Rio Grande Valley is an amazing neighborhood to move into. The Valley is a popular location. Combined with the warm weather and a friendly local population, it is one of the best places to settle down in South Texas. If you are a first time home buyer, you are likely trying to find out how to buy your first house ever in the Rio Grande Valley. Here is a plan you might find useful:
1. Get your Financials ready
By ready we mean approved. Lay out your regular expenses, your tax receipts, your debts and your savings. Look through everything closely and ask yourself, ‘Am I going to get pre-approved for a loan?’ You bank can help you get a credit score, a.k.a your ability to pay back a mortgage. They will want to know if you have a stable job and whether you have a clean repayment history for any earlier mortgage. They’ll also want collaterals.
Different lenders have different criteria for qualifying a loan but a higher score definitely gets a second look. Your builder might help you get in touch with trusted lenders, pre-qualification apps, or have their own mortgage agents to ease the process for you. Different mortgages have different down payment rules. Some ask for 15 % while some are happy with 5%. Know your lender.
2. Set a budget
How much do you want to invest in your first home? After all the expenses have been deducted, will there be enough dough left for daily living? If you don’t set a limit to your budget, you will definitely over step it and fall short of money once the process is underway. Home buying costs tend to fluctuate and closing costs are almost always not included in the house price. Building materials, house type (custom built, turnkey or existing), amenities, and renovations and so on can all add to the cost. So start building a contingency fund.
Budgeting doesn’t mean cutting corners. It just means you want to get the most out of your means. You don’t want to step back from a house simply because you’re falling short of cash. It is wiser to budget within your means. Or below it.
3. Find the right house
This is perhaps the longest phase. It is tough to find a house that has the same features you desire. There is always some degree of compromise. That’s why it is sometimes a better choice to build a custom house. Fit in as many bedrooms you want without giving up on the kitchen of your dreams. Lend a personal touch to every aspect of your first home through complete customization.
A house that meets most of your needs and is located in an area of your choice is well nigh impossible to find. You may find schools, medical facilities and supermarkets within reach only to have to drive 2 hours to get to work. And 2 hours to return home. So be on the lookout for suitable locations at all times. Your choice of location will also impact the budget. For instance a single family home in an upscale neighborhood is pricier than the same in a more humble locality.
Finding the right house takes a long time. Weeks may turn to months. And you must have the time on your hands. If you have set your heart on a house and the seller is ready to sell immediately, things go like clockwork. If they want a quick closure and you are waiting for your lease to expire, well, you may be waiting a long time.
4. Draft a winning buyer’s contract
Any listing agent you work with is motivated to get the best price of the house for the seller’s benefit. In that case, you need to hire an agent for your purchase. This agent will find out all the chinks in the armor, so to speak. They’ll alert you to the weak links in the home buying contract and help you make a bid the seller can’t refuse.
One of the ways you can do this is understand what the seller wants out of this house. Are they looking to make a quick buck? Or are they more concerned about other things like, holding out for the highest bidder or waiting to sell when schools close for holidays? These things can help you make an effective buying offer.
Ultimately, your bid should play to your strengths and all clauses in the contract must be of some benefit to you.
So when you are out buying your first home in the Rio Grande Valley you need to remember these things. Check the status of your funds, make a budget, find a house in a suitable locality and hire the services of an agent to get the best deal. Whether you move into an existing property or build one of your own, learning a bit about the entire process is always a helpful idea.