I get your point about waiting to rebuild credit, but interest rates overall are pretty unpredictable right now. If rates jump significantly while you're waiting, any credit improvement might not offset that increase. When I refinanced, I thought waiting would help—but rates climbed, and I ended up paying more monthly anyway. Have you considered how market fluctuations might impact your decision, not just your credit score?
"If rates jump significantly while you're waiting, any credit improvement might not offset that increase."
That's a fair point, but honestly, timing the market is always a gamble. When I bought my second home, I rushed because rates were climbing, and then they dipped again six months later—felt like kicking myself. I'd argue that focusing on your financial stability (like improving credit or saving a bigger down payment) gives you more control than trying to predict interest rate swings. Markets fluctuate constantly; your personal finances are something you can actually influence.
That's actually reassuring to hear. I'm in a similar boat—first-time buyer, post-bankruptcy, and honestly, the thought of trying to guess interest rates stresses me out way more than just getting my finances straight. Seems like every time I check, rates are doing something different anyway... I'd rather focus on what I can control, like building up savings or improving my credit score. Good to know others feel the same way about it being a gamble!
I get where you're coming from, and focusing on your credit and savings is definitely smart. But just to play devil's advocate a bit—interest rates aren't entirely unpredictable chaos. Sure, they bounce around, but there are usually broader trends you can keep an eye on. I've seen buyers who waited too long hoping for rates to drop, only to watch home prices climb faster than their savings. Sometimes, locking in a slightly higher rate now and refinancing later can actually save you money in the long run, especially if home values keep rising.
Also, while building savings is crucial, don't underestimate the power of a bigger down payment. It can offset some of the higher interest costs and might even help you qualify for better loan terms right off the bat. Just something to consider... everyone's situation is different, but it's worth weighing both sides carefully before deciding to wait it out completely.
I see your point about locking in rates now and refinancing later, but from my experience, refinancing isn't always a guaranteed option. I had a client who bought shortly after bankruptcy, expecting to refinance once their credit improved. Unfortunately, home values dipped slightly in their area, and refinancing became tricky due to equity issues. A bigger down payment upfront might've given them more breathing room. It's smart to weigh the risks carefully—sometimes patience pays off, even if it feels frustrating in the short term.
