If you haven’t bought a home for sale in Incline Village, NV yet, you probably have it as a “to do” in the near future. With Incline Village, NV real estate prices on the rise, interest rates on the rise and rents on the rise, financially it just makes sense. However, everyone has a different time in life when buying really “makes sense”. For some, it is early on while others may wait until later. There are a few determining factors that you should keep in mind. After all, buying Incline Village, NV real estate is a huge financial decision and investment. You want to purchase knowing that you won’t regret that decision down the line. Check out these tips to determine if now is your time to buy!
This is obviously the first factor and the most important. However, this factor is multi-faceted and there are several aspects that play into whether you are financially ready to buy real estate in Incline Village, NV:
- Down Payment: The amount of this varies based on the house price and the loan you have but you will need some cash to put down. The typical 30 year conventional loan is 20% of the home price but some loans let you put as little as 5% down. If you think you won’t qualify, there are actually several down payment assistance programs out there. However, I strongly urge you NOT to drain your savings for a down payment. Once you become a home owner, you are responsible for any repairs so you will want a cushion to tap into for emergencies.
- Monthly Mortgage: How much you can afford is based on your income and your debt. High income is great, high debt is not. Shop around for lenders to find out what you qualify for. You should also try and pay off debt before you apply for a loan. If your work is not steady, you may want to stick with renting before buying a home for sale in Incline Village, NV.
- Credit score: Speaking of debt, the better your credit, the better your chances of securing a great loan. If you have zero credit, you will want to open and successfully pay off each month a line or two of credit. If you have bad credit, pull your report and get to work on cleaning it up.
Local housing markets vary, however, the United States in general is doing well and is considered in a Seller’s Market. Real estate prices in Incline Village, NV are up and the demand is high. You want to make sure the current conditions are beneficial for YOU! It is really hard to time the market but you want to consider the economic conditions as much as possible. Here is what you should look at:
- Inventory: If your market is in favor of the buyer (homes have been sitting and there is a lot of inventory), you should be able to get a great price on a home with minimal competition. If your local market is a seller’s market? Well, that is a different story. It goes back to supply and demand: The available goods will be low and what is available will be priced higher.
- Interest rates: Interest rates can impact the price you pay on your Lake Tahoe, NV home for sale. Home loan interest rates are still considered historically low, however they are on the rise. If your budget is strict, you may want to get in on a home sooner rather than later.
- Renting vs. Buying: There are certain markets where rent is astronomical. People are throwing away what could be a mortgage payment for an 800 sqft apartment. Look at the prices in your area and compare mortgage payments to rent payments. Regardless, your rent payment is going towards someone’s equity so it may as well be your own.
What is your plan? Are you where you want to be? Are you moving or making a big life change in the next couple years? If you aren’t sure you won’t be in a Lake Tahoe, NV home for sale for at least 5 years (the amount experts say make a worthwhile investment), perhaps it is best to hold off. Unless of course you intend on using the property as an investment.
For more information on buying a Lake Tahoe, NV home for sale, give us a call!