July 1, 2025
Knowing where you stand financially and doing your homework in advance can help make home-buying less difficult.
Trying to maneuver forces like surging home prices and unpredictable mortgage rates have created an unpleasant landscape for home buyers.
Many homeowners would perhaps do things differently if they could do it all again. New data reveal that around 46% of purchasers, including a stunning nearly 60% of first-time buyers, report that buying a home in recent years was more stressful than they had anticipated.
While 44% of buyers say their happiness overall has improved since taking the plunge, 23% declare their financial situation has entirely regressed since buying. Some 20% proclaim their stress levels have risen. The report by Clever Real Estate quizzed nearly 990 American adults who bought a house in 2023, 2024, or 2025. About 11 percent of the respondents were Black.
It’s no secret that buying a home can truly be exhausting, resulting in buyers often making rash decisions they may regret later. Consider that 28% of them had second thoughts after their offer was approved, and the same percentage were contrite about the purchase.
Yet the bright spot is that there are many actions that can be used to help make home-buying feel less extreme and even more efficient. They can range from buyers taking steps to assist with buying an affordable home they want. And they can discover how a better understanding of their credit score could help them get a more favorable mortgage rate.
DETERMINE IF YOU ARE FINANCIALLY READY TO BUY A HOUSE
Jaime Dunaway-Seale, the report’s author, offered some tips via email to help people, including Black Americans, take the sweat out of buying a home. For instance, buyers can use the 28/36 rule as a guideline for determining affordability. It suggests that no more than 28% of gross monthly income should go toward housing costs, including principal, interest, insurance, and taxes.
She added that no more than 36% of their gross monthly income should be spent on their debts. If expenses fall within this range, it may be safe to proceed, but buyers should also try to account for hidden costs and make sure they have an emergency fund of three to six months.
If they’re not confident in crunching the numbers themselves, Dunaway-Seale said, online calculators can help them determine monthly payments and affordability. “A real estate agent can also help match them with homes that are only in their budget,” she added.
And, of course, mortgage rates should be examined. Per housing finance giant Freddie Mac, the average 30-year fixed-rate mortgage was 6.77% on June 26, 2025, down from 6.81% the prior week and less than 6.86% the same time last year.
Sam Khater, Freddie Mac’s chief economist, said, “Borrowers should find comfort in the stability of mortgage rates, which have only fluctuated within a narrow 15-basis point range since mid-April. Although recent data show that home sales remain low, the resulting available inventory provides homebuyers with a wider range of options to consider when entering the market.”
Dunaway-Seale shared with BLACK ENTERPRISE that the rate today is still quite high versus the low rates in the years following the pandemic. She noted housing experts expect rates to hover around this range for the foreseeable future and possibly decline later this year.
CONSIDER TOTAL HOMEOWNERSHIP COSTS AND GET PRE-APPROVED FOR MORTGAGE
For those who are ready to buy, she says it’s important to lock in a rate when it’s trending down because it could tick back up. “However, buyers shouldn’t be lured in by a lower rate and purchase more house than they can afford. They should continue to think about the total cost.”
Along those lines, experts advise getting approved for a mortgage first. Do that by gathering the proper documents like W-2Es, IDs, and bank statements for your pre-approval application beforehand to help streamline the process. Dunaway-Seale advises contacting multiple lenders or a mortgage broker. “It’s important to compare offers so you can get the lowest rate.”
Buyers should also review where they are with saving for a down payment and covering closing costs. Seale-Dunaway recommends they research down payment assistance programs and first-time buyer grants that accept no or very low down payments, that require less upfront costs, and make home buying more accessible.
Also, she proposes opening a high-yield savings account so your money will earn interest while you save for your down payment. Plus, boost your income by selling old belongings, working overtime, or taking on a side hustle. Simultaneously, cut needless expenses.
USE REFERRALS AND OTHER TOOLS TO HELP SELECT A COMPETENT AGENT
With a home being the single largest investment for most folks, experts suggest using a real estate agent. Among the reasons: An agent often has local market expertise to help buyers make better informed large decisions, and make the overall transaction process less burdensome.
Don’t be afraid to do some online research to review the pros and cons of choosing an agent.
Dunaway-Seale explained a lot of times that an agent’s commission is paid by the seller, so buyers often receive this service for free. To find the best agent, she suggests asking friends or family for recommendations. “Interview several agents about their experience and recent sales. Look for someone who is responsive, knowledgeable, and understands your goals.”
The bottom line: The aforementioned tips can help buyers feel more self-assured and ready before buying a home. “When buyers move forward with knowledge about budgeting and mortgage options, they can make smarter decisions and save money by not overpaying,” Dunaway-Seale says. “They know they’ll be making a sound long-term investment.”
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