Buying A Home In Texas
The greater Prosper Tx market has seen explosive growth over the last two years. This growth is showing no signs of slowing down anytime soon, possibly for years. New listings are down 40%, we had 43% less closings, and home prices rose 36% over last year (MLS stats Nov 2021).
This creates a terrible scenario for home buyers in the greater Prosper Tx area. If you are looking for a new construction home, your odds are even worse. Home prices rose 35% in many neighborhoods in one year. Most builders have 24-30 lots in each neighborhood and have hundreds of ready, willing and able buyers.
We are still writing contracts for our buyers. We leverage our unique relationsionships with the builders to get our clients under contract.
Are You Ready to Buy?
The first question many people ask is “Am I ready to buy?” and the answer to that question will vary from person to person. When you buy a home, you are making an important investment for you and your family’s future and it isn’t something that should be taken lightly.
Here are a few questions to ask yourself:
- How are your finances and how much debt do you currently have?
- Do you have money saved for a down payment?
- Can you afford a monthly mortgage payment?
- Are you ready to settle down?
- Are you prepared to maintain a home?
What Should I Prepare?
Trying to determine how to prepare to buy a home can sometimes be overwhelming. There are a lot of different sources of information on the topic and sometimes you can get lost in all of the noise.
Here are a few actions you can take to prepare:
- Check your credit.
- Pay off debt.
- Start saving for a down payment.
- Look into any down payment assistance programs available.
- Get an idea of how much you want to spend.
What Can I Afford?
Knowing you financial situation’s specifics and a full breakdown of your monthly income and expenses are a great place to start. Once you have those items figured out, you will have a solid understanding of what your budget will be.
To calculate your monthly budget you must know:
- Your monthly household income.
- Your monthly household debt payments. (credit cards, auto loans, student loans, other fixed monthly payments.)
- Any other monthly bills.
- Your average monthly cost for food and other living expenses.
- Your desired amount for monthly savings or investments.
Once you have a handle on your monthly budget, you should also consider these things that you will need money to cover:
- Down payment.
- Home inspection and/or appraisal.
- Money for maintenance and repairs.
- Property Taxes and HOA fees.
- Homeowners insurance.
- Moving costs.
- Closing fees. (if any)
How Does The Home Search Process Work?
Now we can get to the fun part, looking for your new home! Our team is full of experts in this process and can help you find the best home that meets your requirements without breaking the bank.
Here are a few things to consider:
- Determine what your wants are.
- Determine what your needs are.
- Find neighborhoods that you like.
- Keep your price range in mind.
- Keep your expectations realistic.
What Should I Expect During The Offer and Closing Process?
Now that we have found you that “dream home”, it is time to make your offer and seal the deal. There are many quickly moving parts and steps during this final phase of the process, but we will be here with you every step of the way!
Remember these few tips:
- Never make an offer that too low, to risk the seller denying your offer.
- Never make an offer that is too high, to risk overpaying.
- Patience is important.
- Be timely with your communication and responsiveness.
- You’re not in this alone, leave the heavy lifting to us.
The 5 Steps To Buying A Home...
These five simple steps will take you through the process of pre-paring to purchase a home. They make sure everything is done in the proper order to set you up for success and cause you to have a great experience buying your forever home...
- Get Pre-Approved: When you meet with one of our mortgage agents, they will help you find out how much you can afford (try our mortgage calculator), answer all your questions, walk you through the mortgage process and provide you with a pre-approval letter so sellers know you are serious.
- Do You Need To Sell: Are you are considering selling your current home? If you are, then contact us now. We will create a market analysis for your home. We will show you how much your home will sell for and how fast it should sell.
- Search For Homes: We have three ways to search: our advanced search, our map search and our property tracker. Of course, if you need help setting up your searches, just reach out to your agent and they will set up all your custom searches.
- Why Not New: Many of our clients choose to build a new home. We are certified new construction experts and have tons of YouTube videos documenting our building expertise.
- Still Have Questions: Want more details? Do you love learning the nutts and bolts of a process? Just fill out the form below and one of our local agents will reach out right away to start getting those questions answered.