Kristen Dailey's Blog
Entering the housing market may be difficult for a buyer. In many instances, buyers worry about paying too much for a house. On the other hand, the temptation to overspend on a house sometimes can be overwhelming for a homebuyer who is concerned about losing his or her dream residence to a rival buyer.
Fortunately, we're here to help you determine exactly what you can afford to pay for a house, thereby reducing the risk of spending too much on a residence.
Let's take a look at three tips to ensure a buyer can purchase a great house at the right price.
1. Get Pre-Approved for a Mortgage
A mortgage generally is a must-have for a homebuyer. If you get pre-approved for a mortgage, you can start searching for houses that fall within your financial limits.
To learn about your mortgage options, you should meet with a variety of banks and credit unions. These financial institutions employ friendly, knowledgeable mortgage specialists who can teach you about myriad mortgage options.
Also, don't hesitate to ask questions as you search for a mortgage. If you understand all of the mortgage options at your disposal, you can make an informed mortgage decision. Then, you'll be able to start pursuing houses with a budget in hand.
2. Assess the Housing Market
The real estate market frequently fluctuates. As such, you should look closely at housing market data to find out whether you're preparing to search for a house in a buyer's or seller's market.
Oftentimes, it helps to look at the prices of recently sold houses in your area. This will allow you to see how much sellers received for their homes, as well as how long these houses were available before they sold. That way, you can use this housing market data to narrow your price range and establish realistic expectations for your home search.
3. Consult with a Real Estate Agent
A real estate agent is a housing market expert. Therefore, a real estate agent can make it simple for you to pay the right price for your ideal house.
Typically, a real estate agent will want to meet with you before you start your home search. He or she then can learn about you and your homebuying goals and help you craft a homebuying budget. As a result, a real estate agent will allow you to refine your home search, ensuring you can check out high-quality houses at budget-friendly prices.
Let's not forget about the support that a real estate agent delivers throughout the homebuying journey, either. A real estate agent will set up home showings and keep you up to date about new houses that fall within your price range. And if you'd like to submit an offer on a house, a real estate agent will help you put together a competitive proposal as well.
Pay the right price for your dream house – use the aforementioned tips, and you can boost the likelihood of discovering the right home, at the right price.
It’s always a goal in life to be happier in our jobs and make more money. When it comes to buying a home, your job status can have a big effect on whether or not you’ll be able to buy a home or not. You will be able to buy a home using a new source of income. Even refinancing can be a breeze when you have a new job and the right knowledge.
Many people believe that changing jobs or having gaps in between employment is a certain type of black hole when it comes to getting a mortgage. However, if you approach all of the changes in the correct way, you should be able to land the mortgage deal and secure a home.
One of the most important numbers that your lender will calculate when you’re buying a home is that of your average income. This will be based on the pay that you had earned in the past 24 months‘ time. If you have had the same job and pay, this won’t be much of a big deal, However, if any of these things have changed (or will soon change) your lender may have some questions. This doesn’t mean that your mortgage application will be struck down completely.
Information That’s Needed In The Event Of A Job Change
If you have recently changed jobs in the process of trying to refinance or buy a new home, your lender will need a few pieces of information from you. These items include:
- An offer letter for the job
- A role or title change letter (if applicable)
- Compensation package change confirmation
- Verification of employment
- Most recent pay stub
If you’re an hourly employee, unfortunately, you’re under the tightest type of scrutiny when it comes to applying for a mortgage. Your income will be averaged for as long as you have been an hourly employee. If you work full-time, this won’t be too much of a problem. If your hours fluctuate from week-to-week, this can make things a bit more complicated.
If your hourly rates have recently gone up, you’ll need a bit of info from your employer to help you get the income verification that your lender needs. These items include:
- An offer letter
- Recent pay stubs
- The new compensation structure or offer
If you have any sort of extenuating circumstances like a relocation or a new position, this information can help to bridge the gap in any information that just doesn’t add up as far as your employment history goes.
If you’re a salaried employee, things are a bit simpler. Your lender will have a much easier time calculating your average income. The only issue that you may encounter is if you have had a gap in employment. For this, your lender will require a written explanation of what occurred during that time period.
Lenders want to protect themselves, but in a way, they also want to protect you from getting in over your head with how much you can afford for a home. With some proof and a little explanation, you should be able to get a house you can afford if you have all of the information that you need to back up your financial history and employment history.
If you intend to buy a house in the foreseeable future, it pays to prepare. That way, you can enter the real estate market as an "extraordinary" homebuyer, i.e. someone who knows exactly what it takes to find a great house at an outstanding price.
Now, let's take a look at three tips to help any homebuyer go from ordinary to extraordinary.
1. Learn the Ins and Outs of the Housing Sector
The real estate market is complex, particularly for someone who is pursuing a house for the first time. Fortunately, plenty of housing market data is available that can help you gain the insights that you need to make an informed home purchase.
Take a look at homes that are currently available in your city or town. By doing so, you can better understand the prices of houses that match your expectations. Then, you can tailor your home search accordingly.
Furthermore, don't forget to assess the prices of recently sold residences in your area. This housing market data will help you determine whether you're about to enter a real estate market that favors buyers or sellers.
2. Get Your Finances in Order
Meet with banks and credit unions to learn about your mortgage options – you'll be glad you did. If you get pre-approved for a mortgage, you can begin your home search with a budget in hand, thereby reducing the temptation to spend too much on a house.
Lenders are happy to provide you with information about a broad range of mortgage options. Also, if you ever have mortgage questions, lenders employ friendly, professionally trained mortgage specialists who are ready to respond to your queries.
In addition, it usually is a good idea to evaluate your credit score prior to applying for a mortgage.
You can obtain a free annual copy of your credit report from each of the three credit reporting bureaus (Equifax, Experian and TransUnion). If you review your credit report closely, you can identify and resolve any potential credit problems and increase the likelihood that you can obtain a favorable mortgage.
3. Work with a Real Estate Agent
When it comes to becoming an extraordinary homebuyer, it is important to note that it can be difficult for even the most diligent homebuyer to succeed on his or her own. However, if you employ an expert real estate agent, you can streamline the process of acquiring your dream residence.
A real estate agent is committed to your homebuying success, and as such, will do everything possible to help you find the perfect residence.
Typically, a real estate agent will set up home showings, negotiate with a seller's agent on your behalf and provide honest, unbiased homebuying recommendations. This housing market professional will even help you alleviate homebuying stress and ensure that you can quickly go from homebuyer to homeowner.
Ready to embark on the homebuying journey? Use the aforementioned tips, and you can become an extraordinary homebuyer in no time at all.
If you are preparing to buy a house in the foreseeable future, you'll want to check out lots of home listings. That way, you can browse dozens of residences at your convenience and boost your chances of finding a terrific house.
Ultimately, there are several factors that homebuyers should consider as they evaluate house listings, and these factors are:
1. A Home's Age and Condition
A home's age and condition are key considerations for all homebuyers, at all times. If you assess a house's age and condition in a home listing, you may be better equipped than ever before to determine whether a residence is right for you.
Oftentimes, a home seller will provide the year that a residence was built in a house listing. A seller also may include details about any home upgrades and when these were performed, such as the installation of a new roof or heating and cooling system.
Study a house's age and condition closely – you'll be glad you did. If you evaluate these factors in a home listing, you can narrow your home search as needed.
2. A Home's Price
You know that you want to acquire a house, but you need to consider how you'll pay for a residence too. Fortunately, a home listing includes a house's price, ensuring you can find out whether a residence falls within your price range.
If a house exceeds your price range, you may still want to check it out as well. Remember, the initial asking price of a house is not set in stone, and you may be able to negotiate with a home seller.
For a buyer who reviews a house listing and is unsure about whether to pursue a residence based on its price, assistance is available. In fact, if you meet with local lenders, you can evaluate many mortgage options, get pre-approved for a mortgage and establish a homebuying budget.
3. A Home's Location
Think about whether you want to live in a city or town as you assess home listings. By doing so, you can perform a fast, efficient home search and increase the likelihood of discovering a house in your ideal city or town.
Furthermore, it usually is a good idea to think about your day-to-day activities prior to looking at home listings. If you want to own a house that's close to your office in the city, you may want to review home listings for residences in or near the city itself. Comparatively, if you prefer small town living, you can examine home listings in small towns across the United States.
If you need assistance during your home search, you may want to hire a real estate agent. This housing market professional can provide timely, accurate home listings for residences as soon as these houses become available. As a result, a real estate agent can make it easy for you to pursue many outstanding residences and find one that you can enjoy for years to come.
If you plan to buy a house, it helps to take an honest approach to the homebuying journey. In fact, there are many reasons to remain open and honest throughout the homebuying journey, including:
1. You can set realistic expectations for the homebuying cycle.
If you're honest with yourself, you can determine exactly how much that you can spend on a residence. Then, you can tailor your home search accordingly.
Furthermore, an honest approach is ideal to ensure you can maintain realistic expectations as you pursue houses. No house is perfect, but an honest homebuyer will realize this before he or she embarks on a home search. As a result, this homebuyer may be better equipped than others to discover a terrific house that matches his or her expectations.
2. You can resist the temptation to spend beyond your means.
Oftentimes, it helps to get pre-approved for a mortgage before you enter the housing market. If you pursue houses with a mortgage in hand, you can establish a price range for your home search, thereby reducing the risk of spending too much on a house.
When it comes to getting a mortgage, you'll need to be honest with prospective lenders. These financial institutions will perform their due diligence to ensure you are qualified to receive a mortgage. And if you are dishonest with lenders, you are unlikely to get the mortgage you need to acquire your ideal house.
3. You can speed up the homebuying journey.
The homebuying journey may prove to be a long, drawn-out process if you're not careful. Fortunately, with an honest approach to buying a house, you can limit the risk of encountering time-consuming homebuying hurdles.
For example, if you are honest with yourself about where you want to live, you can refine your home search to particular cities or towns. This will enable you to keep track of available houses in certain areas, resulting in a fast, efficient home search.
The aforementioned list highlights some of the key reasons to be honest with yourself and others as you pursue a house. Of course, if you need extra assistance as you search for your dream home, you may want to hire a real estate agent too.
A real estate agent is a homebuying expert who will be direct and forthright with you throughout the homebuying journey. As such, a real estate agent can help you take the guesswork out of purchasing a house.
Usually, a real estate agent will meet with you and learn about your homebuying criteria. This housing market professional then can tailor a home search to help you identify your dream residence. And if you have any homebuying questions, a real estate agent can respond to these queries immediately.
Perhaps best of all, a real estate agent will provide honest, unbiased recommendations as you proceed along the homebuying journey. This housing market professional will simplify the homebuying process, ensuring you can acquire a top-notch house that you can enjoy for years to come.