As the events of the last few years in the real estate industry show, people forget about the tremendous financial responsibility of purchasing a home at their peril. Here are a few tips for dealing with the dollar signs so that you can take down that “for sale” sign on your new home.
Get pre-approved. Sub-primes may be history, but you’ll probably still be shown homes you can’t actually afford. By getting pre-approved as a buyer, you can save yourself the grief of looking at houses you can’t afford. You can also put yourself in a better position to make a serious offer when you do find the right house. Unlike pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history. By doing a thorough analysis of your actual spending power, you’ll be less likely to get in over your head.
Choose your mortgage carefully. Used to be the emphasis when it came to mortgages was on paying them off as soon as possible. Today, the debt the average person will accumulate due to credit cards, student loans, etc. means it’s better to opt for the 30-year mortgage instead of the 15-year. This way, you have a lower monthly payment, with the option of paying an additional principal when money is good. Additionally, when picking a mortgage, you usually have the option of paying additional points (a portion of the interest that you pay at closing) in exchange for a lower interest rate. If you plan to stay in the house for a long time—and given the current real estate market, you should—taking the points will save you money.
Do your homework before bidding. Before you make an offer on a home, do some research on the sales trends of similar homes in the neighborhood with sites like Zillow. Consider especially sales of similar homes in the last three months. For instance, if homes have recently sold for 5 percent less than the asking price, your opening bid should probably be about 8 to 10 percent lower than what the seller is asking.
Author:Teresa Kennedy Phone: 281-799-3927 Dated: September 12th 2016 Views: 1,033 About Teresa: ...
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Whether you are considering buying or selling a home, it is important to know who your agent is. The good news is, if you choose The Kennedy Team to represent you, rest assured that you will be in good hands. We are experts in the North Houston area, specializing in Houston, The Woodlands, Spring, Tomball, Conroe, Magnolia and Montgomery. Call us today to get your very own assessment of your home’s value. We will be glad to give you a free Centralized Market Analysis! Texas Real Estate Commission Consumer Protection Notice
As the events of the last few years in the real estate industry show,
"We were referred to Teresa by a family member that highly recommended her. We called her and
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Agent was able to set up both of our closings on the same day! Our entire experience with Teresa and
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