You want to get into your own home but don’t know if you should risk buying now. As a potential homebuyer, you probably have seen the headlines. With demand soaring and supplies still down, prices are still rising. Perhaps you feel uncertain about making such a big commitment amid an uncertain future. Take heart, because the end of the pandemic is within reach. Additionally, interest rates are at historic lows. So, you have plenty of opportunities to explore.
Working With the Right Homebuilder
Maybe it’s time to consider working with a custom home builder such as Grand Homes. We can help you find a semi-custom home within your budget. Deciding to become a homebuyer goes beyond economic conditions. Here are some considerations to help you move forward with your dream of homeownership in Addison, TX.
Concentrate on Factors You Can Control
There are certain factors that make you more attractive to mortgage lenders. So, taking stock of your employment history, credit history and other factors can help you decide whether to buy now or wait.
Have you worked the same job for two years? If so, this looks great on a credit application. Before issuing a home loan, lenders want assurance that you have a steady income in the foreseeable future. If you can show employers two years of W-2s or 1099s, you have a very good chance of qualifying for a loan.
When it comes to your credit score, lenders want to know your debt-to-income ratio. To calculate your debt-to-income ratio or DTI divide your total monthly payments by your monthly income. If this number is less than 45%, you’re more likely to get the funding needed to buy a home.
With a bigger down payment, you can qualify for our larger loan. This puts more available homes in your price range.
At a minimum, you want to get your credit score up to 500 or above. In order to obtain mortgage pre-approval, you’ll need a decent credit score. The threshold varies depending on the type of loan you choose. However, a score of 620 or better can open the door to mortgage loan approvals.
Don’t Give Up on Your Dream
By focusing on factors you can control, you can better prepare to become a homebuyer. However, it’s important to understand the challenges you’ll face in a tight housing market.
Have you considered working with a home builder? What about a semi-custom home built with the needs of your family in mind? If you already have to pay top dollar for homes on the market, it may make sense to go this route.
Contact Grand Homes for Help Today
Many home buyers seek the help of our experienced homebuilding team. We have 400+ homes waiting for your personal touches. Contact us today to speak with an experienced home builder and roll forward with your plans before home prices go up yet again or interest rates rise.