Few things in life are as exciting—and intimidating—as buying a house. It is, after all, likely to be the biggest investment you’ll ever make.
Want to avoid buyer’s remorse when purchasing real estate? Take a look at Coldwell Banker Winthrop’s fool-proof guide:
Boost your credit score
You’ll want to increase your credit score if you want to get the best interest rates. Request for a free annual report from one of the three credit reporting companies, and check for errors that might be hurting your score. Experts also recommend against applying for new lines of credit or making major purchases using credit cards right before a home purchase. Aim for a credit score of 620 to 740 to get prime mortgage rates.
Prepare your down payment
While there are zero-down payment mortgages, they come with higher interest rates and require private mortgage insurance. That’s why for most buyers, having a 20% down payment is the best course of action. Not only are you more likely to get approved for a mortgage, you’ll also need to borrow less money—and the smaller your loan, the smaller your interest payments will be.
Pick the right mortgage
If you have a choice between an adjustable- or fixed-rate mortgage, pick the latter. Having a fixed-rate mortgage means you’ll pay the same amount each month regardless of the fluctuations in interest rates. As for the repayment period, choose a 30-year term even if you can pay off the loan sooner. A longer loan tenor means lower monthly payments, which allows you to buy a more expensive home than you’d otherwise be able to afford with a 15-year mortgage.
Competition for Methow Valley real estate is fierce, and being preapproved for a mortgage gives you a distinct advantage over other buyers. Simply put, a pre-approval letter states how much a mortgage lender is willing to lend you if you applied today. Sellers prefer preapproved buyers because their financing is all but guaranteed. They avoid a scenario where a buyer makes an offer on their home, but backs out because their mortgage application fell through.
Know what you want
Get a clear sense of what your dream home should be. How many bedrooms and bathrooms do you need? What non-negotiable features should it have? What kind of neighborhood do you want to live in? Knowing what you want makes it much easier for Winthrop realtors to shortlist ideal properties for you.
Hire a professional inspector
A picture-perfect home could be hiding serious flaws not visible to the naked eye. That’s why it’s crucial to hire a house inspector before closing on a property. Be present at the inspection so you can raise any questions or concerns you may have about the house. Make sure to also read their inspection report thoroughly to verify that the property is in sound condition.
If you’re interested in Winthrop homes for sale, let our dedicated team assist you. Armed with years of experience and deep knowledge of the local property market, we provide a hassle-free home-buying experience.
Want to know more? Just call our office at 509.996.2121 or send an email to info(at)cbwinthrop(dotted)com.