By Suzie Wilson

 

If you had your sights set on buying a house this year, the current recession doesn’t have to derail your plans. Whether you’re a first-time home buyer or looking to purchase an investment property, there are plenty of considerations to keep in mind as you look for a home. The most important two are finding a trusted real estate agent like Sandra Erbe and getting your finances in line. For anyone contemplating a home purchase soon, let’s dive a little deeper into what you can expect.

Do your research

One of the best ways to find your dream home is by connecting with an established agent who can help you find properties that fit within your needs and your budget. It’s easy to get carried away when you find a home that appears to be picture-perfect. However, the right agent can help see beyond the pretty exterior to pick out details you may have missed, such as potential leaks, roofing problems, or not-so-obvious repairs that need attention.

In addition to hiring a real estate agent, it’s important to research housing prices in your area. Look at trends; are prices rising or falling? By analyzing the market, you can identify whether it’s a good time to buy, or if you’re better off waiting a few months for prices to drop.

Finances for first-time buyers

Looking for a new home right now has its advantages: mortgage rates are at an all-time low, making it a great time to apply for a home loan.

Before your search begins, note that you will stand out as an attractive buyer if you’re pre-approved for a loan. This means shopping around for the right rate and loan before settling on a lender. Remember, financial readiness is key when it comes to buying a home, and mortgage lenders will take into consideration employment, income, debt, and all financial accounts when considering your application.

If you’re a first-time buyer, PennyMac recommends applying for a Federal Housing Administration (FHA) loan. FHA loans are great for buyers who want a lower down payment, and can also help in situations where a borrower can’t qualify for a conventional loan due to limited or negative credit history.

Investment buyers

For those planning on buying a second property, real estate could be the safest investment you can make right now, because it’s less volatile than other industries like the stock market. However, there are some nuances to keep in mind.

If you’re planning to buy a Delaware vacation home you can rent out, you’ll want to choose wisely. The ideal property will be close enough to attractions and the beach while it also hits all the markers for your lifestyle needs and budget. Keep in mind too that you’ll need to assess the local vacation rental market to get an idea of how you can price your rental. Having a general idea of what you stand to make in rent will make a significant impact on the mortgage you choose. 

Looking at homes safely

Finally, as parts of the country still struggle with COVID-19 transmission, it’s important to consider your health when looking at homes. Before visiting a home in-person, take advantage of any virtual showings or 3D walkthroughs available. Real estate agents will provide opportunities for contact-less showings, and some sellers may require mortgage pre-approval before showing to potential buyers.

Conclusion

If you’ve made the decision that you’re ready to buy a home or property this year, make sure you know what the housing market looks like in your area. Do some research and determine if it’s worth waiting a little while before buying, and take that extra time to get your finances in order. If you’re buying a home for the first time, aim to get pre-approved for a mortgage so you have a better grasp of what you’re able to afford based on your down payment amount and credit history. And if you’re looking to buy an investment property, be sure to buy in a strong housing market where you’ll see rewards in the years to come.

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