Have you always dreamed of becoming a homeowner in Houston? Now is the time to make that dream a reality! As your Houston real estate team, we want to fill you in on why now is the time to buy a home, and how you can make that happen.
First off, a homeowner’s net worth far exceeds the net worth of a renter. In fact, in 2016, a homeowner’s net worth will be 45 times greater than a renter’s! That’s huge!
Also, if you think it’s cheaper to rent, think again. Reports show that buying a home is actually 35 percent less expensive than renting. Your landlord builds the cost of repairs into your rent, so don’t let the fear or repair costs deter you from homeownership.
Second of all, it’s not as hard to buy a Houston home as you might think. Many buyers think they need a 20 percent down payment, but 44 percent of millennials put down under 10 percent. Buyers think their credit score isn’t good enough, but the average score on approved loans is 723. Buyers think getting approved for a mortgage is hard, but 71 percent of loan applicants were approved last month!
Third of all, mortgage rates are still cheap. Last week, they averaged 3.79 percent, which was lower than the week before. They have remained under 4 percent for a long while now, but they are predicted to increase in 2016. By purchasing a Houston home now, you could save a lot of money down the road!
So, how do you get started with the home-buying process? Here’s a checklist for you to keep nearby:
- Check your credit score and credit report. If there are any errors on your credit report, work on getting them removed. If your score is lower than you’d like it to be, work on paying down debt and improving your score.
- Determine how much you can afford. Lenders look for a debt-to-income ratio of no more than 43 percent of your income. See if you can swing that based on income, debt and expenses.
- Make a down payment plan. The more you can put down, the less your loan costs and monthly payments will be. However, loans are available for as little as 3.5 percent down. Figure out what will work best for you.
- Decide what you want in a home. Consider things like location to schools or your job, backyard size, number of bedrooms, floor plan, age of home and more.
- Research lenders and real estate agents. This is where we come in! We can help you decide what homes you can afford within your budget, we can help you find the homes that fit your needs, and we can start scheduling showings for you. We will also help you through all the paperwork and steps once you find the home of your dreams!
Ready to get started? Contact us, your Houston real estate team! We’d love to help you buy a Houston home!