to the mortgagereports.com, down payments can range anywhere from 3% to 20% of the purchase price. So if you're buying a $300,000 home, be prepared to put down anywhere between $9,000 to $60,000. Once you've been pre-approved by a lender, you're in a much better position to make an offer on a home. Experts caution buyers to stay within their budget and don't forget to include closing costs and move-in expenses. For Consumer Watch, I'm Jen Sullivan.