Set yourself up for success before jumping into the hot property market. These days, finding a new place to call home may be a difficult endeavor but possible with the right strategy and I’m here to strategize with you.
As interest rates are climbing, there has been a rush to lock in lower relative rates, while at the same time the inventory of homes has hit all-time lows. To put it another way, The January sales report shows the average price of a home sold in San Antonio increased 17% to $351,226, the median price appreciated by 18% to $304,700 and the average home stayed on the market for 35 days, 12 days less than January of 2021.
Once you start searching, you will need to act quickly to make an offer so, here are the seven things you can do right now to improve your chances of finding and closing on a new home.
Learn the language.
Real estate jargon, such as house inspections and closing fees, is essential to understanding the process. However, studying the language ahead of time might help you get up and running more quickly. Your offer will be up against other buyers, so educate yourself with me, your agent, on what terms like earnest deposit, appraisal contingency, home inspection contingency, and appraisal gap mean before viewing homes.
The housing market will continue to heat up.
The money you put down as a down payment on a house that you want to buy is the earnest money. You may use the money to pay for your principal payments and closing fees, which is a fantastic sign of trustworthiness. If the appraised value of the property is less than the purchase price, you have the option to walk away from the deal if the appraisal cost is below the offered price. The appraisal gap refers to the discrepancy between the sales price and the appraised value.
In the same way, if problems develop during the house inspection, you have a backup plan in place. Instead of walking away from a deal, you have the option to renegotiate with the seller in either scenario.
Savvy purchasers have waived their stipulations to acquire an advantage in the intense competition.
Gather your thoughts and compile a list.
For starters, write down your “must-haves” and “nice-to-haves,” then, if a quick decision is required, you will know what compromises to make.
A bidding battle, which is all too common in a competitive market, may benefit from this strategy as well.
Focus on the goal you set out for yourself, like your list of must-haves and nice-to-haves and your budget. Stick to that. Be persistent.
Tackle debt.
The debt-to-income ratio, which measures the debt you have in relation to your income, will be considered by lenders when making a loan decision. I suggest that if you have debt, you should strive to pay it off before looking for a property. Pay it off with any extra money you get, such as a bonus or a gift of cash. Invest the money you do not owe in a savings account to assist with the down payment.
Know your credit score.
When it comes to securing a mortgage, your credit score is a crucial consideration. The interest rate you obtain and the amount of money you will need as a down payment are also influenced by this. Prior to making any purchases, you may find out whether you need to raise your credit score by doing a credit score check. Verify your credit report for any inaccuracies or unpaid debts that might have an impact on your credit score. Get a copy now!
Contact a mortgage lender.
Make sure you speak with a lender to find out what they need from you to pre-qualify for a mortgage. I can certainly refer you to someone you can trust! Since there is less demand for mortgages, mortgage rates have gone up. When it comes to deciding whether to purchase or rent a home, internet calculators may assist. Closing expenses — sometimes known as closing charges — are additional fees paid at closing in addition to your down payment. Preapproval for a mortgage is also a clever idea when you begin house looking, as you will require to add it to any offer we write.
Make a budget proposal.
A preapproval letter from a mortgage lender does not guarantee that is the amount of money you can afford to spend on a home. Calculate your monthly budget based on your actual spending. Make sure to keep an eye on interest rates. Your monthly mortgage payments will go up if they continue to climb before you close on the house. Try to identify lower-priced choices by widening your market if at all feasible.
This is the time to go to out and look for houses and here am I to help you with this exciting endeavor all the way to the closing table and the delivery of your new home keys. Call us Today to start this exciting process (210) 418-0067
