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27 September 2024 September 2024 » E X P E R T I N S I G H T S Since rates and inventory are going to fuel affordability challenges, it is more important than ever before for potential homebuyers and existing homebuyers to do their homework. And also, speak with a lender. There are government programs that help with affordability as well as lender options. A trusted, experienced mortgage professional can help you navigate the challenges of the market and find solutions based on your unique financial situation. Q: What suggestions do you have for renters who are on the outside of the home buying market looking in? Scott Lindner: Purchasing a home is not about buying in the right market—it is about buying in the right financial situation. Overall, a home can be the sin- gle biggest investment vehicle for many in their lifetime, as homebuying builds equity and can lead to generational wealth. Renters should take initial steps to prioritize saving and build their credit before jumping into home searching. If a renter decides that they are ready to begin the home buying process, they should speak with a knowledgeable, experienced mortgage professional, like a loan officer, early in the process. Mortgage experts can discuss homebuying options, weigh in on the interest rate environment, and help borrowers consider and think through different affordable mortgage offerings that might contribute to a lower down payment amount, better aligning with a buyer's budget. They can also map out the process in general, to give poten- tial homebuyers a frame of reference for next steps. Finding a loan officer is not a daunting task. Check with your bank or financial institution to see if they have any local loan officers who are available to speak with you. In summary, my best advice to renters or anyone interested in buying a home is not to count yourself out and sit on the sidelines because of the housing market. There may be options out there that can help you get into a home. And as I said before, purchasing a home is not about buying in the right market—it is about buying in the right financial situation. Q: According to the report, 43% of potential buyers felt they required the most education and guidance during the mortgage process. What can be done by the industry in terms of outreach to educate the general public on the homebuying process? Scott Lindner: It is crucial for potential buyers to have a mortgage professional on their side through the process, because homebuying can feel intimidating to tackle on their own. Potential buyers who engage a mortgage expert will have a go-to contact throughout the process and will receive tailored guidance based on their specific needs and financial situations. TD's Mortgage Survey Index found that more than half of homeowners (57%) contacted Realtors for information, education, or opinions on the products or services offered by each bank or lender they considered. Other sources for guidance included family and friends (37%), bank or lender websites (36%), and in-person meetings at branches or lender offices (34%), showing that homeowners prefer learning about their options from industry professionals and loved ones. At TD, we are always looking for ways to support our customers through the home buying process. An informed buyer makes for a smoother process, and we are committed to helping our customers understand the process and feel confident about their options. Q: What do you feel rates will take for the rest of 2024? Scott Lindner: As inflation wanes and consumer spending remains steady, we anticipate that a first rate cut in 2024 is very likely. Ultimately, for the home- buyer, this means rates will likely lower, but it will be a gradual reduction. That is why my advice is that homebuying comes down to the right time based on your unique financial situation, not the best market to purchase in. "Finding a loan officer is not a daunting task. Check with your bank or financial institution to see if they have any local loan officers who are available to speak with you."