Then, you’ll need to speak to a good mortgage lender who can show you what your options are and help you access the financial assistance you need. Don’t be lured in by attractively presented homes. Instead, always think about the underlying value of the property and get a comprehensive home inspection to find out whether there are any issues. At the moment, interest rates are still low, so now could be a great time to buy your dream house.
Buying a House: 8 Keys to Financing a New Home in Dallas, Houston, or Austin, Texas
1. Work Out How Much You Can Pay
When you start getting ready to buy a home, your first step is to analyze your finances and find out where you stand. Add up all your income, which might include money from your employer, any side jobs you have, investments, and gifts from family or friends. Then, have a look at what you’re spending each month. How much money is left at the end of the month after all your bills and payments?
This, plus what you’re currently spending on rent or your mortgage, is the amount you can spend on your new house every month. However, you should build a margin of safety into your budget because you’ll also have some extra expenses, such as your property taxes and your insurance. What’s more, you’ll no longer have a landlord who can pay for repairs to your property, so you’ll have to save up some money each month for maintenance.
2. Work Out How Much You Can Borrow
Usually, people can borrow up to 4.5 times their annual salary, so if you earn $50,000, you can borrow up to $250,000. If you want to buy a house that costs $300,000, you’ll have to save $50k to make up the difference. Although this rule of thumb works well in most cases, your circumstances might be different. For example, you might be able to borrow more if you have a lot of assets, but you might not be able to borrow as much if you have lots of debt.
3. Put Together a Deposit
4. Select a Good Mortgage Lender
Working with a good lender who will get you a deal that suits your needs is key. You should always look for someone who is local to your area since they’re likely to provide you with more personalized service. To get started, you can call or email Home Loans With Gary and Guaranteed Rate Affinity and ask for an appointment.
Bring as much documentation as you can to your initial consultation. The sooner we can review your assets, your income, and your liabilities, the faster we can get you the mortgage you need.
5. Learn About Various Types of Mortgages
You usually pay less for variable-rate mortgages, but if the country’s financial situation changes, the mortgage lender can change your interest rate. Therefore, they are considered riskier. Your lender might also speak to you about financial aid you can claim. For example, first-time homebuyers have certain advantages, and their loans might include closing costs and fees.
6. View Homes for Sale in Your Target Area
Instead, look at the underlying value of the house. Remember, you can always upgrade the property later, even if it looks rundown now. Buying a house that hasn’t yet been renovated is often cheaper than purchasing a property that has been done up by the seller. What’s more, this allows you to give the home your unique touch, so you’ll feel even more comfortable.
7. Don’t Forget the Inspection and Appraisal
8. Finance a House ASAP to Get the Best Rate
In Austin, Houston, or Dallas, Texas, buying a house is still affordable as long as you work with a good mortgage lender, who can show you what your options are and let you know whether you’re eligible for any financial assistance. Get in touch with us at Home Loans With Gary and Guaranteed Rate Affinity to find out how you can finance a house and apply for your mortgage. Our friendly team will be more than happy to help you.