Over the last couple of years, San Antonio has seen quite an influx of newcomers, and it certainly isn't without reason. In fact, the city can boast of having a plethora of opportunities for career advancement, on top of being incredibly affordable. Furthermore, with the median home price falling short of $200,000, it's no wonder many are looking at San Antonio as the perfect place to buy a house and settle down. However, venturing into the buying process uninformed is not recommended, especially if you are buying a house for the first time. To prevent you from making the mistake of your lifetime, we present you with 5 things San Antonio first-time homebuyers need to know before making a purchase.
What Are the Most Important Things San Antonio First-Time Home Buyers Need to Know Before Purchasing?
San Antonio attracts people of various profiles, and at times, competition for housing can get quite fierce. It might not be that simple to secure your ''dream house''. For that reason, it's essential that you enter the race for the property appropriately armed with knowledge and a winning mindset. Below are the most important things you'll need to take care of, being the prerequisite to your property purchase.
#1 First, Secure Financing
It would be ideal if you could afford an all-cash purchase, but unfortunately, that rarely is the case. In reality, most buyers would be able to buy a house if it weren't for mortgages. On the other hand, not everyone qualifies for one. However, whether or not someone does largely depends on their credit score. Those with poor or nonexistent scores might have a more challenging time being approved for a mortgage.
While ultimately, it's up to the lender to determine whether to grant you a loan or not, certain things could improve your chances of getting it. For instance, you must keep up with your bills for several months before applying for a mortgage. Keep your credit card usage down to the minimum, too, but don't close them down unless you are purposely looking to have your credit score lowered.
It might take a bit to hear back from the lender regarding the mortgage. Use this time to figure out how much house you can afford, as well as to calculate your down payment, closing costs, and the costs of the relocation. First-time homebuyers with exceptional credit scores could be required to put down on a home as little as 3%. The average, however, is 6%. On the other hand, closing costs typically range from 2% to 5% of the agreed price.
Costs of relocation will depend on whether you're moving on your own or with the help of a professional moving company. Of course, the best way to deal with this is to hire reliable residential movers. Depending on the services chosen, their assistance might get costly, but in the end, definitely worth it.
It's important you apply for a mortgage as early as possible.
#2 Make Up Your Mind
San Antonio has a bit of something to offer to everyone. Condos, apartments, townhouses, and single-family homes are all on the market and ready to claim their owners. However, you'll first have to make up your mind regarding what you want and need. It's once you've decided what type of ''home'' is right for you that your search can finally take place.
#3 Decide on the Budget
One of the most important things San Antonio first-time homebuyers need to know is that a budget must be set as early as possible. You'll probably be tempted to spend the entire amount loaned on the initial home purchase. A better course of action, thought, would be to come up with a budget that allows you to leave a portion of the loan aside. This might serve as a rainy day fund, which you can, later on, use to fund the renovation, repair, or maintenance costs.
Decide how much you are willing to spend on a house, but make sure to leave a bit of money on the side for unforeseen expenses.