The difficult Austin real estate market is making it tough on buyers. The only real way to get a competitive edge is to anticipate the difficulties that you will face in the future, plan for them and organize a team to help you succeed. Here are some ideas on how you can make sure you get into a home that you own the next time your lease comes up for renewal or your rent gets raised.
First – Plan Your Finances for Purchase
Getting out of the cycle of renting will take a certain amount of financial discipline. There are plenty of simple strategies that you can start today, which if followed correctly can position you for your future home. A lot of people have saved their whole down payment by getting part of their paycheck direct deposited into a savings account that they never use otherwise.
However, if finances seem like the main hurdle to home ownership for you then it may be worth considering consulting with a financial planner. A good financial planner will create a personalized plan with your goal of home ownership and your time frame in mind. That can be an excellent place to start.
Second – Find Financing and Get Pre-Approval
Now that you have some money saved its time to find out how much you can qualify for. Most people don’t buy their homes with cash so they go to see a loan officer. Generally, they will ask for pay stubs, tax returns, and w-2s in order to give you an idea of the loans you will qualify for. Taking a meeting like this is a great idea because it will let you see what your price range is for buying a home.
The loan officer can also provide you with a pre-approval letter. The letter shows that you are eligible for a loan up to an agreed upon amount that will be stated in the letter. You will need this letter in order to make an offer on a home you would like to buy. Now that you know what your buying power is and you are pre-approved it is time to start seeing which homes are on the market.
Third – Partner With a Realtor to Get the House you Need!
The Austin real estate market is moving fast and it is competitive. Having a Realtor working for you is going to give you the competitive edge you need to get the house you’ve been working towards for so long.
- You’ll be able to decide on what you need in a home and narrow your search to be more efficient.
- The Realtor will be able to make calls and coordinate on your behalf which you don’t want to have to do anyways
- A Realtor who you have a buyer’s representation agreement with has a full fiduciary duty to you and your interest. Trying to get by without a buyer’s representation agreement might leave you in situations where you are taking financial advice from someone who actually represents the seller.
- The Realtor will be able to handle submitting your offer, so if something comes on to the market that you like you’ll be able to move very quickly. That is very very very important in our current market.
- They will usually get you something nice at closing and come to your housewarming party :)