Amidst all the reporting on the economy right now, it’s easy to get confused about how the moving parts of the economy interact with one another, and it can be even more confusing to determine how all these changes affect us as individuals. As you’re planning out how to fund your new home, here are some things to consider.




The Fed Doesn’t Raise Mortgage Rates Directly


You’ll hear plenty of reporting about the Fed raising interest rates. While it isn’t inaccurate to say that the Fed raises interest rates, the way it’s presented is sometimes a bit confusing.




The Fed doesn’t raise mortgage rates, credit card rates, or other interest rates, at least not directly. The Fed raises the rates on the money banks lend to one another. When the Fed raises rates, it doesn’t necessarily mean that the rate on your mortgage is going to go up, or that the rate you’re offered will even be affected at all, though that can happen. It’s natural to worry about whether or not your mortgage rate will be affected by the Fed increasing interest rates, and it may well be, but a rise in rates by the Fed does not eliminate the chance to get a good mortgage.




You Do Have Some Control


When you have reason to believe that rates are going to go up, it can feel like you have no control over whether or not you can get the property you want, even if you’ve found something very affordable in the area of Smyrna you’d most prefer. However, there still is a lot you can do, and it matters even more in a climate where borrowing becomes more expensive.




First, make sure you save rather than spend. Having a good-sized down payment can make lending far less expensive. You’ll also benefit in terms of your credit score if you keep your credit card and other revolving account spending to a minimum.




Be sure to shop around for a good lender. Even if you have less-than-stellar credit, there’s likely more than one lender who will work with you, so be sure you’re getting the best deal. Check your credit report for any issues, and make sure you don’t apply for any other credit if you’ve got a mortgage application in with a lender.




Talk to your Realtor to get a better idea of the current prices for Smyrna property and to learn how you can find a home that’s perfect for you, on most any budget.