Tips for Finding the Perfect Home in These Tough Times
In this down economy, people are looking to get into the home ownership game sooner than usual. But with interest rates at historic lows, it can be difficult for new homebuyers to get their foot in the door. Fortunately, there are plenty of ways to find a great home even during a difficult time. Here are some tips for finding the perfect home in these tough times: 1. Save Money Until You’re ready to Buy Even if you’re not planning on adding to your existing home or making major changes, saving money until you’re ready to buy is always a smart idea. In today’s tight housing market, that might mean doing some house-hunting early and saving up for your next fixer-upper. 2. Get Your Financial ducks in a Row Before Considering Homebuying Before considering buying a home, it’s important to make sure you have all of your financial ducks in a row. Whether it’s taking out mortgage insurance or getting prequalified for an expensive loan, preparing ahead makes it easier to qualify when the time comes. Keep reading below for more information on what you should do before buying a house and how you can save money while looking for one!
Make sure you have a stable income
Staying put when you’re ready to move can be expensive. As a recent homebuyer, I can tell you that it’s tough to find a great place to live during these tough times. That said, my median monthly mortgage payment actually went down during the crash because I was able to pay it off faster by refinancing. So if you have a little extra cash to spare, you can also consider putting it toward your primary mortgage. In that case, you won’t be paying that mortgage as long — and, over the long term, you’ll save even more money!
Don’t buy a home with bad credit
You may have heard that the best time to buy a home is when interest rates are low. That’s true, but you also have to consider whether or not financing a home is right for you. Some people opt to finance a house instead of taking out a SIGNIFICANT loan to buy one because they believe they can get a better interest rate on a cash-out refinance. But in some cases, refinancing and taking less money out of your account can DEVALUATE your credit score! Even if you know you don’t plan on buying a house for a long time, refinancing and changing your payment schedule can still have a big impact on your credit score. If you’re unsure whether or not refinancing is right for you, ask your lender. And if you’re unsure how to go about it, a free credit score estimation service is available 24/7.
Get Prequalified for a Loan
Only pre-qualify for a loan if you know you can stick with it. If you miss a mortgage payment or have a couple of late payments over time, you may lose your home. You also have to make sure you get pre-qualified for a loan, not just a mortgage. You need to make sure you show up for your scheduled home visits and make sure you keep up with your loan payments. You should also make sure to keep a eye on your credit score, too — especially if you’re refinancing or taking out a large loan. If you see a significant difference in your monthly payment compared to your house price, that might be a red flag that something isn’t right.
Make Home Visits before Making an Offer
You’re probably tempted to look at houses online, but you’re likely to miss out on a lot of deals and information if you don’t visit them in person. When you make an offer, make sure you get your home inspected and tour it from top to bottom. Get a feel for the landscaping, the layout of the house, and the plumbing and electrical systems. Ask questions you might not be able to find answers to online, like how the HVAC system works and what kind of fixtures you’ll find in the kitchen. When you visit a house, make sure you take your time and get your questions answered. You want to make sure you understand every aspect of the home, not just the price tag.
Stay on Top of Property Values
Last but not least, don’t just look at property values when deciding where to buy a house. Make sure you also take a hard look at the market value of all of the things you can sale or trade off-the-plan before buying a home. Getting an inflation-adjusted market value on every item in your home is a great way to stay on top of home value. And remember: According to real estate research, the best time to buy a house is in the spring when school’s out.
Get Prequalified for an expensive Mortgage
You don’t have to go out and buy a house with a fancy loan. The best mortgage rates are available on variable rate loans. If you have a decent credit score, you can also consider getting a mortgage with a low interest rate. While interest rates on variable rate loans have been low for a long time, they can change at any time. And with the level of home price appreciation these last few years, many consumers are finding they can’t afford the rates they were getting when they made their initial application. As a result, more and more people are choosing to pay more for a variable rate loan and save themselves some cash in the process. The most important thing you can do is get pre-qualified for an expensive mortgage. If you can’t afford such a loan, it’s best to stay put and save yourself some money in the long run.
Conclusion
Finding the perfect house can seem like a never-ending task during these tough times. If you’re looking for a new home, there are plenty of ways to go about it. Here are a few tips for finding the perfect home in these tough times. Saving money until you’re ready to buy can be helpful during tough times, as it will make it easier to qualify for a house when the time comes. Get your financial ducks in a row and make sure you have enough money saved up to make a meaningful down payment, as larger down payments and/or closing costs are often required. Be prepared to stay on top of property values and market value of all of your belongings. Stay on top of your finances and make sure you’re able to stay current on your payments and make a down payment or closing cost contribution when required. Don’t just look at property values when deciding where to buy a house. Get an inflation-adjusted market value on every item in your home. And don’t just decide on a house; don’t just decide on a neighborhood; and don’t just decide on a neighborhood; find out as much as possible about it both structure and content-wise.
