9 Tips for Buying a House

Check Your Income

The first thing you want to do when getting ready to buy a home is ensure you have a reliable income. Banks typically like to see you in the same job for more than two years, with an income that allows you to spend 30% on your housing expenses. That means that if you make $6,000 a month, you can afford roughly $2,000 a month for your mortgage.

Check Your Credit Score

Your credit score will also be a huge factor when buying a home. The better your credit score, meaning the closer you are to 800, the lower your interest rate will be. The lower your interest is, the lower your mortgage payment will be each month. That means more house for you! If your credit score is not great, start working on getting it there now. You can find excellent resources, including professionals, who can help you improve your credit score in just a few months. 

Start Saving Money

Next, you probably already thought of this one: save your money. While you may qualify for a great loan that covers your closing costs and requires no money down, you will still want to have at least six months of expenses just in case anything goes wrong in your home once you move in. 

Get Pre-Approved

Once you’ve covered those tips, find a good lender and get pre-approved. The lender will check your income and credit score and ask you some background questions and then give you a pre-approval amount. That’s how much you can expect to borrow for a mortgage. 

Know Your Budget

Now that you’re approved, calculate a budget. Know how much house you want, how much you can afford, and what you’re willing to pay each month. 

Consider Property Taxes 

When factoring your budget, don’t forget to calculate property taxes into the deal. Sioux Falls property tax rate is 1.4%, which can add a hefty chunk of money to your monthly mortgage payment. 

Find a Trusted Realtor

At this point, you will want to contact a trusted real estate agent, if you haven’t already. A realtor will help you find the perfect house that fits all your wants and needs, and they will help you through the entire process of making an offer, ordering home inspections, negotiating, and all the way to closing when you walk through your new front door. You want this new best friend by your side. Trust us.

Consider a Fixer Upper in a Great Neighborhood

When looking for the perfect home, you might not have considered a fixer-upper. Of course, everyone wants a beautiful turn-key house, but you might actually get much more house for a much better deal if you’re willing to put in some elbow grease. Finding a fixer-upper for a great deal in a lovely neighborhood may be the dream situation you never realized was available to you. 

See What Loan Programs You May Qualify For

Finally, work with your realtor and your lender to discuss loan programs you may qualify for. The US government has programs for teachers, emergency workers, and other professionals helping society, including just a first time home-owner program, that may save you thousands of dollars. 

Contact Tyler Goff Group Today

If you’re ready to buy your first, or next, house, contact Tyler Goff Group today. We are experts in real estate in Sioux Falls and the surrounding areas. More importantly, we have built a reputation on serving our clients’ needs first, always. We are here for you, to make your real estate process smooth and easy. Contact us today.