New Year Resolutions For Buyers

Like many, I have plans for 2017. Some big, some small. If one of your bigger plans is to buy a home this year, you’ve picked a great year to do so. Mortgage rates are around 4%, and despite recent increases, are still at all time lows. In Houston, Texas, the market has been slowly stabilizing over the past year, and bidding wars are a thing of the past. It is still technically a seller’s market; so, don’t get any crazy ideas of taking a seller to the cleaners. Despite being a seller’s market, conventional lending guidelines are more lenient than ever before. Add that to mortgage rates being low, it is a great time for buyers. Make sure to prepare yourself with these new year resolutions for buyers.

Use a REALTOR®

We live in a digital, tech-savvy world, Information can be accessed with just a few clicks. Don’t make the mistake of thinking you can buy a house using only the internet and your smart phone. A licensed REALTOR® knows neighborhoods, real estate market trends, and how to negotiate. There are several opportunities during the purchase process to negotiate; a REALTOR® knows the when and the what.

Get Pre-Approved

A pre-approval for a mortgage is critical to start the buying process. Don’t be the buyer that finds their dream home, only to have to delay making an offer by several days while shopping mortgage lenders. While you’re working on financial paperwork, you may lose the home to other buyers (that were prepared) or worse, find out the home exceeds what a bank will loan you.

Check Your Credit

If your credit score is over 750, you have nothing to worry about. Banks love you! However, most buyers don’t have scores quite that high. With a score of 650 or higher, it is possible for you to buy. Although, it may be at a higher rate. To secure the best possible rate, find derogatory marks on your credit and fix them. Pay off large debts, and increase to debt to income ratio. Your credit report is basically a resume you share with lenders.

Know What You Want

Make a list of your wants and needs. Review that same list and determine which items are must haves and which are just wishes. Rank items in order of necessity and priority. Stay realistic, too. It is important to remember that you will not find a home with everything on your list. Be flexible and allow yourself to love a home that might be missing a few of your wish list items. However, don’t make an offer on a home that you don’t love – it is a long commitment.

I feel great about 2017 and the Houston market. I am confident it is going to be an amazing year for buyers, and I can’t wait to help my clients find their first (or next) homes. When you’re ready, I have a team of escrow officers, lenders and inspectors to help make the buying process as smooth as possible. Give me a call to start the next stage of your life! 832-513-9931