The US economy has experienced a year of thriving expansion that, despite the difficulties, such as the economic conflict with China, today hundreds of US citizens have a large amount of savings that they want to invest to improve their quality of life or professional status.
There are many national and foreign citizens who contact us every day to rent a better property than they currently live -a larger house, with more open spaces, in a better residential complex- and others who want to take the step of acquiring their own house to live.
If you are part of the group that wants to invest in renting a property other than the one you currently live, because your current lease contract is about to expire, if you want to acquire your own home, or maybe if you are looking a property for the business you are thinking of opening , let us offer you some basic advices to buy or rent a home, made by Bay Management Group, the number one option for property management services.
- Do a self-financial evaluation
Before buying and before starting the process of looking a house to buy or rent, it is important for you to analyze your financial situation. The most important thing is to determine our income and the capital that we have available as downpayment (The first payment you need to do to buy or rent).
Although interest rates for loans are currently low, obtaining a mortgage is difficult. Banks are increasingly demanding in verifying the income and credit history of any client.
- Set realistic expectations.
If you are buying your first home it is important that your expectations are realistic regarding the increase in the value of the property. The average valuation of a home in the United States is 3.6% per year, according to data from the Case-Shiller index, one of the main housing price indicators of Standard & Poor’s.
The actual market brings a lot of opportunities to house owners who wants to rent their property. (Image courtesy of Bay Management Group Official Facebook Profile)
- Become an expert!
Gather the information of the area you chose and the properties that interest you. It is important to know at what price were recently sold houses similar to the ones you want. You can obtain this information through sites such as Zillow.com or RealEstate.com.
- Seek the pre approval of a credit.
When seeking approval from a bank, the buyer will know their credit rating and the interest rate at which they would obtain a mortgage. It is very important that you look for many options from different banks to make a better decision.
To approve a loan, the bank will spend some time investigating your financial history, which is why it is so important that you show special interest in complying with advice number one (Do a self-financial evaluation). If you have previously found that your financial history meets the requirements to apply for a loan , bad surprises will be avoided.
- Think long term.
The purchase of housing is a long-term investment. It is recommended to buy with the perspective of keeping it for five years or more. This time allows you to obtain greater benefits from having a property if you live in it or if it was bought as an investment to rent.
Take the time to make a decision. There will always be doubts before signing the purchase contract, but if you have a well-structured financial plan in the short, medium and long term, you will see that the joy of owning your own home will always be above any fear.