on Wednesday, August 6th, 2014 at 4:06pm.
How do you know if you can afford to buy a house if you are renting or living in an apartment?
Home ownership is the American Dream, and surprisingly it isn't that hard to buy a house. There are just a few things you need, and I'm going to tell you all about them.
As housing prices rise in Austin, the ability to buy a new house becomes very realistic.
Sure it might not be the biggest nicest house, but it will be YOURS. No pounding on the ceiling asking your neighbor to turn it down. No more having to fight for parking places close to your door. A place you can paint any color you want (without having to ask permission). A home of your own.
As a general guideline, approximately 1/3 of your income should go to housing. So if you are making somewhere around $4,500 a month (combined income if you are married), then now is the time. You can get a great house for $1,500 a month in Austin.
Really? YES! It's not going to be downtown in a modern hi-rise, or in one of the popular central neighborhoods, but it could be a brand new house in a nice subdivision. A great 3 bedroom with a new kitchen (with granite counters even), that goes to good schools, and has a private yard. Something like this new house.
Steps to buying a house
There are two things you need when you are ready:
Talk to a Real Estate Agent
Talk to a Mortgage Broker
An agent will be able to guide you to homes in neighborhoods you can afford, and in the style you like. That's what we do. Everyday. I stay up to date on all the new developments, as well as have insider knowledge about almost every neighborhood in Austin.
To learn exactly how much house you can afford, that's where a mortgage broker comes in to play. If you don't know one, I can provide suggestions of some great people. In addition to learning how much house you can afford, a mortgage broker can also provide you with different loan programs (like if you are a veteran, or a teacher, or policeman), as well as provide options for different down payment programs (some as low as zero down)
Then, it's just a matter of finding the right house. I'll take you to as many places as you want to see, until you find that perfect one. Then I can help with all the legal paperwork, contracts, and title stuff, while the mortgage person takes care of getting you approved for a loan. The process can take as little as a week, but on average a month is typical.
That's right. Imagine living in your own home in as little as 30 days.