Hello All – Here is a post that definitely would have helped some recent clients of mine when deciding or not it was the right time to buy a home. I hope it helps your clients make the right decision when buying a home. Blessings, Travis
’US new home sales surge unexpectedly, hitting 10-year high in October’, read a recent CNBC headline. The US real estate market is on fire again, especially in terms of single-family houses. The numbers show a 6.2 percent increase to a seasonally adjusted annual rate of 685,000 units.
Additionally, it was reported that mortgage companies have also loosened their standards on debt-to-income ratios, minimum down payments and student loan debt. This makes it easier for first-time buyers and others who can’t pass the approval phase.
In light of these positive industry trends, there are still mistakes homebuyers make in closing a sale. To avoid these pitfalls, consider these often overlooked factors.
1. Is your credit score high?
Before applying for a mortgage loan, ensure that you are managing your credit well. If it’s not, start thinking of ways to raise your credit score. Mortgage preapproval can be a very long process and it involves securing a handful of documents as well as several meetings with the mortgage officer. It can take even longer if the person has a low credit score. While this is going on, make sure not to withdraw or deposit large amounts as it may be flagged as suspicious activity.
2. Can you keep up with maintenance costs?
While it’s important to have a clear picture of your dream house, it also helps to consider which facets of home ownership will eat up your finances. This way, you can narrow down your search. For example, a swimming pool may need extensive maintenance. If you don’t have the budget for it, you may have to skip on houses that include this feature.
3. Does the property have the right amount of space?
If you are particularly interested in a property because of its reasonable price, assess first if the space is enough for your family. While it is easy to convince yourself that a family of 4 can live comfortably in a 2-bedroom property, think of your family members who want their own rooms. Also, is there enough room to store your belongings?
Similarly, avoid houses that are too large, as they procure extra costs. If you are planning to add another member to the family soon, make sure there is an extra room. In case adopting a pet is a future goal, consider if the house is a suitable environment for a four-legged pal.
4. Is your neighborhood safe?
Real estate agents can only say so much about the area surrounding your prospect home. In this case, it’s best to do your own research. Take notes on the crime rate, schools, community activities, and other factors. This will help you become more confident with your choice.
In the previous blog post, ‘10 Things to Consider When Buying Your House’, Travis also suggested visiting the potential neighborhood after work hours or on a Saturday afternoon so you can gauge the vibe in the area. If you see residents outside, you may ask them a few questions as well.
5. Is your real estate agent reliable?
In ‘8 Things You Need To Look For To Find A Great Real Estate Broker’, emphasis was placed on an agent’s ability to communicate well. Your agent should be able to express themselves properly because if things get lost in translation, it could result in problems concerning payment. There has to be constant communication between you and your agent, so that you can both tackle details upfront.
Additionally, it’s in your best interest to find someone who isn’t just concerned about closing a sale. Anyone would appreciate a real estate agent who can teach you a thing or two about the industry and how to navigate it successfully.
Buying a home can be a challenging task, so it’s always good to check if all areas of home ownership are covered. After all, the property will be the start of new memories with your family.