The housing market in the United States has been on a tear in the past few years. After seeing a 19% decline in home prices between 2014 and 2016, real estate saw a massive rebound in 2017. Home values have increased by an average of 10% since the beginning of 2018, with many markets seeing double-digit growth. If you’re planning on owning property in the coming years, it’s important to do your due diligence before making any offers.
Understanding how local regulations, taxes and mortgage requirements will affect your ability to purchase a home is paramount. There are several factors that go into buying a property, and these days it can be expensive and difficult especially for first-time buyers. Here are 5 tips from Lentor Modern that can help you buy a home more easily:
Define your financial goals before making offers
For most people, the goal of buying a home is to provide a secure, long-term investment. If this is your situation, then conventional wisdom suggests that a home equity loan is a more prudent choice than a conventional mortgage. However, first-time homebuyers and those who may be on a tight budget should carefully consider the cost of these options before making a decision. A conventional 30-year mortgage clocks in at a maximum of 3.50% APR, and an offer on a home equity loan may be as low as 0.5% APR.
But these types of loans carry a much higher interest rate risk thanks to the additional fees and added headaches that come with them. Fortunately, there are plenty of options for people who want to make a long-term investment in real estate without paying hard cash for a home. Home equity loans are very similar to a conventional mortgage, but with a twist: The interest rate is determined by a percentage of your equity. So, for every $100 you have in your home equity loan balance, the interest rate is reduced by .25%.
Hire a Real Estate Agent
Although it’s not required, buying a home is always better done through a real estate agent. The reason is simple: The real estate market is very fragmented and challenging for first-time homebuyers to navigate. Moreover, real estate brokers are often hired to handle multiple listings; therefore, they may not be aware of all the available home financing options and options for home upgrade funding.
Real estate agents are uniquely situated to help their clients find the perfect home. In addition to being highly trained in home buying, they also know the market and home features very well, which can help their clients make informed and confident decisions.
Look at MLS data
When deciding where to buy a home, you’ll want to perform some level of due diligence. This will include looking at all the listings, including property information, existing mortgage and tax records, and surrounding demographics.
You may also want to look at recent home pricing data from the MLS to get a sense for what home values are actually worth. This is important because it will enable you to identify any localized market sectors in which home values are significantly lower than average.
Use a Mortgage Tracker
A smart way to stay informed about the latest financing options is to use a mortgage tracker. These websites can help you keep a close eye on industry trends and find the best mortgage financing options in each particular area you’re interested in.
Stay informed on the latest financing options
When you’re shopping for a home, you’ll want to make sure that you’re up to speed on the latest financing options. This will enable you to shop around and find the best deal, keeping in mind that you may need to make some significant changes to your home to fit your specific needs.
Conclusion
Buying a home can be a very significant investment, and it’s important to do your research and make sure you’re getting a good deal. A bad deal can be very expensive to repair, sell or give to a home equity line of credit. Don’t make these 5 mistakes when buying a home: Make sure you know what you’re getting yourself into before buying a home. Make sure you have the money to make all the necessary renovations to your dream home. Make sure you know what your financing options are and what your plan is for getting them.
Don’t be afraid to walk away from a home purchase if you’re not happy with the deal. The housing market in the United States has been on a tear in the past few years. After seeing a 19% decline in home prices between 2014 and 2016, real estate saw a massive rebound in 2017. Home values have increased by an average of 10% since the beginning of 2018, with many markets seeing double-digit growth.