7 Things to Do While You Wait to Buy a House

Mortgage rates are hovering around 7.5%, home prices are still relatively high, and affordability continues to be a real challenge for a lot of potential buyers. Because of that, plenty of people have decided to put their home search on hold, waiting for lower rates, lower prices, or just better conditions overall. There's nothing wrong with that. Depending on your situation, waiting might genuinely be the smartest decision you can make. But here's where I think a lot of buyers get it wrong: they're so focused on waiting for the market to change that they're not doing anything to improve their own situation, and those are two completely different things. While everyone's watching interest rates, we're starting to see opportunities in this market that haven't been around in a while, homes sitting longer, sellers reducing prices, builders offering incentives. That doesn't mean you should run out and buy tomorrow, but it does mean you should be putting yourself in a position to take advantage of those opportunities when the time is right. Here are seven things worth doing now, even if you're six months, a year, or longer from actually buying.

1. Talk to a Lender, Even If You're Not Buying Yet

I know what some of you are thinking: why talk to a lender if I'm not buying anytime soon? Because you need to understand where you actually stand. One of the biggest mistakes I see is buyers waiting until they fall in love with a house before they ever discuss financing, and then finding out there's a credit issue, a debt-to-income problem, or that they qualify for far less than they expected, all while they're already out looking at homes. That's backwards. You want to identify those issues before you start shopping, not after. And here's something else worth understanding: just because a lender says you qualify for a certain amount doesn't mean you should spend that much. What a lender is willing to lend you and what you can comfortably afford based on your lifestyle and goals are two very different conversations. I've been doing this more than 20 years, and qualifying for a number doesn't mean you'll be comfortable paying it every month. You don't necessarily need a formal pre-approval right now, an initial conversation with a lender may be enough to figure out what you need to work on.

2. Work on Your Credit

This matters even more in a higher-rate environment, since the last thing you want is to pay an even higher rate because of something you could have addressed months earlier. You don't need an 800 credit score to buy a house, and there are loan programs for borrowers with lower scores, but stronger credit generally puts you in a better position to qualify and to get better terms. Pay everything on time, look at your credit card balances relative to your limits and pay those down where you can, review your credit reports for accuracy, and be careful about opening new credit accounts or financing large purchases if you're planning to buy soon. You don't need to spend the next year obsessing over a score, but if you're sitting on the sidelines anyway, this is something you can actually control, unlike the Federal Reserve or the bond market.

3. Keep Building Your Savings

And I don't just mean your down payment. I mean your down payment, your closing costs, and having money left over after you buy. A common misconception among first-time buyers is that you need 20% down. Depending on the loan program and your qualifications, you may be able to buy with as little as 3% down on a conventional loan or 3.5% down through FHA financing, and VA financing may not require a down payment at all for eligible borrowers (confirm current program requirements with a lender, since these can change). But a smaller down payment generally means a larger loan, a higher payment, and in some cases mortgage insurance, so it's not automatically the better choice either. At the same time, putting every dollar toward your down payment and leaving yourself with no savings isn't smart. Once you own a home, the water heater will go out, the roof will need attention, the air conditioner will quit in the middle of summer, and none of that waits until it's financially convenient. Use this time to build savings, including closing costs, which can add up quickly depending on where you're buying and how you're financing.

4. Take a Real Look at Your Monthly Debt

Lenders don't just look at your income, they look at how much of that income is already committed elsewhere. Car payments, student loans, credit cards, and other debts all factor into your debt-to-income ratio, and that ratio affects how much you can borrow regardless of how much you make. I'm not suggesting you pay off every debt before buying, that's not realistic or even the best move for everyone, but if you've got time on the sidelines, it's worth reviewing your monthly obligations with a lender. Sometimes paying down a specific debt improves what you qualify for more than putting that same money toward your down payment would. Other times, keeping it in savings makes more sense. It depends on your situation, but you want an actual plan rather than a guess.

5. Learn the Market Where You Actually Want to Buy

I'm not talking about national headlines or predicting next year's prices. I'm talking about understanding what's happening in the specific neighborhoods and price ranges you care about, since real estate is local. What's happening in one city can look nothing like what's happening in another, and even within the same city, one neighborhood can move quickly while another sits for months. Start watching homes where you want to live. Notice what they're listed for, how long they sit, whether sellers are cutting prices, and most importantly what they actually sell for, since asking price and the price a buyer is willing to pay are two different things. Over time you'll start recognizing which homes are priced appropriately, which sellers are unrealistic, and where buyers might have room to negotiate. You don't need to scroll listings for hours every night, but a little attention each week means you're not starting from zero once you're ready to move.

6. Understand the Opportunities Already Showing Up

Affordability is still a real challenge, but the market has shifted. Homes are sitting longer, more sellers are reducing asking prices, and in a lot of markets buyers have more negotiating power than they've had in a long time. That doesn't mean every home sitting on the market is a deal, some are overpriced, some have condition issues, some sellers simply aren't realistic. But other sellers genuinely need to move, have already bought elsewhere, or are just ready to be done, and those situations create real room to negotiate price, closing cost contributions, or a credit toward buying down your rate. New construction adds another layer, since builders are carrying inventory and sales targets individual sellers don't have, and in certain communities that means rate buydowns and closing cost assistance to attract buyers. Just remember that a lower advertised rate from a builder doesn't automatically mean a better deal, you have to look at the entire transaction, including price and any restrictions tied to the incentive, before assuming it's the better option.

7. Have an Actual Plan

This is probably the most important one. I hear all the time that people are waiting, and my response is always the same: waiting for what? Rates to hit 6%? Prices to drop 10%? Another $20,000 saved? Or just waiting because you're not sure what else to do? Those are very different situations. If you're waiting to improve your finances, that makes sense. If you're not sure where you'll be living or working in a couple of years, that's a legitimate reason to hold off. If the payment simply doesn't work for your budget right now, don't force it. But if you're waiting for the perfect housing market, you're going to be disappointed, because there's always something, and I've talked before about why waiting for the perfect moment can backfire. When rates were near 3%, buyers were fighting through bidding wars and waiving contingencies. Now, with rates much higher, buyers face affordability challenges but often more inventory and more room to negotiate. Every market has tradeoffs. And if rates do eventually fall, that's not automatically easier either, since lower payments can pull more buyers back into the market and create new competition depending on how much inventory is available.

Figure out the monthly payment you're comfortable with, decide how much you want saved before buying, work with a lender to understand what you need to qualify, and start learning the market you want to live in. That way, when the right house comes along and the numbers make sense, you're making a decision based on your own financial situation, not on whatever happens to be in the headlines that week. I've been doing this 24 years now, through all kinds of markets, and there's never going to be a perfect time to buy. There's always going to be uncertainty about rates, the economy, or prices. So buy when it makes sense for your life, not because you're afraid of missing out and not because you're trying to time the exact bottom. If you're not ready, don't force it. Just don't confuse waiting with preparing, because the buyers who spend this time getting their finances in order and learning their market are the ones who'll actually be ready when their moment comes.