How to Buy a House With Low Income in 2017
The current housing market is heating up, thanks to the increasing mortgage rates that are expected to stay above that level until next year. Combine that with the skyrocketing home prices, and you know that homeownership is never an easy thing this 2017. But, it doesn’t mean that you can no longer get that dream home of yours. Yes, your low income shouldn’t stop you from buying a house this 2017, especially when you remember some important tips:
Improve Your Credit Score
Most people have no idea what their credit score is until they start searching for a mortgage or home. Since it usually takes several months to look for a potential house to buy, it will be wiser if you can use this time to make your credit score stronger, particularly if your goal is to get a lower mortgage rate. How low can low get? While not all lenders are the same, a stronger credit score has the ability of cutting as much as half the percent off your rate. A credit counselor or housing counselor can guide you on what you should do to boost your credit score while you shop for a home.
Look for the Best Mortgage
As mentioned earlier, not all lenders offer the same mortgage rate. This is why it is a must to shop around first. Unfortunately, not many people actually do it. Did you know that not shopping around can make things more expensive for you month after month and add up in a few years’ time? And while it is important to get the best mortgage rate, it is also imperative to watch out for those fees that mortgage lenders can charge you. These fees are known in different names, all the reason why you need to familiarize yourself with them to navigate easily in this somewhat complicated process.
Be Careful in Choosing a Home
Once you got that strong mortgage approval letter with a great rate, it is finally time to look for your dream house. But, with the tight market this 2017, it doesn’t mean that you just have to settle for a home that doesn’t even meet your needs. Make sure that you are armed with your own list of must-haves, and at the same time, you also need to know the difference of nice-to-haves and must-haves. A real estate agent who listens to you and who puts your personal interests first is the best partner in the process of home searching. A crystal clear focus on the must-haves can open up various communities with better price points that suit your budget, and even lesser competition.
Don’t Forget to Negotiate
If real estate is all about location, buying a home is all about negotiation. Unless you are buying in the most competitive and heated markets, negotiation will always have its room. It will pay off if you negotiate not only with the price but also with other things such as home warranty on the major appliances. Discussing your wants with the seller is always something you should do. As much as you want to buy, the seller also wants to sell. A successful home purchase which works for both parties are made right in the middle.