Home Buying Tips In Austin. Even though the COVID-19 pandemic continues to affect us all, there are many experts who believe that the new year will be one of the best to purchase a home for the foreseeable future. Thankfully, we’re currently in a buyer’s market, and as far as the future is concerned, we can expect more of the same as well, as there will more than likely be an increased number of homes for sale than there actually are buyers in the market itself.
Here are three of the most useful new year home buying tips to consider making note of.
*First and foremost, perhaps one of the most useful new year home buying tips is to watch closely for foreclosures. The past year has brought all kinds of challenges, including economic uncertainty. All kinds of different mortgages are currently being propped up by government assistance; however, it’s important to keep in mind that this is something that won’t last forever, as more homes will end up going into foreclosure before then showing up for auction a few months later. Home prices will eventually end up decreasing, thereby offering an opportunity for a discount.
*Another of the most useful new year home buying tips is to always track and fix your credit score. In terms of being able to obtain a mortgage that is affordable, one factor that plays an important role in this is credit score. Regardless of whether you’re purchasing your first home or your third home, the one thing that will affect the final overall interest rate is your credit score. For instance, if you have a credit score between 700 and 750, there could be room for improvement; however, you will typically get the best rates with a score of 750. On the other hand, a 580 or lower credit score sometimes will be accepted, and if you find yourself in this range, steps should be taken in order to ensure that you use your credit as responsibly as possible, as well as pay off all your debts before then getting back into the market.
*Home Buying Tips In Austin. One other useful new year home buying tip is to think about your total down payment. This is what will determine your overall loan amounts. It’s important to keep in mind that a larger down payment is typically better; however, the minimum down payment required for an FHA approved loan is 3.5% of 10%, though this depends on your total credit score. Additionally, you will also need to keep closing costs in mind in terms of your overall down payment or loan. Furthermore, when you make a down payment of 20% or higher, this can let sellers know that you’re serious about purchasing a home, as well as that you’re ready to make an immediate offer. It also decreases the amount of interest that will be paid throughout the life of the loan as well.