Whether to buy or sell a house depends a lot on the economy. At times it is difficult to judge the condition of the economy and thereby you cannot decide what you should do. Generally it is good to buy when the mortgage interest rates are low. This opportunity should be especially grabbed by first time home buyers and real estate investors. Here are some tips that can help you to buy in the economy and get the best deals for yourself.
Understand the location – Location is a very important factor in determining your profits whether you are a first-time home buyer or investor or a veteran one. Whether you should buy a small house on a very posh locality or buy a large house in a relatively secluded or economic neighborhood can count a lot when the time comes to sell or rent.
Consider buying a condo – The condominium market has a surplus of inventory in the current times. Thus if you decide to buy a condo, you realtor will be able to cut out a good deal for you. In case you are buying for the purpose of investment and not as primary residence, then you can consider leasing out your suite for a period of 4 to 5 years. This is because, according to market statistics, the condo market should be rising by 2013.
Decide upon a price range and stick to it – It is advisable that you meet some mortgage lenders and get a pre-approved mortgage before you start hunting for houses. This will help you to know how much you can spend and thus you will be able to narrow down your options. It is always a good idea to buy within your budget.
Know your credit rating – Before you decide upon buying a house, it is very important that you know your credit rating. Although lenders can draw out your credit report in order to decide upon your financial responsibility and how much of mortgage to give you and at what rate, you should check your own credit report before that. If you see that your credit score is low then you should do some credit repair activities and hike up your credit score before you apply for a mortgage.
Once you buy a house you will realize how important the above advices are in order to make your real estate purchase worth the money.
