Real estate is a flourishing market, which is also a safe way to invest your money. However, are you doing it right? Are you looking for homes for sale in Utah? Here are the top tips to be smart while buying homes.
Know when to buy
According to a survey, the millennials tend to move frequently than the baby boomers for career and other reasons. If you are choosing to buy a house, make sure that you plan on staying in that location. Selling a home would incur 2 to 5% of the cost of the property in preparing it for sale, putting out advertisements, hiring realtor, and so on. Thus, do not look for homes for sale in St. George Utah if you are not planning to stay in St. George for at least five years.
People can indeed find easy loans from numerous banks, provided they have a good credit score. However, it is not wise to step into buying a house, with just a probability of procuring loan in the near future. Save a considerable amount of money or have significant liquid funds set aside for the purchase. For the balance payment, you can choose any other option, including loans.
Learn about down payment
Do you know that the down payment you pay for your home loan affects your retirement nest? There are numerous internet tools to calculate the effect of the down payment on your retirement fund. When you choose to buy St. George homes for sale, make sure to pay 5% down payment, whenever possible. There are indeed numerous home programs, which allow you to buy a property with no down payment. In a scenario of you selling the house in under three years, you would end up paying cash to cover the cost of the sale if the market stagnated.
Miscellaneous cost factors
When you buy homes for sale in Saint George Utah, do not just think about the property price alone. You will need cash for relocating, maintenance fee for any repairs in the new property or changes to deal with(baby proofing, room alteration, painting), and so on. While calculating an estimate, make sure to cover every overhead involved in moving into the new house. This calculation will allow you to prepare for all the stages of payment, reducing frustration and confusion during the process.
Check your credit score
Before you decide upon checking new homes for sale in St. George Utah, verify your credit score. Around 66% of the American have a good credit score, according to a survey. This credit score depends on your payment history, income, bill payment, credit card usage, and others.
If your credit score is above 800, you have an exceptional score. 20% of Americans fall under this category. 670 to 799 is a good score for all banks and other financial institutes. 580 to 669 is a fair score, and anything below 580 is a poor score. More than 90% of the lenders check credit score and use it as a primary factor while making any decisions regarding the loan. The score also determines your interest for the loan. A buyer with an exceptional score can have as high as $200 lesser mortgage cost than someone with a fair score.
If you have a very low score, you can still find lenders. However, check the fee for the loan, interest rate, payment terms, and others.
Hire an agent
Many online sites provide a no-middleman style of real estate business. Although it is quite advantageous for the buyer, it could be confusing for first-time buyers. It is best to choose a real estate agent if you are looking for Saint George homes for sale. A good real estate agent can help you with finding the right area, the base price for each geographical location, haggling, and so on. Do not blindly choose an agent. Set up a meeting, learn about their methods, explain your budget and choose the one with reasonable options and plans. If you seal a purchase deal with the help of the agent, you should pay 3% of the home value as a sales commission.
Some buyers believe that choosing a good real estate agent and finding the right banks are the only work in buying a house. You would have to spend hours surfing homes, analyzing the pros and cons of each area or building, analyzing loan options, and so on. Analyzing loan products is an essential stage. Top types of loans are conventional loans, FHA, Jumbo loans, fixed-rate loan, ARM mortgage, and so on. Analyze the different options and features before you choose a loan.
Are you looking for new homes for sale in St. George Utah? Do not jump in head-first. First, analyze the market. Learn from those who have bought a house in that locality, and check with a reliable agent. Remember that purchasing a home is a major financial decision.