From buying your first home to increasing your portfolio, investing in real estate has the potential to offer passive income and secure your retirement. But first, educating yourself to use a successful system for long-term investment is important. Continue reading to learn more about what you need to know when buying real estate in Olympia.
The first thing to know when buying real estate is evaluating credit health, and if its not in good shape work on fixing it. Lenders look at debt-to-income ratios to determine loan eligibility. To calculate this they use a formula of multiplying annual salary by .28, then divide by 12. The .28 represents the highest percentage of pre-tax monthly wages they consider to be affordable for monthly payments. The goal for total monthly expenses, including house payments should be 36% or less of monthly income. This is calculated by multiplying annual salary by .36, then dividing by 12. Consult an experienced real estate professional such as those at Sound Home Buyer for help guiding you on the road to credit repair and finding special programs that assist those with less than perfect credit.
Staying within budget will lower your stress level. Although, living between paychecks can be unbearable long-term for you and your family. Buying real estate in Olympia can be enjoyable. after you’ve repaired your credit, finding out how much you can afford is the next step. This is good for narrowing down your search range, as you’ll know what you pre-qualify for. Dreaming is always nice, but you don’t want to set yourself up for disappointment. But, you may also be looking at homes in a lower price range than you can afford, giving yourself more options. Real estate professionals such as those with Sound Home Buyer can help provide information on government loan programs and lenders best suited for your specific qualifications and circumstances. Additionally, based on the type of loan you apply for, the housing and debt-to-income ratios may vary.
When you begin looking for property, you need to know about the location before buying real estate in Olympia. An important factor in real estate values is the ability of the area to hold value over the long term. Therefore, it’s better to buy the lowest-priced property, even if it requires a bit of work, in the best possible neighborhood. Naturally, water views increase value, as do lower crime rates and nearby conveniences, such as shops and schools, as does having public transportation nearby. Upcoming projects in Olympia planning can also add value, so keeping a close eye on local changes and trends along with national real estate trends is essential. Experts like those at Sound Home Buyer dedicate themselves to staying on top of every factor that can affect the Olympia real estate market so they can help guide you to the best property available within your budget.
Comparable sales or comps are necessary for a clear understanding of the value of the home you’re interested in and can help you zero in on the right amount to offer. However, it would be a mistake to base your offer on this factor alone. The current Olympia real estate market conditions strongly influence the final sales price of listings. Therefore, you need to know the present status of all of the components of current market value before buying real estate in Olympia. For example, is it a seller’s market? To hit the target with a winning offer takes skill at interpreting the data along with an instinct for high-pressure negotiations. An experienced professional like those at Sound Home Buyer may suggest you offer above asking price, especially you’re aware the sellers have undervalued their listing according to the comps, or you have fallen in love with the property and must have it. Other reasons to offer over the listing price would be if you were aware of a cash offer on the table or a bidding war.
Ready to get started? If you have questions about buying real estate, you can count on the pros at Sound Home Buyer for everything you need to know about buying real estate in Olympia. At Sound Home Buyer, our goal is to help you understand every step of the process so you can make an educated decision about one of the most significant investments of your lifetime. Then, if you’re ready to buy, Sound Home Buyer always has a steady inventory of fantastic investment opportunities available. Call Sound Home Buyer at (360) 317-2777 or send us a message to find out how we can help you.