"Today, it's just a house - Tomorrow, it is home."
Get pre-approved-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 find the right house, unlike pre-qualification, based on a cursory review of your finances. The 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
The emphasis with past mortgages was to pay them off as soon as possible. Today, the average person's debts accumulate faster than in the past. So, it may be 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, you usually have the option of paying extra 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, taking the points will save you money.
Dealing With Financing and why "comps" are important
Do your homework before bidding: Before you make an offer on the house, do some research on the sales trends of similar homes in the neighborhood - your real estate agent can help you with this. Check similar homes in the last three months that recently sold for five percent less than the asking price. Your opening bid should probably be lower than what the seller is asking. But it all starts with getting pre-approved-By getting pre-approved as a buyer.
Are you looking to buy or sell a home in the Port Aransas, TX area?
Robert Ellis | Realtor | Levi Ellis | Realtor | Naomi Ellis | Realtor | Ellis Realty Group - Keller Williams Coastal Bend