Top 5 worries of today’s house hunters
With the housing market being so competitive these days, more and more buyers find themselves concerned about a number of different situations related to their hunt for a new home.
As is the case with most of life’s worries, it’s important to know what you can control about the process and allow yourself to let go of the rest.
Let’s take a look at five common concerns and what you can do to put your mind at ease.
Rates are on the rise.
It’s true – the economy is improving and interest rates on mortgages are climbing for the first time in nearly a decade. Don’t let this bring about panic. In fact, you should look at it as a positive development. We all need an incentive to make things happen in our lives, even good things. So if you’re on the fence about buying a home, now’s the time!
Home prices are on the rise.
When interest rates rise, home prices generally follow the same trajectory. Why? Because when more potential home buyers take the plunge, demand goes up. This is a classic “strike while the iron’s hot” scenario. And if prices continue to rise after you’ve settled into your new home, you might find yourself with more equity than you thought.
I might not qualify for a mortgage.
Don’t waste time and energy worrying about whether or not you’ll qualify for the loan you want. Go find out! And if you aren’t approved for a mortgage, learn about what you need to do to turn things around. It could be a simple fix. Also, there are many programs out there for a variety of buyers. If you don’t qualify for one, you might qualify for another.
Other buyers want my dream house.
In a seller’s market, there will be a lot of competition for homes. To play the bidding game you need to come prepared. Specifically, you need a preapproval letter that includes an automated underwriting approval. This kind of approval means your mortgage professional has reviewed all of your paperwork and received a preliminary approval from a lender. It also gives you an edge over other potential buyers who don’t have one.
I don’t like anything I’ve seen.
No house will check all of your boxes unless you build it from the ground up. So start with a list of deal breakers. For example, if you have a family of six, a quaint one-bedroom, one-bathroom abode probably won’t cut it. But if you see a house that’s perfect in every way but is a bit outdated, you can always remedy that with fresh paint, new tile and modern fixtures.
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