The Myrtle Beach housing market is warming up with home loan rates just recently breaking through the 4 percent limit, and it appears will stay there during the coming year or even increase, while the price of a new home also continues to rise. In the midst of these greater cost factors, a customer must take action in four areas: enhance credit, shop wise for a home loan, choose your home carefully and sensibly negotiate cost to make the best purchase in 2017.
Strengthen your credit rating before you search for a mortgage. Most people don’t know their credit history up until they start to try to find a house or home loan.
Since trying to find a home can take anywhere from one to 3 months on average, in some cases even longer, it is best to utilize the house shopping time to strengthen your credit score, especially if it implies getting a lower mortgage rate. Don’t expect every mortgage lender to be the same, however, a strong score on your credit can shave up to half a percent from our interest rate saving you thousands of dollars over time.
A credit counselor or someone who specializes in debt reduction can provide guidance on what to do to enhance a credit history while shopping for a house.
But just as it might pay off to enhance your credit before using and getting approved for a home loan, buyers should not assume that an approved mortgage is a done offer. Till all of the paperwork is signed and the house’s keys are handed over, a lending institution may examine the arrangement to see the factors that resulted in a loan approval have not altered.
For example: Making purchases that change your credit picture for the worse– like adding brand-new debt or paying a charge card late, even inadvertently– prior to your home buying might cause a lending institution to rescind the home mortgage approval.
Look around for the very best home mortgage. As stated before, not every loan provider offers the same home loan rate, so shopping around is essential, however something the typical individual doesn’t do. According to data from the Consumer Financial Protection Bureau, almost half of people who make an application for a home loan don’t search. Failing to do so might be costly month after month, and accumulate additional expense after several years.
Consider this example of someone obtaining $200,000 for a mid-price home. At a 4 percent rate of interest, the monthly payment is roughly $955. The exact same amount borrowed at 4.5 percent increases the regular monthly home loan to $1,013, or almost $700 each year.
As important as it is to obtain the best mortgage rate, it’s likewise crucial to watch out for fees charged by home mortgage loan providers. These costs go by various names, another need to work carefully with a Myrtle Beach real estate broker throughout the home loan process in order to navigate the complicated process.
Pick your dream home carefully. Now that you have a strong mortgage approval letter in hand it is time to find your dream home. However, a tight market in 2016, particularly for first time buyers, is most likely to continue to some degree in 2017. A market with low housing supply requires a purchaser to search for those diamonds in the rough that may require some renovation and perhaps be willing to accept the not-so-perfect dream house.
That does not suggest a purchaser should settle for a home that doesn’t fulfill his or her needs. Keep your list of must-haves front and center, however make sure you understand the distinction between must-haves and nice-to-haves. A Myrtle Beach realty agent that listens to you and plainly puts your interests first is an excellent partner in the home search process. A crystal clear handle on your must-haves might open different neighborhoods, maybe with better cost points for your budget plan, and less competition.
There are many Myrtle Beach real estate agents from which to select. However, similar to when shopping for a home loan, shopping for a real estate representative takes time. Keep in mind, this is the person who is going to help you make what is probably the biggest monetary purchase of your life.
Be ready to negotiate. If real estate is all about location, then home buying is all about negotiation. Unless you are looking in a very competitive area, there is always room for negotiation. Here’s where choosing the right real estate agent makes all the difference.
Whether it’s the price — most likely the most essential item to work out — or if the seller will pay a part of closing expenses, pay for a home inspection or provide a home warranty on major appliances, approaching the seller with a list of items you desire is something every home buyer should do with the help of their Myrtle Beach real estate agent. Remember, the seller wants to sell, and you want to purchase. Effective home purchases that work for both sides are made in the middle.
Full Potential Real Estate has the experience you need to negotiate your dream home. Call us today to schedule a time to discuss your dream home
Full Potential Real Estate, LLC
Myrtle Beach, SC 29577