A real estate agent knows the housing landscape in your area. Because of this, they’ll know about comparable homes and pricing trends. They’ll also know the right negotiation tactics to try with the seller’s agent.
You may even be able to learn about houses before anyone else. If your real estate agent knows your criteria and stays connected with colleagues, they’ll be on the lookout for you. After all, they stand to gain a commission of around 5% if they find you the right home!
The biggest reason to hire a real estate agent is that it saves you time. When you’re trying to adjust to life out of college, you don’t need one more big task on your to-do list.
Communicate with your agent so they know your housing preferences. Show them your loan pre-approval and they’ll know the range of houses you can afford. Then let them do the legwork for you!
Are you wondering if it is possible to buy a house while paying off your student loan debt? Yes, it is possible. But you’ll need to work on increasing your income while reducing your debt no matter where you are in life. For many, the affordability of a city can play a large part in their ability to afford a home. This is one of the reasons people move to a place like Raleigh, or North Carolina in general. Other great options of places to move to include states like South Carolina, Georgia, Florida, Virginia, and Tennessee. People are relocating to the southeast because there are high-paying jobs with the affordability of real estate.
Work on a Better Debt-to-Income Ratio
Lenders will use your debt-to-income (DTI) ratio to determine how much house you can afford. Debts refer to car loans, student loans, or credit card debt payments that you need to make. The more debt you have, the higher your ratio will be.
For starters, you can add another part-time job or side hustle to increase your income. Drive for a ride-share or deliver groceries. Do some tutoring or dog walking.
Adding even a few payday loans Illinois Morris hundred dollars each month can help lower your DTI. And this can make you more attractive as a loan candidate.
Enroll in the Right Repayment Plan
Another way to improve your DTI is to change your student loan repayment program. For instance, enrolling in an income-driven repayment plan will help lower your monthly payments.
If you work for a non-profit or government agency, you may be able to pursue student loan forgiveness. Through this specific type of income-driven plan, you can eliminate your loans after ten years of work in this industry,
As a more aggressive step, pay down your loans before buying a home. While you might have to hold off on building equity, you’ll wipe out a considerable debt.
The Process of Due Diligence
During the period of due diligence, you’ll assess the physical state of the property. You’ll also learn more about the value of the home. Ultimately, what you learn can help shape negotiations – and whether you stick with the property.
What is Due Diligence?
Due diligence is a time frame that stretches from when you enter into a contract to when you close on the house. Your contract should tell you how long the period of due diligence lasts. It can range from a week to a month or longer.
The seller may offer a list of disclosures. Disclosures are the repairs or other issues that the house has faced over the years. Knowing the disclosures can inform what you choose to investigate during due diligence.