Buying a house can be complicated if you’re not into real estate. As a first-time house buyer, you may be at a loss about residential real estate funds and where to start processing your quest to own a house.
However, you can cut down on the stress and hassles of buying a house in Houston, TX, with the correct information.
Buying a house is a significant financial decision to make. Hence, you need to align yourself with proven real estate agents in Houston who are well acquainted with the city to aid your quest for getting your dream home.
This article gives you insights on essential tips to know before buying a house in Houston, Texas, and how to locate real estate agents that are competent.
Early Stage of Buying a House
While you’ve decided to buy a house, you need to undertake specific steps in the early stages of your purchase.
Save for Down Payment
Assuming you don’t have the resources to pay off your mortgage at once, you may want to consider saving for a mortgage down payment. That’s the percentage of the amount a lending company may require you to pay for your house. The lender will then proceed to pay the remaining balance on your behalf.
Down payment ensures you (the home buyer) show commitment towards your ambition to buy a house. Most times, the down payment is around 20% of the total amount of the mortgage.
Down payment varies depending on several factors like the policy and interest rate from the lender. However, some government-sponsored loans may require you to make less than a 4% down payment. Note that the lesser the down payment, the higher the interest rate and total mortgage in the long run.
Seek for Mortgage Loan Pre-approval
Many people can’t pay off their mortgage in one installment. You may consider discussing the terms for pre-approval of a mortgage loan from a lender of your choice.
You need to meet specific criteria to get pre-qualified for a mortgage loan. Such measures may include questions about your income, assets you own, and available down payment, and the requirements vary depending on the lender you choose.
To be granted a mortgage loan, lenders evaluate your complete financial status, which may include:
Lenders will want to know how much you earn, and this detail will help them determine if you can make your mortgage payments in due time. Typically, lenders prefer that your monthly house cost be 28% of your income or less. If you need more clarification, find a realtor in Houston to help break things down more, as they’re more knowledgeable about the local real estate market.
Mortgage lenders will also want to evaluate your debt, including credit cards, student loans, auto loans, private loans, etc.
Your Cash Reserve
Lenders will also consider your cash reserve, and they do this to ensure that you can cover your down payment and other costs without totally emptying your fund.
Also, ensure you ask questions to get clarity on mortgage loans from your lender.
Consider Adding Maintenance Cost to Your Budget
When mapping out a budget for your new home, ensure that you create room for maintenance and repair costs. That’s because your new home may require refurbishing, so your maintenance budget will come in handy.
Maintenance and repair may be things like replacing the sink or bathtub, fixing some faulty plumbing work, replacing the lawnmower, etc.
Get a Reliable Estate Agent to Help You
Ensure to locate reputable representatives like the real estate agents at realizedproperties.com that’ll help you focus on your quest for a new home.
As professionals in their fields, real estate agents help you break down some of the technicalities of the real estate buying process.
Advanced Stage of Buying a House
Now that you’ve gotten the financial and professional assistance required to buy a house in Houston, TX, you can advance to the next stage of house buying.
Start Looking for a House in Your Preferred Neighborhood
If you have a preferred location where you want to call your home, proceed to make house inquiries there. You can choose to search online for phrases like “find a realtor near me” or through referrals from family members or friends.
It may be challenging to get your preferred type of house to buy. However, you can make your house hunting easier by contacting a realtor in Houston, Texas, conversant with your preferred neighborhood.
Get House Inspection and Appraisal
Get a certified house inspector to help you look thoroughly for any issue like an electrical fault, roofing leaks, missing appliances, structural issues, etc. Not noticing these issues on time may lead to further deterioration.
Any issue detected by the house inspector should be adequately addressed and resolved with the house seller. You can request a discount if there are several faults in the house you want to buy. Alternatively, the seller can opt to fix these faults themselves.
Conducting a home appraisal is an integral part of house buying. While it may seem trivial, it can be a deal-breaker.
Home appraisal means assessing the financial value of a house by any third party other than the buyer or seller. This step is crucial because it ensures that the actual value of a home is represented to avoid inflating the price of the house.
You have a chance to request that the seller lower the house price to meet the appraisal value if the seller’s value is higher. You can also choose to back away if the seller declines to lower the value to the appraisals. Otherwise, you can source extra finance to meet up with the seller’s value.
Houston is a great place to purchase your first home. There are many things to consider when making this critical decision, but with the help of good real estate agents and some essential tips, you can feel confident in your purchase.
In this blog post, we have outlined some general advice for first-time homebuyers in Houston, Texas. We hope that it will be helpful as you start your house hunting journey! If you have any questions or need more specific assistance, we might be able to connect you to a Houston real estate agent; please don’t hesitate to reach out to us.