Get ready to buy in 2027
With recent shifts in mortgage interest rates, homebuyers might be increasingly ready to take advantage of buying opportunities in 2027.
Mortgage rates have consistently dropped in the past year or so, making homeownership more affordable, particularly to first-time homebuyers.
Experts anticipate a surge in home sales, meaning homebuyers might take advantage of the lower mortgage rates.
To prepare for the 2027 housing market, start your loan application and connect with a Loan Officer today!
How the market might change in 2027
While 2026 began to pivot from a seller’s market to more of a buyer’s market, 2027 seems to be heading even more toward a buyer’s market.
A buyer’s market is when there are more homes available than potential buyers, giving buyers an advantage when looking for and negotiating prices on homes. A seller’s market is the reverse, and home sellers can be a little more selective when looking for a potential buyer.
Whether you’re a first-time buyer or looking to upgrade in 2027, preparation will be key.
Here’s how to get everything in order before year’s end to make your homebuying journey as smooth as possible.
Usually, our first piece of advice would be to start your home search by getting pre-approved. But since we’re talking about buying a home next year, you have a little more time and can start getting your financial situation in order before getting a pre-approval.
1. Give yourself a financial checkup
When you begin your home search, start by evaluating your financial situation, including income, savings, debt and spending habits. How comfortable are you with the idea of putting a down payment on a home and paying a monthly mortgage? Keep in mind that if you’re renting, you can replace your rent with your mortgage payment.
Use our affordability calculator to get a better understanding of how homeownership could fit into your budget.
2. Improve your credit score
Your credit score* is one of the most significant factors lenders consider when offering mortgage rates. You can reach out to any of the three credit report bureaus to find out your score for free: Equifax, Experian or TransUnion. Your score is provided in a range from 300 to 850. Most lenders prefer to see credit scores above 720 and may offer you a higher rate if your score is below that.
Start by checking your credit report, addressing any errors and working on paying down existing debts. Since credit takes time to build, starting early will put you in a strong position to begin the new year.
3. Manage your credit usage
In addition to paying down any existing credit card debt, you should also try to get into healthier habits with your credit cards. Paying off all new charges in full each month is a good habit to get into. Try to keep your credit utilization lower than 30% of your total credit available as high balances, even if paid monthly, can temporarily lower your score.
Whatever you do, don’t open new lines of credit, like store cards, before applying for a mortgage. New credit accounts can lower the average of your credit and suggest financial strain.
4. Build up your savings
The more you can pay as a down payment on your home, the lower your monthly mortgage payment will be. Aim to save for a larger down payment between now and the time you make your offer.
Start by spending less and saving more. Consider placing funds in a high-yield savings account to maximize returns before buying. Don’t forget closing costs, typically 2% to 4% of the home’s price. Paying them up front is cheaper than rolling them into your loan, and some programs may help cover them. While 20% down payment is considered standard, it is by no means necessary or even that common. If you need help, look into assistance programs or other funding options.
5. Get your documents in order
Having all your financial documents ready is essential for a smooth mortgage process. Lenders will likely ask you to provide the following documents during the application process:
- Proof of income
- Evidence of assets
- Contact information for your real estate agent, lawyer, inspector and others
- Tax documents, including W-2s and tax returns, for multiple years
- Information about past employers
Getting these documents ready could cut down on delays and make it easier to submit your application so you can move quickly.
6. Calculate how much home you can afford
Understanding what you can afford is crucial to avoiding future financial strain. Take a close look at how much of your income goes to essentials like housing and debt. Ideally, your debt-to-income (DTI) ratio should stay under 36%, with housing costs alone consuming no more than 28% of your income. Our affordability calculator will help you create a homebuying budget.
7. Keep an eye on interest rates
Mortgage rates change constantly. Since early spring, mortgage rates have declined steadily, reaching one of their lowest points of the past four years. That’s why it’s so important to have a relationship with a lender. They’ll be able to tell you when it’s time to lock in a rate.
8. Get pre-approved
Being pre-approved for a mortgage could show sellers you’re a serious buyer. Pre-approval gives you a clear picture of what you can afford and could expedite the process when rates drop, ensuring that you’re ready to move fast.
Not all pre-approvals are the same, however. PowerBid Approval from OriginPoint is a fully underwritten credit approval that can compete with cash offers. You can lock in your rate for 90 days, and it’s renewable. It’s fast, too, with priority turn times to help you become a power buyer overnight. Start your search with PowerBid Approval.
Get a head start on 2027
All indications are that the market will be competitive, especially if mortgage rates decline further next year. If experts’ expectations are correct, there will be more people looking to buy next year, and there’s a possibility that the number of homes for sale will increase. By following these steps, you’ll be able to stay ahead of market conditions and in a prime position to secure your dream home in 2027.
Start your mortgage application today and connect with a Loan Officer to find out how you can get ready to enter the housing market in 2027.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Contact OriginPoint for current rates. Restrictions apply. *_ OriginPoint does not provide credit counseling or credit repair services_.
Your journey home begins here.
OriginPoint's Same-Day Mortgage (aka “FastTrack”) promotion offers qualified customers who provide certain required financial information/documentation to OriginPoint within 8 hours of locking a rate on a mortgage loan the opportunity to receive a loan approval within 1 business day of timely submission of documentation and does not suggest that the borrower will receive funding on the same day as their application submission. For purposes of this offer, documents provided after 1 pm local time or on a weekend or company holiday will be deemed submitted the next business day. OriginPoint cannot guarantee that a loan will be approved or that a closing will occur within a specific timeframe. OriginPoint reserves the right to revoke this approval at any time if there is a change in your financial condition or credit history which would impair your ability to repay this obligation. Read and understand your Loan Commitment before waiving any mortgage contingencies. Borrower documentation and Intent to Proceed must be signed within 8 business hours of receipt. Not eligible for all loan types or residence types. Minimum down payment requirements apply. Self-employed borrowers and Co-borrowers are not eligible. Not all borrowers will be approved. Borrower's interest rate will depend upon the specific characteristics of borrower's loan transaction, credit profile and other criteria. Eligible borrowers who successfully provide all required documentation within 8 business hours will receive a $250 Closing Cost Credit applied at closing, no cash value, and may not be combined with any other Lender promotions, discounts, or concessions. Not available in all states. Restrictions apply. Visit OriginPoint.com/same-day-mortgage for terms and conditions.
**Eligible borrowers must qualify for a "Clear to Close Loan Commitment" ("CTC”). OriginPoint cannot guarantee that a loan will be approved or that a closing will occur within a specific timeframe. CTC is subject to certain underwriting conditions, including clear title and no loss of appraisal waiver, amongst others. Not eligible for all loan types or residence types. Minimum down payment requirements apply. Property must be eligible for an Appraisal Waiver and borrower must opt in to AccountChek for automated income and asset verification. Self-employed borrowers and Co-borrowers are not eligible. Not all borrowers will be approved. Restrictions apply.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact OriginPoint for current rates and for more information. All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. OriginPoint LLC fka Guaranteed Rate Affinity, LLC does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by OriginPoint LLC fka Guaranteed Rate Affinity, LLC. OriginPoint LLC fka Guaranteed Rate Affinity, LLC its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action. OriginPoint does not provide tax advice. Please contact your tax adviser for any tax related questions.
