5 Tips For Buying A Home In 2017
Buying a Home in 2017? Here Are 5 Things You’ll Want to Know
#1: Rates Are Already Rising
Interest rates have already climbed by 0.5%, and buyers should expect home prices to also start rising. If the recent upswing in loan applications tells us anything, it is that the threat of higher interest rates and home prices is creating a sense of urgency among buyers.
#2: City Properties Are Still Best for Investment Properties
If you want to buy a home that will provide you with the highest appreciation potential, then you’ll want to focus your search in metro areas. City properties have the best price appreciation rates and income potential from renters, especially when those properties are located in larger cities.
#3: You Need to be Able to Afford More Than Just the Down Payment
At one time, home buyers could get away with just the down payment coming out of pocket. All other associated fees and closing costs were able to be rolled into the mortgage. But these days, lenders want buyers to not only have the down payment amount, but also their closing costs available in cash. And with some closing costs as high as 2.5% of the loan amount, this can really have an impact on how much home you can actually afford.
#4: Get Pre-Qualified Before You Start Looking for Homes
Getting pre-qualified for a home loan doesn’t guarantee you will be approved, but it is a good place to start. This is because getting pre-qualified will give you an idea of how much home you can afford. Plus, because your credit score, debt-to-income ratio, and down payment amount can have an impact on your interest rate, getting pre-qualified will give you the information you need early on in the process so you can improve your chances of getting your loan approved at the best rate possible.
#5: Be Ready to Move
With interest rates starting to climb, competition is going to start getting very fierce, very quickly in 2017. So, if you find a home you love, put in an offer and get ready to move because odds are things will progress quickly. This is especially important if you’re looking at homes priced $200,000 or less. Buyers will be jumping on these properties because with home prices rising, they’re going to want to get in early, and so should you. Good luck!
Elam Real Estate founder DAN ELAM brings nearly a quarter-century of real-estate experience with integrity, compassion, professionalism AND proven results. Dan takes an active role in the day-to-da....
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