Homeownership is an exciting and great goal that many Americans work hard their entire lives to realize and live. But when you have this goal in your sites and are getting close to taking the first steps of the process, the more information and knowledge you have, the better your experience can be. Here are some recommended tips and bits of information that can help you when you next purchase a house.
The Condition of the Real Estate Market
Before you start searching for a house, it can be helpful to get an idea of what the real estate market is doing. For example, are there an abundance of homes for sale today or are there a limited amount of homes that get purchased very quickly. The state of your area's real estate market can determine if it is difficult and expensive to buy a house or if it is easy to find exactly what you want at a great price. Furthermore, just because the real estate market might be a buyer's market in one city, a nearby area may have a market that is completely the opposite — a seller's market where there are more buyers than homes available.
Monitor the real estate market by watching some homes for sale and getting an idea of how quickly they are going under contract or if they are sitting on the market for weeks or months. If there is a limited number of homes that fit your criteria each time you search, this can be a sign that the market is hot, and if you find a home you like you might end up in a bidding war with other buyers or you will need to act quickly and submit a competitive offer.
Your Credit Situation
The condition of your credit can also impact your ability and experience to buy a house. For example, if your credit score is low and you have some derogatory credit details on your file, you may end up getting a mortgage at a rate that is a bit higher. Or you may need to find a seller who offers financing on your home, which can help you bypass the process of applying and qualifying for a bank mortgage.
However, just because your credit is less than perfect, that doesn't mean that you should give up on getting a mortgage. There are many programs available and a variety of mortgage brokers and loan officers who can search for the right program for you. When you find a great mortgage broker, they should be able to help you qualify for a mortgage that offers favorable terms that will make your mortgage payments manageable for you. For example, you can look at an adjustable-rate mortgage, which starts out with a low rate and will slowly increase over time. This allows you some time to improve your credit and you can later refinance your adjustable-rate mortgage for one of a long-term low rate. Contact a real estate agent near you in order to learn more.Share