Buyers looking for a home in 2016 are looking at a sellers’ market, but with proper planning, finding the right home at the right price is still possible. The best advice for 2016? Do not wait to begin your search; compare and contrast your mortgage options; do not rule out buying new; and consider relocating to get the most home for your money.
The peak home buying seasons are spring and summer, meaning you face greater competition. Shopping early, though, typically rewards early birds with a better price as well as a better mortgage rate.
Shop for the Best Mortgage
Do not spend all your energy finding your home, ignoring the mortgage side of the equation. The time you invest in landing the right mortgage pays dividends throughout the life of the loan. The best interest rate does more than just save you money (though that is not a minor consideration). It also determines the type of house you qualify for, so explore your options.
Do Not Rule Out a New Home
Most people assume a new home is out of their price range, but that is not necessarily true. New home construction has grown steadily for the past few years, and with fewer buyers considering them, that means less competition when you are ready to buy. In addition, while new homes are typically more expensive, they come with warranties on both the building and the appliances, likely saving you money overall.
In America, home prices in the Midwest and South are lower than in other parts of the country. If your lifestyle makes relocation a possibility, and you are looking to get the most bang for your house-buying buck, moving to one of these areas is a viable option.
Prepare for Your Search
Buying a new home can be overwhelming. Most people know what they want, or can afford, to spend, but they do not take the time to make a list of what they want in a home. You will save a lot of time and effort if you draft a list of must-haves and nice-to-haves for your new home.