As per recent reports by a group of researchers, the sales of single-family houses will again rise moderately in the year 2016 and the median sales price will be up from 3%-5%. With increasing mortgage interest rates and lack of first-time buyers, 2016 will probably be a seller’s market in the real estate industry. In spite of an upsurge in house construction, inventories will remain low. With all that in the background, you should be aware of the fact that there are some well-kept secrets of the real estate industry which the prospective buyer should know of. Hence, if you’re looking forward to buying a house, here are some secrets that you should know of.
Secret #1: Retain your money wherever it is
If you’re 3-6 months away from buying a house, it’s not at all wise enough to make any big purchase. Experts from Mortgage Providers advise you to let your money stay wherever it is and if you’re clever enough you would never wish to take any big chances with hurting your credit profile. Lenders should be able to understand that you’re reliable enough and they also look for a complete paper proof so that they can give you the best loan possible. If you open new credit cards or accumulate too much debt or purchase some big-ticket items, you would definitely have a tough time obtaining a loan.
Secret #2: You first need to get pre-approved for obtaining a home loan
There’s a huge difference between a buyer who has pre-approved a mortgage and a buyer who has been pre-qualified. As per the norms, anybody can get pre-qualified for a home loan and getting pre-approved would clearly mean that the lender would take a look at your financial information and then they’ve let you know how much money you can afford and how much money they will actually lend you. When you get pre-approved for a home loan, this saves your time and energy in running behind houses which you ultimately won’t be able to afford.
Secret #3: Avoid taking measures to time the market
Don’t get obsessed with timing the market and deciding which would be the perfect time to purchase a house. Trying to predict the housing market trends would be something impossible and therefore the best time to buy a house would be when you locate the house of your dreams and when you think you can afford it. The real estate industry keeps going up and down. Hence, you should make independent decisions.
Secret #4: Get your home inspected by a physical home inspector
Hire an inspector and it will cost you around $200. But if you delay doing so due to the costs involved, you will be the loser. He will give you details on the house based on which you can change your decision to buy the house. It is more like a third-party unbiased decision. For more info on such investment property loans, you can check online.
In a nutshell, it is only after you educate yourself on the well-kept secrets of the real estate industry that you should opt for a home loan which can cater to your needs.