As the year 2025 comes to a close, many individuals start setting significant goals for the New Year. If purchasing a home is among these goals, it is crucial to reorganize finances as soon as possible. Those planning to buy a home in the upcoming year should not delay in managing their financial situation.
Essential Steps for Buying a Home by 2026
Experts recommend that prospective homebuyers engage proactively with their banks to understand their financial standing and prepare adequately before officially starting their home search. Jake Vehige, President of the Mortgage Lending Division at Neighbors Bank in the United States, advises individuals to contact lenders six months to a year prior to making a purchase. “This builds a relationship and gives the bank time to find the best solutions, increasing your chances of securing a home in 2026,” he states.
Current Market Conditions
In the U.S., the average fixed mortgage interest rate for 30 years stands at 6.19%. This has prompted many who were hesitant to consider purchasing a home. However, it is essential to recognize that the down payment is just one factor among many that buyers need to evaluate.
Critical Financial Strategies
According to insurance expert Melanie Musson, obtaining mortgage approval is merely the first step. “Do not regard the approved limit as the total amount you should spend. It is just a starting point,” she emphasizes while highlighting three key recommendations for potential homeowners:
- Increase savings to provide a larger down payment or have funds for home renovations.
- Pay down debt to improve the debt-to-income ratio.
- Check credit scores to ensure no errors need to be disputed.
Vehige also suggests seeking experienced partners familiar with low-to-moderate income customers, offering various loan types that are suitable for different lifestyles. A good bank will see the potential in your financial situation and assist you in achieving your homeownership goals.
Options for Young Couples
In Vietnam, young individuals face a similar dilemma of wanting to buy homes while grappling with financial pressures. An encouraging development is that HDBank has become the first bank to offer a home loan term of up to 50 years, allowing payments to extend across two generations and significantly reducing monthly debt burdens. Additionally, HDBank offers:
- Interest rates starting at 4.5% per annum.
- Maximum principal repayment grace period of 5 years.
- Loan-to-value ratio of up to 90% of the asset value.
This extended loan term and high loan ratio provide buyers, particularly young couples, the opportunity to own homes sooner instead of waiting to accumulate savings.
