Buying a home is a complicated process, and there are many things you have to think about even before you begin visiting open houses and applying for pre-approved loans.
What are the trends in interest rates?
Mortgage interest rates are ultimately determined by several different factors: your credit history, the state of the housing market, short- and long-term government policies, and other. While many prospective home buyers think the first thing they research should be available properties, it should actually be the state of the interest rates.
You need to examine the trends of mortgage interest rates in recent weeks, months, and years to determine how they could impact your home-buying experience. If they have been at historic lows for a long time, but are now ticking upward slightly, you might want to buy while rates are still favorable to buyers. If there is news of a shift in government policy that will affect rates in the future, consider how it will impact your experience.
What is your current financial situation, and how do you expect it to change in the future?
When it comes to your personal financial situation, there are many questions that you need to have reasonable answers to before starting your search. Some of these include:
- Is your job situation relatively stable?
- Do you currently have a large debt you are trying to pay off?
- Do you currently have children, or are planning to have them in the future?
- Are you planning for significant expenses in the near-future (college tuition, etc.)
- How much can you afford to pay for a mortgage each month?
- Have you saved enough for a down payment to get an affordable mortgage?
What type of home is right for you?
When you finally begin your search in earnest, you are likely going to have many different choices available to you. In these early stages, it helps to think about your deal breakers, because they can guide your real estate agent to narrow down options and find homes that will suit your needs. For instance, is it imperative that you have a yard for your kids to play in? Or do you absolutely not want a yard because you don’t want to deal with the maintenance? Also, think carefully about whether a particular neighborhood or school district is necessary for you, or if you have some flexibility.
When you have considered these elements and are ready to begin your home-buying journey, The Parker Group is here for you. Contact one of our Greenville real estate experts today, and we will help you find a home that will feel like a part of your family.