When it comes to buying your first home in Sheridan, WY, it is often difficult to navigate the real estate market. An experienced Realtor will help you find a starter home you can afford or a luxury home that fits your budget. According to an article by housingwire.com, first time-homebuyers deal with special challenges including increased competition for entry-level homes and tight credit in some cases. At the same time, it is an excellent time to buy as the Fed raised interest rates. To get the best deal when you go to buy a house in Sheridan, WY, follow a few guidelines for first-time buyers.
Knowing what you can afford
Talk to a lender about the monthly payment that fits your budget. A lender will look at your debt-to-income ratio, but it’s also important to figure out what you want to spend on furnishings, decorating and upgrades. Remember to budget for property taxes, insurance and homeowner association fees in some cases. A knowledgeable Realtor will fill you in on which neighborhoods require association dues.
Getting a down payment together
If you can come up with 20 percent of a home’s purchase price, your lender will not attach a “PMI” or private mortgage insurance fee to your monthly mortgage. The average person saves about $100 to $150 a month when they don’t owe PMI payments, a kind of insurance to safeguard lenders from homeowners who default. If you can’t come up with a significant down payment, consider buying in a neighborhood that will likely appreciate quickly in value.
Working with a local Realtor
According to housingwire.com, the best plan is to work with a Realtor who intimately understands the community. In Sheridan, WY, you can own a home with a view of the mountains or live near good schools, churches, recreation centers and restaurants. First-time buyers should take time to evaluate neighborhood, gauging any daily commutes and traffic.
Getting your credit ready
Before you go to the closing table as a first-time buyer, hold off on making any major purchases on credit. You will qualify for a higher loan by getting your credit ready. If there are any errors on your credit report, fix them before the closing. Also, experts recommend getting down payment and closing costs in your account at least two months before the closing date.
At Summit Realty Group, we show our clients spacious and luxurious homes in different price ranges. If you are ready to own real estate while enjoying the wide, open spaces of Wyoming, ask us about home tours. For more tips on how to buy a house in Sheridan, WY, please contact us.