Purchasing a home is a big deal; in fact, it’s probably one of the biggest if not THE biggest investment you’ll make in your life. As experienced and knowledgeable DFW real estate professionals, we know there are questions you need answers to throughout the process of buying a home in Dallas. We’ve shared some of the most common below.
Is it necessary to sell my home before I buy a new one?
This is an important question, but one that isn’t easy to answer. Buying a Dallas-area home before you sell the one you live in could leave you facing two mortgages unless your current home is paid for. While homes in DFW typically sell quickly, there is no guarantee as to when your home will sell. On the flip side of the coin, if you sell your home prior to closing on your new house, you may have to rent an apartment or home for a short time. A “sale contingency” is the best solution for many buyers, however not all sellers are agreeable to this type of agreement which involves your buying the home contingent on selling the home you currently live in.
What is a buyer’s market?
To put it simply, when someone says it’s a “buyer’s market” it means that there are far more homes available for sale than there are buyers. For this reason, sellers tend to lower the prices of their homes in an effort to sell. When economic conditions favor the buyer, interest rates increase which results in higher mortgages; this is why sellers are forced to lower the selling price.
Do I have to have a good credit score to purchase a home?
To qualify for a home loan your FICO score should be at least 620. However, credit scores impact how big your mortgage payments will be because those with a high credit score will enjoy a lower interest rate. Those with lower credit scores are considered high risk by the lender, so interest rates will usually be higher. All situations are different, so talk with your lender to learn more about your circumstances.
What is the timeline on buying a home?
How long it takes to buy a house depends on several factors including how long it takes you to find the home you love, whether the real estate market is “hot” and therefore more competitive, etc. When the market is hot everyone involved in the process is busier, from lenders and home inspectors/appraisers to real estate agents. This can slow down the buying process, but generally speaking it will take about 30 to 45 days.
There are tons of questions you probably have if you’re looking to buy a home. How many homes should you look at, how much down payment do you have to have, and what makes earnest money different from a down payment? At Team Nelson our Dallas realtors are ready to answer all of your questions so you can make an informed buying decision. Give us a call today!