Buying homes for sale in South Lake Tahoe? As a long time local South Lake Tahoe realtor, I have some tips! When it comes to making one of the biggest financial investments of your life, there are some steps you will need to take in order to get yourself prepared. In a seller’s market especially! With inventory low and so many buyers trying to take advantage of lower interest rates AND snagging South Lake Tahoe real estate before prices go up any higher, there is some stiff competition. Bringing your A-Game requires a little action on your part though so use the below tips to make sure you are all ready to take on buying South Lake Tahoe real estate.
1. Find a mortgage that fits.
Not all mortgages are the same. A fixed rate mortgage means the same monthly bill but a higher starting rate. An adjustable rate usually starts lower, but could change drastically leaving you figuring out how you can make your monthly payment. Read the fine print on the mortgage you are applying for. In fact, if you can’t find a loan that fits your financial situation, it is best to hold off until later. You don’t want to get locked into South Lake Tahoe real estate that is beyond your means.
2. Reduce your debt-to-income ratio.
This is buying a home 101. When applying for a mortgage application, the first thing lenders look at is how much debt you have compared to your income. This indicates how financially fit you are and if you are ok to take on even more debt. If you are in the market to buy homes for sale in South Lake Tahoe, pay down your cards, cars and all things financed. The less debt you have, the better interest rate you’ll get on a loan as well as a higher loan amount in general.
3. You don’t have to pay off your student loan first.
According to a recent NAR report, almost 60% of first-time homebuyers said that student loans delayed their ability to save for a down payment. Student debt is incredibly common though, so lenders don’t view it any differently than other debt obligations.
4. Hold back your borrowing.
When you apply for a new line of credit, it initiates a hard pull on your credit report which in turn can lower your credit score. This can impact your mortgage eligibility as well as the final interest rate you’re offered. If you know you are buying homes for sale in South Lake Tahoe in the future, hold off on applying for other lines of credit until after you are in your new home.
5. Get smart about your credit situation.
Having a good credit score is crucial to getting a mortgage at a good rate. It is actually necessary to get a good rate on any type of loan-car, student, business. You can still get a mortgage without good credit as there are a lot of programs out there. However, taking the steps to clear up any errors or outstanding debt not only releases some extra pressure on you, but sets you up for a healthier financial future.
As always, be sure to chat with a qualified South Lake Tahoe realtor about what is needed to get the ball rolling. We can offer guidance, our preferred lenders and tips to get ready for this exciting new step! Need a South Lake Tahoe realtor? Give me a call. I would be happy to help!
