Covid-19 did a reset on the world, metaphorically speaking. Every industry and segment of our lives was impacted and the way things happened before changed for good. The immediate aftermath was a shock even though we were warned to expect the changes. The thing is, no one can prepare you when the world stops working for a moment. And that moment lasted for about two good years. The real estate market was deeply impacted by the pandemic as well.
Before the pandemic, sellers benefited a lot from the bidding wars as there weren’t enough houses for sale. The prices were going up fast. But after the pandemic, things started to cool down. The biggest challenge that arose was the increased inflation and the interest rates that rose quickly as well. As a result, a lot of buyers gave up the idea of buying a new house, so the number of houses for selling increased drastically making the prices go down.
Last year, things kept on changing. The inflation was still high, but in 2024 it is a trend that slightly wears off. On the other hand, the house prices and mortgage rates are still pretty high. The interest in buying a house is increasing as well, and things are looking good for the sellers. However, this doesn’t put the buyers back in a bad place. Experts think the market will soon become balanced which means opportunities for buyers will appear. That is why 2024 is seriously a good year to start thinking about buying a house, especially if that idea has been nesting for a while in your plans.
Let’s go over some tips that might come in handy for the urban guy like yourself to prepare for buying a house in 2024.
Know Your Numbers
When we talk about numbers we mean credit scores, earnings, savings, loans, and everything else that will define your budget and the mortgage rates. The credit score is the one that will determine the financials and the loan lenders are the ones that use it to prepare good loan terms for you. If your credit score is high, the interest rate you will be eligible for will be low. Keep in mind that lower credit scores are equal to more expensive mortgages.
Make Sure You Have Enough for a Down Payment
You can avoid paying private mortgage insurance if you can put down 20% of the home’s selling price for a down payment. While it’s true that loans with smaller down payments may come with higher interest rates, exploring options like a Zero Down Home Loan can be a game-changer. These loans allow qualified buyers to enter the housing market without a large upfront payment, offering substantial savings. Additionally, the government provides various programs to assist with down payments for those who qualify. Also, another way you can save for a down payment include:
- Setting a savings goal and creating a realistic timeline to save that amount
- Defining a budget by tracking the income and expenses and identifying where you can cut back and put money aside
- Reducing expenses like dining out, entertainment, travelling, and other luxury purchases
- Starting a side job or freelance project to boost your savings
Hire a Real Estate Agent to Help You Out
If you want to save time and energy as well as money in the search for a new home a real estate agent can be of huge help. They can help you find the right home and negotiate with the seller on your behalf. The advantage of having a real estate agent on your side is that they know the real estate market inside and out and know all about laws that are under the jurisdiction of the location where you are looking to buy a house. Never forget to ask the real estate agent before hiring them about their track record and knowledge of the desired neighborhood. Also, make sure they are not over-scheduled.
Rent First, Then Buy
Another interesting idea before purchasing a new house is to rent a place in the location where you want to live. For an urban man like yourself, it might open new horizons and improve your lifestyle and feel the place before settling in the neighbourhood. Also, property managers that run the rental pace will help you a lot with understanding the location, the lifestyle, the hustle and bustle of the area and you will be able to make an informed decision before finding a new house. You can also ask the property manager to give you contacts of contractors who can help maintain the property or any other legal responsibilities.
Conclusion
In short, 2024 is a good time for city folks to think about buying a house after the ups and downs of COVID-19. Even though the housing market has changed, it’s still possible to buy with the right approach. It’s important to know your finances, like your credit score and how much you can save for a down payment. A real estate agent can help a lot. Trying out a neighbourhood by renting first is also a smart idea. With some planning, 2024 could be the year you make your dream of owning a home come true.