There are many aspiring home buyers out there in the world looking to find a house that fits their budget and their needs, and the current housing trends are designed to help them to find it. If you’re currently renting, you’ll know the struggle of trying to find a home to buy in a real estate market that seems to be hotter by the day. The prices are rising, which makes it difficult for renters to find a great deal.
Right now, the housing markets are favorable for sellers, but with the prices rising so dramatically, buyers are backing off and the sales rates are slowing down. This decline indicates that some properties may sit for a little longer. As with any year, the rate of those buying will go up and the housing market will flip on its head. The current trends show positive developments for buyers in 2021, and with the pandemic still running rife, this is good news.
The number of new listings is increasing, and the result has been a deceleration in the growth of listing prices. Home prices may be rising, but the peak growth rates have now passed. The market for purchasing property is skewed in favor of sellers, but if you’re looking to get yourself into a position to go from renter to buyer, then check out our list of things that you could be doing to get ahead.
You will need a house deposit if you want to buy and the first step here is to get your finances and budget sorted. You don't just need a percentage of the house, you need to be able to afford insurance, closing, and moving costs. Working out your budget will help you to know what you can realistically afford.
If you know what your borrowing power is, you will be in a good position to borrow the right amount for the house that you want. You’ll need to know your income and outgoings, house deposit and savings, your credit score and you will need to know what your credit report says, too.
When you are looking to go from renting to buying, you need to look for a great deal on a home loan. The interest rate and the payment rates matter, as a home loan is a long term debt. Even the smallest differences add up over time. There are plenty of ways that you can compare home loan rates, too, so make sure that you contact more than one lender to learn your options.
Once you get your pre approval to buy, you need to find a house that fits what lifestyle you want plus what you can currently afford.
As a renter, you want to ensure that your new home purchase goes smoothly. The best way to do that is to learn about what you should avoid on your application and your credit. We’ve put some of those together!
Need a car? Wait. Need furniture? Hold out! You are approved for a loan based on your current finances, and bigger ticket items like cars and appliances can change that situation. They can deplete your funds right down and make you look far less responsible than you actually are! You don't want lenders to rethink the application, so avoid these purchases until the mortgage goes through.
Further borrowing - like buying those bigger items - is a bad idea if you are looking to buy a house. Taking out more credit will lower your credit score and a red flag is sent to your lender, which could make them rethink your loan!
If it can wait, let it wait. Do you really need to change your job in the middle of applying for your mortgage? If not, you have to wait and ensure that you aren't going to make yourself look like an unstable borrower to your lender.
While you’re in the process of applying for your mortgage, you need to ensure that you are keeping up with all credit card, loan and debt payments at this time. If you have regular payments to make, make them and ensure that you don't miss even one. Otherwise, this can seriously have an effect on your score.
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