Buying a property can be quite a stressful and overwhelming decision. There are a number of things that new prospective house buyers do not know. Hence, they are always confused about choosing the right home and buying the house on the right time. Moreover, the all the complex formalities further keep one back. In this regard, a real estate agent dc will be able to help you out. Before going to a real estate agent, however, it is very important to gather as much knowledge you can on your own.
What do you need to know?
Throughout the country, there is a shortage of houses for sale in a number of markets. Hence, it is extremely important to get a preapproval for a house loan. Previously, cash buyers would ensure that deals will quickly close. However, nowadays, the cash buyers in the market and less. Back in time, buyers did not have to face the problem of an intense seller market. However, today, things have changed drastically.
In case you have a preapproval letter with you and a lender ready to go, sellers will consider you as someone who is serious about buying. Hence, this will always work in your favor.
What is the required credit score?
Nowadays, mortgage lenders look for a minimum of 620 credit score. However, some lenders may also be willing to reach as low as 550 or so. Still, the average credit score stays around 620 – 680. In case you have a credit score greater than 740, consider yourself as spotless.
What can you afford?
This is probably the very first question that prospective house buyers ask themselves. And it is indeed a valid question. After all, this will allow the buyer to determine his/her budget. However, rather than considering the debt-to-income ratio, it is important consider three times the income as a valid point to start. So for instance, you have a net income equal to $110,000 per year, your price range should be around $330,000. Though, a little tolerance of few % is allowed.
Other than doing some guess work, an appropriate step would be to talk to a lender about this. This is the major reason why mortgage comes first.
What about the interest rates?
Yet another major change that has significantly impacted the entire real estate market is the volatility in interest rates. According to many experts, the interest rates were supposed to rise significantly in the year 2019.
However, from what we see, the mortgage rates for 30 years as not very different from what they used to be in 2018. Hence, not a lot has changed in this regard. Moreover, as of yet, it is very difficult to say where these interest rates may be headed towards.
According to many experts, it is a matter of huge concern for the property buyers. Hence, it might be a suitable opportunity for them to buy their new home, rather than still waiting. This is because according to general predictions, the interest rates are supposed to go higher and higher. Hence, within no time, they may start rising. As a result of this, many people are taking the “sooner than later” approach.
In fact, according to the best realtors, more than 1/3 of the Americans are planning to buy a property within the coming five years. At the same time, one fourth of the buyers are planning to buy a house in the coming year. Based on this data, it is high time for prospective buyers in USA to get a property.