Potential Homeowners: Navigating the Waters of Real Estate
Real estate has been tossed a stale cookie over the last couple of months with daily reminders of a crumbling economy. Although no one knows for certain which way the market is heading from day to day, it’s still an interesting time to be involved in real estate.
Recent indications suggest that the markets have improved in the last month with an increase in residential loan activity (due to record low interest rates), boise homes for sale, and in many areas, property inventories have decreased. These promising signs tell us that with the right guide, you can safely navigate the dingy waters of real estate.
Many people would like to take advantage of current market conditions. If you are one of those people, be sure to read the 7 Real Estate Buyers Tips below.
7 Real Estate Buyers Tips
Know your credit score.
This is your first order of business. There are several websites available on the internet and many are free.
Know how much you can afford for a mortgage payment.
If you don’t currently have a budget, create one based on your monthly income and monthly expenses so that you can determine what you can afford in terms of a mortgage payment. Do not rely on the lender to decide. They know nothing of your finances.
Obtain a lender.
Before looking for a home, meet with several lenders. Remember that this will be a major purchase and by meeting with different lenders, you have the opportunity of getting the best deal. Obtaining loan pre-approval, and a window of how much money you qualify for, will save you a lot of time and frustration.
What do the documents mean? Are there hidden costs? What’s included in the mortgage payment? Don’t be afraid to ask questions on anything you don’t understand. You’re a customer, not a loan officer.
Determine the location / vicinity that you desire to live.
Concentrate on available housing near strong school districts. Whether you have children or not, sound school districts are an indication of safe, solid neighborhoods. Real estate tends to retain more value in these areas.
Keep your focus on the price range.
Maintain you focus on the price range established in the loan pre-approval process. Don’t be overly concerned about sticking to the low end of the range. A good buyer will negotiate. Keep in mind that real estate is priced for negotiation. Set your price before you go house hunting. You’ll be surprised how modern features in new homes will have that price range escalating if you’re not careful.
Find a realtor.
Select a realtor that is highly recommended by several different buyers. Realtors who are highly recommended have proven knowledge of the real estate market and can better assess current market prices and you stand a better chance of getting your money’s worth.