Are you getting ready to buy your first home or move to a larger house in Asheville? Or maybe you’re looking into purchasing a home as an investment property, using it as a vacation rental for additional income. Whatever your intention, you may think it’s difficult to find a good deal on your new home, but it doesn’t have to be, especially with the current super-low mortgage rates. Even better, FHA mortgage rates today are hovering under 3 percent, making the purchase of a home a smart and timely decision.
With these personal finance hacks and help from AVL Living, you’ll find and be moving into your dream home before you know it.
Do the Research
The best place to start when buying your first home is to research home prices. Overall, down payment costs are going up, but this varies from state to state, so make sure you know the market trends in your area. Research listing prices in your area (homes in Asheville have been fetching $410,000 on average, up 19.2 percent from last year), but don’t get discouraged. Around 75 percent of homes on the market will sell slightly below their asking price, according to Inman. Take this into consideration when making an offer.
Understand Your Credit Score
You can’t buy a house without good credit, and your credit score will make a huge difference in the cost of your initial down payment and interest rate. Start by checking your credit score for free so you can see exactly where you stand. To improve your credit score, start by reducing your debts as much as possible. Another hack to improve your credit score is to ask a trusted family member or friend with good credit to add you as an authorized user on one of their credit cards.
Buy Below the Listed Price
You already know that many homes sell below the listed price, but you may not be sure how to find these homes. Keep looking for houses in the neighborhoods where you’d like to live and focus on homes that have been on the market for a few months. There could be many reasons why it hasn’t sold yet. Perhaps the house needs some small improvements, seems too dark, or hasn’t been staged well. Enter the house with an open mind and see how a few minor renovations could make it your dream home. Then, put in an offer below the listing price and see if the seller accepts.
Explore Down Payment Options
When it comes to buying a new home, understanding your down payment options will help you make the right decision on the home you need. While you can put down 20 percent on your home upfront, that may not be necessary. On average, the down payment on a home in the U.S. is around 11 percent, notes Realtor Magazine, but carefully research down payment trends in your area since these rates vary by state.
If you don’t have enough saved for your down payment, you still have options. You can apply for a loan from the USDA (U.S. Department of Agriculture), the VA (Veterans Administration), or the FHA (Federal Housing Administration). Research your options with these organizations if you want a no-down-payment mortgage or a low-down-payment option.
Save on Taxes
Did you know you can save on taxes when you purchase a home? Check the appraisal of the home and try to get a great deal by offering less than the home appraisal price. You can get your taxes lowered to match the purchase price rather than the appraisal price. This won’t save you money at the time of purchase, but you can save on taxes each year. When filing your taxes each year, don’t forget that the interest and property taxes are deductible, so claim these for more savings. Follow these tips to get a great deal on your home, and look to buy below the listed price. Research your down payment options and use these personal finance hacks to purchase your dream home this year. Contact AVL Living to get the process started today. 828-337-1360