Interest rates have thinned out the pool of possible home buyers. At the same time, inventory is up significantly compared to where it was just a couple of years ago. Qualified buyers have their choice of properties and sellers are taking less just to get a deal done. It’s not an ideal time to be a buyer but it is a good time to start looking, especially if you have the right credentials.
Unless you have millions in the bank, becoming a better buying candidate is just as important as the state of the current market. Why is that? Imagine you find the perfect home for $500,000 which is in your price range. Now imagine that because of your credit card debt you can only borrow $400,000. What do you do then?
Focus On Your Numbers First
How is your credit? What about your income? Do you have any current debt like credit cards or even a car payment? These are the things you need to focus on before you start shopping around. Lenders cannot help you if your numbers are poor and all they will do is charge you more for the same loan.
Poor credit can cost you thousands a year. Not having enough on the down payment can cost you thousands a year. Is your income-to-debt ratio not good enough? That will not cost you more money, it will just keep you from buying the house altogether. You need to work on these numbers because they do take time to improve.
Hire A Realtor Early
Doesn’t matter if you are not ready to buy and you are trying to get your numbers better, start looking for realtors. This is a process that will take some time, especially if you do not know someone. What are your best options? Meet with three to five candidates, tell them about your situation and what you are looking for. The realtors you meet with will give you their recommendations on what you can and should do. That’s free advice and gives you a better idea of who you want to work with.
Start With 5 Houses You Like
Do not waste your time hitting 10-20 houses the first weekend you’re ready to get started. Hunting takes time and you should focus on five homes at a time to start with. You may still go through 100 houses but going 5 at a time allows you and your realtor to thoroughly review everything in order to find the best deal and situation.
What else can you do? Look for owners who are selling under rent-to-own or who have an assumable mortgage. These options aren’t as common but they can save you thousands in interest rates. Each deal is different so you will have to consider how they work for you but if it gets you the house you want at a less expensive cost to you, why not try it out?
