Are you planning to buy a home in Austin? Just like any other area, Austin’s real estate market has unique components that should be carefully evaluated.
Austin is the capital city with an approximate population of 7,90,000. There are several reasons to consider while buying a home in this city. The Austin housing market has gained a lot of steam, with home values almost doubling since 2010. Austin’s immense population growth during the past decade has heavily impacted its real estate market. Despite this rise and popularity, home prices in Austin still remain relatively moderate compared to other cities, such as New York City and San Francisco.
Here is a guide to buying a home in Austin.
What kind of home suits your needs?
This is indeed the first question one must contemplate before going ahead. When you are investing your hard earned money then you might as well give your convenience and need the highest priority. Consider what suits your lifestyle and taste the best. Depending on that you could go for a ranch, a new construction, a pre-owned home, a duplex, an apartment or a townhouse. Writing down the specification will also help you understand your needs better, if you need a pool or not, a garage or not, how many bedrooms and bathrooms etc.
Where in Austin?
Austin has an average commute of 20 mins even if you reside in the city. There aren’t many options when it comes to public transport. With no subways, and a very limited train system, outside of a car or bike, the bus is the only real way to get around.
It is very important to decide an area where you’ll have a convenient commute to your workplace. If your intentions are to invest in Austin real estate and not just to buy a home, consider buying in an area of Austin that is growing but has yet to reach its full potential. This is another reason to have an experienced Austin real estate agent during your home hunting process.
Another important factor while finalising the area would be to consider ratings of the schools around it, especially the schools mapped to the exact address of your future home. You can find that in the Great Schools website.
Check your credit score
Before applying for a mortgage loan, one must take a look at their credit history. Even though there are few factors which influence your prospects of getting a mortgage loan than credit score, it is a good time to work on improving it. If your score is 760 or above, you’re already in fantastic shape, but the further below 700 your score falls, the more uncertain your mortgage future. If you notice any errors, now is the time to dispute them and to look for ways to improve your credit, such as paying outstanding debts in part or in full. Higher the score, better the mortgage deal you’ll get.
Pre-qualification and pre-approval of mortgage loan
Pre-qualification of your mortgage loan is the first thing you should do after your credit scores are in place. For pre-qualification, a lender will simply ask you a few questions about your financial standing and provide you with a ballpark estimate of how much you might qualify for, although this is far from set in stone. Most real estate agents don’t even show listings to their clients if their mortgage loan is not pre-qualified.The pre-approval process is a bit more involved, but it also gives you a comparatively definitive picture of how much you can afford. It needs your documents, through which the lender will determine how much you are qualified for.
Look for trusted real estate agent
As the process of finding a home is not very easy, it is always recommended to hire a real estate agent. They can help prepare documents and negotiate your contract on your behalf; this is another step where your real estate agent can help you with referrals. We have the best and knowledgeable real estate agents in our team. We assure you that we will be by your side when you are in need of anything during this process.
Making an Offer
A written purchase offer is the base of a real estate transaction in Austin. Verbal promises are not legally enforceable. Therefore, you need a written contract, which starts with your written proposal. This proposal not only specifies price, but also all the terms and conditions of the purchase. For example, if the seller offered to help with some amount toward your closing costs, make sure that’s included in your written offer and in the final completed contract, or you won’t have grounds for collecting it later.
If your proposal is not approved, then either the seller can come up with a counter offer or just straight away reject it. The counter offer can go up and down till both the parties agree with all the conditions and finally sign the contract.
A particular property can get multiple offers. Even though the seller wants the deal to go through, if your finances or any document does not look strong they wouldn’t take the risk of putting their house off the market.
Inspection and Appraisal
Once your contract is underway, the mortgage lender will demand for an appraisal that is a comparison between the home you intend to buy and similar homes around that area. This will give the lender an idea of the proper value of the mortgage.It is highly recommended to have a home inspection by a licenced property inspector. This will provide a breakdown of specific issues with the property, such as maintenance, damage and repairs, as well as an analysis of the house in general.
When applying for a mortgage, the homeowner usually is required to provide proof of insurance on the property before to the lender. The property insurance can be acquired separately or by the lending bank. Homeowners who prefer to get their own insurance policy can compare multiple offers and pick the plan that works best for their needs.
Closing on your offer
It is indeed an exciting moment in your life to own your dream home.Despite the fact that closing is the final step in the process of buying a home, it is lengthy and tedious. You’ll have to sign the lender’s and title company’s legal documents and agreements.
Whether you’re looking for a luxury pad in the heart of the city, a cozy suburban home or a beautiful country house in the heart of the Texas Hill Country in a commutable distance away from the city, all of it can be addressed and made available. Book a free appointment through our website (https://skytowerrealty.com/).